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CC 05-15-2025 Searchable PacketThursday, May 15, 2025 6:00 PM CITY OF CUPERTINO Special Televised Meeting 10350 Torre Avenue, Council Chamber and via Teleconference; and Teleconference Location Pursuant to Government Code section 54953(b)(2) Sheraton Stockholm, Tegelbacken 6, 101 23, 101 23 Stockholm, Sweden, Hotel Lobby City Council LIANG CHAO, MAYOR KITTY MOORE, VICE MAYOR J.R. FRUEN, COUNCILMEMBER SHEILA MOHAN, COUNCILMEMBER R "RAY" WANG, COUNCILMEMBER AGENDA 1 CC 05-15-2025 1 of 655 City Council Agenda May 15, 2025 IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Cupertino Community Hall, 10350 Torre Avenue. 2) Tune to Comcast Channel 26 and AT&T U-Verse Channel 99 on your TV. 3) The meeting will also be streamed live on and online at www.Cupertino.org/youtube and www.Cupertino.org/webcast Members of the public wishing to comment on an item on the agenda may do so in the following ways: 1) Appear in person at Cupertino Community Hall 2) E-mail comments by 4:00 p.m. on Thursday, May 15 to the Council at publiccomment@cupertino.gov. These e-mail comments will also be received by each City Councilmember, the City Manager, and the City Clerk’s Office. Comments on non-agenda items sent to any other email address will be included upon the sender's request. Emailed comments received following the agenda publication, prior to or during the meeting, will be posted to the City’s website. Oral public comments may be made during the public comment period for each agenda item. Members of the audience who address the City Council must come to the lectern/microphone, and are requested to complete a Speaker Card and identify themselves. Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments. 3) Teleconferencing Instructions To address the City Council, click on the link below to register in advance and access the meeting: Online Register in advance for this webinar: https://cityofcupertino.zoom.us/webinar/register/WN_OqN72_AnSIOfxnzlKXw6GA Phone Page 2 2 CC 05-15-2025 2 of 655 City Council Agenda May 15, 2025 Dial: 669-900-6833 and enter Webinar ID: 884 3990 2201 (Type *9 to raise hand to speak, *6 to unmute yourself). Unregistered participants will be called on by the last four digits of their phone number. Join from an H.323/SIP room system: H.323: 144.195.19.161 (US West) 206.247.11.121 (US East) Meeting ID: 884 3990 2201 SIP: 88439902201@zoomcrc.com After registering, you will receive a confirmation email containing information about joining the webinar. Please read the following instructions carefully: 1. You can directly download the teleconference software or connect to the meeting in your internet browser. If you are using your browser, make sure you are using a current and up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer. 2. You will be asked to enter an email address and a name, followed by an email with instructions on how to connect to the meeting. Your email address will not be disclosed to the public. If you wish to make an oral public comment but do not wish to provide your name, you may enter “Cupertino Resident” or similar designation. 3. When the Mayor calls for the item on which you wish to speak, click on “raise hand,” or, if you are calling in, press *9. Speakers will be notified shortly before they are called to speak. 4. When called, please limit your remarks to the time allotted and the specific agenda topic. 5. Members of the public that wish to share a document must email cityclerk@cupertino.org prior to the meeting. These documents will be posted to the City’s website after the meeting. NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Thursday, May 15, 2025, commencing at 6:00 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California 95014 and via teleconference, and Page 3 3 CC 05-15-2025 3 of 655 City Council Agenda May 15, 2025 Teleconference Location Pursuant to Government Code section 54953(b)(2) Sheraton Stockholm, Tegelbacken 6, 101 23, 101 23 Stockholm, Sweden, Hotel Lobby. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." SPECIAL MEETING CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL POSTPONEMENTS AND ORDERS OF THE DAY CONSENT CALENDAR 1.Subject: Accept City Council Subcommittee recommendation regarding the 2025 July 4th fireworks Recommended Action: Accept the City Council Subcommittee recommendation regarding the 2025 July 4th fireworks Staff Report A - Council Subcommittee Recommendation PUBLIC HEARINGS Effective January 1, 2023, Government Code Section 65103.5 (SB 1214) limits the distribution of copyrighted material associated with the review of development projects. Members of the public wishing to view plans that cannot otherwise be distributed under SB 1214 may make an appointment with the Planning Division to view them at City Hall by sending an email to planning@cupertino.org. Plans will also be made available digitally during the hearing to consider the proposal. 2.Subject: Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts. (Continued from May 6, 2025) Recommended Action: Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3. Staff Report A - Assembly Bill 2561 CC 05-06-2025 Item No. 11. AB2561 Vacancy Rates Public Hearing_Staff Presentation (Added 5-5-25) CC 05-06-2025 Item No. 11. AB2561 Vacancy Rates Public Hearing_Supplemental Report (Added 5-6-2025) CC 05-06-2025 Item No. 11. Attachment B - Vacancy Info (Added 5-6-2025) Page 4 4 CC 05-15-2025 4 of 655 City Council Agenda May 15, 2025 ACTION CALENDAR 3.Subject: Per the Council's direction, review potential Capital Improvement Plan (CIP) projects to be defunded from the current approved list. (Continued from May 6, 2025) Recommended Action: City Council shall consider: A) Which of the following projects to consider defunding and eliminating, or; B) Reaffirm the current Capital Improvement Programs project list. Staff Report A – FY 25-26 CIP Project Narratives-defunding review B – FY 25-26 CIP Fiscal Summary Table C – Photovoltaic Systems project cost analysis February 2025 CC 05-06-2025 Item No. 14 Review CIP Projects to be defunded_Written Communications (added 5-5-25) STUDY SESSION 4.Subject: Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs Recommended Action: Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs A - FY 2025-26 Proposed Budget B - FY 2025-26 CIP C - FY 25-26 Community Funding Recommendation from Parks and Recreation Commission ADJOURNMENT Lobbyist Registration and Reporting Requirements: Individuals who influence or attempt to influence legislative or administrative action may be required by the City of Cupertino’s lobbying ordinance (Cupertino Municipal Code Chapter 2.100) to register and report lobbying activity. Persons whose communications regarding any legislative or administrative are solely limited to appearing at or submitting testimony for any public meeting held by the City are not required to register as lobbyists. For more information about the lobbying ordinance, please contact the City Clerk’s Office at 10300 Torre Avenue, Cupertino, CA 95014; telephone (408) 777-3223; email cityclerk@cupertino.org; and website: www.cupertino.org/lobbyist. The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to Page 5 5 CC 05-15-2025 5 of 655 City Council Agenda May 15, 2025 http://www.cupertino.org/cityclerk for a reconsideration petition form. In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request in advance by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, Cupertino, California 95014, during normal business hours; and in Council packet archives linked from the agenda/minutes page on the City web site. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Page 6 6 CC 05-15-2025 6 of 655 CITY OF CUPERTINO Agenda Item 25-13991 Agenda Date: 5/15/2025 Agenda #: 1. Subject:Accept City Council Subcommittee recommendation regarding the 2025 July 4th fireworks Accept the City Council Subcommittee recommendation regarding the 2025 July 4th fireworks CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1 powered by Legistar™7 CC 05-15-2025 7 of 655 1 CITY COUNCIL STAFF REPORT Meeting: May 15, 2025 Subject Approve the City Council Subcommittee recommendation regarding the 2025 July 4th fireworks Recommended Action Approve the City Council Subcommittee recommendation regarding the 2025 July 4th fireworks Reasons for Recommendation On February 4, 2025, the City Council approved a budget allocation of $140,000 for the 2025 July 4th fireworks event and formed a City Council Subcommittee comprised of Councilmember R “Ray” Wang and Vice Mayor Kitty Moore to bring back specific event details for Council consideration. This allocation includes all expenses related to fireworks including staff time. On March 18, 2025, the City Council received a verbal report from the Subcommittee regarding options and considerations for the 2025 July 4th fireworks event. The Council did not provide direction regarding the next steps. The Subcommittee recommendation is outlined in Attachment A. Staff is seeking approval: “Based on the response from Sand Hill and the availability at Hyde, it appears that the best venue will be Hyde Middle School. At this moment, project status is the following: 1. Funding - secured 2. Venue - evaluated and recommended - Hyde 3. Vendor - City in discussions with Pyro Spectaculars and other providers 4. Permits - Parks and Rec On behalf of Vice Mayor Moore and myself, our recommendation is to go with Hyde” 8 CC 05-15-2025 8 of 655 2 Next Steps If the Council approves the Subcommittee’s recommendation, staff will proceed with implementation including contracting with the vendor, securing permits, and coordinating logistics with the relevant departments and outside agencies. Sustainability Impact There are no sustainability impact implications associated with this report. Fiscal Impact The budget allocation of $140,000 for the fireworks event was approved on February 4, 2025, as part of the 2025 budget. The amount has been added as a recurring charge and is also included in the FY 2025–26 budget. California Environmental Quality Act Not applicable. City Work Program (CWP) Item: No CWP Item Description: N/A Council Goal: N/A Prepared by: Kirsten Squarcia, City Clerk Approved for Submission by: Tina Kapoor, Acting City Manager Attachments: A – Council Subcommittee Recommendation 9 CC 05-15-2025 9 of 655 From: R "Ray" Wang <RWang@cupertino.gov> Sent: Saturday, April 26, 2025 9:53 AM To: Pamela Wu <PamelaW@cupertino.gov>; Rachelle Sander <RachelleS@cupertino.gov>; Michael Woo <MichaelW@cupertino.gov> Cc: Kitty Moore <KMoore@cupertino.gov>; Floy Andrews <FloyA@cupertino.gov> Subject: FOURTH OF JULY FIREWORKS Dear CM Wu, CDA Woo, Director Saner, Based on the response from Sand Hill and the availability at Hyde, it appears that the best venue will be Hyde Middle School. At this moment, project status is the following: 1. Funding - secured 2. Venue - evaluated and recommended - Hyde 3. Vendor - City in discussions with Pyro Spectaculars and other providers 4. Permits - Parks and Rec On behalf of Vice Mayor Moore and myself, our recommendation is to go with Hyde but we are open to hear any other input from Director Sander or CM Wu on venue. Look forward to providing this update to the rest of the City Council and public at the appropriate time. Thank you for all your hard work. R R "Ray" Wang Councilmember City Council RWang@cupertino.gov 10 CC 05-15-2025 10 of 655 CITY OF CUPERTINO Agenda Item 25-13961 Agenda Date: 5/15/2025 Agenda #: 2. Subject:Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts. (Continued from May 6, 2025) Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3. CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1 powered by Legistar™11 CC 05-15-2025 11 of 655 CITY COUNCIL STAFF REPORT Meeting: May 15, 2025 Subject Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts. Recommended Action Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3. Background As part of the FY 2024-25 Mid-Year Financial Report on March 4, 2024. City staff informed City Council of vacancy reporting requirements ahead of budget adoption. Assembly Bill ("AB") 2561, codified in Government Code section 3502.3, passed in 2024, and requires public agencies to hold a public hearing to address the status of job vacancies prior to the adoption of the upcoming final budget. During this public hearing, the City must present information on the status of vacancies and the City's recruitment and retention efforts. If necessary, the City will identify necessary changes to policies, procedures, or recruitment activities that may lead to obstacles in the hiring process. This public hearing will ensure compliance with the new law. Reasons for Recommendation Assembly Bill (“AB”) 2561, passed in 2024, requires public agencies to hold a public hearing to address the status of job vacancies prior to the adoption of the upcoming final budget. Staff will present the following required information at the public hearing: 1. The status of vacancies at the City of Cupertino. 2. Information on the City of Cupertino’s recruitment and retention efforts. 3. Obstacles in the City of Cupertino's policies, procedures, and recruitment activities that may create challenges in the hiring process. 12 CC 05-15-2025 12 of 655 Based on the findings, staff recommends that Council receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3. As of April 14, 2025, there are no bargaining units with a vacancy rate exceeding 20%. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the staff presentation will also include the following information: 1. The total number of job vacancies within the bargaining unit. 2. The total number of applicants for vacant positions within the bargaining unit. 3. The average number of days to complete the hiring process from when a position is posted. 4. Opportunities to improve compensation and other working conditions. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. City Work Program (CWP) Item/Description None California Environmental Quality Act No California Environmental Quality Act impact. _____________________________________ Prepared by: Vanessa Guerra, Human Resources Manager Reviewed by: Kristina Alfaro, Director of Administrative Services Bargaining Unit Total Positions Vacant Positions Vacancy Rate As of 4/14/2025 Cupertino Employees’ Association (CEA)/IFPTE Local 21 72 8 11.1% Operating Engineers Local No. 3 Union, AFL-CIO (OE3) 52 5 9.6% Unrepresented Management/Appointed Employees 78 8 10.3% TOTAL (Does not include 5 Council positions) 202 21 10.4% 13 CC 05-15-2025 13 of 655 Floy Andrews, City Attorney Approved for Submission by: Tina Kapoor, Acting City Manager Attachments: A – Assembly Bill 2561 14 CC 05-15-2025 14 of 655 Assembly Bill No. 2561 CHAPTER 409 An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ] LEGISLATIVE COUNSEL'S DIGEST AB 2561, McKinnor. Local public employees: vacant positions. Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action. This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings. The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs. Digest Key Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes Bill Text 4/30/25, 9:49 AM California-2023-AB2561-Chaptered https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 1/315 CC 05-15-2025 15 of 655 THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares as follows: (a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations. SEC. 2. Section 3502.3 is added to the Government Code, to read: 3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit. (c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing: (1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501. 4/30/25, 9:49 AM California-2023-AB2561-Chaptered https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 2/316 CC 05-15-2025 16 of 655 SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings: It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public. SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law. 4/30/25, 9:49 AM California-2023-AB2561-Chaptered https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 3/317 CC 05-15-2025 17 of 655 AB2561 Vacancy Rates Public Hearing CITY OF CUPERTINO City Council Meeting May 6, 2025 18 CC 05-15-2025 18 of 655 AB 2561 requires that, on an annual basis, public agencies assess and address vacancy rates as well as: 1.Track job vacancies; 2.Present information on the status of the vacancies and recruitment and retention efforts at least once per fiscal year; and 3.Identify any policies, procedures, and recruitment activities that may present obstacles in hiring. 4.Additional Obligations May Apply if the Vacancy Rate in a Bargaining Unit Exceeds 20%. Assembly Bill (AB) 2561 19 CC 05-15-2025 19 of 655 City of Cupertino Bargaining Units Bargaining Unit Represented Classifications Operating Engineers Local No. 3 Union, AFL-CIO (OE3) Maintenance positions Cupertino Employees Association/IFPTE Local 21 (CEA) Professional, paraprofessional, technical, clerical positions Unrepresented Employees/Appointed Employees Management, Confidential positions/Appointed by City Council 20 CC 05-15-2025 20 of 655 Budgeted Full-Time Equivalent (FE) Full-Time (Excludes Part- Time staff) 21 CC 05-15-2025 21 of 655 New Hires and Promotions 39 29 27 20 22 16 38 19 14 20 11 7 6 14 13 6 8 15 9 6 0 10 20 30 40 50 60 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 New Hire Promotion YTD Through 4/14/2025 22 CC 05-15-2025 22 of 655 Vacancy Rates by Dept. (as of 4/14/25) Department Total FTE Vacant FTE Vacancy Rate City Manager’s Office 17 2 11.8% City Attorney's Office 3 1 33.3% Administrative Services 18 2 11.1% Community Development 35 6 17.1% Innovation & Technology 14 0 0% Parks and Recreation 28 2 7.1% Public Works 87 8 9.2% Total 202 21 10.4% 23 CC 05-15-2025 23 of 655 Vacancy Rates by Bargaining Unit* Bargaining Unit Budgeted FTE Filled FTE Vacancy Rate Operating Engineers Local No. 3 Union, AFL- CIO (OE3) 52 47 9.6% Cupertino Employees Association/IFPTE Local 21 (CEA) 72 64 11.1% Unrepresented Employees/App ointed Employees 78 70 10.3% 24 CC 05-15-2025 24 of 655 Recruitment Processes 25 CC 05-15-2025 25 of 655 Recommendation and Alternatives Staff Recommendation Accept Vacancy Report and Conduct Public Hearing 26 CC 05-15-2025 26 of 655 1 CITY COUNCIL STAFF REPORT SUPPLEMENTAL 1 Meeting: May 6, 2025 Agenda Item #11 Subject Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts. Recommended Action Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3. Background: Staff’s responses to questions received from councilmembers are shown in italics. Q1: I understand that the city often does not immediately start recruitment when a position becomes vacant. One example is the Assistant City Manager position, which has been vacant for one year and recruitment only started recently/ For example, the position of Emergency Manager (Tom Chin) has been vacant for 4 months, but the city manager decides to hire a consultant. Could we get a list of these vacant positions, the date they have become vacant, the status of recruitment (when recruitment was started if at all or expected date to start recruitment if at all, any reason on whether to delay recruitment)? (Mayor Chao) Staff Response: Please see attached spreadsheet Q2: We have also some vacancy due to retirement. For example, I learned that one member of the 4-member video team required at the end of last year and the city did not plan to fill that position. Is that counted as one vacant position in this report? (When the position is there, but the city does not plan to fill it.) (Mayor Chao) Staff Response: This position was filled through recruitment. 27 CC 05-15-2025 27 of 655 2 Q3: I have learned that another member of the remaining video team will retire soon, likely in June. What is the recruitment plan so that the video team is not understaffed, especially when we know of upcoming retirement ahead of time? (Mayor Chao) Staff Response: It is tentative at this time, as there is no confirmation of a pending retirement in video. Q4: Even though not required by AB 2561, I would still like to know what retention efforts were made in the past few years? (Mayor Chao) Staff Response: The City’s retention efforts include a variety of programs such as employee engagement events, investing in our employees with robust professional training and development opportunities and a competitive salary and benefits program. Attachments Provided with Original Staff Report: A – Assembly Bill 2561 Attachments Provided with Supplemental: B – Vacancy Info 28 CC 05-15-2025 28 of 655 Dept Position Class Title (working title)Status Bargaining Unit # of Vacancies Date Vacant AS Budget Manager Waiting for new Assistant Director Classification requested at Proposed Budget Unrep 1 7/13/2024 AS Management Analyst - overfilling Account Clerk I/II recruitment posted CEA 1 1/11/2025 CAO City Attorney None Appointed 1 2/23/2025 CDD Associate Planner recruitment posted CEA 1 4/1/2023 CDD Code Enforcement Officer recruitment posted CEA 1 6/9/2022 CDD Planning Manager (Housing Manager)Underfill with Assistant Housing Coordinator Classification requested at Proposed Budget Unrep 1 5/3/2023 CDD Associate Planner recruitment posted CEA 1 4/5/2025 CDD Senior Planner recruitment posted CEA 1 6/9/2022 CDD Senior Code Enforcement Officer pending acting assignment/posting July 2025 CEA 1 1/10/2025 CMO Assistant City Manager recruitment plan discussed Unrep 1 6/8/2024 CMO Senior Office Assistant posting mid May CEA 1 7/1/2023 PW Assistant Engineer None CEA 1 4/27/2024 PW Maintenance Worker I/II recruitment posted OE3 1 10/21/2024 PW Maintenance Worker I/II recruitment posted OE3 1 12/30/2024 PW Maintenance Worker I/II recruitment posted OE3 1 2/18/2025 PW Maintenance Lead posting mid May OE3 1 3/4/2025 PW Administrative Assistant recruitment posted Unrep 1 3/24/2025 PW Maintenance Lead posting mid May OE3 1 4/5/2025 REC Management Analyst (Emergency Analyst)None Unrep 1 5/11/2024 REC Assistant Director Parks and Recreation posting mid May Unrep 1 1/31/2025 Total 20 CC 05-06-2025 Item No. 11. Attachment B 29 CC 05-15-2025 29 of 655 CITY OF CUPERTINO Agenda Item 25-13962 Agenda Date: 5/15/2025 Agenda #: 3. Subject: Per the Council's direction, review potential Capital Improvement Plan (CIP) projects to be defunded from the current approved list.(Continued from May 6, 2025) City Council shall consider: A) Which of the following projects to consider defunding and eliminating, or; B) Reaffirm the current Capital Improvement Programs project list. CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1 powered by Legistar™30 CC 05-15-2025 30 of 655 CITY COUNCIL STAFF REPORT Meeting: May 15, 2025 Subject Per the Council’s direction, review potential Capital Improvement Plan (CIP) projects to be defunded from the current approved list. Recommended Action City Council shall consider: A) Which of the following projects to consider defunding and eliminating, or; B) Reaffirm the current Capital Improvement Programs project list. Background The proposed Fiscal Year (FY) 2025-2026 CIP and Five-year Plan was presented to the City Council on April 2. The Council instructed staff to identify potential CIP projects to be considered for removal or reduction in scope, and to be discussed in May. The motion from the April 2 meeting is as follows: MOTION: Chao moved and Moore seconded to approve the $2 million funding for the three projects proposed by staff, including the following input: • City Hall Annex to move forward with 100% design • City Hall renovation to come back in October/November, including financing options, cost-benefit analysis • Potential items to consider for removal or reduction in scope – based on Council input at the meeting or later – to come back in May • Capital budget format goes to Audit Committee for consideration Following the Council’s direction, staff has engaged with individual council members to survey which existing CIP projects should be considered for removal or reduction in the current approved scope. The following list comprises individual councilmember’s suggestions: 1. Stevens Creek Boulevard CL IV Bikeway - Phase 2A Construction & Design of Phase 2: requested by Councilmember Wang for defunding consideration. 2. Stevens Creek Boulevard CL IV Bikeway - Phase 2B Construction: requested by Councilmember Wang for defunding consideration. 3. Stevens Creek Boulevard CL IV Bikeway - Bandley Dr. Signal: requested by Councilmember Wang for defunding consideration. 31 CC 05-15-2025 31 of 655 Page 2 4. Photovoltaic Systems Design and Installation: requested by Councilmembers Chao and Wang for potential reduction in the scope. 5. Bollinger Road Corridor Study: requested by Councilmembers Moore and Wang for defunding consideration. 6. Silicon Valley Hopper EV Parking: requested by Councilmember Wang for defunding consideration. Refer to Attachments A and B for information shared on these projects at the April 2 Council meeting. Attachment C is cost analysis information on the Photovoltaic Systems Design and Installation project from the presentation to the City Council on February 4 in the context of awarding the design-build contract. Available Options In the sections that follow, information is provided on the existing funding and the fiscal impacts of defunding or continuing with each project. 1. Stevens Creek Boulevard Class IV Bikeway - Phase 2A Construction & Design of Phase 2 Project Description: Phase 2A includes design and construction of the separated bikeway along Stevens Creek Boulevard (SCB) from Wolfe Road to De Anza Blvd. Improvements include traffic signal modifications at Wolfe Road and De Anza Blvd. to provide separate bicycle phasing. SCB Class IV Bikeways is the top priority from the 2016 Bicycle Transportation plan (BTP), and a Tier One priority of the 2018 Pedestrian Transportation Plan (PTP) – improving vehicular, bicyclist and pedestrian safety along one of Cupertino’s busiest arteries was considered a highly important project. This project is also a subsequent phase of a previous project (Phase 1). Phase 2 Design was approved as part of the FY2020-2021 CIP, and Phase 2 Construction was approved as a new project in the FY2021-2022 CIP. Status of the project: The SCB Class IV Bikeway, Phase 2A will begin construction activities in summer 2025. The contractor is currently procuring materials with long lead times. Project completion is expected by the end of the calendar year. Funding: The City anticipates receiving the grant funds upon completion of Phase 2A as noted in the tables below. The grant funds will not increase the project funding but will be used to reduce the expenditure of City funds allocated to the project. // // 32 CC 05-15-2025 32 of 655 Page 3 TABLE 1A Project name Project Description Year Initiated Approved Funding Project Total Unencumbered Funds Stevens Creek Blvd. Class IV Bikeway Phase 2A Design (2A and 2B) and Construction (2A) of the separated bikeway along Stevens Creek Blvd. from Wolfe Road to DeAnza Blvd. (Externally Funded, in part) FY20-21 $350,000 $2,350,000 $277,829 Expenses to date: ~$310,000 Construction, City Funding FY21-22 $2,000,000 OBAG FY24-25 $807,000 SB1 FY24-25 $693,000 Fiscal Summary: The project (Phase 2A) has a total of $2,350,000 in City funding, not including grants. Approximately $310K has been spent to date, and the project is expected to have $2.2 million in expenses by the end of the project. The fiscal summary from the 2/04/25 mtg is copied below. TABLE 1B - FISCAL SUMMARY (information from February 4 Staff report) Current Funding Status (Budget) Amount City Approved Funds FY 21 – Phase 2A and 2B Design Phase $350,000 City Approved Funds FY 22 – Construction (Phase 2A) $2,000,000 Design and Construction Phase 2 – Subtotals: (budget unit 420-99-036) $2,350,000 Projected Funding Impact (Expenses) Amount Design Phase Expenditures to date ($213,863) Design Phase (for Phase 2B Design completion) ($96,620) *Construction Contract ($1,569,798 base contract and $156,980 contingency) ($1,726,778) *Construction Management ($185,000) Subtotal: ($2,222,261) *If Phase 2A project were defunded, a portion of these funds could be recovered. Summary Amount Current Project Budget (420-99-036) $2,500,090 Projected Funding Impact ($2,222,261) Remaining Funds: $277,829 33 CC 05-15-2025 33 of 655 Page 4 Construction Phase 2A External Funding Amount Local Match Total Amount One Bay Area Grant (OBAG) **$807,000 $93,000 $900,000 Senate Bill 1 (SB1) **$693,000 $32,000 $725,000 Total **$1,500,000 $125,000 $1,625,000 **The grant funds will offset Phase 2A expenditures. Option 1 – Defund the Project Defunding the project would allow approximately $2.04 million ($2,350,000 - $310,000 = $2,040,000) of City funds to be reallocated, pending resolution of expenditures on the construction contract and construction management contracts which are not accounted for presently. The City has paid approximately $310,000 in design phase expenses for Phase 2A and 2B. The SB1 funding ($693,000) can be reallocated to another qualifying project. The VTA OBAG-2 funding ($807,000) would be lost. While it is possible that VTA would allow relocation of these funds, it is highly unlikely. This action could also hinder the City’s ability to secure OBAG grant funding in the future. The City would also be cancelling two fully executed contracts for construction and construction management/inspection. The City has a “termination for convenience” clause built into our contracts. The City will need to provide some compensation to the contractor for activities to date, but this would be a relatively small portion of the contract total. At this time, an estimate would be $25K to $50K. With regards to future project bids, there could be some impacts as some contractors may decide to focus bidding efforts on projects from other Cities or private entities that do not have a history of terminating contracts. Additionally, these contractors would most likely be reluctant to spend time and effort on future bids in Cupertino. Option 2 – Continue with the Project Phase 2A construction has $1,500,000 in external funding which offsets the actual cost to the city to approximately $725K. ($2,222,261 - $1,500,000 = $722,261). TABLE 1C – FISCAL IMPACT OF DEFUNDING Options Approved City Funding *Expenses/ Encumbrances Grant Funding Applied Funding Return Defund $2,350,000 ($310,000) $2,040,000 Proceed $2,350,000 ($2,222,261) $1,500,000 $1,627,739 Difference $412,261 *Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project. 34 CC 05-15-2025 34 of 655 Page 5 2. Stevens Creek Boulevard Class IV Bikeway - Phase 2B Construction Project Description: Phase 2B includes construction of the separated bikeway along SCB from De Anza Blvd. to Highway 85. The designs for SCB Phase 2A and 2B were jointly funded. SCB Bikeway Phase 2B and the Bandley Drive Signal Upgrade projects are intended to be combined during construction to increase efficiency, however funding is noted separately because the Bandley intersection project is partially funded with developer in-lieu fees. This project is designated as a priority in the BTP and PTP and is a subsequent phase of a previous project (Phase 1 and 2A). Improving vehicular, pedestrian and bicyclist safety along SCB is a primary concern. The BTP named this the first priority, and the PTP assigned this Tier 1 priority. Status of the project: The SCB Class IV Bikeway, Phase 2B is 95% complete with the design phase. Prior to commencing with bidding and construction, the City intends to search for external funding sources and will return to City Council for funding approval for the project. TABLE 2 Project name Project Description Year Initiated Approved Funding Project Total Unencumbered funds Stevens Creek Blvd CL IV Bikeway Phase 2B Construction of the separated bikeway along Stevens Creek Blvd from De Anza Blvd to US-85. This includes signal upgrades at Bandley Drive. *The design funding was in conjunction with Phase 2A. FY20-21 $0 $0 $0 *Expenses to date: $0 *Expenses to date for design are included in the Phase 2A design total. Option 1 – Defund the Project Defunding the project would result in $0 of City funds to be reallocated. The City has paid approximately $310,000 in design phase expenses for Phase 2A and 2B. Option 2 – Continue with the Project It is likely that external funding will be available for construction of Phase 2B to offset the use of City funds. However, no external funding has been acquired for Phase 2B to date. The estimated construction cost of this project is $1,800,000. 35 CC 05-15-2025 35 of 655 Page 6 3. Stevens Creek Boulevard Class IV Bikeway - Bandley Dr. Signal Project Description: Upgrades to the traffic signal at Bandley Dr. and SCB will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto SCB, to enhance safety and overall signal operation efficiency. SCB Phase 2A and 2B were jointly funded in design. SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency, however funding is noted separately because the Bandley intersection project is partially funded with developer in-lieu fees. Status of the project: For efficiency, the design and construction of this project is combined with the SCB Class IV Bikeway, Phase 2B project, which is 95% complete with the design phase. TABLE 3A Project name Project Description Year Initiated Approved Funding Project Total Unencumbered Funds Bandley Intersection Signal upgrades at Bandley Drive. Scope of work will be included in SCB Phase 2B for efficiency. (Externally Funded, in part) FY18- 19 $150,090 $142,208 Expenses to date: $7,882 In-Lieu funds FY18- 19 $25,658 City funding FY18- 19 $124,432 Option 1 – Defund the Project Defunding the project would result in $116,550 of City funds to be reallocated. The developer in-lieu funds would be addressed by the City Attorney at a future date. Option 2 – Continue with the Project It is likely that external funding will be available for construction of Phase 2B to offset the use of City funds. TABLE 3B – FISCAL IMPACT OF DEFUNDING Options Approved City Funding *Expenses/ Encumbrances Grant Funding Applied Funding Return Defund $124,432 ($7,882) $116,550 Proceed $124,432 ($150,090) $25,658 $0 Difference $116,550 36 CC 05-15-2025 36 of 655 Page 7 *Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project. 4. Bollinger Road Corridor Study Project Description: The City intends to undertake a multifaceted approach to further inform the Bollinger Road Corridor Safety Study (BRCSS) recommendations. Traffic modeling will perform microsimulation analyses of proposed alternatives. This will evaluate potential impacts, such as congestion or traffic diversion, and identify necessary mitigation measures. The City will engage a consultant to design and execute a robust stakeholder engagement process, including interviews, surveys, and workshops, culminating in a report to combines the findings and communicates outcomes. Lastly, a traffic enforcement initiative, guided by the Safe System Approach, will fund two traffic enforcement agents for a one-year pilot, enhancing safety as the project develops. This project is a health and safety priority, has been requested by the Bicycle Pedestrian Commission in response to a fatality that occurred along this stretch of Bollinger Road, is a subsequent phase of a previous project following the 2020 initial study. Enhancing safety along the Bollinger Road Corridor is a priority in both the BTP and PTP. Secured grant funding for the analysis made it fiscally responsible to begin the study at this time. Status of the project: The City is coordinating with the grant agency to finalize and execute the grant agreement. Once the grant agreement is finalized, the City intends to procure a consultant team to perform the analysis and outreach efforts. The pre- design/analysis work on the Bollinger Road Corridor will be a two+ year process that is anticipated to be completed in FY 2028-2029. Funding for the final design and construction would be pursued after the analysis is complete. It is anticipated that the design and construction would be initiated in FY 2030-2031. The grant funding secured is from a federal grant program, which currently leaves some uncertainty as to whether the City will be able to finalize the grant agreement, and thus the City has not initiated any efforts that result in further expenditure. Federal Highway Administration (FHWA) has not yet signed the grant agreement and they are evaluating all pending agreements. TABLE 4A Project name Project Description Year Initiated Approved Funding Project Total Unencumbered funds Bollinger Road Corridor Study Traffic analysis, topographic and utilities survey, and preliminary engineering of Bollinger FY24- 25 $106,400 $532,000 $532,000 37 CC 05-15-2025 37 of 655 Page 8 Road. (Externally Funded, in part) Safe Streets 4 All (SS4A) grant FY24- 25 $425,600 Option 1 – Defund the Project Defunding the project would result in $106,400 of City funds being reallocated, and the grant funding would be lost. Option 2 – Continue with the Project It is likely that external funding will be available for the design and construction of the project once the traffic analysis and community input from this study are compiled into a report. TABLE 4B – FISCAL IMPACT OF DEFUNDING Options Approved City Funding *Expenses/ Encumbrances Grant Funding Applied Funding Return Defund $106,400 $0 $106,400 Proceed $106,400 ($532,000) $425,600 $0 Difference $106,400 *Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project. 5. Photovoltaic Systems Design and Installation Project Description: In 2023 PG&E announced a solar buy-back rate decrease, designated as Net-Energy Metering 3 (NEM 3), for electricity generated by photovoltaic (PV) systems. However, a window was provided to allow grandfathering buy-back rates, at the more economically-attractive NEM 2.0 rates, if interconnection applications were successfully submitted and corresponding systems are operational by 2026. NEM 2.0 Interconnection Applications were successfully submitted to PG&E for five Cupertino facilities: Blackberry Farm, Civic Center, Library, Quinlan Community Center & Senior Center, and Sports Center. This project aims to design and build PV systems at three of these locations. Council reviewed and approved the conceptual designs for Community Hall, Quinlan Community Center, and Sports Center in December 2024, before awarding the Design Build contract in February 2025. 38 CC 05-15-2025 38 of 655 Page 9 The City must connect the proposed photovoltaic systems to the grid by 4/15/2026 to take advantage of the NEM 2.0 applications, which provides 75 – 80% greater compensation than NEM 3 rates for electricity that is fed back into the electrical system. The savings in utility costs are projected to be approximately $290K annually, and $13.4 million over a 30-year lifespan. Installation of the PV systems is projected to provide substantial fiscal savings on utility costs. The use of cleaner energy sources is also a CAP goal. Status of the project: The PV project contracts for the design-build entity and construction management were approved in February and the design phase is underway. TABLE 5A Project name Project Description Year Initiated Approved Funding Project Total Remaining Funds Photovoltaics Systems (PV) Design & Installation This project will design-build PV systems at three locations: Quinlan Community Center, Cupertino Sports Center, and Community Hall. Estimated Completion: 2026 FY24-25 $6,300,000 $6,300,000 $6,296,600 Fiscal Summary (information from the February 4 staff report to award the DB contract): The PV Project budget (420-99-274) has a total City-funded approved project budget of $6,300,000. The total expenditures after completion of the project are estimated to be $4,624,491, with remaining funds of $1,675,509. TABLE 5B - Fiscal Summary Table Current Funding Status (Budget) Amount City Approved Funds - FY 25 $6,300,000 Projected Funding Impact (Expenses) Amount Expenses to date (Conceptual Design) ($59,610) Construction Contract ($3,939,881 base contract and $400,000 contingency) ($4,339,881) Construction Management ($225,000) Subtotal: ($4,624,491) Summary Amount Current Project Budget (420-99-036) $6,300,000 Projected Funding Impact ($4,624,491) Remaining Funds: $1,675,509 39 CC 05-15-2025 39 of 655 Page 10 The City will apply for the Inflation Reduction Act (IRA) Direct Pay credit at the end of the project. If the application is successful, the rebate will cover 30% of the cost of the PV system installation. The project will also pursue the “Build America Buy America Act” (BABAA) domestic content bonus credit program for energy projects, which could return an additional 10% to the City. The BABAA bonus credit requires that the project use a specified percentage of domestically produced steel, iron, and manufactured products. The revenue from either of these rebate programs, as much as $1.4 million, is not guaranteed. The IRA credits are potentially at risk. At this time, Presidential Administration has paused all funding disbursements for projects funded by the Inflation Reduction Act. Any disbursements are currently required to receive specific approval from the federal government. Option 1 – Defund the Project Defunding the project would result in approximately $6.2 million of City funds to be reallocated. The design-build contract with Syserco ($3.9 million) has been executed and some funds would be reimbursed to Syserco for time spent. The City would not see the $13.4 million in savings over the next 30 years on utility costs – those savings would be lost if the project is defunded. Option 2 – Continue with the Project This project is anticipated to save $13.4 million in the next 30 years in utility costs. Refer to Attachment C for more detail. With the federal rebates projected, 9 years is the payback period for the project costs. Without the federal rebates, the payback period is 13 years. TABLE 5C – FISCAL IMPACT OF DEFUNDING Options Approved City Funding *Expenses/ Encumbrances Rebate Funding Return Defund $6,300,000 ($59,610) $6,240,390 Proceed $6,300,000 ($4,624,491) $1,679,068 $3,354,577 Difference $2,885,813 *Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project. 6. Silicon Valley Hopper EV Parking Project Description: Provide electric vehicle charging stations (EVCS) for Silicon Valley Hopper EV fleet [formerly Via shuttle]. The Silicon Valley Hopper fleet requires dedicated EVCS for operational efficiency. 40 CC 05-15-2025 40 of 655 Page 11 Initiated as a pilot program by City Council in 2019 as Via-Cupertino, the micro-transit rideshare program rebranded in 2023 as Silicon Valley (SV) Hopper when it partnered with the City of Santa Clara. The project budget includes design and construction. The budget is not adequate for additional electrical service upgrades, if required. A search for additional external funding is underway. Presently the EV fleet is being parked and charged at De Anza College. The city of Santa Clara is exploring the option of providing overnight charging at existing EVCS in Santa Clara. They have been working with their utility provider for over a year, but the outcome is still uncertain. Status of the project: The City is currently seeking professional design services to prepare plans for construction. TABLE 6A Project name Project Description Year Initiated Approved Funding Project Total Unencumbered funds Silicon Valley Hopper EV parking Provide electric vehicle charging stations (EVCS) for SV Hopper (formerly VIA) fleet. FY22-23 $350,000 $350,000 *$321,000 *$29,000 has been spent on preliminary engineering and design information. Option 1 – Defund the Project Defunding the project would result in $321,000 of City funds to be reallocated. Defunding the project means that the City would be reliant on utilizing non-City owned facilities to support the fleet of electric shuttle vehicles. Option 2 – Continue with the Project It is likely that external funding will be available for the design and construction of this project. TABLE 6B – FISCAL IMPACT OF DEFUNDING Options Approved City Funding *Expenses/ Encumbrances External Funding Funding Return Defund $350,000 ($29,000) $321,000 Proceed $350,000 ($350,000) $0 $0 Difference $321,000 *Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project. Summary 41 CC 05-15-2025 41 of 655 Page 12 As part of the Capital Improvement Programs (CIP) review discussion on April 2, the City Council requested the opportunity to review certain CIP projects to consider defunding.  Stevens Creek Boulevard Class IV Bikeway - Phase 2A, 2B and Bandley Intersection: approximately $2.15 million could be returned to the Capital Reserve. This project was the top priority of the 2016 Bicycle Transportation Plan to enhance safety on Stevens Creek Boulevard. Defunding this project could marginalize the City’s ability to acquire grant funding from VTA in the future.  Bollinger Road Corridor Study: the A conceptual study was published in 2021 and was informed by prior pedestrian/vehicular collisions that resulted in two deaths. The proposed traffic analysis and public outreach is partially (80%) funded through external grants, and the analysis will provide information essential to understanding the potential next steps. Defunding the study will return $100,000 to the Capital Reserve.  Photovoltaic Systems Design and Installation: Approximately $6.2 million could be returned to the Capital Reserve. The completed project is anticipated to save $13.4 million over the next 30 years. With the federal rebates projected, 9 years is the payback period for the project costs. Without the federal rebates, the payback period is 13 years.  Silicon Valley Hopper EV Parking: Approximately $321,000 could be returned to the Capital Reserve if this project is defunded. Defunding the project means that our City’s fleet of electric shuttle vehicles are housed at non-City properties when not in use. Sustainability Impact No sustainability impact. Fiscal Impact Defunding of a CIP project would result in the approximate “Funding Return” total (listed below) being returned to the Capital Reserve. 1) Stevens Creek Boulevard Class IV Bikeway - Phase 2A = $2,040,000 2) Stevens Creek Boulevard Class IV Bikeway - Phase 2B = $0 3) Bandley Dr. Signal Upgrade = $116,550 4) Bollinger Road Corridor Study = $106,400 5) Photovoltaic Systems Design and Installation = $6,240,390 6) Silicon Valley Hopper EV Parking = $321,000 Proceeding with the CIP project would result in the use of the previously appropriated funds, offset by the external funding listed in the tables above (approximately $1.9M to $3.6M). City Work Program (CWP) Item/Description None 42 CC 05-15-2025 42 of 655 Page 13 California Environmental Quality Act No California Environmental Quality Act impact _____________________________________ Prepared by: Susan Michael, CIP Manager Reviewed by: Chad Mosley, Director of Public Works Approved for Submission by: Tina Kapoor, Acting City Manager Attachments: A – FY 25-26 CIP Project Narratives-defunding review B – FY 25-26 CIP Fiscal Summary Table C – Photovoltaic Systems project cost analysis February 2025 43 CC 05-15-2025 43 of 655 CIP FY 2024-2025 • 5-year plan ATTACHMENT A CAPITAL IMPROVEMENT PROGRAMS FISCAL YEAR 2024-2025 and 5-YEAR PLAN NEW PROJECT NARRATIVES LEGEND Health and Safety Improvements Council, Commissions and/or Community Priority High Priorities established through City’s Master Plans or Condition Assessment Reports Projects that are subsequent phases of existing projects; or projects in the queue that need to be activated Projects that have secured external funding CIP FY24-25 • 5-year plan ATTACHMENT A page 1 Projects that have secured external funding, or which can result in positive fiscal impacts to the City CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVESATTACHMENT B FISCAL YEAR 2025 - 2026 PROJECT NARRATIVES Attachment B for Defunding Review ATTACHMENT A SIX May 6, 2025 44 CC 05-15-2025 44 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Stevens Creek Blvd Class IV Bikeway – Phase 2A Separated Bikeway & Signal Upgrades Total City Funding $ 2,350,000 City Funding $ 2,350,000 External Funding $ 807,000 (OBAG) External Funding $ 693,000 (SB1) Remaining Funds (Feb 2025)$ 277,829 Funding Source, Approved Plan GF/GF, BTP Project Category Transportation Project Type Design and Construction Location SCB: Wolfe to De Anza Origin of Request Public Works Budget Unit 420-99-036, ST 053 and ST 059 Initiated FY20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Phase 2A includes design and construction of the separated bikeway along Stevens Creek Blvd (SCB) from Wolfe Road to De Anza Blvd. Improvements include traffic signal modifications at Wolfe Road and De Anza Blvd to provide separate bicycle phasing. The 2016 Bicycle Transportation Plan identifies improvements needed and priorities to enhance and promote safer bicycle transportation in the City. The number one priority of the Plan was to provide a separated Class IV bicycle lane on Stevens Creek Blvd. This project is the second phase to address that priority. Design and Documentation, and community outreach for Phase 2A (Wolfe Road to De Anza Blvd.) is complete. The construction contract for Phase 2A was awarded in February 2025. Construction will be complete before the end of the calendar year. See Phase 2B project narrative for more information on the subsequent work on this project. It is anticipated that separated bike lanes will require additional maintenance to sweep bike lanes clean of debris. This cost will be in addition to normal street sweeping operations and will be included in the Operating budget. Improving vehicular, pedestrian and bicyclist safety is a primary concern. The Bike Transportation plan named this the first priority, and the Pedestrian Transportation assigned this Tier 1 priority. External grant funding has been secured for this project (OBAG and SB1 funding) and this will be used to reduce the City’s costs on Phase 2A. The remainder of the funds allocated by the City for Phase 2 will be used on Phase 2B. PAGE 2 OF 7 45 CC 05-15-2025 45 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Stevens Creek Blvd Class IV Bikeway – Phase 2B Separated Bikeway & Signal Upgrades Total City Funding*$ TBD City Funding*$ 0 External Funding $ 0 Remaining Funds (Feb 2025)N.A. Funding Source, Approved Plan GF/GF, BTP Project Category Transportation Project Type Design and Construction Location SCB: De Anza to Highway 85 Origin of Request Public Works Budget Unit 420-99-036, ST 053 and ST 059 Initiated FY20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Phase 2B includes design and construction of the separated bikeway along Stevens Creek Blvd (SCB) from De Anza Blvd. to Highway 85. Upgrades to the traffic signal at Bandley Dr. and Stevens Creek Blvd. will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto Stevens Creek Blvd. *Note: SCB Phase 2A and 2B were jointly funded in design. SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency, however funding is noted separately because the Bandley intersection project is funded with DIL fees. The 2016 Bicycle Transportation Plan identifies improvements needed and priorities to enhance and promote safer bicycle transportation in the City. The number one priority of the Plan was to provide a separated Class IV bicycle lane on Stevens Creek Blvd. This project is the second phase to address that priority. It is anticipated that separated bike lanes will require additional maintenance to sweep bike lanes clean of debris. This cost will be in addition to normal street sweeping operations and will be included in the Operating budget. Design and Documentation of Phase 2B and the Bandley project is 95% complete. The project will be permitted, bid, and constructed once Phase 2A is complete. Improving vehicular, pedestrian and bicyclist safety is a primary concern. The Bike Transportation plan named this the first priority, and the Pedestrian Transportation assigned this Tier 1 priority. *External grant funding has been secured for Phase 2A of this project and this will be used to reduce the City’s costs on Phase 2A. The remainder of the funds allocated by the City for Phase 2 will then be used on Phase 2B. External funding may be available for Phase 2B. PAGE 3 OF 7 46 CC 05-15-2025 46 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Bandley Drive Signal Upgrades Traffic & Signal Upgrades Total Funding $ 150,090 City Funding $ 124,432 External Funding $ 25,658 (DIL) Remaining Funds (Feb 2025)$ 142,210 Funding Source, Approved Plan GF & DIL/GF, BTP Project Category Transportation Project Type Design and Construction Location SCB & Bandley Intersection Origin of Request Public Works Budget Unit 420-99-070, ST044 Initiated FY18-19 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Upgrades to the traffic signal at Bandley Dr. and Stevens Creek Blvd. will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto Stevens Creek Blvd. Note: SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency. Funding is noted separately because the Bandley intersection project is funded with DIL fees. The Bandley Drive Signal Upgrades will significantly enhance pedestrian safety and pedestrian connectivity across Stevens Creek Blvd within the Crossroads district by reducing pedestrian-vehicle conflicts. Vehicle safety will also be increased for vehicles exiting the Crossroads driveway and Bandley Drive. The signal upgrades will not increase operational costs. Design and Documentation of Phase 2B and the Bandley project is 95% complete. The project will be permitted, bid, and constructed once Phase 2A is complete. Improving vehicular, pedestrian and bicyclist safety is a primary concern. This project will significantly enhance pedestrian and vehicular safety. External grant funding has been secured for Phase 2A. Additional external funding may be available for Phase 2B. The remainder of the City funds allocated for Phase 2 will be applied to Phase 2B once Phase 2A is complete. The scope of work for the Bandley intersection will be included in the Phase 2B scope of work for efficiency. PAGE 4 OF 7 47 CC 05-15-2025 47 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Bollinger Road Corridor Study Traffic Analysis, Feasibility and Preliminary Design Total Funding $ 532,000 City Funding $ 106,400 External Funding $ 425,600 5-year Funding Total $ 4,000,000 Remaining Funds (Feb 2025)$ 532,000 Funding Source, Approved Plan GF, BTP & BCSS Project Category Transportation Project Type Design and Construction Location Bollinger Road, De Anza Blvd to Lawrence Exp. Origin of Request Public Works, BPC Budget Unit 270-99-270, ST 067 Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts In December 2020, City staff initiated a safety and operational study of the Bollinger Road from De Anza Boulevard to Lawrence Expressway to identify improvements that will enhance pedestrian, bicycle, motor-vehicle, and transit operations as a safety corridor. This is a collaboration between the City of Cupertino and City of San José. Further design and analysis work is required. This includes a topographic and utilities survey of Bollinger Road, preliminary engineering, and traffic analysis. The traffic analysis will determine the potential for the road diet (Alternative A from 2020 Feasibility Study) to increase congestion or divert traffic onto residential streets, and any corresponding mitigation measures to limit that impact (Alternative B from 2020 Feasibility Study). Year 1 work includes preliminary design, feasibility, public outreach, traffic analysis, and topographic surveying. Year 2 will see continuation of Year One activities and initial preliminary engineering. Year 3 will encompass final preliminary engineering and preparation of final plans, specifications, and estimates. T.B.D. External grant funding obtained; 20% matching funds required. Improves safety and sustainable means of transportation and builds upon master plan priorities. Initial Traffic Study and preliminary designs can be initiated in this FY by PW. Funding for analyses, public outreach, and preliminary plans, and estimates. Construction of improvements will require additional funding. PAGE 5 OF 7 48 CC 05-15-2025 48 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Photovoltaic Systems Design & Installation Total Funding $ 6,300,000 City Funding $ 6,300,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 6,296,600 Funding Source, Approved Plan CR, CAP Project Category Sustainability, Facilities Project Type Design and Construction Location Community Hall, Sports Center, Quinlan Community Center Origin of Request Public Works Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule/5-year Plan Information Funding Information Operating Budget Impacts In 2023 PG&E announced a rate decrease for electricity generated by photovoltaic (PV) systems (NEM 3) but provided a window to allow grandfathering the more economically-attractive NEM 2.0 rates if interconnection applications were successfully submitted and corresponding systems operational by 2026. NEM 2.0 Interconnection Applications were successfully submitted to PG&E for five Cupertino facilities: Blackberry Farm, Civic Center, Library, Quinlan Community Center & Senior Center, and Sports Center. This project aims to design and build PV systems at three locations. Council reviewed and approved the conceptual designs for Community Hall, Quinlan Community Center and Sports Center in December 2024 before awarding the Design Build contract in February 2025. The City must connect the proposed photovoltaic systems to the grid by 4/15/2026 in order to take advantage of the NEM 2.0 applications, which provides 75 – 80% greater compensation than NEM 3 rates for electricity that is fed back into the electrical system. The savings in utility costs are projected to be $290K annually, and $13.4M over a 30yr lifespan. Conceptual Design development and cost analysis completed in 2024. Design-Build: March 2025 to April 2026 Installation of the PV systems is projected to save $290K annually in utility costs. While additional maintenance will be required for the PV systems, additional staffing will not be required for ongoing operations and maintenance. Installation of the PV systems is projected to provide substantial savings on utility costs, going forward. The use of cleaner energy sources is a CAP goal. The proposed budget will enable design and construction of the systems. Inflation Reduction Act credits projected for this project are approximately $1.4M. Staff will also pursue other grant funding opportunities. PAGE 6 OF 7 49 CC 05-15-2025 49 of 655 PAGE 7 OF 7 50 CC 05-15-2025 50 of 655 FISCAL YEAR 2025 - 2026 CAPITAL IMPROVEMENT PROGRAMS • 5-YEAR PLAN Funding Types LEGEND Approved Plan(s) RUC = Restricted Use Category Parks ADA - ADA Transition Plan AP - Apple Funded Donation Streets & Infrastructure BCSS - Bollinger Road Corridor Safety Study BBF - Blackberry Farm Enterprise Fund (560)(RUC)Transportation BCA - Building Condition Assessment DIL - Developer in Lieu Fund (RUC)Facilities CAP - Climate Action Plan DON - Donation New project for FY25-26 CCMP - Civic Center Master Plan GF - General Fund (420/429) (unrestricted)BTP - Bicycle Transportation Plan PD - Park Dedication Fund (280) (RUC)EP - Santa Clara County Expressway Plan RP - Recreation Program Enterprise Fund (580) (RUC)FMP - 2020 Fiber Master Plan SC - Sports Center Enterprise Fund (570) (RUC)GP - General Plan SCCP - Stevens Creek Corridor Park Capital Projects MPP - McClellan Ranch Preserve Master Plan Fund (427) (RUC)PMP - Pedestrian Master Plan SD - Storm Drain Improvement Fund (210) (RUC)PRSMP - Parks & Recreation System Master Plan TF - Transportation Fund (270) (RUC)PTP - Pedestrian Transportation Plan RRGE - Regnart Road Geotechnical Evaluation SCC - Stevens Creek Corr. Park Master Plan & Restor. SDMP - Storm Drain Master Plan EXISTING & NEW FY25-26 PROJECTS Description City Funding External Project Funding Current Total Project Budget Remaining Funds (3/14/25) FY 25-26 City Funding Funding Type Approved Plan Budget Unit Project No. FY Initiated ADA Improvements (Annually funded)970,000 0 970,000 191,990 110,000 GF GP/ADA 420-99-007 PVAR 002 FY16 Facilities Condition Assessment (FCA) Implementation 2,006,470 423,420 2,429,890 1,536,282 940,000 GF BCA 420-99-063 BAI 001 FY19 City Hall Annex 3,000,000 0 3,000,000 1,872,539 GF CCMP 420-99-248 CIV 010 FY22 City Hall Improvements 500,000 0 500,000 378,036 GF CCMP 420-99-250 CIV 011 FY22 Library Expansion Project: landscaping & courtyard 8,705,438 1,000,000 9,705,438 1,391,910 GF CCMP 420-99-077 CIV 007 FY20 All Inclusive Play Area & Adult-Assistive Bathroom Facility (Jollyman Park) 2,418,146 2,473,201 4,891,347 4,255,313 GF PRSMP 420-99-051 PVAR 007 FY19 Lawrence-Mitty Park and Trail Plan 6,850,909 0 6,850,909 4,422,565 DIL GP, PRSMP 280-99-009 P LM 001 FY19 Park Amenity Improvements 600,000 0 600,000 417,460 GF PRSMP 420-99-086 PVAR 011 FY21 MRP West Parking Lot Improvements (Habitat monitoring)1,069,682 0 1,069,682 1,611 420-99-030 MRW 002 FY17 Annual Playground Replacement 1,500,000 0 1,500,000 913,755 GF PRSMP 420-99-085 PVAR 010 FY21 Stevens Creek Bridge Repair 172,000 688,000 860,000 172,000 TF GP 420-99-267 ST 063 FY24 McClellan Road Bridge Reconstruction 0 5,850,000 5,850,000 5,850,000 - Grants GP 420-99-273 ST 066 FY25 City Lighting LED improvements 1,350,000 1,350,000 501,074 GF GP 420-99-258 ST 052 FY22 City Bridge Maintenance Repairs (BPMP)2,176,105 1,893,195 2,176,105 174,347 TF GP 270-90-960 ST 002 FY15 Street Light Installation - Annual Infill (Annually funded)430,000 0 430,000 142,241 GF GP 420-99-056 ST 024 FY18 Vai Avenue Outfall 490,000 0 490,000 438,756 CR, SD GP 420-99-275 ST 065 FY25 Outfall Repairs 950,000 0 950,000 N.A.950,000 CR, SD GP FY26 Subtotal, Page 1 (Existing & New Projects)33,188,750 12,327,816 43,623,371 22,659,879 2,000,000 FY25-26 CIP Page 1 of 3 ATTACHMENT B 51 CC 05-15-2025 51 of 655 EXISTING & NEW FY25-26 PROJECTS (CON'T.) Description City Funding External Project Funding Current Total Project Budget Remaining Funds (3/14/25) FY 24-25 City Funding Funding Type Approved Plan Budget Unit Project No. FY Initiated Stevens Creek Blvd CL IV Bikeway - Phase 2A & Design 2,350,000 1,500,000 2,350,000 277,829 GF, Grant BTP 420-99-036 ST 053 FY21 Stevens Creek Blvd CL IV Bikeway - Phase 2B (design included in Phase 2A) 0 0 0 0 GF, DIL BTP 420-99-070 ST 044 FY19 Stevens Creek Blvd CL IV Bikeway - Bandley Dr. Signal 124,432 25,658 150,090 142,210 GF, DIL BTP 420-99-070 ST 044 FY19 Bollinger Road Corridor Study 106,400 425,600 532,000 532,000 CR, Grant BCSS 270-99-270 ST 067 FY25 Roadway Safety Improvements - High Friction Pavement & Speed Feedback Signage (HSIP) 356,180 3,205,620 3,561,800 3,500,800 CR/ Grant GP 270-99-271 ST 068 FY25 Tamien Innu - East Segment 0 2,536,000 2,536,000 1,411,377 AP/Grant BTP, PTP 420-99-036 ST 050, ST 046 FY21 Tamien Innu - Central Segment 0 4,785,000 4,785,000 4,582,979 AP/Grant BTP, PTP 420-99-036 ST 050, ST 046 FY21 Tamien Innu - West Segment 0 600,000 600,000 600,000 AP/Grant BTP, PTP 420-99-036 ST 051 FY21 School Walk Audit Implementation 23,989 1,221,863 1,245,852 939,405 AP/GF GP, PTP 420-99-069 ST 034 FY19 Electric Vehicle Charging Station (EVCS) expansion - Service Center 560,000 560,000 560,000 CR CAP 420-99-272 ST 069 FY25 Photovoltaic Systems Design and Installation 6,300,000 0 6,300,000 6,296,600 CR CAP 420-99-274 FVAR 004 FY25 Silicon Valley Hopper EV Parking 350,000 0 350,000 321,000 GF, TIRCP CAP 100-88-265 ST 062 FY23 Subtotal, Page 2 (Existing & New Projects) 10,171,001 14,299,741 22,970,742 19,164,200 0 Total (Existing & New Projects)43,359,751 26,627,557 66,594,113 41,824,079 2,000,000 FY25-26 CIP Page 2 of 3 52 CC 05-15-2025 52 of 655 COMPLETED PROJECTS Description City Funding Revenue Funding Sources Total Project Budget Remaining Funds (3/14/25) Funding Type Approved Plan Budget Unit Project No. FY Initiated Blackberry Farm Pool Improvements 750,000 0 750,000 31,204 GF PRSMP 420-99-073 BBF 004 FY22 Vai Avenue Outfall - Repairs*490,000 0 490,000 438,756 CR, SD GP 420-99-275 ST 065 FY25 De Anza Boulevard Buffered Bike Lanes 530,533 166,259 530,533 10,194 GF BTP 420-99-262 ST 061 FY23 McClellan Road Separated Bike Corridor, Phase 3 164,410 2,135,000 2,299,410 99,273 AP/GF/ Grant BTP 420-99-036 ST 047 FY20 Totals (Completed Projects) (Vai is not included)1,444,943 2,301,259 3,579,943 140,671 FIVE-YEAR PLAN Project (Years 2-5 show 5% escalation costs in grey text) FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost Funding Type Approved Plan Budget Unit Project No. CIP project # ADA Improvements (Annually funded)110,000 115,000 120,000 125,000 130,000 GF GP/ADA 420-99-007 PVAR 002 2016-03 Citywide Facilities Condition Assessment Implementation (FCA) 940,000 2,300,000 1,000,000 1,000,000 1,000,000 GF BCA 420-99-063 BAI 001 2019-02 Outfalls Repairs 950,000 600,000 600,000 600,000 600,000 CR, SD GP 420-99-273 ST 066 2025-03 BBF Golf Renovation: minimal repairs 1,433,250 1,504,880 1,580,150 1,659,158 BBF PRSMP, SCC totals 2,000,000 3,015,000 1,720,000 3,305,150 1,730,000 FY25-26 CIP Page 3 of 3 53 CC 05-15-2025 53 of 655 PHOTOVOLTAIC PROJECT COST/SAVINGS 17-Oct-24 A B C D E F G H I J K L M Facility kWh kWh Cost cost per kWh (ave.) PV systems kWH generation PV systems annual savings* PV systems annual electrical bill** PV systems lifecycle savings*** Constrn Cost: PV only Constrn Cost: EVCS / Misc. Non- ITC items only Constrn. Cost (PV + EV) IRA funding (40% of PV only) City Funding Payback Period (years) **** Payback Period (Years, No ITC) formula A/B B - E H + I H * 40% J - K DBE contract pricing for 3 sites Quinlan Community Center (0116367009-116367840)383,109 $121,336 $0.32 483,143 $163,067 -$41,731 $7,502,535 $1,691,865 $196,795 $1,888,660 $676,746 $1,211,914 6.72 9.77 Sports Center (0116367009- 116971849)329,369 $108,143 $0.33 335,228 $96,612 $11,531 $4,518,119 $1,375,175 $201,868 $1,577,043 $550,070 $1,026,973 9.11 12.81 Community Hall (0116367009- 116367449)114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $471,816 $2,362 $474,178 $188,726 $285,452 8.11 12.32 $269,289 $290,875 -$21,586 $13,419,350 $3,538,856 $401,025 $3,939,881 $1,415,542 $2,524,339 with 10% contingency $4,339,881 with 'wood' contingency $4,639,881 *Annual savings includes 5% utility escalation over a 1.5 year construction period , Year 1 ***Lifecycle Savings (30yrs) includes: 5% utility escalation, 0.5% module degradation, 30 years, NEM3 Included **The costs (B) are offset by the kWh savings (E), resulting in lowered electrical bill (F) ****Discounted cashflow methodology includes: 5% utility escalation, 0.5% module degradation, 30 years, NEM3 Included ATTACHMENT C - PHOTOVOLTAIC SYSTEMS DESIGN AND INSTALLATION PROJECT COST ANALYSIS FEBRUARY 2025 PAGE 1 OF 2 Cost Revision for 2 sites: Comm Hall and QCC (15% increase) Quinlan Community Center (0116367009-116367840)383,109 $121,336 $0.32 483,143 $163,067 -$41,731 $7,502,535 $1,945,645 $226,314 $2,171,959 $778,258 $1,393,701 7.58 10.94 Community Hall (0116367009- 116367449)114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $2,716 $545,305 $217,035 $328,269 9.13 13.74 $161,146 $194,263 -$33,117 $8,901,231 $2,488,233 $229,031 $2,717,264 $995,293 $1,721,970 with 10% contingency $2,988,990 Cost Revision for 1 site: Comm Hall (15% increase) Community Hall (0116367009- 116367449)114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $461,179 $1,003,767 $217,035 $786,732 9.13 13.74 $39,810 $31,196 $8,614 $1,398,696 $542,588 $461,179 $1,003,767 $217,035 $786,732 with 10% contingency $1,104,144 Cost Revision for 2 sites: Comm Hall and CSC (15% increase) Sports Center (0116367009- 116971849)329,369 $108,143 $0.33 335,228 $96,612 $11,531 $4,518,119 $1,581,451 $232,148 $1,813,599 $632,581 $1,181,019 10.21 14.25 Community Hall (0116367009- 116367449)114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $2,716 $545,305 $217,035 $328,269 9.13 13.74 $147,953 $127,808 $20,145 $5,916,815 $2,124,040 $234,865 $2,358,904 $849,616 $1,509,288 with 10% contingency $2,594,795 Cost Revision for 2 sites: Comm Hall and CSC (15% increase) Sports Center (0116367009- 116971849)329,369 $108,143 $0.33 335,228 $96,612 $11,531 $4,518,119 $1,581,451 $232,148 $1,813,599 $632,581 $1,181,019 10.21 14.25 Community Hall (0116367009- 116367449)114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $2,716 $545,305 $217,035 $328,269 9.13 13.74 $147,953 $127,808 $20,145 $5,916,815 $2,124,040 $234,865 $2,358,904 $849,616 $1,509,288 with 10% contingency $2,594,795 CURRENT PROJECT SCOPE: REDUCED PROJECT SCOPE OPTIONS: 54 CC 05-15-2025 54 of 655 Costs & Savings: Implement 3 Sites •Annual Cost Savings: $290,875 projected, with $13.4M 30-year lifecycle savings •Cost of Design and Construction ($4.4M) is less than project budget ($6.3M) •Net cost to City after IRA reimbursement: $2.5M projected •Net cost to City without IRA reimbursement: $4.4M projected; $1.5M differential and longer payback period •Project completion timeline for NEM2.0 compliance is April 2026 (time is of the essence). •Annual Cost Savings: $290,875 projected, with $13.4M 30-year lifecycle savings •Cost of Design and Construction ($4.4M) is less than project budget ($6.3M) •Net cost to City after IRA reimbursement: $2.5M projected •Net cost to City without IRA reimbursement: $4.4M projected; $1.5M differential and longer payback period •Project completion timeline for NEM2.0 compliance is April 2026 (time is of the essence). Costs & Savings: Fiscal Summary ATTACHMENT C - PHOTOVOLTAIC SYSTEMS DESIGN AND INSTALLATION PROJECT COST ANALYSIS FEBRUARY 2025 PAGE 2 OF 2 55 CC 05-15-2025 55 of 655 CC 05-06-2025 Item No. 14 Review potential CIP projects to be defunded Written Communications 56 CC 05-15-2025 56 of 655 From:Francois Delepine To:Chad Mosley; Rachelle Sander; City Council; Pamela Wu; City Clerk Cc:Francois Delepine Subject:Cupertino Sports Center Parking Is Limited—Cancel EV and Solar Panel Project at CSC. No Hopper fleet parking at CSC. Date:Thursday, May 1, 2025 1:22:07 AM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear City Clerk, Please include the below in written communications for the upcoming city council meeting. Dear Mayor Chao and Council Members, My family and I have been residents of Cupertino for 30 years. I am writing to request the cancellation of the solar panel and EV parking project at Cupertino Sports Center (CSC). The CSC parking lot is already heavily utilized, with members frequently struggling to find parking during peak hours. I have personally had to park beyond the exit gates a few times. The introduction of a Hopper EV fleet and its drivers' personal vehicles would further strain an already limited resource, creating unnecessary congestion and inconvenience for existing users. It would mean that users would have to park on the WholeFood parking lot or the church parking and have to cross a four lane busy street, likely jay-walking to save time, adding frustration and accident risks. Note that some tennis players are in their 70s...even in their 80s... I am sure your role is not easy, but you have something good going with the Cupertino Sports Center, so in your shoes, I would not want to mess it up and look for another solution. The Sports Center serves a large number of residents and Lifetime Fitness members, depending on the already constrained parking lot. There is no available space to dedicate parking to a Hopper fleet, and we don't believe that CSC members and guests should have to compete with commercial vehicle storage for parking access and again have to struggle to find parking outside CSC and take risks. Given these factors, I strongly urge the city to cancel this project at CSC at the earliest opportunity. Additionally, protecting parking access for legitimate users should remain the city’s priority. 57 CC 05-15-2025 57 of 655 Thank you for your attention to this matter. I appreciate the work you do for the city and I hope you welcome this input. Sincerely, Francois Delepine, retired CFO. -- Francois Delepine 58 CC 05-15-2025 58 of 655 CITY OF CUPERTINO Agenda Item 25-13714 Agenda Date: 5/15/2025 Agenda #: 4. Subject: Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1 powered by Legistar™59 CC 05-15-2025 59 of 655 1 7 8 10 11 14 15 16 18 19 21 23 25 39 41 43 45 47 49 52 54 56 57 58 60 66 67 68 69 70 72 78 79 Table of Contents Table of Contents Introduction City Organizational Chart Our Mission City Strategic Vision and Council Goals Directory of City Officials Commissions and Committees GFOA Distinguished Budget Presentation Award CSMFO Operating Budget Excellence Award Budget Message Budget Message Budget Overview Budget Overview Budget Guide Elements of the Budget Document Community Profile History Community Economic Profile Community Statistics Financial Policies Financial Policies All Funds Financial Schedules Financial Overview by Fund Flow of Funds Chart (Sankey) All Funds Summary All Funds Revenues All Funds Expenditures All Funds Expenditures by Department All Funds Fund Balance General Fund Financial Schedules General Fund Contribution Schedule General Fund Summary General Fund Revenues FY 2025-26 Proposed Budget Table of Contents 1 60 CC 05-15-2025 60 of 655 91 93 94 96 112 114 116 118 125 127 130 132 134 136 138 140 142 144 146 148 150 152 154 157 159 170 172 174 176 178 179 181 183 185 187 189 General Fund Expenditures General Fund Transfers General Fund Fund Balance General Fund Forecast Gann Appropriations Limit Legal Debt Margin Council and Commissions Department Overview City Council Community Funding Historical Society Sister Cities Technology, Information & Communications Commission Library Commission Arts and Culture Commission Public Safety Commission Bicycle and Pedestrian Commission Parks and Recreation Commission Teen Commission Planning Commission Housing Commission Sustainability Commission Audit Committee Administration Department Overview City Manager Sustainability Office of Communications Multimedia Public Access Support Community Outreach and Neighborhood Watch Office of Emergency Management Economic Development City Clerk Duplicating and Mail Services Elections FY 2025-26 Proposed Budget Table of Contents 2 61 CC 05-15-2025 61 of 655 191 193 195 197 203 205 207 209 221 223 225 228 231 235 237 245 247 249 251 253 255 257 259 261 263 265 268 270 280 282 283 285 287 289 291 293 City Manager Contingency City Attorney Law Enforcement Department Overview Law Enforcement Interoperability Project Innovation and Technology Department Overview Innovation & Technology Administration Video Applications Infrastructure GIS Administrative Services Department Overview Administrative Services Administration Accounting Business Licenses Purchasing Budget Human Resources Retiree Benefits Insurance Administration Workers Compensation Insurance Long Term Disability Compensated Absences Parks and Recreation Department Overview Recreation Administration Library Services Administration Cultural Events Facilities Administration Youth Teen Recreation Senior Center FY 2025-26 Proposed Budget Table of Contents 3 62 CC 05-15-2025 62 of 655 295 297 299 301 302 304 306 308 310 312 314 325 327 329 331 333 335 337 339 341 343 345 347 349 351 353 356 358 376 378 380 382 385 386 387 389 Teen Programs Events Park Facilities Administration Blackberry Farm Golf Course Outdoor Recreation Sports Center Operations Community Outreach and Neighborhood Watch Office of Emergency Management Community Development Department Overview Community Development Administration Current Planning Mid and Long Term Planning Economic Development CDBG General Admin CDBG Capital/Housing Projects CDBG Public Service Grants BMR Affordable Housing Fund Human Service Grants General Building Building Plan Review Building Code Enforcement Muni Code Enforcement Code Enforcement Building Abatement Public Works Department Overview Public Works Administration Sustainability Resource Recovery Non-Point Source Storm Drain Fee General Fund Subsidy Storm Drain Maintenance Plan Review FY 2025-26 Proposed Budget Table of Contents 4 63 CC 05-15-2025 63 of 655 391 393 395 397 399 401 403 405 407 409 411 413 415 417 419 421 423 425 427 429 431 433 435 437 439 441 443 445 447 449 451 453 455 457 459 461 CIP Administration Service Center Administration Golf Grounds Maintenance McClellan Ranch Park Memorial Park BBF Ground Maintenance School Site Maintenance Neighborhood Parks Sport Fields Jollyman, Creekside Civic Center Maintenance Sidewalk Curb and Gutter Street Pavement Maintenance Street Sign Marking Street Lighting Equipment Maintenance Environmental Materials Trail Maintenance Overpasses and Medians Street Tree Maintenance Sheriff Work Program BBF Golf Maintenance City Hall Maintenance Library Maintenance Service Center Maintenance Quinlan Community Center Maintenance Senior Center Maintenance McClellan Ranch Maintenance Monta Vista Community Center Maintenance Wilson Park Maintenance Portal Park Maintenance Sports Center Maintenance Creekside Park Maintenance Community Hall Maintenance Teen Center Maintenance Park Bathrooms Maintenance Blackberry Farm Maintenance FY 2025-26 Proposed Budget Table of Contents 5 64 CC 05-15-2025 64 of 655 463 465 467 469 471 473 475 477 479 483 485 486 487 488 490 492 494 496 498 499 Franco Traffic Operations Center City Hall Annex Community Shuttle Traffic Engineering Traffic Signal Maintenance Safe Routes 2 School Fixed Assets Acquisition Non-Departmental Department Overview General Fund Non-Departmental Tree Fund Non-Departmental Debt Service Non-Departmental Capital Reserve Non-Departmental Facility Lease Debt Service Appendix Glossary of Budget Terminology Commonly Used Acronyms Revenues, Expenditures, and Fund Balance Table CIP Schedule Personnel Schedule FY 2025-26 Proposed Budget Table of Contents 6 65 CC 05-15-2025 65 of 655 Introduction FY 2025-26 Proposed Budget Introduction 7 66 CC 05-15-2025 66 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Introduction 8 67 CC 05-15-2025 67 of 655 Ci t y O r g a n i z a t i o n a l C h a r t FY 2025-26 Proposed Budget Introduction 9 68 CC 05-15-2025 68 of 655 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 2025-26 Proposed Budget Introduction 10 69 CC 05-15-2025 69 of 655 City Strategic Vision and Council Goals On March 3, 2025, City Council participated in a Priority SeDing Workshop to set the priorities for the next two Fiscal Years, modified Council Goals, and unanimously adopted a Strategic Vision Framework to guide decision-making and long-term planning for Cupertino. Council voted to split the existing “Sustainability and Fiscal Strategy” goal into two separate ones – Environmental Sustainability and Fiscal Strategy – resulting in a total of six Council Goals. While these are intended as multi-year goals, City Council reviews them every two years and may reaffirm or revise as needed. The newly-adopted Strategic Vision Framework features focus areas – Fiscal Resilience, Small Business Revitalization, and Emergency Management – to help guide strategic initiatives and resource allocation to better serve the community. The City Council goal-seDing and strategic planning process is paramount to provide a framework for the City's priorities, City budget, and the two-year City Work Program . This process ensures that the City's efforts are aligned with the goals set by the City Council and are important to the Cupertino community. FY 2025-26 Proposed Budget Introduction 11 70 CC 05-15-2025 70 of 655 FY 2025-27 City Work Program On March 18, 2025, the City Council approved a list of 19 priority items for the FY 2025-2027 City Work Program (CWP). This list includes 13 new items, which would require an additional $2.28 million to complete. The remaining six items are ongoing, which do not require new funding, as they were previously allocated a combined $1.07 million to complete. In total, the entire FY 2025- 2027 CWP would cost a total of $3.35 million to complete over a two year period. FY 2025-26 Proposed Budget Introduction 12 71 CC 05-15-2025 71 of 655 FY 2025-26 Proposed Budget Introduction 13 72 CC 05-15-2025 72 of 655 Directory of City Officials City Council Liang Chao Kitty Moore Mayor Vice Mayor J.R. Fruen Sheila Mohan R "Ray" Wang Council Member Council Member Council Member Directory of City Officials Pamela Wu – City Manager Vacant – Assistant City Manager Floy Andrews – Contract City Attorney Kristina Alfaro – Director of Administrative Services Ben Fu – Director of Community Development Chad Mosley – Director of Public Works Rachelle Sander – Director of Parks and Recreation Teri Gerhardt – Chief Technology Officer FY 2025-26 Proposed Budget Introduction 14 73 CC 05-15-2025 73 of 655 Commissions and Committees ARTS AND CULTURE COMMISSION Archana Panda Susan Chen David Wang Kiran Varshneya Rohra Gurmeet Lamba AUDIT COMMITTEE Kitty Moore Eno Schmidt Hanyan Wu Sheila Mohan BICYCLE PEDESTRIAN COMMISSION Hervé Marcy Gerhard Eschelbeck Joel Wolf Munisekaran Madhipatla Ilango Ganga ECONOMIC DEVELOPMENT COMMITTEE Vacant HOUSING COMMISSION Usha Narayan Connie Cunningham Elida" Lida" Xhindi Ryan Golze Yuyi He LIBRARY COMMISSION Chandra Sakthivel Janki Chokshi Liyan Zhao Minna Xu Qin Pan PARKS AND RECREATION COMMISSION Carol Stanek Claudio Bono Gopal Kumarappan Sheela Sreekanth Seema Swamy PLANNING COMMISSION Santosh Rao David Fung Seema Lindskog Steven Scharf Tracy Kosolcharoen PUBLIC SAFETY COMMISSION Nirmalendu Das Ravi Kiran Singh Sapaharam Sashikala Begur Sidarth Rajaram SUSTAINABILITY COMMISSION Alexander Fung Conny Yang Jack Carter Susan Hansen Sonali Padgaonkar TEEN COMMISSION Anika Mukherjee Anushree Misra Brianna Su Chelsea Lau Harly Liu Peter Chen Rohin Garg Shivika Biswari TECHNOLOGY, INFORMATION & COMMUNICATIONS COMMISSION Balaram Donthi Emma Shearin Mukesh Garg Prabir Mohanty Sudeep Kumar FY 2025-26 Proposed Budget Introduction 15 74 CC 05-15-2025 74 of 655 GFOA Distinguished Budget Presentation Award FY 2025-26 Proposed Budget Introduction 16 75 CC 05-15-2025 75 of 655 FY 2025-26 Proposed Budget Introduction 17 76 CC 05-15-2025 76 of 655 CSMFO Operating Budget Excellence Award FY 2025-26 Proposed Budget Introduction 18 77 CC 05-15-2025 77 of 655 Budget Message FY 2025-26 Proposed Budget Budget Message 19 78 CC 05-15-2025 78 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Budget Message 20 79 CC 05-15-2025 79 of 655 Budget Message May 1, 2025 To our valued Cupertino community, Honorable Mayor Chao, City Council Members, and dedicated staff, As I commiDed to you during the time of our financial challenges "In the face of these challenges, I firmly believe that the best for Cupertino is yet to come, and that the commitment of the City’s residents, City Council, and employees will create a new and different Cupertino.“ Today, that vision is beginning to take shape. I am pleased to present a balanced budget for the current fiscal year, achieved through several years of thoughtful planning. In addition, I’m proud to share a 10-year financial forecast that reflects the City’s ongoing fiscal discipline, projecting only a modest deficit in the final two years. This year marks the start of a new chapter for our City—one built on collaboration, perseverance, and a shared commitment to progress. Earlier this year Council adopted a Strategic Vision Framework to guide decision-making and long-term planning for the City. The Framework outlines six goals and key focus areas to ensure that the priorities and the budget are strategically aligned to best serve the community. Before we talk about the future I want to recognize some notable accomplishments from this past fiscal year: Adopted a new Strategic Vision Framework Enhanced public safety by adopting a policy and purchasing Automated License Plate Reader cameras (ALPR) Earned prestigious budget awards from both the GFOA and CSMFO, and completed the Annual Comprehensive Financial Report ahead of schedule with a clean audit opinion Certified the Housing Element Advanced equity through a draft Anti-Displacement Policy Launch of the redesigned City website with enhanced integration and user functionality. Significantly increased educational outreach by doubling 3rd Grade Creek Tours and revamped the Preschool Program for added flexibility. Teen engagement grew with new volunteer opportunities and the successful Teen Resource Fair Adoption of the Vision Zero Action Plan and reduction of speed limits to improve bike and pedestrian safety. Major infrastructure projects like McClellan Road Separated Bikeways Phase 3 and De Anza Boulevard Buffered Bike Lanes were completed A full list of accomplishments is included in each department section. This outlook demonstrates our commitment to the Strategic Vision and the effectiveness of our long-term financial strategies. We emerge as a nimble and flexible organization, having reduced the budget by almost $24 million dollars over the last two years, including a reduction of 15 vacant full-time positions. We have strong reserves, retaining the dollars we set aside for a potential CDTFA payback, as a result of the audit of one of our top sales taxpayers. Additionally, the unassigned fund balance has grown over the last two years through prudent spending and strategic decision-making. We anticipate ending fiscal year 2024-25 with $157 million in fund balance in the General Fund, reflecting our commitment to maintaining an adaptable and responsive city. With a strong operational foundation in place, we now turn our focus to the future—identifying opportunities to restore services, safeguard our current position, and invest strategically to ensure the City’s long-term financial resilience. City staff have developed a Strategic Budgeting Framework: Restore, Protect, and Invest (RPI) Strategic Budgeting Framework: Restore, Protect, Invest Purpose: A fiscally responsible approach to rebuilding core services, enhancing safety, and making targeted investments with high return on public value. 1 Restore Objective: Bring back services where need is greatest. Actions: Use data (service usage, social indicators) to guide restoration. ROI: Supports community resilience, and public trust. Example: Restoring funding for Shakespeare in the Park, Community Funding and funding for internal audit contract. FY 2025-26 Proposed Budget Budget Message 21 80 CC 05-15-2025 80 of 655 2. Protect - Fix It First Objective: Maintain and enhance existing infrastructure before expanding. Actions: Prioritize repairs, safety retrofits, and preventive maintenance. ROI: Avoid costly breakdowns and extend asset life. Example: Various needed maintenance repairs and equipment replacement throughout the City. 3. Invest - Strategic Adds Objective: Invest in programs that offer a strong fiscal or social return. Actions: Prioritize programs with demonstrated outcomes or indirect revenue impact. ROI: Prevents future costs, ensures proper positions are in place to move the organization forward or drives revenue growth. Example: Strategic Plan, position adds and reclassification to align with work needed to be performed, and investment in staff training. With this budgeting framework in mind, the Fiscal Year 2025-26 Proposed Budget is recommended at $134,997,435 across all funds with estimated revenues of $134,154,373 and the use of one-time funds of $843,062. Focusing on the General Fund, the City’s largest tax-supported fund, a proposed budget of $98,120,775, with estimated revenues of $97,229,134 resulting in a use of fund balance $891,641. Included in this Proposed Budget are a total of $8.26 million in budget requests, with $2.28 million in City Work Program request, $2 million in CIP and $3.98 million in department request for funding. The department requests are listed by RPI category. In closing, I want to express my heartfelt gratitude to our community, City Council, and the dedicated staff of Cupertino. Addressing a significant budget deficit in such a short time was no small task—and naturally, it brought uncertainty. But through collaboration, determination, and a shared commitment to our city's future, we’ve emerged focused and beDer prepared to meet future challenges Thank you for your support and tireless efforts, Pamela Wu City Manager FY 2025-26 Proposed Budget Budget Message 22 81 CC 05-15-2025 81 of 655 Budget Overview FY 2025-26 Proposed Budget Budget Overview 23 82 CC 05-15-2025 82 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Budget Overview 24 83 CC 05-15-2025 83 of 655 Budget Overview The Adopted Budget for the upcoming fiscal year highlights a decrease in both expenditures and revenues compared to the previous year's Adopted Budget. Total expenditures are expected to be $136.0 million, a $10.6 million, or 7.3%, decrease from the previous year Adopted Budget. Similarly, total revenues are anticipated to be $135.2 million, a $4.2 million or 3.0%, decrease from last year's Adopted Budget. FY 2025-26 General Fund expenditures, which supports the majority of City operations, are expected to be $99.1 million, an increase of $9.1 million or 10.0%, from the previous year's Adopted Budget. General Fund revenues are anticipated to be $97.2 million, which is a $7.4 million or 8.3%, increase from the previous year's Adopted Budget, resulting in a use of fund balance of $1.9 million. The budget is short of balancing and staff recommends using unassigned fund balance to fill the funding gap this year. The General Fund's ending fund balance is projected to decrease to $156.7 million from the FY 2024-25 Amended Budget (Year End projected). As shown in the chart below, the largest fund is the General Fund at 73%. FY 2025-26 Proposed Budget Budget Overview 25 84 CC 05-15-2025 84 of 655 The graph below summarizes the changes in the City’s General Fund over the last five years: The FY 2025-26 Proposed Budget funds a total of 210 positions, representing an increase of three positions from the FY 2024-25 Amended Budget. FY 2025-26 Proposed Budget Budget Overview 26 85 CC 05-15-2025 85 of 655 Budget Roadmap This is the second year the city has utilized the budget roadmap graphic to inform the Council and public of a various touch points and components of the budget that are completed prior to the Proposed Budget Study Session and Final Budget Adoption. This year, included many stops along our budget roadmap to budget adoption as illustrated in the graphic below: Changes to the Budget and Policies Budget Format and Performance Measures Report and Implementation Action Plan In Fall 2024, the City engaged Baker Tilly US, LLP to conduct a comprehensive review of its Budget Document and Performance Measures. The primary objective of this engagement was to enhance clarity, accessibility, and to strategically align the City's annual budget document and to improve the effectiveness of performance measures in tracking progress toward key citywide goals. The draV Budget Format Implementation Action Plan (IAP) was presented to the City Council in March 2025. This plan included 32 recommendations that were prioritized 1-3, with 1 being the highest priority. One additional recommendation was added by City Council for a total of 33. For further details on this IAP, please see City Council staff report dated March 4, 2025. The updated IAP will be before City Council for approval on May 6, 2025. The FY 2025-26 budget document accomplished 15 of the 33 recommendations which also includes a request for funding to assist in completing the Strategic Plan. It is also expected the Capital Improvement Plan will print with the budget this year, this would bring total recommendations accomplished between the two documents to 17 recommendations implemented or 50% implementation rate for the first year of the IAP. Special Projects Policy As part of the Implementation Action Plan outlined above, the creation of a Special Projects Policy was identified as a top priority. Accordingly, City Council adopted the Special Projects Policy in March 2025 and is included in the financial policies on the City's website. This accomplishment is included in the total above. Revised Fees Matrix Consulting Group recently conducted a comprehensive fee study that was presented to City Council in February 2024. City Council will consider the FY 2025-26 fee schedule in May 2025 with the newly adopted fees going into effect 60 days aVer adoption in mid-July 2025. Increased fee revenue has not been included in this budget. 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 CommiDee reviews the policy and acts as an oversight commiDee on investments. The policy directs that an external auditor performs agreed-upon procedures to review City compliance with the policy. The Audit CommiDee reviewed and accepted the current Investment Policy on April 28, 2025. The City Council will consider the City's Investment Policy in May 2025. GANN Appropriations Limit FY 2025-26 Proposed Budget Budget Overview 27 86 CC 05-15-2025 86 of 655 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 puDing a cap on the total proceeds of taxes that may be appropriated each year. Proposition 111 and Senate Bill 88, approved by California voters on June of 1990 offered cities more flexibility in choosing inflation and population factors to calculate the limit. Data to complete the FY 2025-26 GANN is not yet available from the State of California, Department of Finance. This will be updated as part of the final budget. Citywide Conference and Training Budget Add-backs As part of a budget reduction strategy, citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. Contingencies Contingency dollars have been calculated from department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. The City Manager Contingency is the only remaining budget with contingencies as an expense category. Reorganizations The City Manager's Office underwent a reorganization in late FY 2024-25, transferring Economic Development to the Community Development Department and Office of Emergency Management to Parks and Recreation. Both program budgets had previously been housed in their current departments. Budget by Fund General Fund The General Fund is the primary source of funding for critical services in the community, including law enforcement, public works, community development, park maintenance, code enforcement, and administrative support services. These services are financed mainly by local taxes such as sales tax, property tax, and transient occupancy tax, as well as other discretionary sources. The General Fund is responsible for financing services that do not have dedicated funding sources, ensuring that essential public services are available to the community. General Fund revenues for the upcoming fiscal year are projected to be $97.2 million, which is a $7.4 million or 8.3%, increase from the previous year's Adopted Budget. This is primarily due to a projected increase in property tax revenues, an increase in use of money and property related to the new water lease agreement, and grant revenues related to the City's community shuDle program. General Fund expenditures for the next fiscal year are $99.1 million, an increase of $9.1 million or 10.0%, from the previous year's Adopted Budget. This is a result of budget requests totaling $2.4 million, including $1.4 million in one-time costs. The rise in Contract Services was mainly driven by higher costs associated with the City's general service agreement for law enforcement and the community shuttle program, as well as increased transfers to support enterprise fund operations. Although General Fund expenditures are increasing in FY 2025-26, the City will continue to demonstrate proactive fiscal stewardship while Fiscal Accountability measures focus on aligning budgets with actual costs and streamlining expenses. These strategies blend cost reduction with service adjustment, reflecting an effort to manage financial constraints, optimize resource allocation, and consider potential impacts on community services. The following chart shows four years of total revenue, expenditures, and changes to fund balance for the General Fund: FY 2025-26 Proposed Budget Budget Overview 28 87 CC 05-15-2025 87 of 655 In FY 2025-26, the General Fund's unassigned fund balance is projected to be $39.2 million, an increase of $0.1 million, or 0.3%, from the FY 2024-25 Amended Budget (Year End Projected). Unassigned fund balance represents fund balance that is available for use and is not assigned, restricted, or commiDed. Total fund balance is estimated to be $156.7 million, a decrease of $0.6 million, or 0.4%, from the FY 2024-25 Amended Budget (Year End Projected). The slight decrease in total fund balance is due to one-time projects included in this year's budget. With the budget just short of balancing, staff recommends using unassigned fund balance to fill the small gap in funding this year. As shown in the graph below, the majority of General Fund resources are used to support Public Works (31%), Law Enforcement (20%), Community Development (13%), Non-Departmental (11%), Administrative Services (8%), Parks and Recreation (7%), and Administration (5%). Non-Departmental expenditures are transfers to other funds. FY 2025-26 Proposed Budget Budget Overview 29 88 CC 05-15-2025 88 of 655 Special Revenue Funds Special Revenue Funds are established to account for the proceeds of specific revenue sources that are legally restricted for expenditures for particular purposes. For example, gas tax revenues or development impact fees. The largest Special Revenue Fund is allocated to streets, roads, and transportation, while other funds are designated for storm drain management, affordable housing programs, and park development. For the upcoming fiscal year, the Proposed Budget for Special Revenue Funds is $10.8 million, which represents a decrease of $3.1 million compared to the FY 2024-25 Adopted Budget. Capital Outlays are lower due to lower Capital Improvement Program (CIP) projects and lower Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. The Special Revenue Funds receive funding from two sources: $12.3 million in restricted department revenue and $2.1 million in transfers, resulting in a total funding of $14.3 million. The Special Revenue Funds are expected to end the year with a fund balance of $40.8 million, reflecting an increase of $9.3 million from last year's Adopted Budget. This increase in fund balance is mainly due to increased Measure B and interest revenues. 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 Proposed Budget for Debt Service Funds is $2.7 million, relatively unchanged from the FY 2024-25 Amended Budget. The Debt Service Funds are funded by $2.7 million in transfers from the General Fund. Capital Projects Funds Capital Projects Funds are used for the acquisition or construction of major capital facilities and infrastructure. Capital Projects Funds include the Capital Improvement Projects Fund, Stevens Creek Corridor Park Fund, and Capital Reserve Fund. These funds are used to finance the implementation of projects identified in the City's five-year Capital Improvement Program (CIP). FY 2025-26 Proposed Budget Budget Overview 30 89 CC 05-15-2025 89 of 655 The Proposed Budget for Capital Projects Funds is $4.2 million, a decrease of $17.8 million from last year's Adopted Budget. This decrease is due to decreased transfers from the Capital Reserve Fund to the Capital Improvement Projects Fund and a decrease in CIP projects for the year. The Capital Projects Funds are primarily funded through a combination of transfers from the General Fund, grants, donations, development impact fees, and other dedicated revenue sources. As projects are completed, any remaining funds are typically rolled over into the Capital Reserve Fund to be used for future projects. Enterprise Funds Enterprise Funds are designed to support services that are funded directly by fees charged for goods or services. The City's Enterprise Funds include 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 Proposed Budget for Enterprise Funds is $9.2 million, similar to the prior year Adopted Budget amount. The Enterprise Funds are funded by $5.6 million in program revenue, $1.7 million in transfers in, and $1.9 million in reserves. The Enterprise Funds are projected to end the year with $4.8 million in reserves, a decrease of $2.2 million from last year's Adopted Budget. This decrease is due to the use of reserves, which were accumulated in previous years. During the pandemic, the Parks and Recreation funds accumulated reserves as revenues were higher than expenditures. Internal Service Funds Internal Service Funds are for goods or services provided to other City departments or governments on a cost-reimbursement basis. These funds include programs for innovation and technology, workers’ compensation, equipment, compensated absences, long-term disability, and retiree medical insurance. The Proposed Budget for Internal Service Funds is $10.0 million, which is a slight increase of $1.4 million, compared to last year's Adopted Budget. The Internal Service Funds are funded by $6.0 million in program revenue, $3.6 million in transfers from the General Fund, and $0.4 million in reserves. The Internal Service Funds are projected to end the fiscal year with $3.2 million in reserves, decreasing by $2.5 million from last year's Adopted Budget. FY 2025-26 Proposed Budget Budget Overview 31 90 CC 05-15-2025 90 of 655 Special Projects The FY 2025-26 Proposed Budget allocates funds for Special Projects, which are typically one-time operational projects. This includes City Council Work (CWP) Program items that are included in the Special Project expense category. We have split special projects below to be reflective of the CWP and all other special projects. The Special Projects are detailed in the respective program's Special Project section and summarized in the table below. Some Special Projects' budgets from previous fiscal years may also be carried forward into FY 2025-26. For a more detailed list of the CWPs, please see the Strategic Goals section in the Introduction. City Council Work Program All Other Special Projects FY 2025-26 Proposed Budget Budget Overview 32 91 CC 05-15-2025 91 of 655 Current Economic Update National and State Economic Conditions In the first quarter of 2025, the U.S. economy grew at a modest annualized rate of 1.1%, signaling a slowdown from the 2.3% expansion in the final quarter of 2024. This deceleration was primarily due to a significant reduction in business inventories, which subtracted approximately 2.3 percentage points from overall growth. Companies typically cut inventories when anticipating a downturn, reflecting cautious economic sentiment. The Federal Reserve's aggressive interest rate hikes—nine increases over the past year—have raised borrowing costs, particularly affecting the housing market and consumer spending. Banks have tightened lending standards, making it more challenging for consumers and businesses to obtain credit. Despite a slight easing of inflation from last year's four-decade high, it remains well above the Fed's 2% target, contributing to concerns about a potential recession. Looking ahead, economists project continued economic challenges, with some forecasting a mild recession in the near future. The Federal Reserve aims to achieve a "soV landing" by cooling growth enough to curb inflation without triggering a severe downturn. However, there is skepticism about the success of this strategy, with some models indicating a high probability of recession within the next year. As of March 2025, the U.S. unemployment rate is 4.2%, showing a slight increase from 3.8% in March 2024. The Employment Development Department also noted that March 2025 marks the fiVh consecutive month that unemployment decreased in California (-7,000), with the total number of unemployed persons dropping by 24,300 persons over that timeframe. Although California lost 11,600 nonfarm jobs in March, it increased year-over by 46,500 jobs between March 2024 and March 2025. Since April 2020, California gained 3,057,800 jobs, averaging 51,827 jobs per month. The California Association of Realtors (CAR) reported a 6.7 % increase in statewide median home prices in March. Additionally, the statewide single-family home sales for March 2024 are up 3.5% in March 2024. Similarly, Santa Clara County's growth rate is at 11.3% in prices of single-family homes and a 4.4% increase in sales compared to the same period last year. Cupertino Economic Conditions The unemployment rate in the San Jose-Sunnyvale-Santa Clara MSA was 4.2% in March 2024, up from the year-ago estimate of 3.2%. This was below the unemployment rate for California and the nation during the same period. The number of employed persons was 1.03 million in March 2024, down from 1.05 million in March 2023. FY 2025-26 Proposed Budget Budget Overview 33 92 CC 05-15-2025 92 of 655 Housing prices remain relatively strong compared to the same period in 2022. Based on data from Redfin, the median sales price for all home types was $3,300,000 for March 2024 compared to $2,758,000 in March 2023 . The City experienced a net taxable value increase of 4.6% for the FY 2023-24 tax roll. FY 2025-26 Proposed Budget Budget Overview 34 93 CC 05-15-2025 93 of 655 Key Budget Assumptions Revenue Assumptions The City's General Fund revenues heavily depend on property tax, sales tax, and transient occupancy tax (TOT). However, the CDTFA audit is expected to alter the way sales tax is allocated to the City, leading to a significant reduction in sales tax revenue. As a result, the City anticipates General Fund revenues to decrease by $30 million, or 28%, from original projections. Personnel Assumptions FY 2024-25 salaries and benefits reflect the cost-of-living adjustments and health insurance contribution increases approved by the City Council in November 2023. 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 38% of employees are below Step 5. Non-Personnel Assumptions Non-Personnel budgets were developed based on previous year's actual expenditures and adjusted for the current year's needs. One-time projects were excluded to reflect ongoing expenditure needs. In response to the anticipated revenue shortfall resulting from the CDTFA audit, departments were asked to find ways to reduce the base budget. To balance the budget, various categories including materials, contract services, capital outlays, special projects, transfers to other funds, and contingencies were reduced in the Adopted Budget. Ongoing Challenges Retirement Benefits Rising retirement costs are driving the increase in employee benefits. Cupertino offers retirement benefits to its employees through the California Public Employee’s Retirement System (CalPERS), which experienced a significant decline in its assets due to poor investment returns during the Great Recession. Moreover, changes in actuarial assumptions and enhanced benefits due to higher life expectancies have further increased the plan's liabilities. Consequently, the City's pension costs have escalated considerably and currently constitute one of the City's largest financial obligations. The table below illustrates the City's CalPERS costs over the next few years. In December 2016, the CalPERS Board of Administration implemented a three-year phase-in beginning in FY 2018-19 to lower the discount rate from 7.5% to 7.0%, resulting in significant increases in retirement costs. In FY 2021-22, the discount rate was further reduced to 6.8% due to the FY 2020-21 investment gain of 21.3%, which triggered the Funding Risk Mitigation Policy. To mitigate the impact of pension rate volatility on the City's budget, the City established a Section 115 Trust in May 2018. The Section 115 Pension Trust had a balance of $19.1 million as of June 30, 2023, which can be utilized to fund pension costs. Summary of Proposed Budget Requests by Department FY 2025-26 Proposed Budget Budget Overview 35 94 CC 05-15-2025 94 of 655 FY 2025-26 Proposed Budget Budget Overview 36 95 CC 05-15-2025 95 of 655 Summary of CIP Projects FY 2025-26 Proposed Budget Budget Overview 37 96 CC 05-15-2025 96 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Budget Overview 38 97 CC 05-15-2025 97 of 655 Budget Guide FY 2025-26 Proposed Budget Budget Guide 39 98 CC 05-15-2025 98 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Budget Guide 40 99 CC 05-15-2025 99 of 655 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 transmiDal leDer submiDing 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. All Funds Financial Schedules: This section provides financial information on projected revenues, expenditures, fund balances, and reserves for all funds. General Fund Financial Schedules: This section provides financial information on projected revenues, expenditures, fund balances, and reserves for the General Fund. It also includes a long-term forecast of revenues, expenditures, and fund balance for the General Fund. Revenue and expenditure assumptions are discussed. Departmental Operating Budgets: This section details historical and budgeted 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 one-time operational projects. Non-Departmental Operating Budgets: This section details historical and budgeted 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 2025-26 Proposed Budget Budget Guide 41 100 CC 05-15-2025 100 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Budget Guide 42 101 CC 05-15-2025 101 of 655 Community Profile FY 2025-26 Proposed Budget Community Profile 43 102 CC 05-15-2025 102 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Community Profile 44 103 CC 05-15-2025 103 of 655 History “This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a se$lement 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 oVen 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 seDler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply ‘West Side’ and primarily owned by the government. AVer 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 aVer him, although misspelled. In the early West Side, many of the newest advances in agriculture were being developed. SeDlers 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, aDacking the roots of the grapevines, killing the grapes, and puDing 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 aDracted 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” aVer the original name of the creek. AVer 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, spliDing 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 aDracted 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 2025-26 Proposed Budget Community Profile 45 104 CC 05-15-2025 104 of 655 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 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 2025-26 Proposed Budget Community Profile 46 105 CC 05-15-2025 105 of 655 Community Economic Profile Cupertino, with a population of 57,237 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 mostly built-out city, the City of Cupertino focuses on business retention and revitalization, while at the same time, being supportive of redevelopment projects to bring in new investment. Cupertino is world-renowned as the home to high- tech giants, such as Apple, Inc. and Amazon, 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 aDracting local and international students. The City’s proactive economic development efforts and a high-touch approach has resulted in an innovative environment for start-ups and growing companies to thrive, including Moxo, DURECT Corporation, Claspp, Mirapath, Aemetis Inc, Mist Systems, and many more. The City strives to retain our companies and aDract new ones through active outreach and a responsive, streamlined, and customer-oriented entitlement process. Cupertino is excited to have a number of mixed-use development projects offering diverse retail and dining options, as well as providing additional housing opportunities to meet the needs of the growing community. There are also quite a few development projects already entitled including: Westport Cupertino, Marina Plaza, Alan Row, and Canyon Crossing. Further, City Council recently approved the 283,000 square foot mixed Office/Commercial Apple development at 19191 Vallco Parkway. Main Street The Main Street and Nineteen800 mixed-use developments continue to offer a vibrant downtown area for Cupertino, offering a large selection of restaurants and retailers, including Alexander’s Steakhouse, Eureka!, Oren’s Hummus, Lazy Dog, Ippudo, HaiDiLao Hotpot Restaurant, Pineapple Thai, Pressed Juicery, Orangetheory Fitness, 85 Degree Bakery, Somi Somi, Sul & Beans, Kura Sushi, Vitality Bowls, Tan Cha, Koja Kitchen, Bishops Cuts/Colors, Capezio, Howard’s Shoes, Philz Coffee, Pacific Catch, Holder’s Country Inn, Koi Palace Contempo, and Meet Fresh. Housing, office, and the Residence Inn by MarrioD and Main Street Cupertino LoVs are available to support the thriving area. Benihana, Bowlmor, and Cupertino Ice Center also serve as long-time anchors. 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 (Brazilian Steakhouse), Daiso, Marukai Groceries, Harumi Sushi, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Icicles, Kong’s Tofu & BBQ, and One Pot Shabu Shabu to name a few. FY 2025-26 Proposed Budget Community Profile 47 106 CC 05-15-2025 106 of 655 The shopping center improvements to Cupertino Village reflect building upgrades and renovations, newly constructed buildings, parking, and open space. The shopping center, located in the northeast portion of the city, is home to 99 Ranch Market, Duke of Edinburgh Pub & Restaurant, Ume Tea, Tofu Plus, Kira Kira Beauty, Ten Ren Tea, Fantasia Coffee & Tea, Happy Lemon, Shanghai Family Restaurant, and many other Asian restaurants, bakeries, and shops. The property owners have also 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 food and beverage establishments to serve residents and the local workforce. There are seven hotels providing over 1,000 rooms, to serve the area: The AloV Cupertino, Cupertino Hotel, Hilton Garden Inn, HyaD House, Juniper Hotel operated by Curio, Marriott Courtyard, and the 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 Safeway, Starbucks, Ulta Beauty, Ross Stores, Pet Club, Michael’s, FedEx, and numerous restaurants, such as Fish’s Wild, Pho Hoa Noodle Soup, Yayoi Teishoku Japanese Restaurant, and Chipotle. The City recently approved second modifications to the Rise Development. Formerly the Vallco Town Center Development, the Rise is a mixed-use housing development with 2,669 units, of which 890 units are affordable to lower income households. The project also includes 47 townhomes, approximately 1.95 million square feet of office space, 226,000 square feet of retail space, and at grade open space areas. 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 café offer the public a place to learn, explore, and shop. FY 2025-26 Proposed Budget Community Profile 48 107 CC 05-15-2025 107 of 655 Community Statistics Facts and Figures Population in City Limits 57,237 Average Household Income $295,070 Average Age 54 Registered Voters 33,697 Democrats 15,400 Republicans 4,628 American Independent 571 Other 348 No Political Party Designated 12,750 Claritas 2025 Estimates and County of Santa Clara Registrar of Voters as of April 21, 2025 Top 25 Sales Tax Producers 2024 (in Alphabetical Order) 99 Ranch Market Alexander's Steak House Apple Argonaut Window & Door Benihana BJ's Restaurant & Brewhouse California Dental Arts Chevron Chipotle Cupertino Car Wash Dish N Dash Galpao Gaucho Great Gas Cupertino Haidilao Hot Pot Home Eat Insight Direct Insight Public Sector Kura Revolving Sushi Bar Lazy Dog Cafe Rotten Robbie Safeway Shane Company Target TJ Maxx Whole Foods Market HdL Companies 3Q 2024 Sales Tax Update 1 1 2 2 FY 2025-26 Proposed Budget Community Profile 49 108 CC 05-15-2025 108 of 655 FY 2025-26 Proposed Budget Community Profile 50 109 CC 05-15-2025 109 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Community Profile 51 110 CC 05-15-2025 110 of 655 Financial Policies FY 2025-26 Proposed Budget Financial Policies 52 111 CC 05-15-2025 111 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Financial Policies 53 112 CC 05-15-2025 112 of 655 Financial Policies Financial policies can now be found at: hDps://www.cupertino.gov/budget in the Financial Policies accordion or scan the QR code below. FY 2025-26 Proposed Budget Financial Policies 54 113 CC 05-15-2025 113 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Financial Policies 55 114 CC 05-15-2025 114 of 655 All Funds Financial Schedules FY 2025-26 Proposed Budget All Funds Financial Schedules 56 115 CC 05-15-2025 115 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget All Funds Financial Schedules 57 116 CC 05-15-2025 116 of 655 Fi n a n c i a l O v e r v i e w b y F u n d Th e c h a r t a b o v e d e m o n s t r a t e s h o w r e v e n u e s ( l e f t t o r i g h t ) a n d e x p e n d i t u r e s ( r i g h t t o l e f t ) f l o w Wh e r e r e v e n u e s m e e t e x p e n d i t u r e s a t t h e c e n t e r o f t h e c h a r t ( f u n d l i n e t y p e ) , a g a p t o t h e l e f t i FY 2025-26 Proposed Budget All Funds Financial Schedules 58 117 CC 05-15-2025 117 of 655 Fl o w o f F u n d s C h a r t ( S a n k e y ) ut o f a n d i n t o e a c h t y p e o f C i t y f u n d . nd i c a t i v e o f e x p e n d i t u r e s e x c e e d i n g FY 2025-26 Proposed Budget All Funds Financial Schedules 59 118 CC 05-15-2025 118 of 655 All Funds Summary This section provides information on the FY 2025-26 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. For descriptions of funds, see Financial Policies: Fund Structure. Revenue Estimates Estimates for FY 2025-26 fund balance and individual revenue accounts are based upon a careful examination of the collection history and paDerns 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 and/or internal factors outside of the City's control. FY 2025-26 Proposed Budget All Funds Financial Schedules 60 119 CC 05-15-2025 119 of 655 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 have decreased by $4.5 million. Use of Money & Property is decreasing due to lower projected interest earnings. Intergovernmental is decreasing due to federal and state grants. Expenditures Expenditure uses have decreased by $3.1 million. Capital Outlays are lower due to lower Capital Improvement Program (CIP) projects and lower Cost Allocation expenses. 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. FY 2025-26 Proposed Budget All Funds Financial Schedules 61 120 CC 05-15-2025 120 of 655 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. 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. 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. FY 2025-26 Proposed Budget All Funds Financial Schedules 62 121 CC 05-15-2025 121 of 655 Capital Project Funds This fund pays for the acquisition of major capital facilities and/or construction of major capital projects. Revenue Revenue sources have decreased by $9.6 million. As a result of the revenue shortfalls stemming from the CDTFA audit, the annual transfers from the General Fund to the Capital Reserve had been reduced until FY 2029-30. With resolution reached with CDTFA in October 2024, these transfers have since restarted in March 2025. Expenditures Expenditure uses have decreased by $17.8 million due to less CIP projects this year. 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. FY 2025-26 Proposed Budget All Funds Financial Schedules 63 122 CC 05-15-2025 122 of 655 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 have increased by approximately $0.7 million. In FY 2023-24, as a result of anticipated revenue shortfalls due to the CDTFA audit, transfers from the General Fund to the Enterprise Funds had been reduced as part of an expenditure reduction strategy aimed at decreasing General Fund subsidies of Enterprise Funds. Transfers to the Enterprise Funds have resumed closer to historical levels in FY 2024-25. Expenditures Expenditure uses have remained relatively unchanged from the prior fiscal year. 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 due to revenues being lower than expenditures. FY 2025-26 Proposed Budget All Funds Financial Schedules 64 123 CC 05-15-2025 123 of 655 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 Information & Technology, Vehicle & Equipment Replacement, Workers' Compensation, Compensated Absences & Long-Term Disability, and Retiree Medical funds. Revenue Revenue sources have increased by $1.8 million due to an increase in charges for services. In FY 2023-24, the City resumed transfers to the Retiree Medical Fund because the City's Other Post-Employment Benefits (OPEB) plan is below 100% funded. Expenditures Expenditure uses have increased by $1.4 million due to increase in cost allocation and special projects. 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. Net positions is relatively unchanged from the prior fiscal year. FY 2025-26 Proposed Budget All Funds Financial Schedules 65 124 CC 05-15-2025 124 of 655 All Funds Revenues FY 2025-26 Proposed Budget All Funds Financial Schedules 66 125 CC 05-15-2025 125 of 655 All Funds Expenditures FY 2025-26 Proposed Budget All Funds Financial Schedules 67 126 CC 05-15-2025 126 of 655 All Funds Expenditures by Department FY 2025-26 Proposed Budget All Funds Financial Schedules 68 127 CC 05-15-2025 127 of 655 All Funds Fund Balance For descriptions of funds, see Financial Policies: Fund Structure. FY 2025-26 Proposed Budget All Funds Financial Schedules 69 128 CC 05-15-2025 128 of 655 General Fund Financial Schedules FY 2025-26 Proposed Budget General Fund Financial Schedules 70 129 CC 05-15-2025 129 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget General Fund Financial Schedules 71 130 CC 05-15-2025 130 of 655 General Fund Contribution Schedule FY 2025-26 Proposed Budget General Fund Financial Schedules 72 131 CC 05-15-2025 131 of 655 FY 2025-26 Proposed Budget General Fund Financial Schedules 73 132 CC 05-15-2025 132 of 655 FY 2025-26 Proposed Budget General Fund Financial Schedules 74 133 CC 05-15-2025 133 of 655 FY 2025-26 Proposed Budget General Fund Financial Schedules 75 134 CC 05-15-2025 134 of 655 FY 2025-26 Proposed Budget General Fund Financial Schedules 76 135 CC 05-15-2025 135 of 655 FY 2025-26 Proposed Budget General Fund Financial Schedules 77 136 CC 05-15-2025 136 of 655 General Fund Summary The General Fund is the City's main operating fund, responsible for providing essential services such as law enforcement, public works, community development, park maintenance, code enforcement, and administrative support. It is funded by discretionary sources such as property tax, sales tax, transient occupancy tax, and utility tax. The General Fund is typically reserved for operations that lack other dedicated funding sources, while operations such as street maintenance, solid waste collection, and recreation are funded from other sources, detailed in the All Funds Summary section of this document. For FY 2025-26, General Fund revenues are estimated at $97.2 million, a $31.5 million, or -24.5% decrease from the previous year's Projected Budget. General Fund expenditures are estimated to be $99.1 million, a $38.5 million or -28.0%, decrease from the previous year's Projected Budget. Since expenditures exceed revenues, the estimated use of fund balance is $1.9 million. The budget is short of balancing, and staff recommends using unassigned fund balance to fill the gap in funding this year . The General Fund's ending fund balance is projected to be $146.9 million. FY 2025-26 Proposed Budget General Fund Financial Schedules 78 137 CC 05-15-2025 137 of 655 General Fund Revenues FY 2025-26 General Fund revenue sources have been carefully evaluated by considering collection history, seasonal paDerns, and economic performance. These estimates are based on projected increases or decreases in activity and receipts in the upcoming year. It is important to note that each revenue source can be affected by external or internal factors beyond the City's control. As shown in the chart below, FY 2025-26 revenues are estimated at $97.2 million, a $5.6 million, or 8.3% increase from the FY 2024- 25 Adopted Budget. This increase is primarily due to an increase in Property Tax, Intergovernmental Revenues, and Franchise Fees. These revenue categories will be discussed in greater detail in the following sections. The majority of Cupertino's General Fund operating revenues are generated by property taxes (36%), charges for services (16%), sales taxes (12%), and transient occupancy taxes (8%). The chart below illustrates the sources of General Fund revenue by category. The FY 2025-26 General Fund revenue estimates are discussed by category below. FY 2025-26 Proposed Budget General Fund Financial Schedules 79 138 CC 05-15-2025 138 of 655 Sales Tax Sales and Use Tax, commonly known as the "sales tax," consists of two components: an excise tax levied on retailers for selling tangible personal property, and an excise tax applied to purchases from out-of-state vendors that are not required to collect tax on their sales. The revenue generated from sales and use taxes collected within Cupertino's boundaries is allocated by the State to various agencies, with the City receiving one percent, as depicted in the chart to the right. The City considered the ¼ cent sales tax revenue source imposed on local governments. However, the City decided not to proceed with this item for the 2024 election due to unknown conflicting proposals. The City's sales tax revenue comes from five primary economic categories: business-to-business (including electronic equipment and soVware manufacturers and distributors), state and county pools, restaurants and hotels, general consumer goods, and fuel and service stations and other. The California Department of Tax and Fee Administration (CDTFA) manages the collection and administration of sales and use taxes, which is a significant source of revenue for the state and local governments. Businesses are required to register for a sales tax permit and collect taxes from their customers, and the collected taxes are then remiDed to the CDTFA for distribution to the relevant local governments. In addition, the CDTFA conducts audits to ensure tax compliance by businesses. The City receives a portion of the sales tax revenue generated within its boundaries, which funds a wide range of City services and programs. In December 2021, the CDTFA informed the City of an audit that would be conducted on one of its taxpayers. The City was verbally informed in March 2023 of the CDTFA's preliminary determination that tax dollars had been misallocated to the City, and potential impacts on City funds were provided. This resulted in both a one-time repayment of past sales tax revenues and an ongoing reduction of approximately $30 million in sales tax revenue. In October 2024, the City resolved the dispute with CDTFA regarding the distribution of sales tax revenues to Cupertino. The seDlement reached with the CDTFA allows the City to keep the funds previously allocated and anticipated for receipt through June 2024 and avoid lengthy and costly litigation. FY 2025-26 Proposed Budget General Fund Financial Schedules 80 139 CC 05-15-2025 139 of 655 Property Tax 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. 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 shiV local tax revenues from cities, counties, and special districts to a State control ERAF, absorbs the shift-back of the TEA. FY 2025-26 Proposed Budget General Fund Financial Schedules 81 140 CC 05-15-2025 140 of 655 The citywide growth in value in the FY 2024-25 assessment roll was $1.4 billion, an increase of 4.4%. This is in comparison to the positive increase in 2023-24 tax year of $1.4 billion for an increase of 4.6%. The bulk of the increase was due to increases in residential properties by $1.1 billion, or 5.7%. This category makes up 63.2% of the net taxable value. Unsecured property tax decreased by $64.7 million, or 5.7%. This category makes up 3.2% of the net taxable value. Lastly, commercial property values increased by $225.1 million, or 2.5%. This category makes up 27.7% of the net taxable value. The FY 2025-26 Property Tax revenue estimate is based on 2024-25 values and estimated changes according to HdL, the City's property tax consultant. HdL also provides insight into real estate trends for calendar year 2024, the year that influences the 2025- 26 property values enrolled. In the 2024 calendar year, counties are still experiencing declines in the number of recorded sales from 2023. Home sales pulled back in June as interest rates remained high. Home sales have continued to trend lower than those reported over the past several years and median sale value growth has not been as large as we have seen in many of the years since 2020. 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. FY 2025-26 Proposed Budget General Fund Financial Schedules 82 141 CC 05-15-2025 141 of 655 $7.5 million is anticipated in TOT revenues during FY 2025-26, a 3% decrease from the FY 2024-25 Adopted Budget. According to HdL, business travel has not returned compared to pre-pandemic levels. Occupancy is improving a couple of percentage points each year, however, the Average Daily Rate may still be too low, compared to prior years. So, while the Average Daily Rate is increasing, it doesn't appear that it is driven by demand. Historical growth in TOT revenues is due to new hotels. Since 2015, the following hotels have been added to the City: MarrioD at Main Street and HyaD House at Vallco. Staff will continue to monitor this revenue source 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. 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. In FY 2025-26, budgeted revenues are in line with FY 2024-25 Adopted Budget amounts. This revenue source will be monitored closely as the fiscal year progresses. FY 2025-26 Proposed Budget General Fund Financial Schedules 83 142 CC 05-15-2025 142 of 655 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, aside from a spike in revenue in FY 2023-24. This revenue spike was related to a combination of the new franchise agreement with associated rate increases plus the demolition of the Oaks shopping center, which increased the usage of Recology debris boxes. FY 2025-26 Proposed Budget General Fund Financial Schedules 84 143 CC 05-15-2025 143 of 655 In FY 2025-26, budgeted revenues are expected to increase approximately 25.22% from the prior year Adopted Budget due to an alignment of actual dollars received. 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. Revenues in this category have returned to historic levels aVer Apple Park and Main Street developments have completed. In FY 2025-26, these revenues are expected to increase slightly from the prior year adopted budget. The projected increase is based on estimated increases in business license taxes and property transfer taxes. According to HdL, for FY 2025-26, the projected increase from known 2024 transfers is used to estimate value growth. For this scenario, the estimated growth from transfers in 2026-27 adjusts the growth as a percentage of real value in 2025-26 by 5.0%. For years 2027-28 and later, growth is based on the historical average rate of real property growth due to properties that have transferred ownership. Charges for Services FY 2025-26 Proposed Budget General Fund Financial Schedules 85 144 CC 05-15-2025 144 of 655 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 aDempts 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. 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. AVer a comprehensive Cost Allocation Plan was received and filed by Council in February 2024, internal strategic support services (City Council, Facilities, Maintenance, etc.) were included. In FY 2023-24, 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. In FY 2024-25, estimated revenues are expected to come in roughly $2.3 million higher compared to budgeted levels due to the Vallco Town Center (renamed the Rise) and its scheduled commencement in FY 2023-24, in which the applicant received approval of value-engineered and modified plans. Revenues are carried forward until project completion. FY 2025-26 revenues are projected to be 0.4% lower than the prior year adopted budget. This projected decrease is primarily due to a reduction in Other Service Fees, following the reclassification of an account to its appropriate budget category of Intergovernmental revenue. Other contributing factors are a decrease in Vallco Town Center (the Rise) engineering fees. Licenses 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 2025-26 Proposed Budget General Fund Financial Schedules 86 145 CC 05-15-2025 145 of 655 Apple Park and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permiDing revenues in FY 2013-14 (not shown in the trend chart above). 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 $34 million estimated amount in FY 2024-25 is due to plan check fee revenues anticipated to be recognized for Vallco Town Center (renamed The Rise). In FY 2025-26, revenues are budgeted at $4.3 million, a 16.2% increase from the prior year adopted budget. 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 March 31, 2025, the City's portfolio included $67.3 million invested with the Local Agency Investment Fund (LAIF) and a total market value of $172.4 million with Chandler Asset Management. As of March 31, 2025, the City also had $22.5 million in its Section 115 Pension Trust, which is restricted for pension costs. Fluctuations in this revenue category are a result of investment earnings, as rental income is fairly steady. Investment earnings were higher in FY 2020-21 and FY 2023-2024 due to investment gains in the City's Section 115 Pension Trust. Investment earnings fell in FY 2021-22 and FY 2024-2025 due to mark-to-market adjustments to account for unrealized losses in the City's portfolio. The portfolio's market value fluctuates depending on interest rates. When interest rates decrease aVer an investment is purchased, the market value of the investment increases. In contrast, when interest rates increase aVer an investment is purchased, the market value of the investment decreases. At the time of purchase, the City intends to hold all investments until maturity, meaning that changes in market value will not impact the City's investment principal. If the market value decreases, the City will incur an unrealized loss. However, the loss will only be realized if the City sells its investments before their maturity. FY 2025-26 Proposed Budget General Fund Financial Schedules 87 146 CC 05-15-2025 146 of 655 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 In FY 2025-26, revenues in this category have increased 39.2% from the prior year adopted budget primarily due to the City’s new water system lease agreement, which provides approximately $1.8 million in annual revenues for the life of the 12-year contract with San Jose Water Company. These revenues began in the current fiscal year, FY 2024-25, and will conclude in FY 2036-37, which is beyond the current forecast. 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. Revenues in this category dropped significantly in FY 2020-21 due to pandemic related restrictions and have increased over the next few years as society continued to rebound from the pandemic. In FY 2024-25, this revenue source is expected to reach $395,000. Revenues in FY 2025-26 are expected to slightly increase 4.0% from the prior year adopted budget driven by an expected rise in citations issued as the Code Enforcement division reaches full staffing this fiscal year. FY 2025-26 Proposed Budget General Fund Financial Schedules 88 147 CC 05-15-2025 147 of 655 Intergovernmental Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue. FY 2025-26 revenues in this category are anticipated to be 44.4% higher than the prior year adopted budget primarily aDributed to anticipated funds received from other cities for the Via community shuDle. This revenue has been reclassified from Charges for Services to its appropriate budget category of Intergovernmental revenues. The increase is also due to an increase in anticipated state grant revenues received, primarily due to a grant for the Via community shuttle. Miscellaneous Revenue Miscellaneous revenues account for unanticipated revenues such as donations and administrative fees. FY 2025-26 Proposed Budget General Fund Financial Schedules 89 148 CC 05-15-2025 148 of 655 FY 2025-26 miscellaneous revenues are budgeted 37.8% higher than the prior year adopted budget. The majority of the General Fund's miscellaneous revenues are due to Sheriff services from Apple for Law Enforcement 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 2025-26, revenues are projected to be relatively consistent with the prior year adopted budget. Transfers In Transfers In represent the movement of funds from one City fund to another, the General Fund in this case. In FY 2023-24, actual transfers were high due to a transfer in from the Capital Reserve for the I-280/Wolfe project. FY 2024-25 is anticipated to end the year within budgeted levels. In FY 2025-26, the City plans to transfer $15,000 from the City's Tree Fund to the General Fund to support ongoing tree maintenance operations. FY 2025-26 Proposed Budget General Fund Financial Schedules 90 149 CC 05-15-2025 149 of 655 General Fund Expenditures The estimates for FY 2025-26 General Fund expenditures are based on a thorough analysis of anticipated personnel and non- personnel costs. To create a more fiscally responsible budget, department budgets reflect a base budget with only justified ongoing expenses. This accounts for changes in personnel costs as well as any other anticipated or known increased costs in FY 2025-26. As shown in the chart on the next page, FY 2025-26 expenditures are estimated at $99.1 million, which represents an $9.1 million, or 10.1%, increase compared to the adopted budget from the prior year. This budget reflects increases in Contract Services, Capital Outlay and Special Projects, and Cost Allocation. The largest General Fund operating expenditure categories include Employee Compensation and Benefits (35.1%), Contract Services (31.8% ), Cost Allocation (12.1%), Materials (6.2%), and Transfers (10.7%) as illustrated in the FY 2025-26 General Fund Expenditures by Category chart. FY 2025-26 Proposed Budget General Fund Financial Schedules 91 150 CC 05-15-2025 150 of 655 Personnel Costs In FY 2025-26, personnel costs are expected to reach $34.7 million, accounting for 35% of the General Fund expenditures. These costs include salaries and compensation for benefited and part-time staff (68%), retirement benefits (15%), and other fringe benefits (17%), such as health coverage. To obtain these figures, the City extracted data from the payroll system and made necessary updates to account for vacant positions, new hires, salary adjustments, and reallocated positions. Furthermore, the projected costs of benefits for the upcoming year, such as retirement and health plans, were taken into consideration. A transfer to the Retiree Medical Fund for retiree healthcare, which is an ongoing expense, is budgeted in FY 2025-26. The FY 2025-26 Adopted Budget includes funding for a total of 210 positions, representing an increase of 3 positions from the FY 2024-25 Amended Budget. Non-Personnel In FY 2025-26, non-personnel costs make up 54% of the total at $99.1 million. Contract services are the largest component at 31.8%, followed by Cost Allocation at 12.1%, Transfers at 10.7%, and Materials at 6.2%. One-time projects were separated into a different category in FY 2013-14 to ensure expenditure trends reflect ongoing needs. In FY 2017-18, special projects and capital outlays were categorized separately from other costs. Per the City Council Special Project Policy adopted in FY 2024-25, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. Non-Personnel budgets were developed based on previous year's base budget and adjusted for the current year's needs. One-time projects were excluded to reflect ongoing expenditure needs. Materials and contract services were adjusted by CPI, where applicable. Contingencies In FY 2013-14, a contingencies expenditure category was added to each program to provide a cushion for any unforeseen expenses. In FY 2020-21, the program contingencies and City Manager Contingency were reduced from 5% to 2.5%. To further reduce expenditures, in FY 2021-22, the City Manager Contingency was reduced to $75,000. In FY 2022-23, program contingencies was reduced to 1.25%, and the City Manager Contingency was reduced to $50,000. The City has a track record of underspending in this category. The program contingency budget may be used by departments to cover unanticipated expenses at their discretion, while the City Manager Contingency requires the approval of the City Manager and is reported to the City Council quarterly for transparency and accountability. FY 2025-26 Proposed Budget General Fund Financial Schedules 92 151 CC 05-15-2025 151 of 655 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. Transfers from the General Fund are as follows: For descriptions of funds, see Financial Policies: Fund Structure. FY 2025-26 Proposed Budget General Fund Financial Schedules 93 152 CC 05-15-2025 152 of 655 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 liVed only with the consent of resource providers. Commi?ed 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 liVed 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 commiDed. 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 2025-26 Proposed Budget General Fund Financial Schedules 94 153 CC 05-15-2025 153 of 655 General Fund Classification of Fund Balance FY 2025-26 Proposed Budget General Fund Financial Schedules 95 154 CC 05-15-2025 154 of 655 General Fund Forecast Overview The City has reached resolution on the California Department of Tax and Fee Administration (CDTFA) Audit, this budget focuses on the 10-year forecast post this resolution. While long-term projections may be less precise than short-term projections, they can help identify potential structural budget issues in advance. The following chart shows a structural deficit that begins in FY 2033-34 due to expenditures (3.76% average annual growth rate) growing at a faster rate than revenues (1.71% AAGR). Although this forecast is an improvement from FY 2024-25 Adopted Budget, comparing this forecast to the update forecast provided to the City Council in March 2025 we now have the last two years of the forecast with modest deficits. This is driven primarily by increased expenditures from higher growth than expected in Materials and Contracts and Special Projects. Most notably law enforcement costs have materialized at 6% vs. the 4% in the forecast. Additionally, staff has ongoing requests for: Salaries and Benefits for the addition of three new positions and two part-time positions that total $768,316. Materials and contracts total $544,340. This forecast does not assume increases fees scheduled to be presented to City Council on May 6, 2025. The results of an audit by CDTFA have been finalized. The final impact of this audit have resulted in a decline of $30 million, or 73%, in sales tax revenues. This resulted in an overall decrease to total City revenues of $30 million, or 28%, from the original FY 2023-24 forecast. The ongoing impacts of the audit are included in this forecast. The Council and staff have demonstrated proactive fiscal stewardship in response to the evolving financial landscape. The FY 2023-24 Adopted Budget, and FY2024-25 budget both included significant reductions totaling almost $24 million dollars as illustrated in the table1 below: Additionally, on October 10, 2023, the Council established a commiDed Sales Tax Repayment Reserve with an initial allocation of $56.5 million. This reserve was designed to address a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge. Funding came from Unassigned fund balance, the Capital Projects Reserve, and the Economic Uncertainty Reserve. Staff will be going to Council on May 21, 2024, to increase the Sales Tax Repayment Reserve to $74.5 million. FY 2025-26 Proposed Budget General Fund Financial Schedules 96 155 CC 05-15-2025 155 of 655 In October 2024, the City reached resolution with the CDTFA which allowed the City to keep previously disputed revenues but the ongoing reductions to sales tax will remain and are included in this forecast. In November 2024 staff brought a plan to allocate the Sales Tax Repayment Reserve. Ultimately, City Council voted to allocate $10 million for an Additional Discretionary Payment (ADP) to CalPERS, the City’s retirement system, resulting in reduced retirement costs throughout the forecast. The remaining $64.5 million has been place in a new commiDed reserve, “Reserved for Future Use”. Any use of these dollars must have approval from the City Council. As we progress through the current fiscal year and other in the forecast, staff will continue to keep the Council, Community and Staff up to date on the City’s Financial Forecast. The City has been successful in making reductions needed to help balance the General Fund budget for all but two of the years, with deficits now beginning in FY2034 of the forecast, again an improvement over last year but a decline from the Mid-Year Financial Report, as discussed in the overview section of the forecast. In the out years, the deficit is primarily due to a recession scenario in FY 2027-28, and the sunset of the Utility Users Tax in FY 2030- 31. This forecast is still an improvement and continues to give the City the ability to balance the budget without the use of reserves. Forecast Methodology A financial forecast is a crucial tool for planning and budgeting, allowing staff to analyze trends and anticipate the long-term impacts of budget decisions. It plays a vital role in modeling the effects of various factors, such as retirement costs, employee compensation, and revenues, on the City's budget. It is important to note that the forecast is not a plan but rather a model that relies on revenue and cost assumptions, which are updated regularly as new information becomes available. While cost projections, which are based on known costs, are relatively reliable, revenue forecasts are subject to uncertainties related to future economic conditions. Economic forecasts can change frequently, making it difficult to commit to a particular prediction of the future. As such, staff must update the forecast regularly to ensure it reflects the latest information and trends. 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 FY 2025-26 Proposed Budget General Fund Financial Schedules 97 156 CC 05-15-2025 156 of 655 during economic expansions or slowdowns. All revenue projections are based upon trend analysis, including a careful examination of the collection history and paDerns related to seasonality and the economic environment the City is most likely to encounter in the future. Staff also considered the impacts of the CDTFA audit in determining the sales tax estimates. A discussion of the national and local economic outlooks used to develop the revenue estimates for the 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 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 costs/benefits related to fiscal activities. In 2024, the City worked with Baker Tilly to validate the City's financial forecast. In collaboration with Baker Tilly, the City has made the following updates to the forecast: Increased the sales tax growth rate. Adjusted the recession scenario from every 4 years to every 7 years to align with post-World War II patterns.  Incorporated 2% salary savings to account for vacant positions. Updated CPI data source to UCLA Anderson Forecast. Adjusted interest earnings to align with current reserves and investment strategy. Implemented updates to the Economic Uncertainty Reserve level every year. In 2025 staff further reviewed the forecast the City has made the following updates: Aligned Property Tax, Transient Occupancy Tax, and Franchise Fee revenue estimates with historical actuals. Included interest earnings related to the $74.5 million, now $64.5 in the forecast. Update the vacancy rate from 2% to 4% to better align with historical vacancy rates. Included the water lease payment into the forecast. Resumed transfers out to the Capital Reserve in all years of the forecast. National Economic Outlook In the first quarter of 2025, the U.S. real gross domestic product (GDP) contracted at an annualized rate of 0.3%, marking the first decline since early 2022. This downturn was primarily driven by a significant surge in imports, as businesses and consumers accelerated purchases ahead of newly announced tariffs by the Trump administration. The resulting record trade deficit substantially offset gains from consumer spending and business investment. Despite the contraction, the labor market remained relatively stable, with the unemployment rate holding at 4% and layoffs remaining minimal. However, early indicators suggest potential economic weakening, with signs of slower job growth and declining wage gains. Inflationary pressures have shown signs of easing. The Consumer Price Index (CPI) rose 2.4% over the 12 months ending March 2025, down from 2.8% in the previous period. Core inflation, which excludes food and energy, increased by 2.8% over the same period, marking the smallest 12-month increase since March 2021. FY 2025-26 Proposed Budget General Fund Financial Schedules 98 157 CC 05-15-2025 157 of 655 Cupertino Economic Outlook The City does not anticipate significant impacts on property tax revenues in FY 2025-26. The City is optimistic about the future of transient occupancy tax (TOT) revenues, as the relaxation of pandemic-related restrictions has boosted business travel.However, the recovery of this crucial tax revenue has been slower than expected. As more information becomes available, staff will bring forward updates and adjustments to City Council regularly as necessary. Revenues The City relies heavily on three revenue sources: property tax, sales tax, and transient occupancy tax (TOT), which together make up the majority of its General Fund revenues. The City's General Fund revenues are projected to be $97.2 million in FY 2025-26 and are expected to increase over the forecast period. Property tax and transient occupancy tax are expected to continue to be consistent revenue sources, with projected increases. However, sales tax is projected to decrease significantly due to the CDTFA resolution. 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 10 months and have occurred, on average, about every 6.5 years. As a result, the forecast assumes a recession every seven years where most revenues remain flat while expenditure continues to increase. The forecast incorporates a recession scenario in FY 2027-28. This is a change from the previous recessionary assumption of every four years. The update was made based on a recommendation from Baker Tilly. Per City Council direction in April 2025 as part of the Budget Format Review item, 10 years of historical actual data is now shown along with 10 years of forecast data for each revenue category. FY 2025-26 Proposed Budget General Fund Financial Schedules 99 158 CC 05-15-2025 158 of 655 Sales Tax Prior to FY 2023-24, sales tax has been the City’s largest revenue source. Sales taxes are collected at the point of sale and remiDed to the California Department of Tax and Fee Administration (CDTFA), formerly the Board of Equalization.  Sales tax revenues are projected to increase by an average annual growth rate of 2.98% in the forecast. Staff used moderate estimates for business and industry, general consumer goods, restaurants and hotels, and state and county pools. Historically major drivers that caused fluctuation in this revenue category stemmed from the following: Sales Tax Localization Agreement with Apple (FY15, impact in FY17 and FY18)  Negotiated a new sales tax-sharing agreement split (changed from 50/50 to 35/65 in the middle of FY14)  Closeout of the triple flip (FY17)  Wayfair Decision/AB 147 (changed how out of state online purchases are taxed and distributed FY21)  Online and Business to Business increased significantly from FY20 to FY23  County Pool increased from FY20 to FY23 due to the strong performance of online and B2B, as well as the decline of most other Santa Clara County agencies' sales tax during the same time.  California Department of Tax and Fee Administration (CDTFA) audit in FY24  FY 2025-26 Proposed Budget General Fund Financial Schedules 100 159 CC 05-15-2025 159 of 655 Property Tax Property taxes are projected to remain stable in the near term. However, the impact of potential remote work on property taxes in the long term is uncertain. The trend towards remote work has caused people to reconsider where they choose to live, which could lead to a decrease in demand for residential real estate. The high-interest rate environment and a slow turnover rate of properties in the City may also impact this revenue category. Additionally, companies may need less office space if fewer employees are working at the office, which could decrease demand for commercial office space. This could result in a reduction of property tax revenue for the City. In FY 2025-26, property tax revenues are expected to reach $35.4 million and increase at an average annual growth rate of 2.88% in the forecast. The moderate forecast is based on a range of factors, including historical trends for the City and projections for the region. While property tax has grown at an average annual rate of 11% historically, this projection assumes a lower growth rate. Historical property tax growth has been due to significant development projects such as Main Street and Apple Park, as well as the restoration of Tax Equity Allocation (TEA) revenues from FY 2015-16 to FY 2019-20. Historically, major drivers that caused fluctuation in this revenue category stemmed from the following: 5.6% to 7% City property tax share due to Tax Equity Allocation (TEA) restoration from FY15 to FY20 and Education Revenue Augmentation Fund (ERAF) shift  Apple Park and other developments  Increase in residential and other commercial property values.  The current projection does not assume any such developments in the near future, resulting in a more modest growth rate forecast. The City will continue to monitor economic and market trends to ensure that property tax revenue projections remain accurate. Transient Occupancy Tax FY 2025-26 Proposed Budget General Fund Financial Schedules 101 160 CC 05-15-2025 160 of 655 The City's current forecast assumes that TOT revenues will be $7.5 million in FY 2025-26 and gradually increase. The forecast projects an average annual growth rate of 1.76% for TOT revenues. This moderate forecast is based on historical tax collections and assumes slower growth than historical trends. Historical growth in TOT revenues was primarily due to the addition of new hotels and a voter-approved increase in the TOT rate from 10% to 12% in 2012. Historically major drivers that caused fluctuation in this revenue category stemmed from the following: TOT rate increased from 10% to 12% in FY13.  New hotels  Short-Term Rentals  Shelter-in-place (fourth quarter of FY20)  Business travel affected by pandemic.  The TOT revenues are affected by the tax rate charged on hotels, occupancy rates, and average daily room rates (ADR). Given that TOT revenues in Cupertino are mainly driven by business travel, any shiV in travel habits or economic conditions could significantly impact this revenue source. Licenses and Permits  The City's forecast projects an average annual growth rate of 0.44% for licenses and permits revenue, 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. It is important to note that this forecast does not take into account any significant development projects that are awaiting approval. If new development projects are approved, staff will update this forecast accordingly. The large spike in FY 2024- 25 are due to Rise revenues that are currently budgeted. FY 2025-26 Proposed Budget General Fund Financial Schedules 102 161 CC 05-15-2025 161 of 655 Charges for Services Charges for services revenues are projected to increase at an average annual growth rate of 3.04%. Other Service Fees, Cost Allocation Plan Charges for Services, and General Service Fees are expected to increase by the full-time salary growth rate. Planning Fees and Engineering Fees are forecasted based on construction and development factors, such as California residential and non-residential building permits, and construction payrolls from the UCLA Anderson Forecast for the Nation and California. FY 2025-26 Proposed Budget General Fund Financial Schedules 103 162 CC 05-15-2025 162 of 655 This forecast does not consider any significant development projects awaiting approval. The City will update the forecast if new projects are approved. Other Revenue Utility taxes are forecasted to be $0 beginning in FY 2030-31, as the utility user tax expires in November 2030.  Franchise fees are projected to increase by an average annual growth rate of 1.52% based on a trend of historical data. Other taxesare 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 propertyare projected based on the City’s forecasted General Fund fund balance and the City's current investment strategy. 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 0.44% 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. Expenditures In FY 2019-20, the City developed a zero-based budget, which involved analyzing every function of the City for its needs and costs. As a result, all costs were justified, and base budget savings were achieved. In FY 2023-24, and FY 2024-25 the City implemented several budget-balancing that are discussed earlier in this section. In FY2025-26, staff is requesting to add three new full-time benefited positions and 2 part-time positions totaling $768,316 and almost $700,000 in ongoing cost in all other expenditure categories. To inform these decisions, the City developed a forecast based on actual expenditures in prior years and FY 2025-26 projections. The forecast also considered factors such as CPI, construction and development activity, and CalPERS Normal Cost and Unfunded Liability projections, including the ADP payment made in December 2024. The forecast will be adjusted throughout the year to account for one-time changes and budget adjustments. FY 2025-26 Proposed Budget General Fund Financial Schedules 104 163 CC 05-15-2025 163 of 655 Per City Council direction in April 2025 as part of the Budget Format Review item, 10 years of historical actual data is now shown along with 10 years of forecast data for each expenditure category. The chart above illustrates the projected General Fund expenditures, which are estimated to be $97.2 million in FY 2025-26, with an expected increase over the forecast period. The forecasted expenditure growth is primarily driven by increasing Law Enforcement costs. To provide an in-depth understanding of the estimated expenditure categories in the General Fund Forecast, the following discussion focuses on the assumptions made for each category. Personnel Expenditures Salaries FY 2025-26 salaries and benefits do not reflect the cost-of-living adjustments (COLA)s as the City’s labor contract are set to expire on June 30, 2025. The City is currently in the process of negotiating successor agreements. In the forecast, full-time salaries are expected to increase by estimated payroll increases from the CalPERS valuation report. On the other hand, part-time salaries are forecasted to grow at a rate of 1.5%, because historically, part-time salaries have tended to grow at a slower rate than full-time salaries. A 4% vacancy rate has been included in the out-years of the forecast. This vacancy rate was added at 2% in FY 2024-25 and is being increased this year to align with historical vacancy rates. The vacancy rate is not included in the budgeted salary and benefits as the City budget at the position level making is difficult to determine where vacancies may occur. 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. 39% of employees are below the top step. Typically, classifications have five steps, with each increase equivalent to a 5% increase in salary. Health Benefits In FY 2025-26, health benefits account for about 11% 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. As the City is currently in negotiations, health rates are forecasted to grow by 4.73% but will be updated once a successor agreement is negotiated. Historically major drivers that caused fluctuation in this revenue category stemmed from the following: FY 2025-26 Proposed Budget General Fund Financial Schedules 105 164 CC 05-15-2025 164 of 655 Retirement Benefits The forecast reflects a notable decrease in retirement-related costs as a result of the $10 million one-time Additional Discretionary Payment (ADP) made to CalPERS in FY 2024-25 to reduce the City’s Unfunded Accrued Liability (UAL). This strategic payment lowered the City’s annual UAL contributions beginning in FY 2025-26, resulting in significant cost savings over the forecast period. While the annual savings gradually decline as CalPERS amortization schedules normalize, the ADP provides meaningful near- term budget relief and long-term fiscal benefits. As a result, retirement costs are projected to be lower than previously forecasted, helping to stabilize Employee Compensation and Benefits expenditures across the 10-year horizon. Other Benefits The forecast assumes health insurance increase by 4.73% for the second half of FY 2025-26 and then, 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. Non-Personnel Expenditures Non-Personnel budgets were developed based on the previous year's base budget and adjusted for the current year's needs. One- time projects were excluded to reflect ongoing expenditure needs. Materials and contract services were adjusted by CPI, where applicable. Materials costs are forecasted to increase by CPI. Contract Servicescosts 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 6%%. Per the terms of the contract, the annual increase is limited to the lesser of: Percentage increase in total compensation and annual CalPERS cost increase Annual CPI plus 2% and annual CalPERS cost increase The City's current agreement with the Santa Clara County Sheriff's Office is set to expire in June 2026. These costs have been a significant driver of the City's expenditure growth in recent years, and it is expected that they will continue to increase in the coming years. Cost Allocation is projected to grow by 2.75%. Capital Outlays and Special Projects are projected to increase by CPI. Capital Outlays and Special Projects are being reduced as an expenditure-reduction strategy. Contingencieshave been calculated based on FY 2025-26 base materials and contracts and have been moved to materials. The only remaining is the City Manager's Contingency Fund at $50,000 unchanged since FY 2023-24 with no escalator for these funds in the forecast. Transfersrepresent the General Fund’s contributions to other City funds to support debt payments, pay retiree health costs, finance capital projects, replenish capital reserves, acquire new equipment, and subsidize enterprises and operations. AVer the implementation of a comprehensive Cost Allocation Plan in FY 2015-16, General Fund expenses have been shiVed 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 shiV; however, aVer 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: $1.5 million annually. Debt Service Funds: $2.7 million based on the 2012 COPS debt service schedule until FY 2030-31. Capital Reserve: $2 million Retiree Medical Fund: Funding from FY 2024-25 to FY 2026-27 to restore OPEB plan to 100% funded. Funding normal cost in the subsequent years. Compensated Absences Fund: $0.6 million annually FY 2025-26 Proposed Budget General Fund Financial Schedules 106 165 CC 05-15-2025 165 of 655 Enterprise Funds: $1.0 million annually. Transfers from the General Fund to other funds have been reduced as part of an expenditure reduction strategy aimed at decreasing General Fund subsidies of other funds. The City is expected to complete its debt payments for city facilities by FY 2029-30. Until then, the City will pay approximately $2.7 million annually in principal and interest on its Certificates of Participation for City Hall, Community Hall, and Library. These funds will be transferred from the General Fund to the Debt Service Funds. Fund Balance The foresight of the City Council and staff in previous years to focus on ensuring healthy reserves is paying off in full. 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: For Future Use Reserve: may be used for any purposed as determined by City Council Economic Uncertainty Reserve: may be used to mitigate potential shortfalls. Section 115 Pension Trust: may be used to fund pension costs. Funds in the Section 115 Pension Trust are restricted and can only be used to pay CalPERS or reimburse the City for pension contributions. In FY 2025-26, the General Fund’s total fund balance is projected to be $156.7 million, and the General Fund's Unassigned fund balance is projected to be $39.2 million. FY 2025-26 Proposed Budget General Fund Financial Schedules 107 166 CC 05-15-2025 166 of 655 Potential Budget-Balancing Strategies Historically, the City has maintained a structurally sound budget, with revenues surpassing expenditures in most fiscal years. During periods of excess revenue, the City has transferred the surplus fund balance to the Capital Reserve Fund in accordance with the City's Fund Balance and Use of One-Time Funds Policy. However, the forecast shows a potential structural deficit resulting from the decrease in sales tax revenue due to the CDTFA audit and the sunset of the Utility Users Tax. A structural deficit occurs when recurring expenditure consistently surpasses recurring revenues, leading to an ongoing imbalance that cannot be remedied through short-term solutions. The City began including these strategies in FY 2018-19 and updates them at least annually or as needed. FY 2025-26 Proposed Budget General Fund Financial Schedules 108 167 CC 05-15-2025 167 of 655 Potential Strategy Description Potential Impact Currently Recommended Section 115 Pension Trust In FY 2017-18, the City established a Section 115 Pension Trust to mitigate pension rate volatility when CalPERS investment returns are below the discount rate or when CalPERS changes assumptions. The City can also use it to offset pension costs in any given year. The City established a Section 115 Trust to reduce pension rate volatility when CalPERS investment returns are below the discount rate or when CalPERS changes assumptions. The City can also use it to offset pension costs. The fund has a balance of $21.6 million.1 Yes Section 115 OPEB Trust In FY 2009-10, the City established a Section 115 OPEB Trust to help fund its retiree health obligations, also known as other post-employment benefits (OPEB).  The OPEB plan is fully funded. Starting in FY 2022-23, retiree health costs will be funded by the OPEB Trust rather than the General Fund. The fund has a balance of $39.2 million.1 Yes Reserve for Future Use On November 19, 2024, the City Council created this reserve from unappropriated dollars from the Sales Tax Repayment Reserve This reserve has a balance of $64.5 million Economic Uncertainty Reserve The General Fund Economic Uncertainty Reserve may be used to mitigate potential shortfalls. The reserve has a balance of $21.3 million.2 No 1 Balance as of March 31, 2024 2 Projected balance as of June 4, 2024 Expenditure Reduction Strategies FY 2025-26 Proposed Budget General Fund Financial Schedules 109 168 CC 05-15-2025 168 of 655 Potential Strategy Description Potential Impact Currently Recommended  No new positions Cost containment strategy $0 Yes Vacancy control Keep non-essential positions unfilled as they become vacant. Approximately $184,000 per position on average Yes Employee cost-sharing of increases to CalPERS Negotiate to share costs of increases to CalPERS employer rates with employees. Would be subject to bargaining unit agreement. $250,000 approximate based on a 5% rate increase No Defer or eliminate negotiated increases Would be subject to bargaining unit agreement. Approximately $0.3 million savings based on a 1% decrease No Furloughs Employees would take up to a 10% decrease in pay in exchange for 1 unpaid furlough day per pay period. Would be subject to bargaining unit agreement. Approximately $4 million savings based on a 10% decrease No Reduction in force Identify positions to be reduced (laid off) based on MOU provisions and service level needs. Approximately $184,000 per position on average No Reduction in capital outlays and special projects Cost containment strategy Varies Yes Reduction in contingencies Cost containment strategy Up to $50,000 Yes Defer or cancel capital projects Cost reduction strategy Varies Yes Revenue Generation Strategies FY 2025-26 Proposed Budget General Fund Financial Schedules 110 169 CC 05-15-2025 169 of 655 Potential Strategy Description Potential Impact Currently Recommended  ¼ Cent Transaction and Use Tax (TUT) Voter approval is required. Could increase sales tax from 9.125% to 9.375% $5.4 million1 No Transient Occupancy Tax (2% increase) Voter approval is required. Could increase transient occupancy tax from 12% to 14% $1.25M at $7.5M base No Parcel Tax Voter approval is required $3.7M flat rate per parcel $3.8M variable rate per square foot No Business Operations Tax Employee count tax $4.2 million No Increase fees and cost- recovery Matrix Consulting Group conducted a fee study in 2023. The study assessed the potential for fee increases and cost recovery. The City Council adopted the new fee schedule in May 2024. Varies Yes Sale of City- owned Properties or Assets The sale of city-owned assets would generate one-time revenue. Varies No 1 HdL estimate as of July 2023 Development Revenue Estimates The City's current forecast does not incorporate potential significant development projects that are pending approval and permitting. However, once new development projects receive approvals and permits, staff will update the forecast accordingly. The table below shows our best estimates of potential development revenue. These figures serve as rough approximations and are intended to give you a general idea of what to expect. The timeline for each project represents the Community Development department's best estimate of when commencement is anticipated. It is crucial to note that these estimates are subject to adjustments as we gather additional information over time. FY 2025-26 Proposed Budget General Fund Financial Schedules 111 170 CC 05-15-2025 170 of 655 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 puDing a cap on the total proceeds of taxes that may be appropriated each year. Proposition 111 and Senate Bill 88, approved by California voters in June of 1990, offered cities more flexibility in choosing inflation and population factors to calculate the limit. 1 The following chart and table show the appropriations limit and actual expenditures subject to the appropriations limit. 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: By the percent change in per capita personal income in California or the percent change in the assessment roll the preceding FY 2025-26 Proposed Budget General Fund Financial Schedules 112 171 CC 05-15-2025 171 of 655 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: 3.62% Population Factor (B) Percent Change in County Population: 0.02% (C) Percent Change in City Population: -0.31% The City multiplied the FY 2023-24 appropriations limit by Price Factor (A) and Population Factor (B) to calculate the FY 2024-25 appropriations limit, as shown below: FY 2023-24 Appropriations Limit $127,886,394 Price Factor (A)1.0362 Population Factor (B)1.0002 FY 2024-25 Appropriations Limit $132,542,385 The City's FY 2024-25 appropriations limit is $132.5 million, an increase of $4.7 million, or 3.6% from the prior year. The Department of Finance has not yet released numbers for FY 2025-2026, this will be updated with the Adopted Budget. FY 2025-26 Proposed Budget General Fund Financial Schedules 113 172 CC 05-15-2025 172 of 655 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 2024-25 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. Description Amount Formula Debt Limit: Secured Property Assessed Value, Net of Exempt Real Property (1)$33,715,982,768 Adjusted Valuation - 25% of Assessed Valuation (2)$8,428,995,692 (1) x 25% Debt Limit - 15% of Adjusted Valuation $1,264,349,354 (2) x 15% Amount of Debt Subject to Limit: Total Bonded Debt (3) 14,030,000 Less: Certificates of Participation Not Subject to Debt Limit (4) (14,030,000) Amount of Debt Subject to Limit -(3) - (4) Legal Debt Margin $1,264,349,354 FY 2025-26 Proposed Budget General Fund Financial Schedules 114 173 CC 05-15-2025 173 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget General Fund Financial Schedules 115 174 CC 05-15-2025 174 of 655 Council and Commissions FY 2025-26 Proposed Budget Council and Commissions 116 175 CC 05-15-2025 175 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Council and Commissions 117 176 CC 05-15-2025 176 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget City Council $ 720,339 100-10-100 City Council $ 593,801 100-10-101 Community Funding $ 33,086 100-10-104 Historical Society $ 40,000 100-10-110 Sister Cities $ 53,452 Commissions $ 400,894 100-11-131 Technology, Information & Communications Commission $ 22,260 100-11-140 Library Commission $ 27,327 100-11-142 Arts and Culture Commission $ 30,867 100-11-150 Public Safety Commission $ 19,917 100-11-155 Bicycle and Pedestrian Commission $ 16,815 100-11-160 Parks and Recreation Commission $ 25,230 100-11-165 Teen Commission $ 14,908 100-11-170 Planning Commission $ 124,073 100-11-175 Housing Commission $ 71,165 100-11-180 Sustainability Commission $ 17,210 100-11-190 Audit Committee $ 31,122 Total $ 1,121,233 FY 2025-26 Proposed Budget Council and Commissions 118 177 CC 05-15-2025 177 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 106,119 Total Expenditures $ 1,121,233 Fund Balance $ - General Fund Costs $ 1,015,114 % Funded by General Fund 90.5% Total Staffing 7.1 FTE Organization Liang Chao, Mayor Kitty Moore, Vice Mayor J.R. Fruen, Council Member Sheila Mohan, Council Member Ray Wang, Council Member FY 2025-26 Proposed Budget Council and Commissions 119 178 CC 05-15-2025 178 of 655 Proposed Budget It is recommended that City Council approve a budget of $1,121,233 for the Council and Commissions department. This represents an increase of $7,315 (0.7%) from the FY 2024-25 Adopted Budget. Overall, this budget is consistent with the prior year Adopted Budget. However, there are several shiVs in this budget that result in an overall decrease. Reductions in benefits are due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Citywide memberships and dues that were previously in the City Council budget have been moved to Administration to beDer reflect the use of those dollars, and contract costs are increasing due to the transfer in of the internal audit contract from Administrative Services per City Council direction as part of the budget format review. Also, cost allocation charges are higher due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. FY 2025-26 Proposed Budget Council and Commissions 120 179 CC 05-15-2025 179 of 655 This is offset by budget requests that include increases in materials due to funds for and citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. Also, in materials is a request for $3,000 for increased meal costs due to meeting frequencies, and in contracts a $30,000 increase in the internal audit contract to fund the FY26 Internal Audit Workplan. A City Work program item Financial, Investment and Cashflow Policy Review are included in this budget under the contract for internal audit for $25,000. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. FY 2025-26 Proposed Budget Council and Commissions 121 180 CC 05-15-2025 180 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 64.2% 35.8% City Council Commissions $1.10M $954k $1.11M $1.12M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Council and Commissions 122 181 CC 05-15-2025 181 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 830,532 $ 827,983 $ 104,305 $ 106,119 Total Revenues $ 830,532 $ 827,983 $ 104,305 $ 106,119 Expenditures Employee Compensation $ 326,585 $ 291,431 $ 339,760 $ 320,191 Employee Benefits $ 195,869 $ 189,707 $ 257,659 $ 227,867 Materials $ 142,479 $ 103,431 $ 135,408 $ 85,321 Contract Services $ 164,201 $ 95,670 $ 129,826 $ 235,776 Cost Allocation $ 271,261 $ 273,620 $ 248,971 $ 252,078 Contingencies $ -$ -$ 2,294 $ - Total Expenditures $ 1,100,395 $ 953,859 $ 1,113,918 $ 1,121,233 Fund Balance $ -$ -$ -$ - General Fund Costs $ 269,864 $ 125,875 $ 1,009,613 $ 1,015,114 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 123 182 CC 05-15-2025 182 of 655 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.50 0.40 0.40 0.40 ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.05 ASSISTANT ENGINEER 0 0 0.10 0 ASSISTANT HOUSING COORDINATOR 0 0 0 0.15 ASSIST TO THE CITY MNGR 0 0 0.05 0 ASST DIR RECREATION COMM SVCS 0.15 0 0 0 CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02 COMMS AND MARKETING COORDINATOR 0 0 0.15 0.15 COMMUNITY OUTREACH SPECIALIST 0.10 0.10 0.10 0.10 COUNCIL MEMBER 5.00 5.00 5.00 5.00 DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.06 DIRECTOR OF PARKS REC 0.05 0 0 0 EMERGENCY SERVICES COORDINATOR 0.05 0.05 0 0 ENV. PROGRAMS SPECIALIST 0 0 0.05 0.05 EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50 FINANCE MANAGER 0.05 0.05 0.05 0.05 MANAGEMENT ANALYST 0.10 0.20 0.10 0.05 PLANNING MANAGER 0.10 0.10 0.00 0 PUBLIC INFORMATION OFFICER 0.15 0.15 0 0 RECREATION MANAGER 0.10 0.15 0.15 0.15 SENIOR HOUSING COORDINATOR 0 0 0.20 0.15 SENIOR MANAGEMENT ANALYST 0 0 0 0.05 SENIOR PLANNER 0 0.10 0.10 0.10 SR OFFICE ASSISTANT 0.20 0.20 0.20 0.10 SUSTAINABILITY MANAGER 0.05 0.05 0 0 TRANSPORTATION MANAGER 0.10 0.10 0 0 Total 7.28 7.23 7.23 7.13 FY 2025-26 Proposed Budget Council and Commissions 124 183 CC 05-15-2025 183 of 655 City Council Budget Unit 100-10-100 General Fund - City Council - City Council Budget at a Glance 2026 Proposed Budget Total Revenues $ 106,119 Total Expenditures $ 593,801 Fund Balance $ - General Fund Costs $ 487,682 % Funded by General Fund 82.1% Total Staffing 5.8 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. This budget includes funding of $10,000 for the Mayor's Fund and $2,500 for fee waivers for the City Council members. Lastly, this budget includes the Moss Adams Internal Audit contract per Council direction. Although the dollars are budgeted in this program, the contract administration remains with the Administrative Services Department. Service Objectives The City Council objectives are carried out by City staff under the sole direction of the City Manager. Proposed Budget It is recommended that City Council approve a budget of $593,801 for the City Council program. This represents an increase of $47,001 (8.6%) from the FY 2024-25 Adopted Budget. This increase is primarily due to the addition of the Moss Adams Internal Audit contract, which was moved from the Administrative Services department per Council direction. This contract was originally $75,000 but staff is also requesting additional one-time funds of $20,000 to cover increased audit costs for FY26 as well as ongoing funds of $25,000. This budget unit is also requesting an additional $3,000 for meal costs for City Council meetings. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document under Budget Overview. Special Projects The following table shows the special projects for the fiscal year. None 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 125 184 CC 05-15-2025 184 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 830,532 $ 827,983 $ 104,305 $ 106,119 Total Revenues $ 830,532 $ 827,983 $ 104,305 $ 106,119 Expenditures Employee Compensation $ 148,303 $ 133,482 $ 148,580 $ 135,616 Employee Benefits $ 131,806 $ 116,879 $ 167,750 $ 147,777 Materials $ 112,595 $ 85,289 $ 108,890 $ 62,055 Contract Services $ 33,125 $ 13,848 $ 24,110 $ 140,640 Cost Allocation $ -$ -$ 95,807 $ 107,713 Contingencies $ -$ -$ 1,663 $ - Total Expenditures $ 425,829 $ 349,498 $ 546,800 $ 593,801 Fund Balance $ -$ -$ -$ - General Fund Costs $ (404,703)$ (478,485)$ 442,495 $ 487,682 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget COMMS AND MARKETING COORDINATOR 0 0 0.10 0.10 COMMUNITY OUTREACH SPECIALIST 0.10 0.10 0.10 0.10 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 0.10 0.10 0 0 SR OFFICE ASSISTANT 0.15 0.15 0.20 0.10 Total 5.85 5.85 5.90 5.80 Staff time is being reallocated to better reflect actual time spent in this program FY 2025-26 Proposed Budget Council and Commissions 126 185 CC 05-15-2025 185 of 655 Community Funding Budget Unit 100-10-101 General Fund - City Council - Community Funding Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 33,086 Fund Balance $ - General Fund Costs $ 33,086 % 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 revised and adopted by City Council on November 15, 2022. Proposed Budget It is recommended that City Council approve a budget of $33,086 for the Community Funding program. This represents a decrease of $22 (-0.1%) from the FY 2024-25 Adopted Budget. The City provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. The Community Funding Grant application process opened on January 1, 2025, and closed on February 1, 2025. FiVeen applications were received for the FY 2025-2026 Community Funding Grant Program cycle and were brought to the Parks and Recreation Commission for review on March 6, 2025. The Commission evaluated and scored the applications on April 3, 2025, and a recommendation was provided regarding funding to City Council for final approval. FY 2025-26 Proposed Budget Council and Commissions 127 186 CC 05-15-2025 186 of 655 Non-Profit Organization FY 2024-25 Funding FY 2024-25 Program/Project/Event FY 2025-26 Funding FY 2025-26 Program/Project/Event Active Circle N/A N/A 2,000 All Inclusive Family Picnic AINAK 2,750 AINAK Eyeglasses 4,000 Eyecare and Eyeglasses Cupertino Little League 16,000 Scoreboard Replacement N/A N/A Cupertino Symphonic Band 3,000 Band Equipment & Materials 3,000 Band Equipment ElderAid N/A N/A 5,000 Background Verification Integration and Support Friends of Deer Hollow Farm N/A N/A 2,000 The Tule House Shelter iTalented N/A N/A 900 iSpark No Time to Waste N/A N/A 5,000 5/1000: Feed the Need Remember the ToothFairy N/A N/A 1,000 Dental Treatment Program Rotary Club of Cupertino 4,000 House Renovations 1,600 Thanksgiving Meal Sharing Program Special Olympics Northern California N/A N/A 5,000 2025 Cupertino Bowling Team Program STEMBoost Corporation 3,000 Elementary Science Olympiad Summer Workshops N/A N/A Via Rehabilitation Services N/A N/A 1,000 STEAM & Outdoor Education West Valley Community Services 3,750 Gift of Hope 2024 2,000 Gift of Hope 2025 Total $ 32,500 $ 32,500 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 128 187 CC 05-15-2025 187 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Contract Services $ 109,460 $ 28,927 $ 32,500 $ 32,500 Cost Allocation $ 2,270 $ 2,267 $ 608 $ 586 Total Expenditures $ 111,730 $ 31,194 $ 33,108 $ 33,086 Fund Balance $ -$ -$ -$ - General Fund Costs $ 111,730 $ 31,194 $ 33,108 $ 33,086 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Council and Commissions 129 188 CC 05-15-2025 188 of 655 Historical Society Budget Unit 100-10-104 General Fund - City Council - Historical Society Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 40,000 Fund Balance $ - General Fund Costs $ 40,000 % Funded by General Fund 100.0% Total Staffing FTE Program Overview The City has executed a Grant Funding and License Agreement with the Cupertino Historical Society, approved by City Council on October 4, 2022. The Agreement is set for three years, with an option to extend for another two. During this term the City is providing an annual grant amount of $40,000 and a license to utilize space at the Quinlan Community Center to the Cupertino Historical Society. In return, the Cupertino Historical Society will continue to manage and operate the Historical Museum, commit to the Service Objectives highlighted below, and other terms and conditions highlighted in the Agreement. The grant amount has been separated into this program for increased transparency. Service Objectives Collections Management - Professionally manage archive of over 5,000 objects. Sample activities include cataloging, rehousing objects, collections research, object paperwork and assessment, collections inventory, collections digitizing, condition reports, pest remediation, etc. Curatorial/Exhibitions - Provide 3-5 professionally curated exhibits/pop-up exhibits annually that relate to the mission of the museum and interests of the community. Community Outreach - Museum open houses during City festivals and fairs; QCC Preschool Events with CraVs; Special Exhibits at various locations around Cupertino (Cupertino Library, Baer Blacksmith Shop, Other Local Organizations); Traveling Trunk; Quarterly Speaker Series; Community Action CommiDee; Oral History Events; History Happy Hours; Volunteer and Internship opportunities for anyone ages 16+; Reading Groups Proposed Budget It is recommended that City Council approve a budget of $40,000 for the Historical Society 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 130 189 CC 05-15-2025 189 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Contract Services $ -$ 40,000 $ 40,000 $ 40,000 Total Expenditures $ -$ 40,000 $ 40,000 $ 40,000 Fund Balance $ -$ -$ -$ - General Fund Costs $ -$ 40,000 $ 40,000 $ 40,000 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Council and Commissions 131 190 CC 05-15-2025 190 of 655 Sister Cities Budget Unit 100-10-110 General Fund - City Council - Sister Cities Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 53,452 Fund Balance $ - General Fund Costs $ 53,452 % 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. The City of Cupertino also has four Friendship Cities: New Taipei City, Taiwan; Taichung, Taiwan; Tongxiang, People's Republic of China, and Xianning, People's Republic of China. 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 Proposed Budget It is recommended that City Council approve a budget of $53,452 for the Sister Cities program. This represents a decrease of $5,559 (-9.4%) from the FY 2024-25 Adopted Budget. The decrease is due to reductions in Cost Allocation expenses. This budget is aligned with the Sister City Policy. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 132 191 CC 05-15-2025 191 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 8,883 $ 7,086 $ 6,550 $ 6,551 Employee Benefits $ 3,003 $ 4,302 $ 3,967 $ 3,697 Materials $ 810 $ 8,180 $ 8,887 $ 9,507 Contract Services $ 11,347 $ 12,895 $ 20,000 $ 20,000 Cost Allocation $ 19,459 $ 18,520 $ 19,246 $ 13,697 Contingencies $ -$ -$ 361 $ - Total Expenditures $ 43,502 $ 50,983 $ 59,011 $ 53,452 Fund Balance $ -$ -$ -$ - General Fund Costs $ 43,502 $ 50,983 $ 59,011 $ 53,452 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget COMMS AND MARKETING COORDINATOR 0 0 0.05 0.05 PUBLIC INFORMATION OFFICER 0.05 0.05 0 0 SR OFFICE ASSISTANT 0.05 0.05 0 0 Total 0.10 0.10 0.05 0.05 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Council and Commissions 133 192 CC 05-15-2025 192 of 655 Technology, Information & Communications Commission Budget Unit 100-11-131 General Fund - Commissions - Technology, Information & Communications Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 22,260 Fund Balance $ - General Fund Costs $ 22,260 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Technology, Information, and Communications Commission advises the City Council and City Manager on all maDers related to technology, information, and communications within Cupertino. It serves as a liaison between the City, the public, and service providers to enhance education and engagement, including gathering resident input and sharing noncommercial educational materials. Additionally, the commiDee supports community access television, particularly public and educational access, and provides guidance on the development and implementation of access channels and programming. It also recommends strategies to optimize the City’s technology and communications infrastructure for the benefit of the community. Furthermore, the commiDee plays a key role in educating residents on the responsible and safe use of technology, including cybersecurity best practices (also see Municipal Code 2.74.060 Duties, Powers and Responsibilities). Proposed Budget It is recommended that City Council approve a budget of $22,260 for the Technology, Information & Communications Commission program. This represents a decrease of $1,091 (-4.7%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year Adopted Budget. There is a slight decrease due to staffing costs associated with the retirement of the previous Chief Technology Officer. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 134 193 CC 05-15-2025 193 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 11,291 $ 12,411 $ 11,757 $ 11,586 Employee Benefits $ 3,348 $ 4,564 $ 5,226 $ 4,717 Materials $ 187 $ 179 $ 400 $ 400 Cost Allocation $ 18,183 $ 18,487 $ 5,963 $ 5,557 Contingencies $ -$ -$ 5 $ - Total Expenditures $ 33,009 $ 35,641 $ 23,351 $ 22,260 Fund Balance $ -$ -$ -$ - General Fund Costs $ 33,010 $ 35,641 $ 23,351 $ 22,260 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0 0 0 CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02 MANAGEMENT ANALYST 0 0.05 0.05 0.05 Total 0.07 0.07 0.07 0.07 There are no changes to current levels of staffing. FY 2025-26 Proposed Budget Council and Commissions 135 194 CC 05-15-2025 194 of 655 Library Commission Budget Unit 100-11-140 General Fund - Commissions - Library Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 27,327 Fund Balance $ - General Fund Costs $ 27,327 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Library Commission is a five-member commission appointed by City Council and holds the following powers and functions: Consult with the City Council, the City staff and the Santa Clara County Library Joint Powers Authority and staff regarding the functioning of the physical facilities of the Cupertino Library and shall make recommendations from time to time for improvement or modification thereof. Consult with the City Council, the City staff and the Santa Clara County Library Joint Powers Authority and staff regarding the Cupertino Library programs and services to the community and shall make recommendations from time to time for improvements or modifications thereof. Consult with and act as liaison with private community groups supportive of the library program. Consult with the architect and the City Council in the planning of any main or branch library building facilities, including locations, building layout, architecture, landscaping and furnishings. Hold hearings, formulate policies and make rules and procedures with respect to the foregoing for approval by the City Council. Perform such other tasks as may be expressly requested of it by the City Council. The Library Commission meets every other month. A Parks and Recreation Department Recreation Manager serves as staff liaison. Proposed Budget It is recommended that City Council approve a budget of $27,327 for the Library Commission program. This represents a decrease of $521 (-1.9%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 136 195 CC 05-15-2025 195 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 19,956 $ 11,624 $ 12,402 $ 12,596 Employee Benefits $ 8,268 $ 5,675 $ 6,690 $ 6,176 Materials $ 53 $ -$ 11 $ 150 Contract Services $ 269 $ -$ 2,000 $ 2,000 Cost Allocation $ 32,894 $ 22,279 $ 6,720 $ 6,405 Contingencies $ -$ -$ 25 $ - Total Expenditures $ 61,440 $ 39,578 $ 27,848 $ 27,327 Fund Balance $ -$ -$ -$ - General Fund Costs $ 61,440 $ 39,578 $ 27,848 $ 27,327 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05 RECREATION MANAGER 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 2025-26 Proposed Budget Council and Commissions 137 196 CC 05-15-2025 196 of 655 Arts and Culture Commission Budget Unit 100-11-142 General Fund - Commissions - Arts and Culture Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 30,867 Fund Balance $ - General Fund Costs $ 30,867 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Arts and Culture Commission, consisting of five members and a minimum of three City of Cupertino residents, holds the following powers and functions: Foster, encourage and assist the realization, preservation and advancement of arts and culture for the benefit of the citizens of Cupertino. Act as a catalyst for the promotion of art and cultural activities. Keep current on potential arts and culture activities which would be available to the community. Provide liaison between various arts and culture activities. Provide a means for coordination for arts and culture groups or facilities which may exist within the community. Maintain an inventory of facilities available for related arts and culture activities within the community. Provide screening and/or review for arts and culture activities wishing to obtain city funds or utilize public facilities. Provide information to the community relating to the arts. Foster the development of public art within the community. Be vigilant in exploring and advancing the range of arts and culture activities available to the community. Enhance the interaction between arts and business. Any other activity which may be deemed appropriate and necessary. The Arts and Culture Commission meets every other month. The Senior Planner of Community Development serves as staff liaison. Proposed Budget It is recommended that City Council approve a budget of $30,867 for the Arts and Culture Commission program. This represents a decrease of $1,169 (-3.6%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 138 197 CC 05-15-2025 197 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ -$ 15,626 $ 15,382 $ 15,382 Employee Benefits $ (845)$ 5,212 $ 5,924 $ 5,049 Materials $ 3,453 $ 3,575 $ 4,089 $ 4,220 Cost Allocation $ 16,128 $ 15,845 $ 6,641 $ 6,216 Total Expenditures $ 18,736 $ 40,258 $ 32,036 $ 30,867 Fund Balance $ -$ -$ -$ - General Fund Costs $ 18,736 $ 40,257 $ 32,036 $ 30,867 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASST DIR RECREATION COMM SVCS 0.15 0 0 0 SENIOR PLANNER 0 0.10 0.10 0.10 Total 0.15 0.10 0.10 0.10 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Council and Commissions 139 198 CC 05-15-2025 198 of 655 Public Safety Commission Budget Unit 100-11-150 General Fund - Commissions - Public Safety Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 19,917 Fund Balance $ - General Fund Costs $ 19,917 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Public Safety Commission is a five-member commission appointed by City Council and holds the following powers and functions: Act in an advisory capacity to the City Council in all maDers pertaining to safety, traffic, police, fire and other areas wherein the matter of public safety may be of concern. Hold hearings and formulate policies and procedures with respect to the foregoing for approval by the City Council. Perform such other tasks as may be expressly requested of it by the City Council. The Public Safety Commission meets every other month. The Assistant Director of the Parks and Recreation Department serves as staff liaison. Proposed Budget It is recommended that City Council approve a budget of $19,917 for the Public Safety Commission program. This represents a decrease of $16,652 (-45.5%) from the FY 2024-25 Adopted Budget. This decrease is due to the reallocation of funds for the Public Safety Forum to the Office of Emergency Management budget and the SC County Sheriff's Community Academy to the Law Enforcement budget. These changes align the Public Safety Commission budget with the budgets of other City Commissions. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 140 199 CC 05-15-2025 199 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 8,136 $ 9,391 $ 9,440 $ 10,412 Employee Benefits $ 3,520 $ 4,309 $ 4,885 $ 4,303 Materials $ 4,846 $ -$ 6,143 $ 354 Contract Services $ 10,000 $ -$ 10,600 $ - Cost Allocation $ 12,496 $ 16,299 $ 5,292 $ 4,848 Contingencies $ -$ -$ 209 $ - Total Expenditures $ 38,998 $ 29,999 $ 36,569 $ 19,917 Fund Balance $ -$ -$ -$ - General Fund Costs $ 38,998 $ 29,999 $ 36,569 $ 19,917 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.05 ASSIST TO THE CITY MNGR 0 0 0.05 0 EMERGENCY SERVICES COORDINATOR 0.05 0.05 0 0 Total 0.05 0.05 0.05 0.05 Due to the reorganization of duties and assignments within the City, staffing within this program was updated from the Assistant to the City Manager to the Assistant Director of the Parks and Recreation Department. FY 2025-26 Proposed Budget Council and Commissions 141 200 CC 05-15-2025 200 of 655 Bicycle and Pedestrian Commission Budget Unit 100-11-155 General Fund - Commissions - Bicycle and Pedestrian Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 16,815 Fund Balance $ - General Fund Costs $ 16,815 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The powers and functions of the Bicycle Pedestrian Commission shall be to review, monitor and suggest recommendations for City transportation maDers including, but not limited to, bicycle and pedestrian traffic, parking, education and recreation within Cupertino. To fulfill their mission, the Commission may involve itself in the following activities: 1 . To monitor and update the bicycle transportation plan and pedestrian transportation guidelines; 2 . To suggest recommendations, review and monitor the City’s general plan transportation element; 3 . To receive public input pertaining to bicycle and pedestrian transportation and infrastructure issues; 4 . To make recommendations regarding the implementation of roadway and transportation improvements as it pertains to bicycle and pedestrian needs; 5 . To make recommendations regarding the allocation of funds for capital expenditures relating to bicycle and pedestrian transportation; 6 . Any other activity that may be deemed appropriate and necessary. Proposed Budget It is recommended that City Council approve a budget of $16,815 for the Bicycle and Pedestrian Commission program. This represents a decrease of $23,606 (-58.4%) from the FY 2024-25 Adopted Budget. The decrease is due to reductions in staff allocated 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 142 201 CC 05-15-2025 201 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 27,443 $ 26,893 $ 19,919 $ 5,139 Employee Benefits $ 9,640 $ 10,425 $ 9,654 $ 2,937 Materials $ -$ -$ 223 $ 230 Contract Services $ -$ -$ 616 $ 636 Cost Allocation $ 24,809 $ 23,773 $ 9,999 $ 7,873 Contingencies $ -$ -$ 10 $ - Total Expenditures $ 61,892 $ 61,091 $ 40,421 $ 16,815 Fund Balance $ -$ -$ -$ - General Fund Costs $ 61,892 $ 61,092 $ 40,421 $ 16,815 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05 ASSISTANT ENGINEER 0 0 0.10 0 TRANSPORTATION MANAGER 0.10 0.10 0 0 Total 0.15 0.15 0.15 0.05 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Council and Commissions 143 202 CC 05-15-2025 202 of 655 Parks and Recreation Commission Budget Unit 100-11-160 General Fund - Commissions - Parks and Recreation Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 25,230 Fund Balance $ - General Fund Costs $ 25,230 % 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 City Council and holds the following powers and functions: To hold hearings on maDers pertaining to planning and development of parks, cultural activities, historical resources, recreation, community services (including, but not limited to schools and senior services), and capital expenditures related to community activities and facilities. To conduct such other hearings as are necessary and in accordance with its own rules and regulations. To report its decisions and recommendations in writing to the City Council. To consider, formulate and propose programs, activities, resources, plans and development designed to provide for, regulate and direct the future growth and development of community activities, parks and a recreation system in order to secure to the City and its inhabitants better service. To make investigations and reports for future acquisition of park sites. To make, in its advisory capacity, any and all recommendations to the City Council relating to the above maDers, including the extension of the parks, recreation system and community activities to outlying areas of the City. In cooperation with the Director of Recreation and Community Services, the Commission will consider, review, and evaluate parks, recreation programs, and community activities. To consider, formulate, and propose cultural activities and historical preservation for the City and its residents. The Parks and Recreation Commission meets every month. A Parks and Recreation Department Recreation Manager serves as staff liaison. Proposed Budget It is recommended that City Council approve a budget of $25,230 for the Parks and Recreation Commission program. This represents a decrease of $1,251 (-4.7%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 144 203 CC 05-15-2025 203 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 14,225 $ 12,172 $ 13,129 $ 12,815 Employee Benefits $ 5,457 $ 5,440 $ 6,840 $ 6,198 Materials $ -$ -$ 11 $ 40 Cost Allocation $ 20,182 $ 21,167 $ 6,501 $ 6,177 Total Expenditures $ 39,864 $ 38,779 $ 26,481 $ 25,230 Fund Balance $ -$ -$ -$ - General Fund Costs $ 39,864 $ 38,779 $ 26,481 $ 25,230 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05 DIRECTOR OF PARKS REC 0.05 0 0 0 RECREATION MANAGER 0 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 2025-26 Proposed Budget Council and Commissions 145 204 CC 05-15-2025 204 of 655 Teen Commission Budget Unit 100-11-165 General Fund - Commissions - Teen Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 14,908 Fund Balance $ - General Fund Costs $ 14,908 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Teen Commission is a nine-member commission appointed by City Council and holds the following powers and functions: Advise the City Council and staff on issues and projects important to youth. Perform such other tasks as may be expressly requested of it by the City Council. The Teen Commission meets every month. A Parks and Recreation Department Recreation Manager serves as staff liaison. Proposed Budget It is recommended that City Council approve a budget of $14,908 for the Teen Commission program. This represents a decrease of $663 (-4.3%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 6,882 $ 7,333 $ 7,590 $ 7,733 Employee Benefits $ 2,600 $ 2,441 $ 2,891 $ 2,499 Materials $ 828 $ 947 $ 285 $ 294 Cost Allocation $ 29,226 $ 30,189 $ 4,801 $ 4,382 Contingencies $ -$ -$ 4 $ - Total Expenditures $ 39,536 $ 40,910 $ 15,571 $ 14,908 Fund Balance $ -$ -$ -$ - General Fund Costs $ 39,536 $ 40,910 $ 15,571 $ 14,908 Staffing FY 2025-26 Proposed Budget Council and Commissions 146 205 CC 05-15-2025 205 of 655 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION MANAGER 0.05 0.05 0.05 0.05 Total 0.05 0.05 0.05 0.05 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Council and Commissions 147 206 CC 05-15-2025 206 of 655 Planning Commission Budget Unit 100-11-170 General Fund - Commissions - Planning Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 124,073 Fund Balance $ - General Fund Costs $ 124,073 % Funded by General Fund 100.0% Total Staffing 0.3 FTE Program Overview The Planning Commission, a five-member citizen board appointed by the City Council, holds the following powers and functions: Prepare, periodically review, and revise as necessary, the General Plan. Implement the General Plan through actions including, but not limited to, the administration of specific plans and zoning, subdivisions, and sign ordinances. Annually review the capital improvement program of the City and the local public works projects of other local agencies for their consistency with the General Plan (pursuant to Sections 65400 et seq. of the California Government Code). Endeavor to promote public interest in, comment upon, and understanding of the General Plan, and regulation relating to it. Consult and advise with public officials and agencies, public utility companies, civic, educational, professional, and other organizations and citizens generally concerning implementation of the General Plan. Promote the coordination of local plans and programs with the plans and programs of other agencies. Perform other functions as the City Council provides including conducting studies and preparing plans other than those required or authorized by state law. 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. The Planning Commission meets on the second and fourth Tuesdays of each month. Proposed Budget It is recommended that City Council approve a budget of $124,073 for the Planning Commission program. This represents an increase of $1,663 (1.4%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 148 207 CC 05-15-2025 207 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 33,992 $ 36,334 $ 36,723 $ 36,551 Employee Benefits $ 11,429 $ 14,893 $ 17,459 $ 15,607 Materials $ 17,600 $ 5,261 $ 4,900 $ 6,460 Cost Allocation $ 35,427 $ 40,713 $ 63,328 $ 65,455 Total Expenditures $ 98,448 $ 97,201 $ 122,410 $ 124,073 Fund Balance $ -$ -$ -$ - General Fund Costs $ 98,448 $ 97,201 $ 122,410 $ 124,073 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.20 0.20 0.20 0.20 DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.06 Total 0.26 0.26 0.26 0.26 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Council and Commissions 149 208 CC 05-15-2025 208 of 655 Housing Commission Budget Unit 100-11-175 General Fund - Commissions - Housing Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 71,165 Fund Balance $ - General Fund Costs $ 71,165 % Funded by General Fund 100.0% Total Staffing 0.4 FTE Program Overview The Housing Commission, consisting of a representative from a Cupertino business and four community members, holds the following powers and functions: 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. The Housing Commission meets quarterly. The Senior Housing Coordinator serves as staff liaison. Proposed Budget It is recommended that City Council approve a budget of $71,165 for the Housing Commission program. This represents an increase of $10,168 (16.7%) from the FY 2024-25 Adopted Budget. The increase is due to a reallocation of staff to better reflect actual time spent in 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 150 209 CC 05-15-2025 209 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 21,822 $ 4,314 $ 34,855 $ 41,556 Employee Benefits $ 8,037 $ 5,292 $ 15,597 $ 19,134 Materials $ -$ -$ 229 $ 229 Cost Allocation $ 23,497 $ 25,112 $ 10,316 $ 10,246 Total Expenditures $ 53,356 $ 34,718 $ 60,997 $ 71,165 Fund Balance $ -$ -$ -$ - General Fund Costs $ 53,356 $ 34,718 $ 60,997 $ 71,165 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05 ASSISTANT HOUSING COORDINATOR 0 0 0 0.15 PLANNING MANAGER 0.10 0.10 0.00 0 SENIOR HOUSING COORDINATOR 0 0 0.20 0.15 Total 0.15 0.15 0.25 0.35 Staff time is being reallocated to better reflect the actual time spent in this program. FY 2025-26 Proposed Budget Council and Commissions 151 210 CC 05-15-2025 210 of 655 Sustainability Commission Budget Unit 100-11-180 General Fund - Commissions - Sustainability Commission Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 17,210 Fund Balance $ - General Fund Costs $ 17,210 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The powers and functions of the Commission shall be to serve in an advisory capacity to the City Council to provide expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino's CAP and General Plan Environmental Resources/Sustainability Element. To fulfill their mission, the Commission may involve itself in the following activities: 1 . Monitor and update the CAP based upon quantified metrics to measure and evaluate mitigated impacts and community benefits. 2 . Suggest recommendations, review, and monitor the City's General Plan Environmental Resources/Sustainability Element and its intersections with the CAP. 3 . Advise the City Council how to strategically accelerate Cupertino's progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability. 4 . 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 creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, draVing of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll-out of pollution prevention campaigns, etc. 5 . Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate operational performance of City facilities, businesses, educational institutions and homes by reducing costs, improving public health, and serving community needs. 6 . 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. 7 . 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. 8 . Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council. Proposed Budget It is recommended that City Council approve a budget of $17,210 for the Sustainability Commission program. This represents a decrease of $534 (-3.0%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year Adopted Budget. Revenues and Expenditures FY 2025-26 Proposed Budget Council and Commissions 152 211 CC 05-15-2025 211 of 655 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 18,882 $ (605)$ 6,588 $ 6,748 Employee Benefits $ 7,625 $ 3,872 $ 2,999 $ 2,708 Materials $ 2,107 $ -$ 1,340 $ 1,382 Cost Allocation $ 21,216 $ 21,687 $ 6,800 $ 6,372 Contingencies $ -$ -$ 17 $ - Total Expenditures $ 49,830 $ 24,954 $ 17,744 $ 17,210 Fund Balance $ -$ -$ -$ - General Fund Costs $ 49,830 $ 24,954 $ 17,744 $ 17,210 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ENV. PROGRAMS SPECIALIST 0 0 0.05 0.05 MANAGEMENT ANALYST 0.10 0.10 0 0 SUSTAINABILITY MANAGER 0.05 0.05 0 0 Total 0.15 0.15 0.05 0.05 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Council and Commissions 153 212 CC 05-15-2025 212 of 655 Audit Committee Budget Unit 100-11-190 General Fund - Commissions - Audit Committee Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 31,122 Fund Balance $ - General Fund Costs $ 31,122 % Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Audit CommiDee, consisting of two City Council members and a minimum of two and a maximum of three at large members, holds the following powers and functions: To review the annual audit report and management letter. To recommend appointment of internal/external auditors. To review the quarterly Treasurer's Investment report. To recommend a budget format. To review City investment policies and internal controls of such policies. To review internal audit reports. To review quarterly Fraud, Waste, and Abuse Program reports. The Audit Committee meets quarterly. The Finance Manager serves as staff liaison. Proposed Budget It is recommended that City Council approve a budget of $31,122 for the Audit CommiDee program. This represents a decrease of $449 (-1.4%) from the FY 2024-25 Adopted Budget. This budget is consistent with the prior year 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Council and Commissions 154 213 CC 05-15-2025 213 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 6,770 $ 15,370 $ 16,845 $ 17,506 Employee Benefits $ 1,981 $ 6,403 $ 7,777 $ 7,065 Cost Allocation $ 15,474 $ 17,282 $ 6,949 $ 6,551 Total Expenditures $ 24,225 $ 39,055 $ 31,571 $ 31,122 Fund Balance $ -$ -$ -$ - General Fund Costs $ 24,225 $ 39,054 $ 31,571 $ 31,122 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0 0 0 FINANCE MANAGER 0.05 0.05 0.05 0.05 MANAGEMENT ANALYST 0 0.05 0.05 0 SENIOR MANAGEMENT ANALYST 0 0 0 0.05 Total 0.10 0.10 0.10 0.10 FY 2025-26 Proposed Budget Council and Commissions 155 214 CC 05-15-2025 214 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Council and Commissions 156 215 CC 05-15-2025 215 of 655 Administration FY 2025-26 Proposed Budget Administration 157 216 CC 05-15-2025 216 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Administration 158 217 CC 05-15-2025 217 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget City Manager $ 2,614,772 100-12-120 City Manager $ 2,133,359 100-12-122 Sustainability $ - 100-12-126 Office of Communications $ 481,413 100-12-305 Multimedia $ - 100-12-307 Public Access Support $ - 100-12-632 Community Outreach and Neighborhood Watch $ - 100-12-633 Office of Emergency Management $ - 100-12-705 Economic Development $ - City Clerk $ 952,277 100-13-130 City Clerk $ 910,716 100-13-132 Duplicating and Mail Services $ 41,561 100-13-133 Elections $ - City Manager Discretionary $ 50,000 100-14-123 City Manager Contingency $ 50,000 City Attorney $ 1,524,970 100-15-141 City Attorney $ 1,524,970 Total $ 5,142,019 FY 2025-26 Proposed Budget Administration 159 218 CC 05-15-2025 218 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 2,432,652 Total Expenditures $ 5,142,019 Fund Balance $ - General Fund Costs $ 2,709,367 % Funded by General Fund 52.7% Total Staffing 16.2 FTE Organization Pamela Wu, City Manager Floy Andrews, Contract City Attorney FY 2025-26 Proposed Budget Administration 160 219 CC 05-15-2025 219 of 655 City Manager's Office City Attorney's Office Staffing levels in Administration are changing due to the transfer of an Economic Development Manager to the Community Development department and an Emergency Manager, Emergency Management Analyst, Community Relations Coordinator, and Citizen Corps Coordinator to the Parks & Recreation department. In addition, the City has currently contracted out the role of City Attorney. The City Attorney position listed in this organizational chart is the full-time benefitted position. This position is still funded as reflected in the City Attorney budget. Notable Accomplishments City Strategic Vision - In March 2025, the City Manager's Office facilitated a Priority SeDing Workshop, with Council to adopt a Strategic Vision for the City and to select top priorities for the upcoming two fiscal years. Council adopted staff's recommendation to establish new focus areas and modify the Council goals as part of the new Strategic Visions Framework. This Framework will serve as a guide for all future City initiatives and resources allocations to better serve the community. FY 25-27 City Work Program - In November 2024, staff conceptualized and presented an approach for Council to prioritize the City Work Program projects for the next two fiscal years. In March 2025, aVer several Council meetings, study sessions, and a Council workshop to evaluate potential projects, Council finalized 22 projects for the FY 2025-2027 City Work FY 2025-26 Proposed Budget Administration 161 220 CC 05-15-2025 220 of 655 Program. ALPR - In partnership with SC County, the City adopted a policy and authorized an MOU to purchase and install ALPR cameras throughout the City. Block Leaders - With grant support from CA Volunteers, staff expanded the Block Leader program to encourage recruitment and engage community members with ongoing preparedness classes, bi-monthly focus groups, and Block Party grants. Commission Governance - As part of the City Work Program, and based on Council direction, staff streamlined the online Commission application to include questions and criteria that beDer identify applicants with Commission-specific subject maDer expertise. Application revisions were based on the research of advisory bodies in neighboring cities and towns within San Mateo and Santa Clara counties. The Rise - The Silicon Valley Business Journal recognized The Rise project during the September 2024 Structures Awards. In October 2024, the City issued grading permits to the developer to prepare the <former Vallco> site for future work. The City is continuing to foster engagement with stakeholders and supporting this project on an ongoing basis. Community Service Awards - The City Manager’s Office organized the first Cupertino Community Service Awards to recognize outstanding volunteer achievement in the Cupertino Community. The Community Service Awards functioned as a combination of prior years’ CREST and Commissioners’ Awards banquets. The new event format was well-received by the community and provided an opportunity to recognize outstanding community members, volunteers, and commissioners. Streamlined Citywide Communications - City Manager’s Office offers comprehensive communications support and expertise to all departments within the City. In addition to continuing the citywide communication coordination groups, namely The Storytellers, In the spring of 2024, the team introduced the Communications Request Form on The Hub to streamline the process of submiDing requests and organize them efficiently and gather essential data, images, and other relevant information needed to fulfill them. The group meets monthly to discuss upcoming events, projects, and major initiatives. This ensures uniformity in citywide communications. The communications team gathers information from all department representatives and offers feedback on outreach messaging and strategies. Publications - Published three editions of The Scene and 17 editions of the Cupertino Connect newsletter. Cupertino Business Outreach Program - Continued to engage with local businesses to facilitate dialogue between the private and public sectors, staff has gained a deeper understanding of Cupertino businesses' unique needs and connected them with relevant resources. Project Coordination - City Manager’s Office formed this group to facilitate an inter-departmental dialogue to reduce red tape and coordinate on major policies, strategic initiatives, and significant projects in development, redevelopment, and business aDraction/retention/expansion that enhance the City’s revenue. This initiative has been an excellent method to promote collaboration and permit facilitation for projects such as Apple CC05, Jade Tea Garden, 76 Gas Station, and vacant office space at 10275 N. De Anza Blvd. Retail The5 Prevention Outreach & Engagement - City Manager’s Office hosted a webinar in collaboration with the Santa Clara County Sheriff’s Office and Cupertino Chamber of Commerce to address retail theV, providing businesses with invaluable insights, actionable strategies, and best practices to strengthen store security. Sale of City-owned property at 10301 Byrne Avenue - City Manager’s Office presented to Council and helped executed a sales agreement for the property at 10301 Byrne Avenue for $3,110,000. Stevens Creek Trail Joint Use Agreement - Executed a new 25-year Joint Use Agreement with Santa Clara Valley Water District for ongoing access. Women in Business Luncheon - In partnership with the Cupertino Chamber of Commerce, restarted and grew this quarterly luncheon to bolster retention, expansion, and attraction of businesses to Cupertino. Business Resource Hub - Beta launched the Cupertino Business Resource Hub, a free, innovative platform designed to support local businesses by offering access to resources, technical training, expert guidance, and networking opportunities to help them thrive in a competitive market. Small Business Workshop Series - Hosted in-person business workshops in collaboration with the Cupertino Chamber of Commerce and Access Small Business Development Center (SBDC). Training topics included business compliance, access to capital, strategies for attracting new customers, and artificial intelligence. Green Business Workshop - Hosted an in-person workshop on green business rebates and incentives for local businesses and commercial property owners, in partnership with Silicon Valley Clean Energy, the County of Santa Clara, the Green Business Network Program, the Bay Area Regional Energy Network, and the Cupertino Chamber of Commerce. Small Business Saturday - In 2024. developed a promotional video for Small Business Saturday (hDps://youtu.be/daAHISqWdPY?si=SR3p7BhND87JzlBB), highlighting local businesses in Cupertino to encourage community support and boost holiday shopping. New Initiatives th FY 2025-26 Proposed Budget Administration 162 221 CC 05-15-2025 221 of 655 70 Anniversary - The Communications Division is the lead for the City’s upcoming Cupertino Community Service Awards which will combine the CREST Awards and Commissioner’s Dinner with a nod to the City’s 70 anniversary. In 2024, the Communications Division served as the lead for the inaugural Cupertino Community Service Awards. Legislative Affairs - In 2025, Council has reestablished a legislative subcommiDee to further discuss state legislation. Staff will continue to work on monitoring and tracking state legislation in partnership with Council and the City Lobbyist. Major Sports 2026 Regional Coordination - The City Manager’s Office will participate in a regional group to track updates, messaging efforts, and other relevant information related to the Superbowl and FIFA World Cup 2026. Special Projects - Manage various Citywide special projects. th th FY 2025-26 Proposed Budget Administration 163 222 CC 05-15-2025 222 of 655 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target City Council minutes for meetings presented for Council approval by the following regular meeting 100%100%100%100% Adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed document 85%/60%100%/100%100%/100%100% Public Record Act requests responded to by the Statutory deadline date 99%99%100%100% 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram , YouTube, accounts 41,000 48,622 49,426 10% annual increase Community engagement: total number of IOI recipients 1,732 2,581 2,819 10% annual increase Total Number of Gov Delivery Notices sent 586 556 302 10% annual increase *Social media engagement metrics seen here are different due to Facebook's changes on its metrics, how they calculate it, and what they provide now. Previously, Facebook would count any action as engagement; now they only count likes/reactions, comments, link clicks, and shares. FY 2025-26 Proposed Budget Administration 164 223 CC 05-15-2025 223 of 655 Workload Indicators City Clerk Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec City Council minutes for regular meetings presented for Council approval by the following regular meeting 20/20 44/44 16/16 Adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed document 136/160; 6/10 131/131; 13/13 55/55; 8/8 Public Record Act requests responded to by the Statutory deadline date 271/274 258/259 183/183 Office of Communications Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Social Media Engagement: Post per year (Facebook, Nextdoor, Twitter, Instagram) 500 747 483 Number of YouTube videos created 17 31 26 Number of Community Information and Outreach Program products provided (newsletters, press releases, website news postings) 150 50 48 Number of Communications Requests Received and Completed from Departments via Communications Request Form N/A N/A 416 FY 2025-26 Proposed Budget Administration 165 224 CC 05-15-2025 224 of 655 Proposed Budget It is recommended that City Council approve a budget of $5,142,019 for the Administration department. This represents a decrease of $1,411,944 (-21.5%) from the FY 2024-25 Adopted Budget. This decrease is primarily due to the reorganization of the City Manager's Office staffing. This decrease includes the transfer of 1 staff position in the Economic Development division, which has been moved under Community Development. This decrease also includes the transfer of 3.5 positions in the Emergency Management division, which have been moved under Parks and Recreation. In addition, contingency dollars have been calculated off of department's FY 2025-2026 base budget materials and contracts and have been consolidated into materials. For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. This budget includes a special project of $5,000 for Cupertino 70th Anniversary Celebration. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. FY 2025-26 Proposed Budget Administration 166 225 CC 05-15-2025 225 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 50.9% 29.7% 18.5% City Manager City Attorney City Clerk City Manager Discretionary $6.51M $6.32M $6.55M $5.14M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Administration 167 226 CC 05-15-2025 226 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 1,025,000 $ 56,953 $ -$ - Charges for Services $ 1,485,073 $ 1,201,781 $ 2,825,126 $ 2,432,652 Miscellaneous Revenue $ 4,357 $ 202 $ -$ - Total Revenues $ 2,514,430 $ 1,258,936 $ 2,825,126 $ 2,432,652 Expenditures Employee Compensation $ 3,434,456 $ 3,173,960 $ 3,304,638 $ 2,818,752 Employee Benefits $ 1,179,676 $ 1,362,921 $ 1,540,703 $ 1,129,897 Materials $ 299,269 $ 182,617 $ 212,796 $ 250,929 Contract Services $ 980,642 $ 1,028,893 $ 786,970 $ 612,682 Cost Allocation $ 468,859 $ 339,655 $ 546,360 $ 274,759 Special Projects $ 148,484 $ 224,741 $ 100,000 $ 5,000 Contingencies $ -$ 5,732 $ 62,496 $ 50,000 Total Expenditures $ 6,511,386 $ 6,318,519 $ 6,553,963 $ 5,142,019 Fund Balance $ -$ -$ -$ - General Fund Costs $ 3,996,953 $ 5,059,586 $ 3,728,837 $ 2,709,367 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 168 227 CC 05-15-2025 227 of 655 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.00 1.00 2.00 2.00 ASSISTANT CITY MANAGER 2.00 1.00 1.00 1.00 ASSIST TO THE CITY MNGR 0 0 0.95 0 CITY ATTORNEY 1.00 1.00 1.00 1.00 CITY CLERK 1.00 1.00 1.00 1.00 CITY MANAGER 1.00 1.00 1.00 1.00 COMMS AND MARKETING COORDINATOR 1.00 0 0.85 0.85 COMMUNITY OUTREACH SPECIALIST 0.90 0.90 0.90 0.90 DEPUTY CITY CLERK 1.00 1.00 1.00 1.00 DEPUTY CITY MANAGER 1.00 1.00 1.00 1.00 ECONOMIC DEVELOPMENT MANAGER 1.00 1.00 1.00 0 EMERGENCY SERVICES COORDINATOR 1.95 1.95 1.00 0 ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0.35 0 0 EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50 LEGAL SERVICES MANAGER 1.00 1.00 1.00 0 MANAGEMENT ANALYST 3.70 2.70 1.00 1.00 MULTIMEDIA COMMUNICATIONS SPEC 1.50 0 0 0 PUBLIC INFORMATION OFFICER 0.85 0.85 0 0 RECEPTIONIST 0 0 0 1.00 SENIOR ASSISTANT CITY ATTORNEY 1.00 1.00 1.00 1.00 SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00 SPECIAL PROJECT EXECUTIVE 0 1.00 0 0 SR OFFICE ASSISTANT 1.80 1.80 1.80 1.90 SUSTAINABILITY MANAGER 0.75 0.75 0 0 Total 24.30 21.80 19.00 16.15 FY 2025-26 Proposed Budget Administration 169 228 CC 05-15-2025 228 of 655 City Manager Budget Unit 100-12-120 General Fund - City Manager - City Manager Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,461,511 Total Expenditures $ 2,133,359 Fund Balance $ - General Fund Costs $ 671,848 % Funded by General Fund 31.5% Total Staffing 7.2 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 Facilitate the adoption and accomplishment of the 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 health and needs of the City. Research and respond to concerns regarding City operations. Prioritize engagement and transparency. 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. Monitor all state and federal legislative activity and track and identify important legislation impacting Cupertino. Proposed Budget It is recommended that City Council approve a budget of $2,133,359 for the City Manager program. This represents a decrease of $44,262 (-2.0%) from the FY 2024-25 Adopted Budget. There are several shiVs in this budget that result in an overall decrease. Primarily, this program budget does not have any new Special Projects for FY25-26. This is offset by increases in salaries due to the request to add a new position, materials due to funds for citywide memberships and dues that were previously in the City Council budget being consolidated in this program budget to beDer reflect the use of those dollars. Cost Allocation charges have also increased. This program is also requesting 1.0 FT Receptionist for FY25-26. This position will ensure the City Hall front desk is adequately staffed providing consistent support for residents. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 170 229 CC 05-15-2025 229 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 646,348 $ 653,459 $ 1,552,614 $ 1,461,511 Total Revenues $ 646,348 $ 653,459 $ 1,552,614 $ 1,461,511 Expenditures Employee Compensation $ 974,503 $ 1,304,537 $ 1,280,208 $ 1,303,448 Employee Benefits $ 285,760 $ 555,668 $ 569,757 $ 517,857 Materials $ 53,361 $ 38,198 $ 45,689 $ 109,641 Contract Services $ 113,975 $ 215,602 $ 78,008 $ 81,920 Cost Allocation $ -$ -$ 102,413 $ 120,493 Special Projects $ -$ 38,415 $ 100,000 $ - Contingencies $ -$ -$ 1,546 $ - Total Expenditures $ 1,427,599 $ 2,152,420 $ 2,177,621 $ 2,133,359 Fund Balance $ -$ -$ -$ - General Fund Costs $ 781,251 $ 1,498,960 $ 625,007 $ 671,848 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0 0 1.00 1.00 ASSISTANT CITY MANAGER 2.00 1.00 1.00 1.00 CITY MANAGER 1.00 1.00 1.00 1.00 DEPUTY CITY MANAGER 1.00 1.00 1.00 1.00 EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50 MANAGEMENT ANALYST 2.00 1.00 0 0 RECEPTIONIST 0 0 0 1.00 SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00 SPECIAL PROJECT EXECUTIVE 0 1.00 0 0 SR OFFICE ASSISTANT 0.40 0.40 1.10 0.70 Total 6.90 6.90 6.60 7.20 Staff is requesting a new position of receptionist in this budget unit. FY 2025-26 Proposed Budget Administration 171 230 CC 05-15-2025 230 of 655 Sustainability Budget Unit 100-12-122 General Fund - City Manager - Sustainability Budget at a Glance 2026 Proposed 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 2023-2024, this program was moved to Public Works. A complete discussion of the program can be found under Budget Unit 100-81-122. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Miscellaneous Revenue $ 14,822 $ -$ -$ - Total Revenues $ 14,822 $ -$ -$ - Expenditures Employee Compensation $ 272,016 $ -$ -$ - Employee Benefits $ 102,200 $ -$ -$ - Materials $ 16,113 $ -$ -$ - Contract Services $ 67,997 $ -$ -$ - Cost Allocation $ 182,388 $ -$ -$ - Special Projects $ 106,200 $ -$ -$ - Total Expenditures $ 746,914 $ -$ -$ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 732,091 $ -$ -$ - Staffing FY 2025-26 Proposed Budget Administration 172 231 CC 05-15-2025 231 of 655 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0.35 0 0 MANAGEMENT ANALYST 0.70 0.70 0 0 SUSTAINABILITY MANAGER 0.75 0.75 0 0 Total 1.80 1.80 0 0 FY 2025-26 Proposed Budget Administration 173 232 CC 05-15-2025 232 of 655 Office of Communications Budget Unit 100-12-126 General Fund - City Manager - Office of Communications Budget at a Glance 2026 Proposed Budget Total Revenues $ 335,733 Total Expenditures $ 481,413 Fund Balance $ - General Fund Costs $ 145,680 % Funded by General Fund 30.3% Total Staffing 2.0 FTE Program Overview The Communications Division is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Communications Division oversees and maintains many of the City’s lines of communication with residents, including the City’s website, social media accounts, bimonthly newsleDer, quarterly newsleDer, videos, reels, digital marketing, graphics, and press releases. The Division supports city-wide communications and acts as a liaison between various City departments and the community, and provides guidance on 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 Proposed Budget It is recommended that City Council approve a budget of $481,413 for the Office of Communications program. This represents an increase of $64,634 (15.5%) from the FY 2024-25 Adopted Budget. The increase is primarily due to a request to add an ongoing Part-Time Communications & Marketing Coordinator. This position will ensure that large City events are successful, and the community stays informed and engaged. Additional budget request in this program includes a special project request to fund the celebration of the City's 70th anniversary. Special Projects The following table shows the special projects for the fiscal year. FY 2025-26 Proposed Budget Administration 174 233 CC 05-15-2025 233 of 655 Special Project Appropriation Revenue Funding Source Description Cupertino 70th Anniversary Celebration $5,000 $5,000 General Fund Celebration to Commemorate Cupertino's 70th Anniversary Total $5,000 $5,000 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ -$ 545,188 $ 335,733 Total Revenues $ -$ -$ 545,188 $ 335,733 Expenditures Employee Compensation $ 247,454 $ 202,101 $ 228,455 $ 292,233 Employee Benefits $ 90,120 $ 115,303 $ 124,460 $ 115,623 Materials $ 138,360 $ 46,977 $ 17,152 $ 22,637 Contract Services $ 133,287 $ 53,737 $ 14,110 $ 10,320 Cost Allocation $ -$ -$ 32,211 $ 35,600 Special Projects $ -$ -$ -$ 5,000 Contingencies $ -$ -$ 391 $ - Total Expenditures $ 609,221 $ 418,118 $ 416,779 $ 481,413 Fund Balance $ -$ -$ -$ - General Fund Costs $ 609,221 $ 418,119 $ (128,409)$ 145,680 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget COMMS AND MARKETING COORDINATOR 1.00 0 0.85 0.85 COMMUNITY OUTREACH SPECIALIST 0.90 0.90 0.90 0.90 PUBLIC INFORMATION OFFICER 0.85 0.85 0 0 SR OFFICE ASSISTANT 0.90 0.90 0.20 0.20 Total 3.65 2.65 1.95 1.95 FY 2025-26 Proposed Budget Administration 175 234 CC 05-15-2025 234 of 655 Multimedia Budget Unit 100-12-305 General Fund - City Manager - Multimedia Budget at a Glance 2026 Proposed 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 2023-24, this program was moved to Innovation & Technology. A complete discussion of the program can be found under Budget Unit 100-31-305. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 354,821 $ 167,188 $ -$ - Total Revenues $ 354,821 $ 167,188 $ -$ - Expenditures Employee Compensation $ 312,438 $ -$ -$ - Employee Benefits $ 139,867 $ -$ -$ - Materials $ 22 $ -$ -$ - Contract Services $ 17,236 $ -$ -$ - Special Projects $ 9,549 $ -$ -$ - Total Expenditures $ 479,112 $ -$ -$ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 124,290 $ (167,188)$ -$ - 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 176 235 CC 05-15-2025 235 of 655 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MULTIMEDIA COMMUNICATIONS SPEC 1.50 0 0 0 Total 1.50 0 0 0 FY 2025-26 Proposed Budget Administration 177 236 CC 05-15-2025 236 of 655 Public Access Support Budget Unit 100-12-307 General Fund - City Manager - Public Access Support Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing FTE Program Overview In FY 2023-2024, this program was moved to Innovation & Technology. A complete discussion of the program can be found under Budget Unit 100-31-305. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Contract Services $ 73,306 $ 9,450 $ -$ - Cost Allocation $ 2,251 $ 2,169 $ -$ - Total Expenditures $ 75,557 $ 11,619 $ -$ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 75,557 $ 11,619 $ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Administration 178 237 CC 05-15-2025 237 of 655 Community Outreach and Neighborhood Watch Budget Unit 100-12-632 General Fund - City Manager - Community Outreach and Neighborhood Watch Budget at a Glance 2026 Proposed 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 2024-2025, this program was transferred to Parks & Recreation. A complete discussion of the program can be found under Budget Unit 100-65-632. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ -$ 56,953 $ -$ - Total Revenues $ -$ 56,953 $ -$ - Expenditures Employee Compensation $ 100,034 $ 103,733 $ 109,783 $ - Employee Benefits $ 40,723 $ 44,700 $ 52,924 $ - Materials $ 8,047 $ 5,001 $ 8,290 $ - Cost Allocation $ 58,538 $ 78,117 $ 53,648 $ - Special Projects $ -$ 7,623 $ -$ - Contingencies $ -$ -$ 104 $ - Total Expenditures $ 207,342 $ 239,174 $ 224,749 $ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 207,342 $ 182,222 $ 224,749 $ - Staffing FY 2025-26 Proposed Budget Administration 179 238 CC 05-15-2025 238 of 655 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget EMERGENCY SERVICES COORDINATOR 1.00 1.00 1.00 0 Total 1.00 1.00 1.00 0 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Administration 180 239 CC 05-15-2025 239 of 655 Office of Emergency Management Budget Unit 100-12-633 General Fund - City Manager - Office of Emergency Management Budget at a Glance 2026 Proposed 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 2024-2025, this program was transferred to Parks & Recreation. A complete discussion of the program can be found under Budget Unit 100-65-633. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 1,025,000 $ -$ -$ - Charges for Services $ -$ 15,629 $ 152,678 $ - Total Revenues $ 1,025,000 $ 15,629 $ 152,678 $ - Expenditures Employee Compensation $ 317,068 $ 324,386 $ 356,968 $ - Employee Benefits $ 130,230 $ 148,831 $ 176,079 $ - Materials $ 13,394 $ 17,096 $ 23,997 $ - Contract Services $ 156 $ -$ 2,120 $ - Cost Allocation $ 177,604 $ 205,936 $ 86,139 $ - Special Projects $ 18,677 $ 4,129 $ -$ - Contingencies $ -$ -$ 326 $ - Total Expenditures $ 657,129 $ 700,378 $ 645,629 $ - Fund Balance $ -$ -$ -$ - General Fund Costs $ (367,872)$ 684,749 $ 492,951 $ - FY 2025-26 Proposed Budget Administration 181 240 CC 05-15-2025 240 of 655 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSIST TO THE CITY MNGR 0 0 0.95 0 EMERGENCY SERVICES COORDINATOR 0.95 0.95 0 0 MANAGEMENT ANALYST 1.00 1.00 1.00 0 Total 1.95 1.95 1.95 0 A transfer of 3.5 positions in the Emergency Management division have been moved under Parks and Recreation. FY 2025-26 Proposed Budget Administration 182 241 CC 05-15-2025 241 of 655 Economic Development Budget Unit 100-12-705 General Fund - City Manager - Economic Development Budget at a Glance 2026 Proposed 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 2024-2025, this program was transferred to Community Development. A complete discussion of the program can be found under Budget Unit 100-71-705. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 161,796 $ 143,794 $ 194,086 $ - Employee Benefits $ 52,073 $ 69,813 $ 99,396 $ - Materials $ 19,101 $ 9,689 $ 17,648 $ - Contract Services $ 15,449 $ 28,549 $ 56,200 $ - Cost Allocation $ 41,781 $ 49,578 $ 172,822 $ - Special Projects $ 14,058 $ 174,574 $ -$ - Contingencies $ -$ -$ 923 $ - Total Expenditures $ 304,258 $ 475,997 $ 541,075 $ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 304,258 $ 475,997 $ 541,075 $ - Staffing FY 2025-26 Proposed Budget Administration 183 242 CC 05-15-2025 242 of 655 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ECONOMIC DEVELOPMENT MANAGER 1.00 1.00 1.00 0 Total 1.00 1.00 1.00 0 A transfer of 1 staff position in the Economic Development division has been moved under Community Development. FY 2025-26 Proposed Budget Administration 184 243 CC 05-15-2025 243 of 655 City Clerk Budget Unit 100-13-130 General Fund - City Clerk - City Clerk Budget at a Glance 2026 Proposed Budget Total Revenues $ 222,387 Total Expenditures $ 910,716 Fund Balance $ - General Fund Costs $ 688,329 % Funded by General Fund 75.6% Total Staffing 4.0 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, managing official elections, and providing 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. Process and sort routine incoming and outgoing mail for each department. Proposed Budget It is recommended that City Council approve a budget of $910,716 for the City Clerk program. This represents an increase of $81,982 (9.9%) from the FY 2024-25 Adopted Budget. The increase is primarily due to the reallocation of staffing to this budget unit. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 185 244 CC 05-15-2025 244 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 121,651 $ 87,435 $ 201,273 $ 222,387 Miscellaneous Revenue $ -$ 202 $ -$ - Total Revenues $ 121,651 $ 87,637 $ 201,273 $ 222,387 Expenditures Employee Compensation $ 388,186 $ 430,610 $ 475,265 $ 519,944 Employee Benefits $ 121,637 $ 173,521 $ 222,740 $ 225,433 Materials $ 25,946 $ 38,693 $ 40,578 $ 60,581 Contract Services $ 54,812 $ 43,387 $ 39,594 $ 40,861 Cost Allocation $ -$ -$ 49,555 $ 63,897 Contingencies $ -$ -$ 1,002 $ - Total Expenditures $ 590,581 $ 686,211 $ 828,734 $ 910,716 Fund Balance $ -$ -$ -$ - General Fund Costs $ 468,930 $ 598,575 $ 627,461 $ 688,329 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00 1.00 CITY CLERK 1.00 1.00 1.00 1.00 DEPUTY CITY CLERK 1.00 1.00 1.00 1.00 SR OFFICE ASSISTANT 0.50 0.50 0.50 1.00 Total 3.50 3.50 3.50 4.00 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Administration 186 245 CC 05-15-2025 245 of 655 Duplicating and Mail Services Budget Unit 100-13-132 General Fund - City Clerk - Duplicating and Mail Services Budget at a Glance 2026 Proposed Budget Total Revenues $ 30,805 Total Expenditures $ 41,561 Fund Balance $ - General Fund Costs $ 10,756 % Funded by General Fund 25.9% 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. Reduction in benefits is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Service Objectives Supply paper, envelopes, and postage Citywide and maintain postage and folder-inserter machines. Proposed Budget It is recommended that City Council approve a budget of $41,561 for the Duplicating and Mail Services program. This represents a decrease of $1,470 (-3.4%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 187 246 CC 05-15-2025 246 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ -$ 28,829 $ 30,805 Total Revenues $ -$ -$ 28,829 $ 30,805 Expenditures Materials $ 20,557 $ 11,377 $ 31,500 $ 32,508 Contract Services $ 922 $ 10,237 $ 11,000 $ 9,053 Cost Allocation $ 3,674 $ 3,375 $ -$ - Contingencies $ -$ -$ 531 $ - Total Expenditures $ 25,153 $ 24,989 $ 43,031 $ 41,561 Fund Balance $ -$ -$ -$ - General Fund Costs $ 25,153 $ 24,989 $ 14,202 $ 10,756 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Administration 188 247 CC 05-15-2025 247 of 655 Elections Budget Unit 100-13-133 General Fund - City Clerk - Elections Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% 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 commiDees, including Nomination Papers, Candidate Statements of Qualification, Campaign Financial Disclosure Statements, and Statements of Economic Interest. Make election-related information available to the public and news media in a timely manner. Proposed Budget There is no budget requested for this program. This decrease is due to the election cycle. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 189 248 CC 05-15-2025 248 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Miscellaneous Revenue $ (10,465)$ -$ -$ - Total Revenues $ (10,465)$ -$ -$ - Expenditures Materials $ (11,726)$ 577 $ 10,345 $ - Contract Services $ 120,921 $ -$ 130,000 $ - Cost Allocation $ 2,623 $ 480 $ 17 $ - Contingencies $ -$ -$ 1,754 $ - Total Expenditures $ 111,818 $ 1,057 $ 142,116 $ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 122,283 $ 1,057 $ 142,116 $ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Administration 190 249 CC 05-15-2025 249 of 655 City Manager Contingency Budget Unit 100-14-123 General Fund - City Manager Discretionary - City Manager Contingency Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 50,000 Fund Balance $ - General Fund Costs $ 50,000 % Funded by General Fund 100.0% Total Staffing FTE Program Overview The City Manager Contingency program is designed to address unforeseen citywide expenses that may arise during the year. To provide a cushion for any unexpected expenses, a contingencies expenditure category was added to each program in FY 2013-14. This category was established to cover any unforeseen expenses that may arise during the year. However, in FY 2020-21, the program contingencies were reduced from 5% of budgeted materials and contract services to 2.5%. To provide a second layer of contingency for any unexpected expenditures, the City Manager Contingency was established. This contingency is in addition to the program contingency and is used for unexpected expenditures that exceed the program contingency. In FY 2020-21, the City Manager Contingency was also reduced from 5% of budgeted General Fund materials and contract services to 2.5%. To further reduce expenditures, in FY 2021-22, the City Manager Contingency was reduced to $75,000. In FY 2022-23, as part of an expenditure-reduction strategy, program contingencies are being reduced to 1.25%, and the City Manager Contingency is being reduced to $50,000. These measures are aimed at maintaining fiscal responsibility while ensuring that unexpected expenses can still be addressed. There were no expenditures from the City Manager's contingency in Fiscal Year 2023. Fiscal Year 2024 saw an expenditure of $5,321.11, with the primary uses being employee appreciation events and quarterly town hall breakfasts. In Fiscal Year 2025 to date, the contingency fund was utilized for $13,616.85, with key expenses related to employee appreciation events and homeless encampment clean-up. The program contingency budget may be used by departments to cover unanticipated expenses at their discretion. On the other hand, the City Manager Contingency requires the approval of the City Manager before it can be used. Any usage of the City Manager Contingency is reported by staff to the City Council as part of the quarterly financial report. This reporting ensures transparency and accountability in the use of contingency funds. Proposed Budget It is recommended that City Council approve a budget of $50,000 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 191 250 CC 05-15-2025 250 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Contract Services $ 2,633 $ -$ -$ - Contingencies $ -$ 5,732 $ 50,000 $ 50,000 Total Expenditures $ 2,633 $ 5,732 $ 50,000 $ 50,000 Fund Balance $ -$ -$ -$ - General Fund Costs $ 2,633 $ 5,732 $ 50,000 $ 50,000 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Administration 192 251 CC 05-15-2025 251 of 655 City Attorney Budget Unit 100-15-141 General Fund - City Attorney - City Attorney Budget at a Glance 2026 Proposed Budget Total Revenues $ 382,216 Total Expenditures $ 1,524,970 Fund Balance $ - General Fund Costs $ 1,142,754 % Funded by General Fund 74.9% Total Staffing 3.0 FTE Program Overview The City ADorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City ADorney’s Office. The City ADorney’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 ADorney’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 maDers involving personal injury or property damage, code enforcement, or any administrative action arising out of City business. Manage all property, auto and liability claims filed against or on behalf of 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. Proposed Budget It is recommended that City Council approve a budget of $1,524,970 for the City ADorney program. This represents an increase of $40,741 (2.7%) from the FY 2024-25 Adopted Budget. The increase is due to increases in salary costs, materials and contracts offset by a decrease in benefits costs. Staff costs have increased due to negotiated increases to salary and benefits for the City ADorney as well as reclassification of the Legal Services Manager that occurred last year to align the position with its current duties and responsibilities. The City is currently contracting out City ADorney services but has not defunded the existing full time benefiDed City ADorney position, thus salary and benefits for that position remain in the budget to pay contract City Attorney services. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administration 193 252 CC 05-15-2025 252 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 362,253 $ 278,070 $ 344,544 $ 382,216 Total Revenues $ 362,253 $ 278,070 $ 344,544 $ 382,216 Expenditures Employee Compensation $ 660,961 $ 664,799 $ 659,873 $ 703,127 Employee Benefits $ 217,066 $ 255,085 $ 295,347 $ 270,984 Materials $ 16,094 $ 15,009 $ 17,597 $ 25,562 Contract Services $ 379,948 $ 667,931 $ 455,938 $ 470,528 Cost Allocation $ -$ -$ 49,555 $ 54,769 Contingencies $ -$ -$ 5,919 $ - Total Expenditures $ 1,274,069 $ 1,602,824 $ 1,484,229 $ 1,524,970 Fund Balance $ -$ -$ -$ - General Fund Costs $ 911,816 $ 1,324,755 $ 1,139,685 $ 1,142,754 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget CITY ATTORNEY 1.00 1.00 1.00 1.00 LEGAL SERVICES MANAGER 1.00 1.00 1.00 0 MANAGEMENT ANALYST 0 0 0 1.00 SENIOR ASSISTANT CITY ATTORNEY 1.00 1.00 1.00 1.00 Total 3.00 3.00 3.00 3.00 There are no changes to the current levels of staffing. An interim City Attorney was outsourced in FY 2025. FY 2025-26 Proposed Budget Administration 194 253 CC 05-15-2025 253 of 655 Law Enforcement FY 2025-26 Proposed Budget Law Enforcement 195 254 CC 05-15-2025 254 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Law Enforcement 196 255 CC 05-15-2025 255 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget Law Enforcement $ 19,542,688 100-20-200 Law Enforcement $ 19,542,688 100-20-201 Interoperability Project $ - Total $ 19,542,688 FY 2025-26 Proposed Budget Law Enforcement 197 256 CC 05-15-2025 256 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,939,512 Total Expenditures $ 19,542,688 Fund Balance $ - General Fund Costs $ 17,603,176 % Funded by General Fund 90.1% Total Staffing FTE Organization Captain Neil Valenzuela, Office of the Sheriff FY 2025-26 Proposed Budget Law Enforcement 198 257 CC 05-15-2025 257 of 655 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Response time for emergency calls Priority 1 6.57 5.81 7.28 5 minutes Priority 2 7.46 6.32 6.41 9 minutes Priority 3 12.72 7.86 6.30 20 minutes % programs maintaining minimum attendance Teen & Citizen Academy 90%100%0%80% FY 2025-26 Proposed Budget Law Enforcement 199 258 CC 05-15-2025 258 of 655 Workload Indicators Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Total Priority 1 Calls 85 52 14 Total Priority 2 Calls 4,263 5,315 2,910 Total Priority 3 Calls 3,161 3,818 1,836 Total Teen/Community Academy Participants 18 31 0 Proposed Budget It is recommended that City Council approve a budget of $19,542,688 for the Law Enforcement department. This represents an increase of $893,882 (4.8%) from the FY 2024-25 Adopted Budget. The increase is primarily due to the annual negotiated increase in the law enforcement contract and an ongoing request to fund maintenance costs associated with the license plate readers. For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. FY 2025-26 Proposed Budget Law Enforcement 200 259 CC 05-15-2025 259 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 100.0% Law Enforcement $15.3M $16.2M $18.6M $19.5M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Law Enforcement 201 260 CC 05-15-2025 260 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 165,271 $ 186,159 $ 161,094 $ 166,249 Charges for Services $ 277,277 $ 304,442 $ 402,500 $ 371,200 Fines and Forfeitures $ 168,859 $ 155,102 $ 180,000 $ 185,760 Miscellaneous Revenue $ 948,721 $ 1,006,552 $ 1,046,814 $ 1,216,303 Total Revenues $ 1,560,128 $ 1,652,255 $ 1,790,408 $ 1,939,512 Expenditures Materials $ 404 $ 457 $ 424 $ 450 Contract Services $ 15,122,638 $ 16,059,209 $ 18,285,280 $ 19,353,570 Cost Allocation $ 153,891 $ 144,684 $ 363,102 $ 188,668 Total Expenditures $ 15,276,933 $ 16,204,350 $ 18,648,806 $ 19,542,688 Fund Balance $ -$ -$ -$ - General Fund Costs $ 13,716,805 $ 14,552,096 $ 16,858,398 $ 17,603,176 Staffing There is no staffing associated with this department. FY 2025-26 Proposed Budget Law Enforcement 202 261 CC 05-15-2025 261 of 655 Law Enforcement Budget Unit 100-20-200 General Fund - Law Enforcement - Law Enforcement Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,939,512 Total Expenditures $ 19,542,688 Fund Balance $ - General Fund Costs $ 17,603,176 % Funded by General Fund 90.1% Total Staffing FTE Program Overview The Law Enforcement program provides law enforcement, emergency communications, and School Resource Officers. 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. 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. Furthermore, the City receives an annual donation from Apple for enhanced law enforcement services (two additional deputies) available to the entire community. The donation is $1,109,623 for FY 2025-26. 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. Provide annual Teen Academy during summer months providing community engagement and an introduction to law enforcement for youth (budgeted in the Public Safety Commission). Proposed Budget It is recommended that City Council approve a budget of $19,542,688 for the Law Enforcement program. This represents an increase of $893,882 (4.8%) from the FY 2024-25 Adopted Budget. The increase is due to the increased in the Sheriff's contract and increases supplemental law enforcement service that are fully offset by revenues. Additionally, a request to fund ongoing costs of the maintenance and operation of fiVeen (15) Automated License Plate Readers (ALPRs) throughout the City, is included, which was approved by Council in October 2024. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Law Enforcement 203 262 CC 05-15-2025 262 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 165,271 $ 186,159 $ 161,094 $ 166,249 Charges for Services $ 277,277 $ 304,442 $ 402,500 $ 371,200 Fines and Forfeitures $ 168,859 $ 155,102 $ 180,000 $ 185,760 Miscellaneous Revenue $ 948,721 $ 1,006,552 $ 1,046,814 $ 1,216,303 Total Revenues $ 1,560,128 $ 1,652,255 $ 1,790,408 $ 1,939,512 Expenditures Materials $ 404 $ 457 $ 424 $ 450 Contract Services $ 15,122,638 $ 16,059,209 $ 18,285,280 $ 19,353,570 Cost Allocation $ 153,007 $ 144,684 $ 363,102 $ 188,668 Total Expenditures $ 15,276,049 $ 16,204,350 $ 18,648,806 $ 19,542,688 Fund Balance $ -$ -$ -$ - General Fund Costs $ 13,715,921 $ 14,552,096 $ 16,858,398 $ 17,603,176 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Law Enforcement 204 263 CC 05-15-2025 263 of 655 Interoperability Project Budget Unit 100-20-201 General Fund - Law Enforcement - Interoperability Project Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% 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 fiVeen cities and towns, and all special districts. 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 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Cost Allocation $ 884 $ -$ -$ - Total Expenditures $ 884 $ -$ -$ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 884 $ -$ -$ - Staffing FY 2025-26 Proposed Budget Law Enforcement 205 264 CC 05-15-2025 264 of 655 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Law Enforcement 206 265 CC 05-15-2025 265 of 655 Innovation and Technology FY 2025-26 Proposed Budget Innovation and Technology 207 266 CC 05-15-2025 266 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Innovation and Technology 208 267 CC 05-15-2025 267 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget I&T Administration $ 224,231 610-30-300 Innovation & Technology Administration $ 224,231 Video $ 1,132,993 100-31-305 Video $ 1,132,993 Applications $ 2,329,660 100-32-308 Applications $ 2,329,660 Infrastructure $ 2,856,513 610-34-310 Infrastructure $ 2,856,513 GIS $ 1,303,472 610-35-986 GIS $ 1,303,472 Total $ 7,846,869 FY 2025-26 Proposed Budget Innovation and Technology 209 268 CC 05-15-2025 268 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 6,640,514 Total Expenditures $ 7,846,869 Fund Balance $ 366,279 General Fund Costs $ 2,572,634 % Funded by General Fund 32.8% Total Staffing 13.9 FTE Organization Teri Gerhardt, CGCIO, Chief Technology Officer Notable Accomplishments New City Website Launched – Collaborating with various departments, the newly designed City of Cupertino website (cupertino.gov) was launched. The new website has a more robust backend content management system and integrates with many other applications like Legistar, GovDelivery and Accela. ProjectDox move to SaaS – IT Applications moved ProjectDox, City’s plan check review system to the SaaS (SoVware as Service) model. This move helps Cupertino to always stay on the latest ProjectDox version and shiVs the responsibility of the day-to-day maintenance, upgrades, and back-ups to the vendor. Consolidation of Code Enforcement Services-- The Code Enforcement operations were consolidated under the Accela Land Management System (LMS) pulling all CDD operations under one enterprise system. This implementation streamlines code enforcement day-to-day operations as well as supports routing complaints and service requests directly to Code Enforcement officers. Startup Sofware – Implemented Startup Space platform to welcome new businesses in Cupertino. The application provides access to government, public, and privately sponsored resources to medium and small businesses. Business Process Automation – Continued to pursue business process automation, we’ve automated 50 forms, workflows, approval processes, and routine tasks. Our aim is to enhance process and technology integration, facilitating the adoption of FY 2025-26 Proposed Budget Innovation and Technology 210 269 CC 05-15-2025 269 of 655 streamlined, digital workflows that optimize efficiency while minimizing risk exposure. Disaster Preparedness – In collaboration with OES, we've developed disaster response tools to support emergency operations. These include a Quick Capture tool for rapid windshield surveys, a Building Damage Assessment Survey based on the state form, real-time EOC Dashboards, and a Reviewer Map for GIS staff. We've also created detailed evacuation maps for each zone. We continually test and refine these tools to ensure their effectiveness and reliability. AR McClellan Ranch – Visitors to McClellan Ranch can download the app from iTunes or Google Play, choose a language (English, Hindi, or Mandarin), and follow Cooper through six AR stops. Each features immersive text and audio content highlighting native species and activities at the Ranch. Cupertino Modern Data Warehouse – The City of Cupertino, in collaboration with OmniData, implemented a modern data warehouse using MicrosoV Fabric, unifying data into a scalable lakehouse architecture for enhanced reporting, analytics, and governance. Staff were trained to support and expand the platform, enabling advanced data-driven decision-making. Proactive Managed Risk and Security Monitoring – Procured Cybersecurity Professional Services to respond to active threats through proactive monitoring and management tools that scan, manage and resolve security vulnerabilities. City Hall Enterprise Server & Storage Tech refresh – Replaced the server environment that houses the City’s Financial ERP, Land Management business applications, and other critical applications and services. This refresh was done at the City Hall and Phoenix data centers and provides more robust backup and recovery features in the case of a cyber incident. .gov E-mail Project – Acquired and implemented the cupertino.gov address to our E-mail system, improving security and branding, and satisfying major requirements of California State Assembly Bill 1637. Cybersecurity Assessment – I&T partnered with FRSecure for a comprehensive cybersecurity review, which included a vulnerability scan, network penetration test, and security controls assessment through interviews with staff across departments. A roadmap was created to guide improvements in the City's cybersecurity operations. Windows 11 Upgrade Project – With support for Windows 10 ending on October 14, 2025, the City’s fleet of Windows 10 laptops will need to be replaced or upgraded before then. This is to ensure the City’s laptops continue to receive critical security updates from Microsoft. Cupertino Room Lectern Upgrade Project – Upgraded the Cupertino Room lectern with an audiovisual-ready system so that it beDer integrates with the recent technology improvements in that space. The upgraded podium includes custom connections for laptops and other mobile display devices, support for a wireless gooseneck microphone, and a sloped panel for built-in monitor display. New Initiatives ERP Replacement - The City of Cupertino is replacing its outdated Tyler New World ERP to modernize its financial and payroll systems, improving automation, integration, and user experience while reducing inefficiencies and security risks. With Council approval, the City will resume its phased implementation plan. Broadcast & AV System Modernization - Cupertino is upgrading its broadcast and Community Hall AV systems with ASG, using PEG funds. The project includes HD video, LED lighting, centralized controls, and modern infrastructure to improve quality, efficiency, and future scalability. Virtual Reality (VR) Decarb – With grant funds from Silicon Valley Clean Energy (SVCE), Cupertino will create a VR experience to educate residents about decarbonization by showcasing a zero-emissions home. The VR DECARB system will be available at local festivals, Block Parties, and upon community request to inspire the adoption of zero-emission options in homes. Business Process Automation – Innovation & Technology is transforming Cupertino’s operations with secure, scalable digital workflows. With 50+ forms automated and more in progress, we're streamlining processes to boost efficiency and reduce risk. Accela Roadmap – Developed 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. ACA Guide and Wrapper – Enhance user interface and provide seamless navigation through a new guide and wrapper on the City’s Land Management System – 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. Phone System Replacement Project - The City is transitioning to a modern, cloud-based phone system that will enhance staff mobility, enable secure calling and texting from mobile devices and laptops, and eliminate the need for VPN access offsite. The new system will improve communication efficiency and reduce reliance on City-issued cell phones. FY 2025-26 Proposed Budget Innovation and Technology 211 270 CC 05-15-2025 270 of 655 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. Performance Measure FY 2023 July-June FY 2024 July-Jun FY2025 Jul -Dec Ongoing Target GIS: % of time spent Developing Application 50%28%34%65% GIS: % of time Maintaining applications 50%72%66%35% GIS: Increase Property Information (Internal/External) site visits per month 279/84 338/97 325/96 500/100 GIS: Cityworks utilization - # of assets Cupertino maintains vs # of assets maintained in Cityworks. Also the % increase of work units completed (WOs, INSP,SRs) 45/31 45/32 45/32 45/45 Infrastructure: Percentage based upon number of scheduled projects/Number of projects completed on time N/A 63%67%100% Infrastructure: Percentage based upon number of HelpDesk tickets/SLA measurements 85.9%90.4%91.3 90% Infrastructure: % Customer satisfaction based upon Satisfaction Rate from helpdesk tickets 99.6%94.8%100%85% Infrastructure: % of network uptime (not including planned maintenance)99.9%99.9%99.99%99% Applications: % of citywide-enterprise application project management performed on time and on budget 98%96%95%95% Applications: Number of website site visits/Number of site hits 857,387 1,100,00 630,000 5% annual increase Applications: Number of support request for the applications support per month 640 850 628 20 Video: Percentage of total video productions performed vs scheduled productions (city meetings excluded) 356% 57/16 220% 44/20 130% 26/20 100% Video: Percentage of total engineering projects vs scheduled projects 200% 10/5 182% 11/6 0% 0/0 100% Video: Total video views on YouTube*141,571 135,641 86,808 5% annual increase FY 2025-26 Proposed Budget Innovation and Technology 212 271 CC 05-15-2025 271 of 655 * Unable to retrieve Granicus viewership data due to error in their reporting module FY 2025-26 Proposed Budget Innovation and Technology 213 272 CC 05-15-2025 272 of 655 Workload Indicators Applications Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of tasks for Enterprise Programs Support & Maintenance - includes enterprise business platforms like ERP, Land Management System, Recreation System, City Digital Records, City Website and many programs like Admin Services digital transformation, citywide permitting, licensing, and enforcement solutions. 2,250 Standardizing tracking process 2,550 1,530 Number of Hours for Application Development - includes custom software solutions like Bid Management solution and Permit Parking software solutions. Application development for these kind of software solution goes through all stages of Software Development Life Cycle (SDLC) of Requirement-gathering, Analysis, Designing, Coding, Testing and Deployment of these custom software solutions. 1,300 1,500 1,240 % of Project Implementation Performed on Time and Budget for Citywide Applications - This 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. 95%96%95% FY 2025-26 Proposed Budget Innovation and Technology 214 273 CC 05-15-2025 273 of 655 Infrastructure Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec % of helpdesk requests completed 48 hours or less - Prompt customer service and attention is a critical customer service measurement to ensure staff is able to perform and excel with their daily duties. This core responsibilty is performed by two Network Specialists serving 200-250 staff depending on the time of year. Infrastructure's goal is to provide a service level where 90% of all helpdesk service requests are completed in 48 hours or less. 85.9%90.4%91.3% % of network uptime - Maintain availability and accessibility of the City's network infrastructure during business hours of operation. The City's local and wide area networks require high reliability to ensure various applications (ERP, GIS, Land management, etc.) and services (Internet, e- mail, shared files, City web services, etc). are available for staff and members of the public. 99.9%99.9%99.9% Number of IT Projects Completed - Project 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 N/A 5 4 FY 2025-26 Proposed Budget Innovation and Technology 215 274 CC 05-15-2025 274 of 655 GIS Division Workload Indicator FY 2023 July-June FY 2023 July-June FY 2025 July-Dec Hours Spent on Development - The GIS Division builds internal and external web applications, business intelligence tools, digital workflows, and configures enterprise applications. 507/new tracking system was in development during this time frame 673/new tracking system was in development during this time frame 433 Number of Map, Data, Analysis, Report Completed Requests - Requests range from hard copy maps to interactive web maps, data request, data changes, crystal report requests. 316/new tracking system was in development during this time frame 349/new tracking system was in development during this time frame 279 Number of I&T workplan projects completed - Project 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 90% 7/8 3/3 3/5 Video Division FY 2025-26 Proposed Budget Innovation and Technology 216 275 CC 05-15-2025 275 of 655 Workload Indicator FY23 Jul-Jun FY24 Jul-Jun FY25 Jul-Dec Video Productions Completed vs. Those Scheduled - 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 measurements here are tracked in the "milestones" document located in our City Channel documentation folder. The milestones document is a comprehensive dataset of all the video division projects--both large and small--and is maintained by the entire video staff. City meeting telecasts are not included in this particular dataset. 245% 27/11 356% 57/16 130% 26/20 Engineering Projects Completed vs. Those Scheduled - Video 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. The Workload Indicator here measures the number of projects completed vs. the number of scheduled projects. These measurements are tracked in the "engineering milestones" document located in our City Channel documentation folder. This document is maintained by Pete Coglianese, who is the broadcast engineer for the division. 100% 2/2 275% 11/4 0% 0/0 Total Viewership on the YouTube and Granicus Platforms - Video staff historically tracks viewership data within our primary online video platforms--YouTube and Granicus. 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. 60,249 158,300 86,808 * Percentage skewed due to pandemic - more overall views due to daily press conference postings Proposed Budget It is recommended that City Council approve a budget of $7,846,869 for the Innovation and Technology department. This represents an increase of $1,123,442 (16.7%) from the FY 2024-25 Adopted Budget. FY 2025-26 Proposed Budget Innovation and Technology 217 276 CC 05-15-2025 276 of 655 Compensation increased due to a request for a new classification of Principal Business Analyst. This position will play a key leadership role in driving a variety of technology initiatives and managing complex IT projects, as well as provide critical oversight for optimizing business processes, ensuring they align with the City's strategic goals. Compensation also increased due to the addition of three interns across the department. Increases in Materials, Contract Services and Special Projects are due to multi-year and new infrastructure and application enhancements. For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. Lastly, this department is also requesting, $449,696 in budget requests. These request are discussed in the program budget narratives. FY 2025-26 Proposed Budget Innovation and Technology 218 277 CC 05-15-2025 277 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 36.4% 29.7% 16.6% 14.4% Infrastructure Applications GIS Video I&T Administration $6.44M $7.28M $6.72M $7.85M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Innovation and Technology 219 278 CC 05-15-2025 278 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ (30)$ 24,480 $ -$ - Charges for Services $ 3,928,046 $ 4,096,692 $ 5,113,586 $ 5,340,514 Miscellaneous Revenue $ -$ 5,666 $ -$ 300,000 Transfers In $ 2,537,500 $ 1,037,684 $ 197,000 $ 1,000,000 Total Revenues $ 6,465,516 $ 5,164,522 $ 5,310,586 $ 6,640,514 Expenditures Employee Compensation $ 2,455,241 $ 2,782,948 $ 2,746,194 $ 2,776,366 Employee Benefits $ 1,078,676 $ 1,332,388 $ 1,125,453 $ 981,164 Materials $ 1,717,933 $ 1,982,298 $ 1,655,136 $ 2,067,334 Contract Services $ 446,993 $ 480,812 $ 714,647 $ 811,305 Cost Allocation $ -$ -$ 230,915 $ 699,739 Special Projects $ 516,888 $ 507,029 $ -$ 225,000 Other Financing Uses $ 221,459 $ 115,426 $ 221,459 $ 285,961 Transfers Out $ -$ 76,000 $ -$ - Contingencies $ -$ -$ 29,623 $ - Total Expenditures $ 6,437,190 $ 7,276,901 $ 6,723,427 $ 7,846,869 Fund Balance $ 1,092,708 $ (787,165)$ (42,256)$ 366,279 General Fund Costs $ 3,601,883 $ 2,362,899 $ 1,567,585 $ 2,572,634 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.95 0 0 0 BUSINESS SYSTEMS ANALYST 3.00 3.00 3.00 3.00 CHIEF TECHNOLOGY OFFICER 0.98 0.98 0.98 0.98 GIS ANALYST 1.00 1.00 1.00 0 GIS PROGRAM MANAGER 1.00 1.00 1.00 0 INFO TECHNOLOGY MANAGER 1.00 1.00 1.00 1.00 INNOVATION & TECHNOLOGY MGR APPS 1.00 1.00 0 1.00 I.T. ASSISTANT 2.00 0 0 0 MANAGEMENT ANALYST 1.00 1.95 1.95 1.95 MULTIMEDIA COMMUNICATIONS SPEC 1.50 3.00 3.00 3.00 NETWORK SPECIALIST 0 2.00 2.00 2.00 SENIOR BUSINESS SYSTEMS ANALYST 0 0 0 1.00 Total 13.43 14.93 13.93 13.93 FY 2025-26 Proposed Budget Innovation and Technology 220 279 CC 05-15-2025 279 of 655 Innovation & Technology Administration Budget Unit 610-30-300 Information Technology - I&T Administration - Innovation & Technology Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ 89,599 Total Expenditures $ 224,231 Fund Balance $ (134,632) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.2 FTE Program Overview The Innovation & Technology Department Administration Division is responsible for the strategic planning, governance, policy seDing, 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. Proposed Budget It is recommended that City Council approve a budget of $224,231 for the Innovation & Technology Administration program. This represents an increase of $146,425 (188.2%) from the FY 2024-25 Adopted Budget. The increase is due to increases in Cost Allocation and conference and training expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Innovation and Technology 221 280 CC 05-15-2025 280 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ -$ 191,672 $ 89,599 Transfers In $ 82,500 $ -$ -$ - Total Revenues $ 82,500 $ -$ 191,672 $ 89,599 Expenditures Employee Compensation $ 129,616 $ 148,116 $ 45,698 $ 39,787 Employee Benefits $ 47,311 $ 72,678 $ 20,160 $ 16,263 Materials $ 8,809 $ 2,918 $ 5,721 $ 9,657 Contract Services $ 7,933 $ 757 $ 2,000 $ 6,914 Cost Allocation $ -$ -$ 4,130 $ 151,610 Special Projects $ 41,000 $ 67,380 $ -$ - Transfers Out $ -$ 60,000 $ -$ - Contingencies $ -$ -$ 97 $ - Total Expenditures $ 234,669 $ 351,849 $ 77,806 $ 224,231 Fund Balance $ (152,169)$ (351,849)$ 113,866 $ (134,632) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.15 0 0 0 CHIEF TECHNOLOGY OFFICER 0.38 0.38 0.10 0.08 MANAGEMENT ANALYST 0 0.15 0.15 0.15 Total 0.53 0.53 0.25 0.23 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Innovation and Technology 222 281 CC 05-15-2025 281 of 655 Video Budget Unit 100-31-305 General Fund - Video - Video Budget at a Glance 2026 Proposed Budget Total Revenues $ 85,163 Total Expenditures $ 1,132,993 Fund Balance $ - General Fund Costs $ 1,047,830 % Funded by General Fund 92.5% Total Staffing 3.3 FTE Program Overview The Multimedia Division manages Cupertino’s public communication channels, including the City Channel, YouTube, and digital signage in City facilities. The team produces and streams hybrid Council and Planning Commission meetings, provides video production and editing services for City departments, and supports Commission meetings through webinar training, technical setup, and timely posting of recordings. These efforts ensure transparent communication and keep residents informed and engaged. Service Objectives Public Communication Channel: Through City Channel, YouTube, and Digital Signage Cupertino’s delivering information to residents and providing coverage of City meetings and community events. Live Meeting Production and Webcasting: Production of hybrid Council and Planning Commission meetings, ensuring smooth integration of in-person and virtual participation. Meetings are streamed live on YouTube and Granicus, providing real-time public access. Recordings are archived for on-demand viewing, supporting transparency, civic engagement, and easy access to past meetings. Multimedia Production and Editing: Providing professional video production and editing services to support the communication needs of all City departments including City Council. This includes producing promotional videos, educational content, and event coverage while ensuring that all video production equipment remains operational and up to date. Commission Meeting Support: Providing comprehensive support for Commission meetings, including Zoom webinar training for staff, technical setup, post-meeting editing, and ensuring timely posting of recordings to public platforms. Proposed Budget It is recommended that City Council approve a budget of $1,132,993 for the Video program. This represents a decrease of $46,068 (-3.9%) from the FY 2024-25 Adopted Budget. This decrease is a result of reallocating staff time to more accurately represent the actual time spent on the program. It is offset by an increase in contract costs for engineering support, following the retirement of a previous consultant. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Innovation and Technology 223 282 CC 05-15-2025 282 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 11,506 $ 10,829 $ 85,679 $ 85,163 Total Revenues $ 11,506 $ 10,829 $ 85,679 $ 85,163 Expenditures Employee Compensation $ 230,675 $ 514,189 $ 619,967 $ 573,733 Employee Benefits $ 65,460 $ 203,771 $ 268,574 $ 224,471 Materials $ 69,243 $ 20,270 $ 37,319 $ 46,200 Contract Services $ 70,852 $ 43,071 $ 197,746 $ 230,660 Cost Allocation $ -$ -$ 52,517 $ 57,929 Special Projects $ 42,433 $ 40,242 $ -$ - Contingencies $ -$ -$ 2,938 $ - Total Expenditures $ 478,663 $ 821,543 $ 1,179,061 $ 1,132,993 Fund Balance $ -$ -$ -$ - General Fund Costs $ 467,157 $ 810,715 $ 1,093,382 $ 1,047,830 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget CHIEF TECHNOLOGY OFFICER 0 0 0.13 0.25 MULTIMEDIA COMMUNICATIONS SPEC 1.50 3.00 3.00 3.00 Total 1.50 3.00 3.13 3.25 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Innovation and Technology 224 283 CC 05-15-2025 283 of 655 Applications Budget Unit 100-32-308 General Fund - Applications - Applications Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,804,856 Total Expenditures $ 2,329,660 Fund Balance $ - General Fund Costs $ 524,804 % Funded by General Fund 22.5% Total Staffing 3.5 FTE Program Overview The Applications Division manages citywide enterprise soVware systems supporting critical business functions. It oversees the procurement, development, implementation, and maintenance of key systems, including Financial ERP, Land-Use Management, Recreation Management, and customer-facing portals. The division also manages records retention, procurement, and customer relationship management systems. Additionally, the team develops and maintains the City's website, Intranet, and mobile apps, supporting digital services such as permitting, licensing, inspections, and enforcement. It also builds custom applications like bid management and residential parking permits while ensuring seamless data integration across enterprise systems. Service Objectives Implement business solutions that align with customer requirements and integrates into the City's application framework. Aid departments in developing efficient business processes that are easy to operate and can be digitized and implemented in existing or new enterprise applications. Collaborate closely with City staff to ensure that the City's enterprise application platforms are regularly updated and deliver value to all stakeholders. Work in conjunction with various City departments to ensure that the City's enterprise soVware solutions meet functional requirements and align with the organization's long-term technology strategy. Develop and maintain user-friendly online and mobile access to municipal information and services. Supports the enterprise data in the data warehouse. Facilitate the use of communication and technical resources by non-technical staff and customers. Produce business analytics dashboards for city staff and external stakeholders. Proposed Budget It is recommended that City Council approve a budget of $2,329,660 for the Applications program. This represents an increase of $385,728 (19.8%) from the FY 2024-25 Adopted Budget. The increase in Materials is primarily due to the reallocation of applications such as Laserfiche, City Source, Start Up Space, and the ActiveNet Data Hub back into the Applications Division from other program areas. The rise in Employee Compensation and Benefits reflects the addition of one part-time position and an intern to beDer align staffing with the level and scope of work required to support citywide software platforms and applications. The increase in Contract Services is attributed to Phase II of the ERP replacement project. The following budget request are included in this budget: FY 2025-26 Proposed Budget Innovation and Technology 225 284 CC 05-15-2025 284 of 655 Applications - Social Media Ret Archiving App 7,500 Applications - Energy Management System 33,500 Applications - ZenDesk Licenses for PW 4,140 Applications - Logikcull 33,500 Applications-Additional Accela Licenses (2) for CDD staff 5,500 Total all requests $84,140 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ (30)$ 24,480 $ -$ - Charges for Services $ 1,431,322 $ 1,539,005 $ 1,666,729 $ 1,504,856 Miscellaneous Revenue $ -$ -$ -$ 300,000 Total Revenues $ 1,431,292 $ 1,563,485 $ 1,666,729 $ 1,804,856 Expenditures Employee Compensation $ 718,099 $ 687,647 $ 666,439 $ 840,993 Employee Benefits $ 210,496 $ 232,209 $ 231,676 $ 246,704 Materials $ 909,110 $ 887,573 $ 880,026 $ 1,049,696 Contract Services $ 59,951 $ 111,731 $ 103,121 $ 118,329 Cost Allocation $ -$ -$ 50,381 $ 73,938 Special Projects $ 130,862 $ 158,825 $ -$ - Contingencies $ -$ -$ 12,289 $ - Total Expenditures $ 2,028,518 $ 2,077,985 $ 1,943,932 $ 2,329,660 Fund Balance $ -$ -$ -$ - General Fund Costs $ 597,226 $ 514,500 $ 277,203 $ 524,804 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Innovation and Technology 226 285 CC 05-15-2025 285 of 655 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0 0 0 BUSINESS SYSTEMS ANALYST 2.00 2.00 2.00 2.00 CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.75 0.23 INNOVATION & TECHNOLOGY MGR APPS 1.00 1.00 0 1.00 MANAGEMENT ANALYST 0 0.30 0.30 0.30 Total 3.50 3.50 3.05 3.53 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Innovation and Technology 227 286 CC 05-15-2025 286 of 655 Infrastructure Budget Unit 610-34-310 Information Technology - Infrastructure - Infrastructure Budget at a Glance 2026 Proposed Budget Total Revenues $ 3,532,269 Total Expenditures $ 2,856,513 Fund Balance $ 675,756 General Fund Costs $ 1,000,000 % Funded by General Fund 35.0% Total Staffing 4.5 FTE Program Overview The IT infrastructure division is responsible for planning, developing, implementing, and maintaining the core technological systems that support an organization's daily operations and long-term goals. This division manages both physical and virtual components, including servers, data centers, networks, cloud platforms, and end-user devices. It oversees the installation and configuration of hardware and software, ensuring seamless connectivity and optimal performance across systems. Key responsibilities include server and network management, data storage, backup and recovery, cybersecurity, and technical support. The division plays a critical role in safeguarding the organization's data and systems through security protocols, threat detection, and disaster recovery planning. Additionally, the Infrastructure Manager and staff are also responsible for helpdesk, project management of implementations and upgrades, purchasing and inventory control, technical training, and maintenance of all systems. By ensuring the reliability, performance, and security of IT systems, the IT infrastructure division enables business continuity, operational efficiency, and the delivery of high-quality services across the organization. Infrastructure is also tasked with ensuring that the City continues to follow best practices in technology adoption and security. Service Objectives Provide and continuously improve helpdesk support as this function is oVen the face of IT that staff interacts with on a daily basis. Deliver efficient and reliable services to meet and exceed customer expectations. 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. Manage and support the City's server and network infrastructure and data centers, ensuring 99.9% availability of network resources. Proactively monitor and protect the City 24/7 from cyberthreats and conduct ongoing City-wide educational and security- related training programs. Continue innovation and outreach to ensure the City follows best IT practices relating to equipment, policy, and security practices. Proposed Budget It is recommended that City Council approve a budget of $2,856,513 for the Infrastructure program. This represents an increase of $777,134 (37.4%) from the FY 2024-25 Adopted Budget. This budget includes the follow budget request: FY 2025-26 Proposed Budget Innovation and Technology 228 287 CC 05-15-2025 287 of 655 Infrastructure - Endpoint and Patch Management System 15,000 Infrastructure - Network Glue for Network Diagram and Management 6,000 Infrastructure - Mitel Packet Fusion Replacement 6,000 Infrastructure - Poster Printer replacement 5,000 Infrastructure - Sr. Center Tech Lab Projection System 16,000 Infrastructure - Switches and Firewall Upgrade 21,000 Infrastructure - Adaptive Traffic Signal Expansion 225,000 Total all requests $294,000 For further details on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Adaptive Traffic Signal Expansion $225,000 $225,000 General Fund Expand Traffic adaptive signalization system along five intersections on De Anza Total $225,000 $225,000 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Innovation and Technology 229 288 CC 05-15-2025 288 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 1,556,269 $ 1,591,722 $ 1,745,011 $ 2,532,269 Miscellaneous Revenue $ -$ 5,666 $ -$ - Transfers In $ 2,455,000 $ 910,600 $ 197,000 $ 1,000,000 Total Revenues $ 4,011,269 $ 2,507,988 $ 1,942,011 $ 3,532,269 Expenditures Employee Compensation $ 675,800 $ 709,991 $ 716,658 $ 832,853 Employee Benefits $ 383,045 $ 424,688 $ 318,911 $ 306,618 Materials $ 632,757 $ 902,821 $ 506,467 $ 703,404 Contract Services $ 184,272 $ 181,364 $ 235,580 $ 248,840 Cost Allocation $ -$ -$ 71,028 $ 253,837 Special Projects $ 98,353 $ 190,772 $ -$ 225,000 Other Financing Uses $ 221,459 $ 115,426 $ 221,459 $ 285,961 Transfers Out $ -$ 16,000 $ -$ - Contingencies $ -$ -$ 9,276 $ - Total Expenditures $ 2,195,686 $ 2,541,062 $ 2,079,379 $ 2,856,513 Fund Balance $ 1,815,583 $ (33,074)$ (137,368)$ 675,756 General Fund Costs $ 2,455,000 $ 910,600 $ 197,000 $ 1,000,000 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0 0 0 BUSINESS SYSTEMS ANALYST 1.00 1.00 1.00 1.00 CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.00 0.22 INFO TECHNOLOGY MANAGER 1.00 1.00 1.00 1.00 I.T. ASSISTANT 2.00 0 0 0 MANAGEMENT ANALYST 0 0.30 0.30 0.30 NETWORK SPECIALIST 0 2.00 2.00 2.00 Total 4.50 4.50 4.30 4.52 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Innovation and Technology 230 289 CC 05-15-2025 289 of 655 GIS Budget Unit 610-35-986 Information Technology - GIS - GIS Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,128,627 Total Expenditures $ 1,303,472 Fund Balance $ (174,845) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 2.4 FTE Program Overview The Geographic Information Systems (GIS) program serves as Cupertino’s central resource for capturing, managing, analyzing, and visualizing the City's enterprise information. In addition to administering the City’s asset management system, public service request system, data warehouse, and SharePoint intranet Hub, the GIS program also manages key collaborative platforms such as MicrosoV Teams, Planner, and supports research and development related to artificial intelligence. Through the creation of maps, reports, dashboards, and charts, the program enables staff, residents, businesses, and the development community to explore, interpret, and understand critical city data. By providing clear and accessible visualizations, the GIS program supports informed decision-making and collaborative problem-solving across the organization and the community. Service Objectives Efficient Data Management Coordination and management of the City’s data warehouse used to centralizes enterprise data, while ensuring consistency, enhancing performance, supporting historical analysis, and enabling data-driven decisions through seamless integration with analytics tools. Data Analysis and Visualization The GIS program analyzes city data to identify paDerns and trends, presenting findings through maps, reports, dashboards, and charts to support informed decision-making. User Support and Training Staff and residents receive guidance and training to effectively use data tools for analysis, problem-solving, and decision-making. Platform Administration The GIS program manages and maintains core platforms, including GIS, asset management, public service requests, data warehouse, intranet hub, collaboration tools, and digital workflows. Collaboration and Integration GIS supports collaboration by integrating data and tools across departments, agencies, and stakeholders to enhance coordination and information sharing. Disaster Response and Recovery The GIS platform supports emergency response and recovery with tools for damage assessment, incident mapping, resource tracking, and situational awareness, ensuring timely and informed decision-making. Continuous Improvement The program regularly enhances platforms and processes to meet evolving needs, leverage new technologies, and adopt best practices. Proposed Budget FY 2025-26 Proposed Budget Innovation and Technology 231 290 CC 05-15-2025 290 of 655 Proposed Budget It is recommended that City Council approve a budget of $1,303,472 for the GIS program. This represents a decrease of $139,777 (- 9.7%) from the FY 2024-25 Adopted Budget. The decrease is a result of the reduction of a manager from this division and the reassignment of a part-time applications specialist to the Applications Division. These decreases are offset by an increase in salary due to a request for a new classification of Senior Business Analyst, Cost Allocation, and conference and training expenses. This new classification will play a key leadership role in driving a variety of technology initiatives and managing complex IT projects, as well as provide critical oversight for optimizing business processes, ensuring they align with the City's strategic goals. This budget includes the following requests: GIS - 811 Integration Software 15,000 GIS - ESRI Enterprise Licenses 3,800 GIS - AI Solution for CMO Staff Reports or State Bill Tracking 10,000 GIS - Chatbox 5,000 GIS - OmniData 23,000 Total Requests $56,800 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 928,949 $ 955,136 $ 1,424,495 $ 1,128,627 Transfers In $ -$ 127,084 $ -$ - Total Revenues $ 928,949 $ 1,082,220 $ 1,424,495 $ 1,128,627 Expenditures Employee Compensation $ 701,051 $ 723,005 $ 697,432 $ 489,000 Employee Benefits $ 372,364 $ 399,042 $ 286,132 $ 187,108 Materials $ 98,014 $ 168,716 $ 225,603 $ 258,377 Contract Services $ 123,985 $ 143,889 $ 176,200 $ 206,562 Cost Allocation $ -$ -$ 52,859 $ 162,425 Special Projects $ 204,240 $ 49,810 $ -$ - Contingencies $ -$ -$ 5,023 $ - Total Expenditures $ 1,499,654 $ 1,484,462 $ 1,443,249 $ 1,303,472 Fund Balance $ (570,706)$ (402,242)$ (18,754)$ (174,845) General Fund Costs $ -$ 127,084 $ -$ - Staffing FY 2025-26 Proposed Budget Innovation and Technology 232 291 CC 05-15-2025 291 of 655 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.20 0 0 0 CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.00 0.20 GIS ANALYST 1.00 1.00 1.00 0 GIS PROGRAM MANAGER 1.00 1.00 1.00 0 MANAGEMENT ANALYST 1.00 1.20 1.20 1.20 SENIOR BUSINESS SYSTEMS ANALYST 0 0 0 1.00 Total 3.40 3.40 3.20 2.40 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Innovation and Technology 233 292 CC 05-15-2025 292 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Innovation and Technology 234 293 CC 05-15-2025 293 of 655 Administrative Services FY 2025-26 Proposed Budget Administrative Services 235 294 CC 05-15-2025 294 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Administrative Services 236 295 CC 05-15-2025 295 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget Administrative Services $ 665,251 100-40-400 Administrative Services Administration $ 665,251 Finance $ 3,557,842 100-41-405 Accounting $ 2,169,694 100-41-406 Business Licenses $ 290,993 100-41-425 Purchasing $ 719,444 100-41-426 Budget $ 377,711 Human Resources $ 7,024,904 100-44-412 Human Resources $ 1,527,704 642-44-414 Retiree Benefits $ 1,677,311 100-44-417 Insurance Administration $ 2,537,324 620-44-418 Workers Compensation Insurance $ 495,813 641-44-419 Long Term Disability $ 130,875 641-44-420 Compensated Absences $ 655,877 Total $ 11,247,997 FY 2025-26 Proposed Budget Administrative Services 237 296 CC 05-15-2025 296 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 8,905,591 Total Expenditures $ 11,247,997 Fund Balance $ 209,708 General Fund Costs $ 5,168,167 % Funded by General Fund 45.9% Total Staffing 18.9 FTE Organization Kristina Alfaro, Director of Administrative Services FY 2025-26 Proposed Budget Administrative Services 238 297 CC 05-15-2025 297 of 655 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target General Fund committed, assigned, and unassigned fund balance as a % of budgeted appropriations 122%45%101%35% Credit Rating AA+AA+AA+AA+ Actual revenue vs. budget (% below budget)17%20%147%10% Actual expenditures (% below budget)14%14%189%5% Funding allocated to high priority services (Public Works, Community Development, Law Enforcement)58%66%71%63% 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target # of Worker’s Compensation Cases 4 9 5 0 Total recordable Injury Rate YTD 1.4%3.3%1.9%0% % absenteeism (% of total annual work hours)3%3%3%2% % turnover rate 9%7%3%1% % Employee participation in wellness activities 38%44%41%75% Average # of applications received per recruitment 45 50 83 50 Recruitment timeline - # days from hiring request to offer letter 105 79 63 60 FY 2025-26 Proposed Budget Administrative Services 239 298 CC 05-15-2025 298 of 655 Workload Indicators Finance Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec # of vendor checks processed 5,130 4,541 2,407 # of payroll checks processed 9,176 9,038 4,505 # of business license applications 969 1,087 587 # of business license renewals 2,176 2,206 1,089 # of journal entries posted 3,695 4,560 3,273 # of purchase orders approved 543 445 332 # of receipts processed 11,275 10,191 5,114 Human Resources Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec # of regular recruitments 29 21 12 # of regular new hires 31 24 17 # of temporary new hires 70 68 15 # of personnel payroll changes 773 768 160 # of full-time employee exits processed 22 25 11 # of mandated training classes offered*19 15 11 # of employees participating in the wellness program 80 94 79 * some trainings mandated every other year, however not on the same annual schedule Proposed Budget It is recommended that City Council approve a budget of $11,247,997 for the Administrative Services department. This represents an increase of $692,367 (6.6%) from the FY 2024-25 Adopted Budget. This increase is due to salary costs related to a proposed new classification of Assistant Director of Administrative Services to overfill a Budget Manager position, the reclassification of an Account Clerk II position to a Management Analyst which will beDer align with program needs, and a new Management Analyst to support grants management and purchasing. The increase is also due to a request of $200,000 for a Citywide Strategic Plan along with additional budget requests of $55,000 that are discussed in program narratives in this department. For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan FY 2025-26 Proposed Budget Administrative Services 240 299 CC 05-15-2025 299 of 655 (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. FY 2025-26 Proposed Budget Administrative Services 241 300 CC 05-15-2025 300 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 62.5% 31.6% 5.9% Human Resources Finance Administrative Services $8.54M $9.04M $10.6M $11.2M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Administrative Services 242 301 CC 05-15-2025 301 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 3,974,879 $ 4,167,314 $ 5,103,482 $ 5,736,007 Miscellaneous Revenue $ 1,429,591 $ 43,680 $ -$ - Other Financing Sources $ 436,462 $ -$ 468,984 $ 553,531 Transfers In $ 891,898 $ 380,000 $ 2,183,398 $ 2,616,053 Total Revenues $ 6,732,830 $ 4,590,994 $ 7,755,864 $ 8,905,591 Expenditures Employee Compensation $ 2,446,331 $ 2,779,374 $ 2,766,469 $ 2,958,943 Employee Benefits $ 2,377,228 $ 2,600,731 $ 2,889,460 $ 2,986,362 Materials $ 127,195 $ 79,521 $ 111,160 $ 180,828 Contract Services $ 3,236,527 $ 3,199,416 $ 4,232,614 $ 4,331,333 Cost Allocation $ 349,530 $ 308,962 $ 511,081 $ 550,531 Special Projects $ 4,200 $ 67,300 $ -$ 240,000 Contingencies $ -$ -$ 44,846 $ - Total Expenditures $ 8,541,011 $ 9,035,304 $ 10,555,630 $ 11,247,997 Fund Balance $ 149,410 $ (1,829,607)$ (366,139)$ 209,708 General Fund Costs $ 2,849,487 $ 2,994,704 $ 4,617,025 $ 5,168,167 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administrative Services 243 302 CC 05-15-2025 302 of 655 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ACCOUNTANT I 0 0 0 2.00 ACCOUNTANT II 2.00 2.00 2.00 0 ACCOUNT CLERK II 3.00 3.00 3.00 2.00 ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00 ADMINISTRATIVE ASSISTANT 0.95 0 0 0 ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 1.00 BUDGET MANAGER 1.00 1.00 1.00 0 DIRECTOR OF ADMIN SERVICES 1.00 1.00 1.00 1.00 FINANCE MANAGER 0.95 0.95 0.95 0.95 GRANTS MANAGEMENT ANALYST 0 0 0 1.00 HUMAN RESOURCES ANALYST II 2.00 2.00 2.00 2.00 HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00 HUMAN RESOURCES TECH 2.00 2.00 2.00 2.00 MANAGEMENT ANALYST 0 0.95 0.95 1.00 PURCHASING MANAGER 1.00 1.00 1.00 1.00 SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00 SENIOR MANAGEMENT ANALYST 2.00 1.00 1.00 1.95 Total 18.90 17.90 17.90 18.90 FY 2025-26 Proposed Budget Administrative Services 244 303 CC 05-15-2025 303 of 655 Administrative Services Administration Budget Unit 100-40-400 General Fund - Administrative Services - Administrative Services Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ 36,070 Total Expenditures $ 665,251 Fund Balance $ - General Fund Costs $ 629,181 % Funded by General Fund 94.6% Total Staffing 1.7 FTE Program Overview The Administrative Services Administration program oversees and coordinates Human Resources/Risk Management, Finance, Purchasing, Budget, and Treasury. In Fall 2022, City Council adopted the City's Fraud, Waste, and Abuse (FWA) Program which is administered by the City's Internal Auditor. The Internal Auditor monitors the hotline, triages complaints received, recommends action to the appropriate City personnel, and conducts investigations, as appropriate. Per Council direction, the Internal Auditor contract has moved from this program to City Council budget (100-10-100). Although the dollars are budgeted in the City Council program, the contract remains administered by the Administrative Services Department. Lastly, staff support from this program is provided to the Audit Committee. 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 contract for the City's Fraud, Waste, Abuse Program. Provide staff support to Audit Committee. Proposed Budget It is recommended that City Council approve a budget of $665,251 for the Administrative Services Administration program. This represents an increase of $279,161 (72.3%) from the FY 2024-25 Adopted Budget. The increase is primarily due to compensation and benefits due to a proposed new classification of Assistant Director of Administrative Services. If this new classification is approved, the Assistant Director of Administrative Services will only represent 0.25 of this program. This budget includes requests for $200,000 to fund a citywide strategic plan as recommended in both internal audits and the budget format review. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Citywide Strategic Plan $200,000 $200,000 General Fund Citywide Strategic Plan Total $200,000 $200,000 FY 2025-26 Proposed Budget Administrative Services 245 304 CC 05-15-2025 304 of 655 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 156,003 $ 154,333 $ 35,714 $ 36,070 Miscellaneous Revenue $ 11 $ -$ -$ - Total Revenues $ 156,014 $ 154,333 $ 35,714 $ 36,070 Expenditures Employee Compensation $ 540,819 $ 237,394 $ 239,790 $ 294,614 Employee Benefits $ 220,816 $ 92,162 $ 105,249 $ 114,197 Materials $ 17,917 $ 8,807 $ 12,199 $ 25,200 Contract Services $ -$ 1,835 $ 5,505 $ 5,681 Cost Allocation $ -$ -$ 23,126 $ 25,559 Special Projects $ -$ -$ -$ 200,000 Contingencies $ -$ -$ 221 $ - Total Expenditures $ 779,552 $ 340,198 $ 386,090 $ 665,251 Fund Balance $ -$ -$ -$ - General Fund Costs $ 623,538 $ 185,865 $ 350,376 $ 629,181 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.95 0 0 0 ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25 DIRECTOR OF ADMIN SERVICES 0.80 0.20 0.20 0.20 MANAGEMENT ANALYST 0 0.20 0.20 0 SENIOR MANAGEMENT ANALYST 2.00 1.00 1.00 1.20 Total 3.75 1.40 1.40 1.65 The increase in staffing is due to a proposed new classification of Assistant Director of Administrative Services. FY 2025-26 Proposed Budget Administrative Services 246 305 CC 05-15-2025 305 of 655 Accounting Budget Unit 100-41-405 General Fund - Finance - Accounting Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,918,912 Total Expenditures $ 2,169,694 Fund Balance $ - General Fund Costs $ 250,782 % Funded by General Fund 11.6% Total Staffing 7.8 FTE Program Overview The Finance Division is responsible for managing all financial accounting and treasury functions for the City of Cupertino. This includes maintaining accurate and timely financial records, processing payroll, collecting revenue, managing banking and investments, and disbursing City funds. The Division also ensures compliance with all required federal, state, and other regulatory financial reporting through its Accounting program. Additionally, Finance oversees the City's three investment policies, conducts financial analyses and research, and prepares reports on fiscal matters for both internal and external stakeholders. Service Objectives Accurately process all financial transactions for the City, including general ledger accounting, cash management, payroll, accounts payable, revenue collection, banking, investments, and miscellaneous billing. Ensure all financial transactions are recorded in compliance with applicable regulatory requirements and sound financial practices. Prepare timely and accurate financial reports. Uphold a high standard of professionalism in administering the City’s financial policies, managing transactions, and interacting with the public. Provide prompt and courteous responses to inquiries from the public and other City departments. Proposed Budget It is recommended that City Council approve a budget of $2,169,694 for the Accounting program. This represents an increase of $253,914 (13.3%) from the FY 2024-25 Adopted Budget. The increase is due to the reallocation of staff between budget units, the reclassification of an Account Clerk II position to a Management Analyst to beDer align with program needs, and the allocation of a portion (25%) of the proposed Assistant Director of Administrative Services position to support the Finance Division. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administrative Services 247 306 CC 05-15-2025 306 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 2,112,498 $ 2,128,861 $ 1,626,339 $ 1,918,912 Miscellaneous Revenue $ 39,662 $ 43,680 $ -$ - Total Revenues $ 2,152,160 $ 2,172,541 $ 1,626,339 $ 1,918,912 Expenditures Employee Compensation $ 803,440 $ 1,002,160 $ 960,073 $ 1,103,037 Employee Benefits $ 308,804 $ 420,688 $ 471,799 $ 551,185 Materials $ 14,576 $ 7,014 $ 16,323 $ 27,736 Contract Services $ 348,778 $ 325,512 $ 346,595 $ 349,900 Cost Allocation $ -$ -$ 116,454 $ 137,836 Special Projects $ 4,200 $ 47,300 $ -$ - Contingencies $ -$ -$ 4,536 $ - Total Expenditures $ 1,479,798 $ 1,802,674 $ 1,915,780 $ 2,169,694 Fund Balance $ -$ -$ -$ - General Fund Costs $ (672,362)$ (369,866)$ 289,441 $ 250,782 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ACCOUNTANT I 0 0 0 1.90 ACCOUNTANT II 1.90 1.90 1.90 0 ACCOUNT CLERK II 2.00 2.00 2.00 1.50 ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00 ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25 DIRECTOR OF ADMIN SERVICES 0 0.20 0.20 0.20 FINANCE MANAGER 0.95 0.95 0.95 0.95 MANAGEMENT ANALYST 0 0 0 1.00 SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00 Total 6.85 7.05 7.05 7.80 Changes in staffing include the conversion of the Budget Manager position to an Assistant Director of Administrative Services, the reclassification of an Account Clerk II position to a Management Analyst, and the reallocation of an Account Clerk II from the Business License Program to better support the Finance Division's operations and strategic initiatives. FY 2025-26 Proposed Budget Administrative Services 248 307 CC 05-15-2025 307 of 655 Business Licenses Budget Unit 100-41-406 General Fund - Finance - Business Licenses Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 290,993 Fund Balance $ - General Fund Costs $ 290,993 % Funded by General Fund 100.0% Total Staffing 0.6 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. Proposed Budget It is recommended that City Council approve a budget of $290,993 for the Business Licenses program. This represents a decrease of $34,074 (-10.5%) from the FY 2024-25 Adopted Budget. The net expenditure decrease is due to the decrease in changes of staff allocations from the program's engagement of a third-party service provider to assist with business license administration, including monitoring compliance, processing applications, and enhancing discovery efforts to identify unlicensed business activities. This change is expected to streamline operations, improve service delivery, and strengthen overall compliance. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administrative Services 249 308 CC 05-15-2025 308 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 114,293 $ 109,355 $ 109,333 $ 58,587 Employee Benefits $ 57,200 $ 55,009 $ 58,740 $ 35,174 Materials $ 204 $ 231 $ -$ - Contract Services $ 18,753 $ 17,753 $ -$ 39,000 Cost Allocation $ 240,930 $ 208,512 $ 156,994 $ 158,232 Total Expenditures $ 431,380 $ 390,860 $ 325,067 $ 290,993 Fund Balance $ -$ -$ -$ - General Fund Costs $ 431,379 $ 390,860 $ 325,067 $ 290,993 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ACCOUNTANT I 0 0 0 0.10 ACCOUNTANT II 0.10 0.10 0.10 0 ACCOUNT CLERK II 1.00 1.00 1.00 0.50 Total 1.10 1.10 1.10 0.60 The program decreased by 0.50 FTE Account Clerk II as a result of the assistance from the third-party provider. The partial FTE was reallocated to the Finance Division. FY 2025-26 Proposed Budget Administrative Services 250 309 CC 05-15-2025 309 of 655 Purchasing Budget Unit 100-41-425 General Fund - Finance - Purchasing Budget at a Glance 2026 Proposed Budget Total Revenues $ 387,426 Total Expenditures $ 719,444 Fund Balance $ - General Fund Costs $ 332,018 % Funded by General Fund 46.1% Total Staffing 2.5 FTE Program Overview The Purchasing program provides a hybrid approach to oversight and management of the City's procurement of goods and services. A hybrid procurement program assures fair and open acquisition processes that seek to obtain maximum value for each dollar spent. Major activities include providing review, guidance, and standardization for soliciting formal and informal competitive bids and proposals, obtaining quotes, and participating in cooperative procurements lead by 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. Proposed Budget It is recommended that City Council approve a budget of $719,444 for the Purchasing program. This represents an increase of $294,635 (69.4%) from the FY 2024-25 Adopted Budget. The increase is primarily due to the request to add one (1) FTE management analyst that will support grant submiDals, tracking and reporting while also supporting purchasing activities throughout the city. Also requested in this budget is a special project request to fund citywide purchasing training. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Citywide Purchasing Training $20,000 $20,000 General Fund Further enhance and standardize citywide purchasing Total $20,000 $20,000 FY 2025-26 Proposed Budget Administrative Services 251 310 CC 05-15-2025 310 of 655 Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ -$ 321,408 $ 387,426 Total Revenues $ -$ -$ 321,408 $ 387,426 Expenditures Employee Compensation $ 35,897 $ 272,096 $ 272,068 $ 466,449 Employee Benefits $ (3,149)$ 113,106 $ 131,492 $ 205,047 Materials $ 1,546 $ 891 $ 1,409 $ 6,040 Contract Services $ 200 $ -$ -$ - Cost Allocation $ -$ -$ 19,822 $ 21,908 Special Projects $ -$ -$ -$ 20,000 Contingencies $ -$ -$ 18 $ - Total Expenditures $ 34,494 $ 386,093 $ 424,809 $ 719,444 Fund Balance $ -$ -$ -$ - General Fund Costs $ 34,494 $ 386,093 $ 103,401 $ 332,018 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25 DIRECTOR OF ADMIN SERVICES 0 0.20 0.20 0.20 GRANTS MANAGEMENT ANALYST 0 0 0 1.00 PURCHASING MANAGER 1.00 1.00 1.00 1.00 Total 1.00 1.20 1.20 2.45 The increase in staffing is due to the addition of a management analyst. FY 2025-26 Proposed Budget Administrative Services 252 311 CC 05-15-2025 311 of 655 Budget Budget Unit 100-41-426 General Fund - Finance - Budget Budget at a Glance 2026 Proposed Budget Total Revenues $ 577,634 Total Expenditures $ 377,711 Fund Balance $ - General Fund Costs $ (199,923) % Funded by General Fund -52.9% Total Staffing 1.2 FTE Program Overview The Budget program manages the budget-to-actual activities for both the operating budget and capital budgets. The program also develops, delivers, and updates the annual operating budget, 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. Proposed Budget It is recommended that City Council approve a budget of $377,711 for the Budget program. This represents a decrease of $195,171 (-34.1%) from the FY 2024-25 Adopted Budget. The decrease is primarily due to compensation and benefits as the Budget Manager position which is previously fully funded in this program will be converted into a proposed new classification of Assistant Director of Administrative Services the Assistant Director to help manage the functions and activities of the Finance, Purchasing and Budget divisions. If this new classification is approved, the Assistant Director of Administrative Services will only represent 0.25 of this program. The budget also include a special project request to fund a study of potential revenue tax measures. Special Projects The following table shows the special projects for the fiscal year. FY 2025-26 Proposed Budget Administrative Services 253 312 CC 05-15-2025 312 of 655 Special Project Appropriation Revenue Funding Source Description Potential Tax Measure Study $20,000 $20,000 General Fund Analyze Proposed Tax Measures Total $20,000 $20,000 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ -$ 507,316 $ 577,634 Total Revenues $ -$ -$ 507,316 $ 577,634 Expenditures Employee Compensation $ 130,237 $ 348,497 $ 366,895 $ 216,178 Employee Benefits $ 26,849 $ 129,605 $ 155,599 $ 87,967 Materials $ 7,168 $ 7,970 $ 17,953 $ 17,966 Contract Services $ 4,280 $ -$ -$ - Cost Allocation $ -$ -$ 32,211 $ 35,600 Special Projects $ -$ 20,000 $ -$ 20,000 Contingencies $ -$ -$ 224 $ - Total Expenditures $ 168,534 $ 506,072 $ 572,882 $ 377,711 Fund Balance $ -$ -$ -$ - General Fund Costs $ 168,534 $ 506,073 $ 65,566 $ (199,923) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25 BUDGET MANAGER 1.00 1.00 1.00 0 DIRECTOR OF ADMIN SERVICES 0 0.20 0.20 0.20 MANAGEMENT ANALYST 0 0.75 0.75 0 SENIOR MANAGEMENT ANALYST 0 0 0 0.75 Total 1.00 1.95 1.95 1.20 The change in staffing is due to the Budget Manager position being converted into a proposed new classification of Assistant Director of Administrative Services. FY 2025-26 Proposed Budget Administrative Services 254 313 CC 05-15-2025 313 of 655 Human Resources Budget Unit 100-44-412 General Fund - Human Resources - Human Resources Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,139,591 Total Expenditures $ 1,527,704 Fund Balance $ - General Fund Costs $ 388,113 % Funded by General Fund 25.4% Total Staffing 4.9 FTE Program Overview The Human Resources Division is responsible for the administration of human resources programs, employee benefits, and labor relation programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee training and development, benefits, HRIS and retirement. The Human Resources Administration Division budget covers contracts and materials associated with supporting these internal services functions. In addition, Human Resources administers risk management, safety and wellness programs, a self-insured workers’ compensation program, and retiree medical insurance. Funding for these internal services is reflected in subsequent Human Resources program budgets. 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. Proposed Budget It is recommended that City Council approve a budget of $1,527,704 for the Human Resources program. This represents an increase of $60,177 (4.1%) from the FY 2024-25 Adopted Budget. This program also includes proposed budget requests of $5,000 for recurring costs for Diversity, Equity, and Inclusion (DEI) events for internal staff-related events. This budget also includes requests for $10,000 for City-Wide Employee Events which includes the Annual Wellness Fair. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administrative Services 255 314 CC 05-15-2025 314 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 1,706,378 $ 1,884,120 $ 1,000,511 $ 1,139,591 Miscellaneous Revenue $ 2,470 $ -$ -$ - Total Revenues $ 1,708,848 $ 1,884,120 $ 1,000,511 $ 1,139,591 Expenditures Employee Compensation $ 767,855 $ 755,422 $ 765,589 $ 767,356 Employee Benefits $ 367,391 $ 381,501 $ 351,256 $ 310,702 Materials $ 85,784 $ 54,608 $ 63,276 $ 103,886 Contract Services $ 300,638 $ 240,397 $ 204,445 $ 257,216 Cost Allocation $ -$ -$ 80,114 $ 88,544 Contingencies $ -$ -$ 2,847 $ - Total Expenditures $ 1,521,668 $ 1,431,928 $ 1,467,527 $ 1,527,704 Fund Balance $ -$ -$ -$ - General Fund Costs $ (187,181)$ (452,191)$ 467,016 $ 388,113 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget DIRECTOR OF ADMIN SERVICES 0.20 0.20 0.20 0.20 HUMAN RESOURCES ANALYST II 1.70 1.70 1.70 1.70 HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00 HUMAN RESOURCES TECH 1.95 1.95 1.95 1.95 Total 4.85 4.85 4.85 4.85 There are no changes to the current levels of staffing. FY 2025-26 Proposed Budget Administrative Services 256 315 CC 05-15-2025 315 of 655 Retiree Benefits Budget Unit 642-44-414 Retiree Medical - Human Resources - Retiree Benefits Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,946,053 Total Expenditures $ 1,677,311 Fund Balance $ 268,742 General Fund Costs $ 1,946,053 % Funded by General Fund 116.0% 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. Proposed Budget It is recommended that City Council approve a budget of $1,677,311 for the Retiree Benefits program. This represents an increase of $68,266 (4.2%) from the FY 2024-25 Adopted Budget. The number is based on the City's most current OPEB actuarial report. 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Miscellaneous Revenue $ 1,385,759 $ -$ -$ - Transfers In $ 9,898 $ -$ 1,592,398 $ 1,946,053 Total Revenues $ 1,395,657 $ -$ 1,592,398 $ 1,946,053 Expenditures Employee Benefits $ 1,380,875 $ 1,387,959 $ 1,592,398 $ 1,662,000 Cost Allocation $ 14,782 $ 13,988 $ 16,647 $ 15,311 Total Expenditures $ 1,395,657 $ 1,401,947 $ 1,609,045 $ 1,677,311 Fund Balance $ -$ (1,401,947)$ (16,647)$ 268,742 General Fund Costs $ 9,898 $ -$ 1,592,398 $ 1,946,053 Staffing FY 2025-26 Proposed Budget Administrative Services 257 316 CC 05-15-2025 316 of 655 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Administrative Services 258 317 CC 05-15-2025 317 of 655 Insurance Administration Budget Unit 100-44-417 General Fund - Human Resources - Insurance Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,676,374 Total Expenditures $ 2,537,324 Fund Balance $ - General Fund Costs $ 860,950 % Funded by General Fund 33.9% Total Staffing 0.2 FTE Program Overview The Insurance Administration General Liability and Property programs and Employment Practices Law insurance. Service Objectives Provide the City with General Liability and Property Insurance Provide the City with Employment Practices Law Insurances Proposed Budget It is recommended that City Council approve a budget of $2,537,324 for the Insurance Administration program. This represents an increase of $92,370 (3.8%) from the FY 2024-25 Adopted Budget. The Increase is due to an increase in annual premiums for General Liability and Property Insurance claim expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administrative Services 259 318 CC 05-15-2025 318 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ -$ 1,612,194 $ 1,676,374 Miscellaneous Revenue $ 1,689 $ -$ -$ - Total Revenues $ 1,689 $ -$ 1,612,194 $ 1,676,374 Expenditures Employee Compensation $ 21,635 $ 20,924 $ 21,469 $ 21,470 Employee Benefits $ 7,960 $ 8,550 $ 9,761 $ 8,820 Contract Services $ 1,476,879 $ 1,887,701 $ 2,381,478 $ 2,504,296 Cost Allocation $ 54,402 $ 50,696 $ 2,478 $ 2,738 Contingencies $ -$ -$ 29,768 $ - Total Expenditures $ 1,560,876 $ 1,967,871 $ 2,444,954 $ 2,537,324 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,559,187 $ 1,967,870 $ 832,760 $ 860,950 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget HUMAN RESOURCES ANALYST II 0.10 0.10 0.10 0.10 HUMAN RESOURCES TECH 0.05 0.05 0.05 0.05 Total 0.15 0.15 0.15 0.15 FY 2025-26 Proposed Budget Administrative Services 260 319 CC 05-15-2025 319 of 655 Workers Compensation Insurance Budget Unit 620-44-418 Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance 2026 Proposed Budget Total Revenues $ 553,531 Total Expenditures $ 495,813 Fund Balance $ 57,718 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. Additionally, this program is responsible for the administration of the City's self-insured unemployment insurance benefit account. Service Objectives Manage employee industrial injury and/or illness and provide proactive risk management programs to ensure employee safety in the workplace. Monitor costs associated with claims. Analyze and implement proactive measures to curtail costs. Implement a return to work policy. Manage and administer the City's unemployment insurance benefit account with the State of CA. Proposed Budget It is recommended that City Council approve a budget of $495,813 for the Workers Compensation Insurance program. This represents a decrease of $75,597 (-13.2%) from the FY 2024-25 Adopted Budget. The overall decrease is due to a decrease in estimated workers compensation claim expenses. If any adjustments are needed in this program they will be brought to council for their consideration. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Administrative Services 261 320 CC 05-15-2025 320 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Other Financing Sources $ 436,462 $ -$ 468,984 $ 553,531 Total Revenues $ 436,462 $ -$ 468,984 $ 553,531 Expenditures Employee Compensation $ 32,155 $ 33,526 $ 31,252 $ 31,252 Employee Benefits $ 10,482 $ 12,151 $ 13,166 $ 11,270 Contract Services $ 470,630 $ (38,356)$ 470,591 $ 400,840 Cost Allocation $ 28,369 $ 29,295 $ 50,519 $ 52,451 Contingencies $ -$ -$ 5,882 $ - Total Expenditures $ 541,636 $ 36,616 $ 571,410 $ 495,813 Fund Balance $ (105,174)$ (36,615)$ (102,426)$ 57,718 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget HUMAN RESOURCES ANALYST II 0.20 0.20 0.20 0.20 Total 0.20 0.20 0.20 0.20 There are no changes to the current levels of staffing. FY 2025-26 Proposed Budget Administrative Services 262 321 CC 05-15-2025 321 of 655 Long Term Disability Budget Unit 641-44-419 Compensated Absence/LTD - Human Resources - Long Term Disability Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 130,875 Fund Balance $ (130,875) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing FTE Program Overview This program oversees claims and premiums associated with Long Term Disability. Service Objectives Obtain and manage insurance policies Negotiate rates Coordinate claims Proposed Budget It is recommended that City Council approve a budget of $130,875 for the Long Term Disability program. This represents an increase of $20,546 (18.6%) from the FY 2024-25 Adopted Budget. The increase is due to a monthly premium expense associated with providing a contracted benefit for full-time employees. 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Contract Services $ 97,976 $ 98,820 $ 108,000 $ 130,000 Cost Allocation $ 2,767 $ 2,381 $ 979 $ 875 Contingencies $ -$ -$ 1,350 $ - Total Expenditures $ 100,743 $ 101,201 $ 110,329 $ 130,875 Fund Balance $ (100,743)$ (101,201)$ (110,329)$ (130,875) General Fund Costs $ -$ -$ -$ - Staffing FY 2025-26 Proposed Budget Administrative Services 263 322 CC 05-15-2025 322 of 655 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Administrative Services 264 323 CC 05-15-2025 323 of 655 Compensated Absences Budget Unit 641-44-420 Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance 2026 Proposed Budget Total Revenues $ 670,000 Total Expenditures $ 655,877 Fund Balance $ 14,123 General Fund Costs $ 670,000 % Funded by General Fund 102.2% 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. Proposed Budget It is recommended that City Council approve a budget of $655,877 for the Compensated Absences program. This represents a decrease of $71,860 (-9.9%) from the FY 2024-25 Adopted Budget. This decrease is reflective of the estimated number of employees eligible to cash out leave balances due to constructive receipts, retirements, resignations, and other types of separation from the City. Under Internal Revenue Service ("IRS") Regulations, the IRS considers income to be received for tax purposes if the individual actually receives it or has an option to receive it during the tax year. This is known as the constructive receipt doctrine. 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Transfers In $ 882,000 $ 380,000 $ 591,000 $ 670,000 Total Revenues $ 882,000 $ 380,000 $ 591,000 $ 670,000 Expenditures Contract Services $ 518,393 $ 665,754 $ 716,000 $ 644,400 Cost Allocation $ 8,280 $ 4,090 $ 11,737 $ 11,477 Total Expenditures $ 526,673 $ 669,844 $ 727,737 $ 655,877 Fund Balance $ 355,327 $ (289,844)$ (136,737)$ 14,123 General Fund Costs $ 882,000 $ 380,000 $ 591,000 $ 670,000 Staffing FY 2025-26 Proposed Budget Administrative Services 265 324 CC 05-15-2025 324 of 655 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Administrative Services 266 325 CC 05-15-2025 325 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Administrative Services 267 326 CC 05-15-2025 326 of 655 Parks and Recreation FY 2025-26 Proposed Budget Parks and Recreation 268 327 CC 05-15-2025 327 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Parks and Recreation 269 328 CC 05-15-2025 328 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget Parks and Recreation $ 1,564,405 100-60-601 Recreation Administration $ 1,564,405 100-60-636 Library Services $ - Business and Community Services $ 1,426,527 100-61-602 Administration $ 532,187 100-61-605 Cultural Events $ 439,791 100-61-630 Facilities $ 454,549 Recreation and Education $ 3,662,618 100-62-608 Administration $ 784,167 580-62-613 Youth Teen Recreation $ 1,797,833 100-62-623 Senior Center $ 729,356 100-62-639 Teen Programs $ 255,582 100-62-640 Events $ 95,680 Sports, Safety and Outdoor Recreation $ 4,534,680 100-63-612 Park Facilities $ 1,518,999 100-63-615 Administration $ - 560-63-616 Blackberry Farm Golf Course $ 547,098 580-63-620 Outdoor Recreation $ 873,146 570-63-621 Sports Center Operations $ 1,595,437 Office of Emergency Services $ 920,136 100-65-632 Community Outreach and Neighborhood Watch $ 225,076 100-65-633 Office of Emergency Management $ 695,060 Total $ 12,108,366 FY 2025-26 Proposed Budget Parks and Recreation 270 329 CC 05-15-2025 329 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 5,230,479 Total Expenditures $ 12,108,366 Fund Balance $ (458,514) General Fund Costs $ 6,919,373 % Funded by General Fund 57.1% Total Staffing 30.6 FTE Organization Rachelle Sander, Director of Parks and Recreation Notable Accomplishments rd rd FY 2025-26 Proposed Budget Parks and Recreation 271 330 CC 05-15-2025 330 of 655 3 Grade Creek Tours – Expanded 3 Grade Creek Tours from 13 to 24 visits, accommodating 11 more classes and 178 additional students. This provides more hands-on environmental education opportunities for local students. Added Teen Volunteer Opportunities – Expanded volunteer opportunities for teens by establishing the Recreation Event Volunteers (REV) program where teens could volunteer to provide support for city-run events throughout the year, such as Monster Mash, Breakfast with Santa, Sweetheart Social, Big Bunny 5K, Earth and Arbor Day, and more. Classes/Camps Offered – Offered 3,180 classes and camps for all ages and covering various subjects. Community Events – Coordinated 62 recreational events throughout the year to enhance the lives and experiences for community members. Community Funding – City funding provided to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. The City received 15 applications for the FY 2025-2026 application cycle. The Parks and Recreation Commission evaluated applications in April and provided a recommendation regarding funding to City Council for final approval. Hidden Treasures 2024 – Proceeds from the Hidden Treasures event support the Stay Active Fund, which helps pay for Senior Center memberships and programs for seniors in need of financial assistance. 44 volunteers donated over 1,300 hours for the event, and over $14,800 worth of donated items were sold. Monster Mash 2024 – Hosted and enhanced the annual Monster Mash, a Halloween themed night filled with costumes, trick- or-treating, craVs, and ghostly games. The event had 210 kids registered with an estimated total of 600 in aDendance including family members. Poet Laureate Playbook – The Poet Laureate program’s vision is to stimulate cultural and literary awareness in Cupertino, introduce youth and adults to the personal and community benefits of poetry, and promote our Library as a cultural center in Cupertino. The Cupertino Poet Laureate Playbook was updated on December 4, 2024, to streamline processes, outline clear expectations, and expand applicant qualifications for the selection of a Poet Laureate, a two-year honorary appointment as the literary ambassador for the City. Pooch Plunge (Spring) – Due to the demand and waitlists, a second Pooch Plunge event was hosted in the Spring. Registrations have reached full capacity, with a total of 160 pups enrolled. Revamped Preschool Program – In response to the current mandate set by local school districts, the format of the Preschool program was revised to lower the current age group and to mix age groups together. This provided more flexibility for parents in choosing which days to enroll their preschoolers. Senior Center Memberships – Added over 200 additional memberships since last year, for a total of 1,742 active memberships to date. Senior Travel Program – Expanded the Travel Program to offer at least 24 day trips per year and negotiated a contract to reinstate long distance excursions. Over 1,000 total registrants expected by the end of the year for this program. Sponsorships for Events – Negotiated and received over $35,000 in sponsorships with external organizations to support the events offered by the Department. Sports Center Members and Usage – Increased the current active memberships at the Sports Center to 1,641, with an average of 2,200 check-ins per week. The Center currently offers 25 fitness classes per week and two additional personal trainers were recruited to meet the increasing demand from members. Swim Lessons – Increased swim lesson offerings at Blackberry Farm from 409 to 578 lessons to meet the growing demand for swim instruction programs in the community. Teen Resource Fair 2025 – Partnered with Fremont Union High School District Interdistrict Council and Main Street to host the second annual Teen Resource Fair, which showcased potential volunteering and job opportunities for teens. The event also offered multiple mental health and wellness booth resources, a passport activity, and goodie bag for aDendees. About 300 teens were in attendance. New Initiatives Enhance Senior Support Services – Explore opportunities to partner with external agencies to offer more services for the senior community, such as case management, tax-aid, and health screenings for blood pressure and hearing. Expand Lap Swim – Expand lap swim sessions at Blackberry Farm to include weekday mornings and evenings, offering swimmers greater flexibility and access to the pools. Further Develop Intergenerational Engagement – Offer new opportunities for youth, adults, and seniors to engage and interact through recreational activities. Currently planned programs include a Golf Scramble Tournament and a Hawaiian-themed event. Increase So5ball League Offerings – Increase adult soVball league to four nights per week, and begin offering one additional season per year, for a total of three seasons. rd rd FY 2025-26 Proposed Budget Parks and Recreation 272 331 CC 05-15-2025 331 of 655 Expand Personal Training Offerings – Reconfiguration of underutilized space at the Sports Center to offer more room and resources for its increasingly popular Personal Training program. FY 2025-26 Proposed Budget Parks and Recreation 273 332 CC 05-15-2025 332 of 655 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target % of Parks and Recreation Department customers surveyed who rate services as good or excellent 98%98%98%85% % of programs maintaining minimum registration 78%78%82%80% % Department's total cost recovery for all (direct and indirect) costs 55%56%53%40% % change in participants 16%13%14%1% FY 2025-26 Proposed Budget Parks and Recreation 274 333 CC 05-15-2025 333 of 655 Workload Indicators Business and Community Services Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of reservations at Quinlan Center 405 426 202 Number of festival applications received 10 9 9 Recreation and Education Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of registrations 3,756 3,960 2,178 Number of survey respondents 95 62 54 Number of Senior Center classes offered 235 381 216 Number of Senior Center trips offered 14 22 11 Sports, Safety, and Outdoor Recreation Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of programs offered 1,256 1,202 730 Number of picnic reservations @ BBF 152 159 100 Rounds of golf at BBF Golf Course 37,961 41,974 20,009 Sports Center Memberships 1,394 1,493 1,689 Proposed Budget It is recommended that City Council approve a budget of $12,108,366 for the Parks and Recreation department. This represents an increase of $1,196,999 (11.0%) from the FY 2024-25 Adopted Budget. The increase is primarily due to the transfer in of the Office of Emergency Management from the Administration department. In addition, the department is requesting $96,055 in additional budget requests for various purchases and other services as described in the program narratives. Also, this department has the following City Work Program items: Enhance Senior Services - $65,000 Emergency Operations Readiness - $40,000 In addition, contingency dollars have been calculated off of department's FY 2025-2026 base budget materials and contracts and have been consolidated into materials. For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY FY 2025-26 Proposed Budget Parks and Recreation 275 334 CC 05-15-2025 334 of 655 2025-26 base budget materials and contracts and have been consolidated into materials budgets. Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. FY 2025-26 Proposed Budget Parks and Recreation 276 335 CC 05-15-2025 335 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 37.5% 30.2% 12.9% 11.8% 7.6% Sports, Safety and Outdoor Recreation Recreation and Education Parks and Recreation Business and Community Services Office of Emergency Services $10.6M $10.9M $10.9M $12.1M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Parks and Recreation 277 336 CC 05-15-2025 336 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 790,052 $ 868,070 $ 840,420 $ 711,529 Intergovernmental Revenue $ -$ 3,750 $ -$ 11,000 Charges for Services $ 5,261,531 $ 4,989,583 $ 3,972,770 $ 3,975,450 Miscellaneous Revenue $ 27,411 $ 46,001 $ 29,500 $ 32,500 Transfers In $ 376,000 $ -$ -$ 500,000 Total Revenues $ 6,454,994 $ 5,907,404 $ 4,842,690 $ 5,230,479 Expenditures Employee Compensation $ 3,702,914 $ 3,920,700 $ 4,173,717 $ 4,950,998 Employee Benefits $ 857,890 $ 1,601,222 $ 1,642,726 $ 1,682,278 Materials $ 453,490 $ 359,064 $ 414,267 $ 615,287 Contract Services $ 3,921,765 $ 3,243,996 $ 2,260,314 $ 2,145,863 Cost Allocation $ 1,559,137 $ 1,681,979 $ 2,322,642 $ 2,484,838 Special Projects $ 30,092 $ 3,529 $ -$ 105,000 Other Financing Uses $ 64,377 $ 90,137 $ 64,377 $ 124,102 Contingencies $ -$ -$ 33,324 $ - Total Expenditures $ 10,589,665 $ 10,900,627 $ 10,911,367 $ 12,108,366 Fund Balance $ 695,252 $ (318,331)$ (610,426)$ (458,514) General Fund Costs $ 5,205,925 $ 4,674,887 $ 5,458,251 $ 6,919,373 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 278 337 CC 05-15-2025 337 of 655 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.90 0.90 0.90 0.90 ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.95 ASST DIR RECREATION COMM SVCS 0.85 0 0 0 COMMS AND MARKETING COORDINATOR 0 0 0 1.00 COMMUNITY OUTREACH SPECIALIST 2.00 1.00 1.00 0 DIRECTOR OF PARKS REC 0.95 1.00 1.00 1.00 EMERGENCY SERVICES COORDINATOR 0 0 0 1.00 EMERGENCY SERVICES MANAGER 0 0 0 1.00 FACILITY ATTENDANT 3.00 3.00 3.00 3.00 MANAGEMENT ANALYST 2.00 1.00 1.00 1.00 OFFICE ASSISTANT 2.00 2.00 2.00 2.00 RECREATION COORDINATOR 9.88 9.88 9.88 9.88 RECREATION MANAGER 1.90 3.85 3.85 3.85 RECREATION SUPERVISOR 2.00 0 0 0 SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00 SR OFFICE ASSISTANT 4.00 4.00 4.00 4.00 Total 29.48 27.63 27.63 30.58 FY 2025-26 Proposed Budget Parks and Recreation 279 338 CC 05-15-2025 338 of 655 Recreation Administration Budget Unit 100-60-601 General Fund - Parks and Recreation - Recreation Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 1,564,405 Fund Balance $ - General Fund Costs $ 1,564,405 % Funded by General Fund 100.0% Total Staffing 4.9 FTE Program Overview The Recreation Administration program provides overall department administration, project management, community outreach, support to the Parks and Recreation, Library, Teen, and Public Safety 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, outreach for, and improvements of parks and open spaces in conjunction with the Parks and Recreation System Master Plan. Monitor and facilitate partnerships with other community organizations. Perform outreach to the community regarding Parks and Recreation programs, events, and services. Pursue additional financial support in scholarships and grants from local organizations and Federal and State governments. Proposed Budget It is recommended that City Council approve a budget of $1,564,405 for the Recreation Administration program. This represents an increase of $140,812 (9.9%) from the FY 2024-25 Adopted Budget. Reduction in benefits is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings.  The increase is primarily driven by City Work Program items included in this budget: Enhance Senior Services $65,000and $40,000 Emergency Operations Readiness $40,000 CWP items are no longer considered Special Projects per the new City Council Special Project Policy but are discussed here for ease of tracking and transparency. CWP will remain in the Special Project expense category as a way to track these projects but will be reported separately from all other Special Projects that fall under the policy. Revenues and Expenditures FY 2025-26 Proposed Budget Parks and Recreation 280 339 CC 05-15-2025 339 of 655 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 700,257 $ 753,606 $ 814,896 $ 847,667 Employee Benefits $ 250,509 $ 278,978 $ 326,474 $ 288,660 Materials $ 132,181 $ 130,552 $ 134,335 $ 159,430 Contract Services $ 62,898 $ 62,731 $ 60,799 $ 69,857 Cost Allocation $ -$ -$ 84,659 $ 93,791 Special Projects $ 30,092 $ 3,529 $ -$ 105,000 Contingencies $ -$ -$ 2,430 $ - Total Expenditures $ 1,175,937 $ 1,229,396 $ 1,423,593 $ 1,564,405 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,175,939 $ 1,229,395 $ 1,423,593 $ 1,564,405 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.90 0.90 0.90 0.90 ASST DIR RECREATION COMM SVCS 0.85 0 0 0 COMMS AND MARKETING COORDINATOR 0 0 0 1.00 COMMUNITY OUTREACH SPECIALIST 2.00 1.00 1.00 0 DIRECTOR OF PARKS REC 0.95 1.00 1.00 1.00 MANAGEMENT ANALYST 2.00 1.00 1.00 1.00 SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00 Total 6.70 4.90 4.90 4.90 There are no changes to the current level of staffing. A Community Outreach Specialist position was reclassified as a Communications and Marketing Coordinator based on the duties and tasks assigned to that position. FY 2025-26 Proposed Budget Parks and Recreation 281 340 CC 05-15-2025 340 of 655 Library Services Budget Unit 100-60-636 General Fund - Parks and Recreation - Library Services Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Cost Allocation $ 180,814 $ 169,698 $ 160,427 $ - Total Expenditures $ 180,814 $ 169,698 $ 160,427 $ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 180,814 $ 169,698 $ 160,427 $ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Parks and Recreation 282 341 CC 05-15-2025 341 of 655 Administration Budget Unit 100-61-602 General Fund - Business and Community Services - Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 532,187 Fund Balance $ - General Fund Costs $ 532,187 % Funded by General Fund 100.0% Total Staffing 3.0 FTE Program Overview The Youth, Teen, Events, and Facilities 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 front-line communication with the public for classes, programs, facility information, and general inquiries, manages the Quinlan Community Center (QCC) and rentals of facilities and park picnic areas, and processes registrations for classes, camps, and events. 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. Ensure the delivery of clear and up to date communication on current programs and events to community members. 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. Proposed Budget It is recommended that City Council approve a budget of $532,187 for the Administration program. This represents a decrease of $6,524 (-1.2%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 283 342 CC 05-15-2025 342 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 283,910 $ 252,998 $ 257,101 $ 260,829 Employee Benefits $ 138,473 $ 133,059 $ 154,941 $ 145,194 Materials $ 1,210 $ 754 $ 1,400 $ 1,578 Cost Allocation $ 187,222 $ 184,545 $ 125,251 $ 124,586 Contingencies $ -$ -$ 18 $ - Total Expenditures $ 610,815 $ 571,356 $ 538,711 $ 532,187 Fund Balance $ -$ -$ -$ - General Fund Costs $ 610,815 $ 571,356 $ 538,711 $ 532,187 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 1.00 1.00 1.00 1.00 RECREATION COORDINATOR 0.35 0 0 0 SR OFFICE ASSISTANT 2.00 2.00 2.00 2.00 Total 3.35 3.00 3.00 3.00 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Parks and Recreation 284 343 CC 05-15-2025 343 of 655 Cultural Events Budget Unit 100-61-605 General Fund - Business and Community Services - Cultural Events Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 439,791 Fund Balance $ - General Fund Costs $ 439,791 % Funded by General Fund 100.0% Total Staffing 1.3 FTE Program Overview The Youth, Teen, Events, and Facilities Division's events program produces the City's special events including 4th of July festivities and those hosted at Memorial Park, other local parks, and Quinlan Community Center including the Summer Concert Series, Movies in the Park, Shakespeare in the Park, and Tree Lighting. Staff also serve as the liaison, issue permits, and work with event organizers to implement community festivals, based on the City's festival policies. Examples of festivals at Memorial Park include the Cherry Blossom Festival, Rotary Day N Night Festival, Kids N' Fun, Diwali Festival, Ikebana Flower Show Festival, Bhubaneswar Sister City's India Heritage Fair, Dilli Haat, Holi, and more. Service Objectives Provide a summer concert series at Memorial Park. Provide outdoor summer movies in other local parks. Partner with the San Francisco Shakespeare Company to produce Shakespeare in the Park in Cupertino. Organize and facilitate the 4th of July Independence Day morning celebration. 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 and Civic Center Plaza. Proposed Budget It is recommended that City Council approve a budget of $439,791 for the Cultural Events program. This represents an increase of $111,969 (34.2%) from the FY 2024-25 Adopted Budget. The increase is mainly due to re-budgeted funds and reallocated staffing to support the Shakespeare in the Park program, along with added support for the annual Tree Lighting event. The Big Bunny 5K and Earth and Arbor Day Festival budgets were transferred to 100-62-640, while the Summer Concert Series and Movies in the Park budget was moved from that account. Recurring costs for this program include $30,000 for Shakespeare in the Park, $38,235 for festivals, $10,000 for Tree Lights Installation and Removal, and $12,000 for Santa Suits FY 2025-26 Proposed Budget Parks and Recreation 285 344 CC 05-15-2025 344 of 655 For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document.   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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ -$ 3,750 $ -$ - Miscellaneous Revenue $ 26,047 $ 38,291 $ 29,500 $ - Total Revenues $ 26,047 $ 42,041 $ 29,500 $ - Expenditures Employee Compensation $ 111,329 $ 124,268 $ 122,520 $ 169,081 Employee Benefits $ 39,218 $ 46,371 $ 52,631 $ 58,187 Materials $ 20,015 $ 20,409 $ 19,222 $ 8,784 Contract Services $ 199,163 $ 113,476 $ 74,121 $ 149,535 Cost Allocation $ 54,537 $ 81,970 $ 58,210 $ 54,204 Contingencies $ -$ -$ 1,118 $ - Total Expenditures $ 424,262 $ 386,494 $ 327,822 $ 439,791 Fund Balance $ -$ -$ -$ - General Fund Costs $ 398,216 $ 344,453 $ 298,322 $ 439,791 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 0.65 0.75 0.75 1.00 RECREATION MANAGER 0.25 0.25 0.25 0.25 Total 0.90 1.00 1.00 1.25 Staffing has been reallocated based on the current duties and assignments within the program. FY 2025-26 Proposed Budget Parks and Recreation 286 345 CC 05-15-2025 345 of 655 Facilities Budget Unit 100-61-630 General Fund - Business and Community Services - Facilities Budget at a Glance 2026 Proposed Budget Total Revenues $ 182,988 Total Expenditures $ 454,549 Fund Balance $ - General Fund Costs $ 271,561 % Funded by General Fund 59.7% Total Staffing 1.3 FTE Program Overview 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. The Creekside Park building provides community members with facility space which can be used for a variety of activities. Service Objectives Quinlan Community Center Provide a rental facility for community meetings, business functions, social events, and other similar activities. 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. Creekside Park Building: Provide a park or picnic facility for nonprofit board meetings, parties, school group picnics, memorials, and other similar activities. Schedule facility space for contractual and staff-run classes and camps. Provide space for a year-round farmers' market. Proposed Budget It is recommended that City Council approve a budget of $454,549 for the Facilities program. This represents an increase of $175,947 (63.2%) from the FY 2024-25 Adopted Budget. This increase is primarily due to increase in costs allocation charges. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 287 346 CC 05-15-2025 346 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 158,974 $ 221,710 $ 162,000 $ 181,988 Charges for Services $ 59,962 $ 40,820 $ -$ 1,000 Total Revenues $ 218,936 $ 262,530 $ 162,000 $ 182,988 Expenditures Employee Compensation $ 241,769 $ 253,681 $ 175,013 $ 182,356 Employee Benefits $ 83,386 $ 87,539 $ 58,641 $ 57,012 Materials $ 16,524 $ 16,356 $ 17,133 $ 20,811 Contract Services $ 4,422 $ 4,649 $ 6,867 $ 6,867 Cost Allocation $ -$ -$ 20,648 $ 187,503 Contingencies $ -$ -$ 300 $ - Total Expenditures $ 346,101 $ 362,225 $ 278,602 $ 454,549 Fund Balance $ -$ -$ -$ - General Fund Costs $ 127,164 $ 99,694 $ 116,602 $ 271,561 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FACILITY ATTENDANT 2.00 2.00 1.00 1.00 RECREATION MANAGER 0.25 0.25 0.25 0.25 Total 2.25 2.25 1.25 1.25 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Parks and Recreation 288 347 CC 05-15-2025 347 of 655 Administration Budget Unit 100-62-608 General Fund - Recreation and Education - Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ 74,925 Total Expenditures $ 784,167 Fund Balance $ - General Fund Costs $ 709,242 % Funded by General Fund 90.4% Total Staffing 4.0 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. This program also manages Community Hall, which 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. Service Objectives Provide management and supervision of all programs, activities, personnel, and facilities within the Senior Wellness 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. Community Hall 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, and other City meetings. Proposed Budget It is recommended that City Council approve a budget of $784,167 for the Administration program. This represents a decrease of $14,684 (-1.8%) from the FY 2024-25 Adopted Budget. The budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 289 348 CC 05-15-2025 348 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 28,954 $ 41,515 $ 42,000 $ 74,825 Charges for Services $ -$ 500 $ -$ 100 Total Revenues $ 28,954 $ 42,015 $ 42,000 $ 74,925 Expenditures Employee Compensation $ 320,436 $ 345,432 $ 449,389 $ 469,893 Employee Benefits $ 113,189 $ 126,475 $ 194,902 $ 172,088 Materials $ 8,961 $ 9,595 $ 7,337 $ 12,472 Contract Services $ 501 $ 2,435 $ 4,990 $ 5,112 Cost Allocation $ 169,903 $ 158,361 $ 142,079 $ 124,602 Contingencies $ -$ -$ 154 $ - Total Expenditures $ 612,990 $ 642,298 $ 798,851 $ 784,167 Fund Balance $ -$ -$ -$ - General Fund Costs $ 584,036 $ 600,283 $ 756,851 $ 709,242 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FACILITY ATTENDANT 1.00 1.00 2.00 2.00 RECREATION COORDINATOR 0.30 0.20 0.20 0.20 RECREATION MANAGER 0 0.75 0.75 0.75 RECREATION SUPERVISOR 0.75 0 0 0 SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00 Total 3.05 2.95 3.95 3.95 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Parks and Recreation 290 349 CC 05-15-2025 349 of 655 Youth Teen Recreation Budget Unit 580-62-613 Recreation Program - Recreation and Education - Youth Teen Recreation Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,300,000 Total Expenditures $ 1,797,833 Fund Balance $ (497,833) 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, fee-based events such as Monster Mash, Breakfast with Santa, and Santa Visits, 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. 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. Proposed Budget It is recommended that City Council approve a budget of $1,797,833 for the Youth Teen Recreation program. This represents an increase of $204,884 (12.9%) from the FY 2024-25 Adopted Budget. The increase is due to rising costs for Contract Services, as registrations for classes and camps have been growing and there has been an increase in participation of contracted programs. This also leads to an increase in anticipated revenues 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 291 350 CC 05-15-2025 350 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 252 $ 384 $ -$ - Charges for Services $ 1,155,760 $ 1,365,285 $ 1,155,500 $ 1,300,000 Miscellaneous Revenue $ 79 $ -$ -$ - Total Revenues $ 1,156,091 $ 1,365,669 $ 1,155,500 $ 1,300,000 Expenditures Employee Compensation $ 324,485 $ 278,516 $ 346,808 $ 361,759 Employee Benefits $ (30,857)$ 157,523 $ 115,052 $ 107,288 Materials $ 22,818 $ 20,802 $ 20,818 $ 37,201 Contract Services $ 640,163 $ 798,109 $ 761,226 $ 909,518 Cost Allocation $ 111,417 $ 168,316 $ 315,740 $ 328,541 Other Financing Uses $ 23,529 $ 30,212 $ 23,529 $ 53,526 Contingencies $ -$ -$ 9,776 $ - Total Expenditures $ 1,091,555 $ 1,453,478 $ 1,592,949 $ 1,797,833 Fund Balance $ 64,536 $ (87,810)$ (437,449)$ (497,833) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 1.50 1.50 1.50 1.50 RECREATION MANAGER 0.20 0.20 0.20 0.20 Total 1.70 1.70 1.70 1.70 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Parks and Recreation 292 351 CC 05-15-2025 351 of 655 Senior Center Budget Unit 100-62-623 General Fund - Recreation and Education - Senior Center Budget at a Glance 2026 Proposed Budget Total Revenues $ 350,000 Total Expenditures $ 729,356 Fund Balance $ - General Fund Costs $ 379,356 % Funded by General Fund 52.0% Total Staffing 2.1 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 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. Proposed Budget It is recommended that City Council approve a budget of $729,356 for the Senior Center program. This represents an increase of $42,855 (6.2%) from the FY 2024-25 Adopted Budget. The increase is due a reallocation of staffing, based on the current assignment of duties within 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 293 352 CC 05-15-2025 352 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 186,720 $ 300,510 $ 220,000 $ 350,000 Miscellaneous Revenue $ 85 $ 7,700 $ -$ - Total Revenues $ 186,805 $ 308,210 $ 220,000 $ 350,000 Expenditures Employee Compensation $ 303,157 $ 250,259 $ 261,929 $ 300,449 Employee Benefits $ 111,075 $ 86,271 $ 92,343 $ 88,421 Materials $ 103,320 $ 74,000 $ 88,554 $ 101,163 Contract Services $ 61,048 $ 91,237 $ 118,104 $ 117,500 Cost Allocation $ 228,854 $ 183,730 $ 122,988 $ 121,823 Contingencies $ -$ -$ 2,583 $ - Total Expenditures $ 807,454 $ 685,497 $ 686,501 $ 729,356 Fund Balance $ -$ -$ -$ - General Fund Costs $ 620,649 $ 377,287 $ 466,501 $ 379,356 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 2.70 1.80 1.60 1.80 RECREATION MANAGER 0 0.25 0.25 0.25 RECREATION SUPERVISOR 0.25 0 0 0 Total 2.95 2.05 1.85 2.05 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Parks and Recreation 294 353 CC 05-15-2025 353 of 655 Teen Programs Budget Unit 100-62-639 General Fund - Recreation and Education - Teen Programs Budget at a Glance 2026 Proposed Budget Total Revenues $ 9,550 Total Expenditures $ 255,582 Fund Balance $ - General Fund Costs $ 246,032 % Funded by General Fund 96.3% Total Staffing 0.8 FTE Program Overview This program supports teen programs and services for the Youth, Teens, Events, and Facilities Division. It provides the supervision and support for the Youth Activity Board (YAB), which implements teen focused events, the Leaders in Training (LIT) summer volunteer program, and Recreation Event Volunteers (REV) who support city-wide special events. Examples of teen events include the Cupertino Café, <hack> Cupertino, Pizza and Politics, Teen Resource Fair, Teen Speaker Series, and the teen movie nights. This program also oversees the Monta Vista Recreation Center, which provides additional facility space for youth and teen programs and is home to a diverse array of recreation activities including gymnastics classes. Service Objectives Empower youth by creating enriching and stress-free programs that foster physical, mental, and social development. Provide 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. Provide the opportunity for teens to gain applied skills and develop leadership abilities by participating in teen volunteer programs. Create programs that support mental health and wellness in youth and teens. Monta Vista Recreation Center: Provide space to host gymnastics, class, and camps. Provide space for contractual and staff-run classes and camps. Make space available for co-sponsored clubs and rentals. Proposed Budget It is recommended that City Council approve a budget of $255,582 for the Teen Programs program. This represents a decrease of $8,220 (-3.1%) from the FY 2024-25 Adopted Budget. The budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 295 354 CC 05-15-2025 354 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ -$ 7,950 $ 8,000 $ 8,200 Charges for Services $ -$ 2,573 $ 670 $ 1,350 Total Revenues $ -$ 10,523 $ 8,670 $ 9,550 Expenditures Employee Compensation $ 92,087 $ 109,392 $ 147,034 $ 149,250 Employee Benefits $ 29,995 $ 34,295 $ 44,710 $ 40,328 Materials $ 25,752 $ 13,620 $ 16,185 $ 17,176 Contract Services $ 3,687 $ -$ 2,800 $ - Cost Allocation $ 46,734 $ 75,491 $ 52,836 $ 48,828 Contingencies $ -$ -$ 237 $ - Total Expenditures $ 198,255 $ 232,798 $ 263,802 $ 255,582 Fund Balance $ -$ -$ -$ - General Fund Costs $ 198,255 $ 222,274 $ 255,132 $ 246,032 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 0.50 0.50 0.50 0.50 RECREATION MANAGER 0.25 0.25 0.25 0.25 Total 0.75 0.75 0.75 0.75 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Parks and Recreation 296 355 CC 05-15-2025 355 of 655 Events Budget Unit 100-62-640 General Fund - Recreation and Education - Events Budget at a Glance 2026 Proposed Budget Total Revenues $ 40,000 Total Expenditures $ 95,680 Fund Balance $ - General Fund Costs $ 55,680 % Funded by General Fund 58.2% Total Staffing 0.2 FTE Program Overview This program provides the coordination and production of several City-wide events, such as the Big Bunny 5K and Earth and Arbor Day Festival, along with other unique events such as the Cupertino Campout, Pooch Plunge, and Signing Santa. These events are coordinated within the Parks and Recreation Department and hosted in various locations throughout the City. Service Objectives Organize and facilitate the Big Bunny 5K fun run. Organize and facilitate the Earth and Arbor Day Festival. Organize and facilitate other special events such as the Cupertino Campout, Pooch Plunge, and Signing Santa. To provide activities for kids and families of all ages. Proposed Budget It is recommended that City Council approve a budget of $95,680 for the Events program. This represents a decrease of $10,606 (- 10.0%) from the FY 2024-25 Adopted Budget. The decrease is due to the reallocation of staffing based on the current distribution of duties. The Big Bunny 5K and Earth and Arbor Day Festival program budgets were transferred from 100-61-605, while the Summer Concert Series and Movies in the Park were transferred to 100-61-605. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 297 356 CC 05-15-2025 356 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ -$ 6,000 $ 7,500 Miscellaneous Revenue $ -$ -$ -$ 32,500 Total Revenues $ -$ -$ 6,000 $ 40,000 Expenditures Employee Compensation $ 18,422 $ 39,513 $ 45,194 $ 19,227 Employee Benefits $ (517)$ 11,039 $ 13,206 $ 7,313 Materials $ 963 $ 1,966 $ 6,377 $ 26,024 Contract Services $ 2,577 $ 3,406 $ 12,000 $ 18,938 Cost Allocation $ 15,579 $ 15,441 $ 29,279 $ 24,178 Contingencies $ -$ -$ 230 $ - Total Expenditures $ 37,024 $ 71,365 $ 106,286 $ 95,680 Fund Balance $ -$ -$ -$ - General Fund Costs $ 37,023 $ 71,364 $ 100,286 $ 55,680 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 0 0.25 0.25 0.15 Total 0 0.25 0.25 0.15 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Parks and Recreation 298 357 CC 05-15-2025 357 of 655 Park Facilities Budget Unit 100-63-612 General Fund - Sports, Safety and Outdoor Recreation - Park Facilities Budget at a Glance 2026 Proposed Budget Total Revenues $ 207,016 Total Expenditures $ 1,518,999 Fund Balance $ - General Fund Costs $ 1,311,983 % Funded by General Fund 86.4% Total Staffing 3.0 FTE Program Overview Blackberry Farm provides the community with recreational space to swim, picnic, participate in ranger-led activities, and walk the Stevens Creek Trail. McClellan Ranch Preserve offers environmental education classes, nature programs, including camps, and creek tours for school groups. It is also the location of the Community Garden program and non-profit operations such as Grassroots Ecology, Santa Clara Valley Bird Alliance, UCCE Master Gardeners, and Rolling Hills 4-H Club. Service Objectives Blackberry Farm Picnic Grounds and Pools: Provide the community with two pools for recreational use, swim lessons, and lap swim. Increase resident 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 Bird Alliance, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs. Expand programming opportunities for youth and families. Increase volunteer/docent opportunities at McClellan Ranch. Continue to develop the community garden programming. Proposed Budget It is recommended that City Council approve a budget of $1,518,999 for the Park Facilities program. This represents a decrease of $22,847 (-1.5%) from the FY 2024-25 Adopted Budget. The budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 299 358 CC 05-15-2025 358 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 44,273 $ 48,765 $ 56,420 $ 47,016 Charges for Services $ 97,244 $ 128,030 $ 143,600 $ 160,000 Total Revenues $ 141,517 $ 176,795 $ 200,020 $ 207,016 Expenditures Employee Compensation $ 579,506 $ 668,431 $ 678,260 $ 723,335 Employee Benefits $ 134,397 $ 146,965 $ 222,809 $ 174,557 Materials $ 35,127 $ 22,186 $ 35,843 $ 38,395 Contract Services $ 98,827 $ 106,814 $ 111,137 $ 111,877 Cost Allocation $ 166,140 $ 221,484 $ 491,960 $ 470,835 Contingencies $ -$ -$ 1,837 $ - Total Expenditures $ 1,013,997 $ 1,165,880 $ 1,541,846 $ 1,518,999 Fund Balance $ -$ -$ -$ - General Fund Costs $ 872,481 $ 989,083 $ 1,341,826 $ 1,311,983 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 0 0 0 0.10 RECREATION COORDINATOR 1.98 1.98 2.13 2.33 RECREATION MANAGER 0.35 0.35 0.55 0.55 SR OFFICE ASSISTANT 0.85 0.85 0.85 0 Total 3.18 3.18 3.53 2.98 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Parks and Recreation 300 359 CC 05-15-2025 359 of 655 Administration Budget Unit 100-63-615 General Fund - Sports, Safety and Outdoor Recreation - Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing FTE Program Overview In FY 2022-2023, this program was divided and absorbed into the Sports, Safety, and Outdoor Recreation - Park Facilities and Outdoor Recreation programs. A complete discussion of the program can be found under Budget Unit 100-63-612 and 580-63-620. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Benefits $ 734 $ -$ -$ - Materials $ 145 $ -$ -$ - Cost Allocation $ 23,654 $ -$ -$ - Total Expenditures $ 24,533 $ -$ -$ - Fund Balance $ -$ -$ -$ - General Fund Costs $ 24,533 $ -$ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Parks and Recreation 301 360 CC 05-15-2025 360 of 655 Blackberry Farm Golf Course Budget Unit 560-63-616 Blackberry Farm - Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course Budget at a Glance 2026 Proposed Budget Total Revenues $ 693,000 Total Expenditures $ 547,098 Fund Balance $ 145,902 General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 1.5 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 leagues, high school golf partnerships, and Youth on Course participation. Continue to offer special events such as Glow Night Golf and intergenerational golf tournament. Continue to provide exceptional customer service in the Golf Pro Shop where customers may rent golf clubs or purchase golfing accessories and concessions. Proposed Budget It is recommended that City Council approve a budget of $547,098 for the Blackberry Farm Golf Course program. This represents a decrease of $19,325 (-3.4%) from the FY 2024-25 Adopted Budget. The budget is relatively unchanged from the prior fiscal year. The decrease in staffing costs is offset by the increase in Materials, needed to replace the aging equipment at the golf course, which includes the pull cart fleet and the hiDing range neDing and equipment. This program also includes the following budget request, $5,000 in one-time costs for BBF Golf Course Pull Carts, and $5,820 recurring expenses for BBF Golf Course HiDing Range Equipment and NeDing. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 302 361 CC 05-15-2025 361 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 46,423 $ 51,933 $ 47,000 $ 52,000 Charges for Services $ 570,038 $ 611,331 $ 641,000 $ 641,000 Miscellaneous Revenue $ -$ 10 $ -$ - Total Revenues $ 616,461 $ 663,274 $ 688,000 $ 693,000 Expenditures Employee Compensation $ 183,783 $ 147,721 $ 255,334 $ 245,338 Employee Benefits $ 49,230 $ 11,845 $ 101,702 $ 78,170 Materials $ 21,470 $ 17,969 $ 17,634 $ 29,998 Contract Services $ 296,986 $ 252,078 $ 10,320 $ 10,395 Cost Allocation $ 87,601 $ 85,430 $ 178,258 $ 180,365 Other Financing Uses $ 2,832 $ 15,390 $ 2,832 $ 2,832 Contingencies $ -$ -$ 343 $ - Total Expenditures $ 641,902 $ 530,433 $ 566,423 $ 547,098 Fund Balance $ (25,440)$ 132,841 $ 121,577 $ 145,902 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 0 0 0.50 0.85 RECREATION COORDINATOR 0.65 0.65 0.65 0.30 RECREATION MANAGER 0.30 0.30 0.35 0.35 SR OFFICE ASSISTANT 0.15 0.15 0.15 0 Total 1.10 1.10 1.65 1.50 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Parks and Recreation 303 362 CC 05-15-2025 362 of 655 Outdoor Recreation Budget Unit 580-63-620 Recreation Program - Sports, Safety and Outdoor Recreation - Outdoor Recreation Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,275,500 Total Expenditures $ 873,146 Fund Balance $ 402,354 General Fund Costs $ 500,000 % Funded by General Fund 57.3% Total Staffing 1.6 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 Coordinate adult softball leagues. Increase adult sports league programming. 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. Proposed Budget It is recommended that City Council approve a budget of $873,146 for the Outdoor Recreation program. This represents a decrease of $92,520 (-9.6%) from the FY 2024-25 Adopted Budget. The decrease is mainly due to a reduction in Contract Services, based on programs, classes, and camps that have been successful and the budget was refined to match current actuals. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 304 363 CC 05-15-2025 363 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 151,060 $ 131,941 $ 150,000 $ 130,000 Charges for Services $ 435,543 $ 541,728 $ 736,000 $ 645,500 Transfers In $ 376,000 $ -$ -$ 500,000 Total Revenues $ 962,603 $ 673,669 $ 886,000 $ 1,275,500 Expenditures Employee Compensation $ 230,829 $ 276,084 $ 269,917 $ 255,790 Employee Benefits $ (41,805)$ 216,338 $ 128,420 $ 113,168 Materials $ 10,072 $ 3,735 $ 12,459 $ 16,732 Contract Services $ 230,331 $ 268,530 $ 420,800 $ 331,317 Cost Allocation $ 115,554 $ 144,967 $ 105,143 $ 102,613 Other Financing Uses $ 23,529 $ 30,212 $ 23,529 $ 53,526 Contingencies $ -$ -$ 5,398 $ - Total Expenditures $ 568,510 $ 939,866 $ 965,666 $ 873,146 Fund Balance $ 394,092 $ (266,197)$ (79,666)$ 402,354 General Fund Costs $ 376,000 $ -$ -$ 500,000 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 0 0 0 0.05 RECREATION COORDINATOR 0.45 1.40 1.30 1.10 RECREATION MANAGER 0.30 0.70 0.45 0.45 RECREATION SUPERVISOR 0.30 0 0 0 Total 1.05 2.10 1.75 1.60 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Parks and Recreation 305 364 CC 05-15-2025 364 of 655 Sports Center Operations Budget Unit 570-63-621 Sports Center - Sports, Safety and Outdoor Recreation - Sports Center Operations Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,086,500 Total Expenditures $ 1,595,437 Fund Balance $ (508,937) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 2.6 FTE Program Overview The Cupertino Sports Center offers a variety of health and wellness activities including a full fitness center, assortment of fitness classes, personal training, youth sports classes, and variety of racquet sports, including tennis, table tennis, pickle ball, and badminton classes, camps, and programs. Service Objectives Increase memberships, participation in fitness classes, personal training, 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. Proposed Budget It is recommended that City Council approve a budget of $1,595,437 for the Sports Center Operations program. This represents a decrease of $64,451 (-3.9%) from the FY 2024-25 Adopted Budget. The decrease is mainly due to the updated contract services for racquet sports, basketball, and chess instruction, where the registration procedures have been streamlined. This lowers the direct costs for the City and enhances the efficiency of revenue collection and recording for these programs. This program also includes budget requests of $28,968 one-time costs for Interior Gate Access, and $12,000 recurring for Small Tools and Equipment. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document.   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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 306 365 CC 05-15-2025 365 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 360,116 $ 363,872 $ 375,000 $ 217,500 Charges for Services $ 2,756,264 $ 1,998,806 $ 1,070,000 $ 869,000 Miscellaneous Revenue $ 1,200 $ -$ -$ - Total Revenues $ 3,117,580 $ 2,362,678 $ 1,445,000 $ 1,086,500 Expenditures Employee Compensation $ 312,944 $ 420,799 $ 350,322 $ 474,105 Employee Benefits $ (19,137)$ 264,524 $ 136,895 $ 152,418 Materials $ 54,932 $ 27,120 $ 36,970 $ 100,705 Contract Services $ 2,321,162 $ 1,540,531 $ 677,150 $ 381,460 Cost Allocation $ 171,128 $ 192,546 $ 435,164 $ 472,531 Other Financing Uses $ 14,487 $ 14,323 $ 14,487 $ 14,218 Contingencies $ -$ -$ 8,900 $ - Total Expenditures $ 2,855,516 $ 2,459,843 $ 1,659,888 $ 1,595,437 Fund Balance $ 262,064 $ (97,165)$ (214,888)$ (508,937) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 1.00 1.00 0.50 0 RECREATION COORDINATOR 0.80 0.85 1.00 1.00 RECREATION MANAGER 0 0.55 0.55 0.55 RECREATION SUPERVISOR 0.70 0 0 0 SR OFFICE ASSISTANT 0 0 0 1.00 Total 2.50 2.40 2.05 2.55 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Parks and Recreation 307 366 CC 05-15-2025 366 of 655 Community Outreach and Neighborhood Watch Budget Unit 100-65-632 General Fund - Office of Emergency Services - Community Outreach and Neighborhood Watch Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 225,076 Fund Balance $ - General Fund Costs $ 225,076 % 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. Proposed Budget It is recommended that City Council approve a budget of $225,076 for the Community Outreach and Neighborhood Watch program. In FY 2024-2025, this program was moved from the City Manager's Office. The prior year data can be found under Budget Unit 100-12-632. The budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 308 367 CC 05-15-2025 367 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ -$ -$ -$ 115,273 Employee Benefits $ -$ -$ -$ 48,962 Materials $ -$ -$ -$ 8,856 Cost Allocation $ -$ -$ -$ 51,985 Total Expenditures $ -$ -$ -$ 225,076 Fund Balance $ -$ -$ -$ - General Fund Costs $ -$ -$ -$ 225,076 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget EMERGENCY SERVICES COORDINATOR 0 0 0 1.00 Total 0 0 0 1.00 Due to the reorganization of this program from the City Manager's Office, positions within the program have been transferred accordingly. FY 2025-26 Proposed Budget Parks and Recreation 309 368 CC 05-15-2025 368 of 655 Office of Emergency Management Budget Unit 100-65-633 General Fund - Office of Emergency Services - Office of Emergency Management Budget at a Glance 2026 Proposed Budget Total Revenues $ 11,000 Total Expenditures $ 695,060 Fund Balance $ - General Fund Costs $ 684,060 % Funded by General Fund 98.4% 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's 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. Manage the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office. Service as liaison to the Santa Clara County Fire Department. Proposed Budget It is recommended that City Council approve a budget of $695,060 for the Office of Emergency Management program. In FY 2024-2025, this program was moved from the City Manager's Office. The prior year data can be found under Budget Unit 100-12-633. The increase is mainly due to increases in Contract Services, for annual California Specialized Training Institute (CSTI) and Bay Area Urban Areas Security Initiative (UASI) Trainings for the EOC and Emergency Operations Plan (EOP) and Cost Allocation Expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Parks and Recreation 310 369 CC 05-15-2025 369 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ -$ -$ -$ 11,000 Total Revenues $ -$ -$ -$ 11,000 Expenditures Employee Compensation $ -$ -$ -$ 376,646 Employee Benefits $ -$ -$ -$ 150,512 Materials $ -$ -$ -$ 35,962 Contract Services $ -$ -$ -$ 33,487 Cost Allocation $ -$ -$ -$ 98,453 Total Expenditures $ -$ -$ -$ 695,060 Fund Balance $ -$ -$ -$ - General Fund Costs $ -$ -$ -$ 684,060 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.95 EMERGENCY SERVICES MANAGER 0 0 0 1.00 Total 0 0 0 1.95 Due to the reorganization of this program from the City Manager's Office, positions within the program have been transferred accordingly. FY 2025-26 Proposed Budget Parks and Recreation 311 370 CC 05-15-2025 370 of 655 Community Development FY 2025-26 Proposed Budget Community Development 312 371 CC 05-15-2025 371 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Community Development 313 372 CC 05-15-2025 372 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget Community Development $ 423,697 100-70-700 Community Development Administration $ 423,697 Planning $ 5,511,911 100-71-701 Current Planning $ 3,626,108 100-71-702 Mid and Long Term Planning $ 886,746 100-71-705 Economic Development $ 999,057 Housing Services $ 1,292,584 260-72-707 CDBG General Admin $ 72,695 260-72-709 CDBG Capital/Housing Projects $ 359,467 260-72-710 CDBG Public Service Grants $ 58,000 265-72-711 BMR Affordable Housing Fund $ 746,807 100-72-712 Human Service Grants $ 55,615 Building $ 4,910,338 100-73-713 General Building $ 1,083,311 100-73-714 Building Plan Review $ 2,341,590 100-73-715 Building Code Enforcement $ 1,415,320 100-73-718 Muni Code Enforcement $ 70,117 Code Enforcement $ 1,673,825 100-74-202 Code Enforcement $ 1,653,825 100-74-716 Building Abatement $ 20,000 Total $ 13,812,355 FY 2025-26 Proposed Budget Community Development 314 373 CC 05-15-2025 373 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 11,454,443 Total Expenditures $ 13,812,355 Fund Balance $ 3,713,424 General Fund Costs $ 6,071,336 % Funded by General Fund 44.0% Total Staffing 34.2 FTE Organization Benjamin Fu, Director of Community Development Staffing changes include the addition of the Economic Development Manager. Notable Accomplishments The City's adopted Housing Element was certified in September 2024. The City also completed all related zoning ordinance amendments in July 2024, paving the way for future housing development to meet the state requirement Regional Housing Needs Allocation (RHNA) of at least 4,588 new housing units. Process Improvements – 1) Website update and implementation of Major Projects page. 2) Updated General Commercial (CG) ordinance to modernize the uses allowed in this zoning district. 3) Updated the Fence Ordinance to clarify existing policies and requirements, this included allowing certain electric gates by right and fence gateway features within setback areas. 4) Adopted fees to ensure cost recovery for applications. FY 2025-26 Proposed Budget Community Development 315 374 CC 05-15-2025 374 of 655 Launched a newly designed Building Division website with updated content and an enhanced user-friendly interface. Partnered with the Sustainability team to establish Ordinance No. 24-2265, amending the original Electric-Ready for All New Buildings requirement. Issued 1,419 permits between July 1, 2024, and December 31, 2024. Completed a study and draVed resolution to enact a Below Market Rate (BMR) Anti-Displacement Policy to assist tenants of expiring affordable rental units in market rate developments. Reviewed applications for affordable housing projects and low-income services eligible for the Community Development Block Grant (CDBG), Below Market Rate Affordable Housing Fund (BMR AHF), General Fund Human Services Grant (HSG), Permanent Local Housing Allocation (PLHA), and County funding through the release of the FY25-26 Notice of Funding Available. Held the West Valley Affordable Housing Developer’s Forum to engage affordable housing developers and discuss new affordable housing opportunities under the 2023-2031 Housing Element while identifying the persisting obstacles to creating new affordable housing projects. Code Enforcement experienced a 6.5% increase in number of complaints received and responded to 100% of complaints received throughout the year. This was done while experiencing a reduced staffing level due to the departure of a Senior Code Enforcement officer. Code Enforcement worked closely with IT to implement the Code Enforcement module in Accela to get all divisions in CDD on the same system. Additionally, staff increased efficiency and streamlined operations by incorporating the new case management database program into their day-to-day tasks, reporting activities, and tracking functions. New Initiatives Process Improvement – 1) Ongoing effort to create and update handouts to facilitate a more transparent and efficient review process, such as Accessory Dwelling Unit (ADU), planning inspections, etc. 2) Project review software updates for improved integration and access. 3) Review and establish new and updated policies and procedures for the permiDing, plan review, and inspection functions. 4) Follow through with researching and implementing new parking citation devices for code enforcement to update the old units that are no longer supported. 5) Continue to work with IT on relocating our electronic plan review system (ProjectDox) from on premises to SAAS. 6) Continue to work with IT on updating the online permiDing portal associated with Accela. 7) Continue the research and work with IT to get the parking citation equipment updated to ensure a more efficient process for staff. 8) Continue to work on the automation of data migration from Accela/ProjectDox into Laserfiche to eliminate the staff time needed to manually perform this function. 9) Expanding the online permiDing process to include all Building permit types. Outreach – Continue participation in public events to boost outreach efforts for every division within the Community Development Department. Efforts to ensure fostering interaction and disseminating information regarding the department's services and requirements. Ordinance Updates – Updates are being prepared to amend Chapter 19.48, Fences, Chapter 19.60, General Commercial, Chapter 19.124, Parking and Chapter 14.18, Protected Trees, to add clarifications, anticipated to be completed by late Fall 2024. Revise & Update Heart of the City Special Area– 1) Address effect of AB 2011 and build on Housing Element goals to facilitate housing production in transit-oriented locations, 2) Tailor permissible uses to revitalize local public-facing commercial uses (retail/restaurant/entertainment/professional office, etc.). Housing Element Implementation – Collaborate regionally and with stakeholders, such as affordable housing developers etc., to implement Housing Element policies and action items per the schedule identified in the Housing Element. Current Planning Projects – Review and processing ongoing of 11 housing development projects received between January 2024 and March 2025. The list of projects being processed is available at www.cupertino.org/majorprojects. In addition to these projects, staff has discussed various sites around the City, which have generated interest from developers about development, including but not limited to Priority Housing Element sites. Parking Standards – Evaluate the existing parking requirements in the Cupertino Muni Code and find opportunities to update and modernize to be consistent with industry and regional standards. Outdoor Seating – Evaluate and update the existing outdoor seating requirements and the conditional use permit process to be consistent with industry and regional standards and as efforts to support evolving community needs. Objective Design Standards – In response to newly adopted State housing legislation, the Council identified the adoption of design standards as a Work Program item. The goal was to create objective design standards for residential and mixed-use residential projects. The effort would also include ensuring adequate buffers between future higher-density residential and mixed-use development from established residential neighborhoods. FY 2025-26 Proposed Budget Community Development 316 375 CC 05-15-2025 375 of 655 Support for the Unhoused – Collaborate and fund jointly with West Valley cities efforts to address regional needs and find workable support for the Unhoused. Follow the established protocols to assist the unhoused while studying new opportunities to expand service. Work on Housing Element implementation items to support the production of affordable housing, including housing for the unhoused. Apply to County funding sources to expand outreach services to the unhoused with funding for flexible assistance in accordance with Function Zero principles. Temporary Housing - Execute the Memorandum of Understanding to join the West Valley Cities Joint Shelter feasibility study to explore the possibility of developing temporary housing and emergency shelter with other cities in the West Valley. Low Income Housing - Explore the possibility of implementing a low-income home sharing program in accordance with Housing Element commitments with non-profit partners such as HIP Housing or Front Porch. FY 2025-26 Proposed Budget Community Development 317 376 CC 05-15-2025 376 of 655 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Building permit applications shall be plan reviewed within 15 business days.80%82%95%80% Customer/Applicants visiting the Building Permit Counter shall be assisted within 15 minutes 90%92%89%80% Applicants visiting the Planning Counter shall be assisted within 15 minutes 98%96%93%50% Building permit applications reviewed/issued over-the-counter (OTC)62%61%60%75% Below market rate rental and purchase vacancies filled 20 8 4 15 per year Average number of days to initiate investigation of code complaints 0.54 0.46 0.45 < 7 Code enforcement cases resolved without issuance of citations 93%92%88%80% Landlord-tenant counseling and dispute resolution cases provided 25 28 12 100 per year Public Outreach Events 15 9 5 12 per year Funds received from Community Block Grant (CDBG) federal entitlement program $388,459 $358,910 $173,313 Comply with HUD's annual timeliness test Economic Development Division Goal: To actively pursue opportunities in the areas of business aDraction, 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 2025-26 Proposed Budget Community Development 318 377 CC 05-15-2025 377 of 655 Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Maintain Economic Development Business Connect Subscribers 6,000 8,758 9,752 9,000 Economic Development Business Visits, Workshops & Events 7 64 33 20 per year FY 2025-26 Proposed Budget Community Development 319 378 CC 05-15-2025 378 of 655 Workload Indicators Planning Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of preliminary reviews 127 21 29 Number of planning applications received 232 95 170 Number of planning counter inquiries 1223 644 644 Housing Services Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of BMR rental and ownership vacancies filled 20 8 4 Number of landlord tenant counseling and dispute cases received 25 38 12 Number of annual HUD documents (CAPER, Action Plan, Consolidated Plan) completed 2 1 1 Housing and Human Services Grant Funds inquiries 10 N/A (applications are due 2/6/24)10 *For FY 2024, the City only accepted applications for Capital Housing Projects. Public service funds operate on a multi-year cycle and will be made available during the FY 2025 funding cycle. Building Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of permits received 2,618 1,324 1,596 Number of inspections requested 15,181 8,406 7,605 Number of building counter inquiries 2,310 1,755 1,940 * 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. Economic Development Division FY 2025-26 Proposed Budget Community Development 320 379 CC 05-15-2025 379 of 655 Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Meetings with large groups/organizations; appointments with brokers, prospective business owners, business owners and operators, City staff, etc.50 281 257 Special events, including small business workshops and seminars, ICSC conferences and events, ribbon cuttings and grand openings, and Small Business Saturday Celebration 7 13 13 Number of Delivery Posts to Business Connect Subscribers 3 12 19 Proposed Budget It is recommended that City Council approve a budget of $13,812,355 for the Community Development department. This represents an increase of $863,354 (6.7%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Employee Compensation and Benefits due to the transfer in of Economic Development the Administration Department and the request to add part-time staffing in that program. Additionally, the department is requesting two new classifications - a Code Enforcement Supervisor and Assistant Housing Coordinator to better align with program needs. For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. This budget also includes funding request for on-call contracts in building and the following City Work Program items: Economic Development for Retail and Small Businesses - $200,000 Permit Streamlining and Simplification for Small Home Upgrades - $250,000 Add notification for SB 330 and other projects during the application approval process - $10,000 Unhoused Policies - $100,000 Impact Fee Study - $400,000 Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. FY 2025-26 Proposed Budget Community Development 321 380 CC 05-15-2025 380 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 39.9% 35.6% 12.1% 9.4% Planning Building Code Enforcement Housing Services Community Development $11.7M $11.5M $12.9M $13.8M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Community Development 322 381 CC 05-15-2025 381 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Other Taxes $ 170,824 $ -$ 4,532,926 $ 4,532,926 Licenses and Permits $ 4,064,397 $ 4,381,712 $ 3,635,000 $ 4,235,000 Use of Money and Property $ 28,909 $ 29,535 $ 7,944 $ 7,944 Intergovernmental Revenue $ 249,229 $ 543,777 $ 268,437 $ 459,523 Charges for Services $ 1,003,806 $ 968,342 $ 949,631 $ 1,572,000 Fines and Forfeitures $ 134,714 $ 261,300 $ 215,000 $ 225,000 Miscellaneous Revenue $ 88,652 $ 69,331 $ 55,050 $ 55,050 Other Financing Sources $ 272,396 $ 127,037 $ 367,000 $ 367,000 Transfers In $ 25,000 $ -$ -$ - Total Revenues $ 6,037,927 $ 6,381,034 $ 10,030,988 $ 11,454,443 Expenditures Employee Compensation $ 4,251,856 $ 3,807,128 $ 5,065,540 $ 5,180,017 Employee Benefits $ 1,608,597 $ 1,818,064 $ 2,523,678 $ 2,242,500 Materials $ 651,455 $ 650,748 $ 1,032,960 $ 950,053 Contract Services $ 558,901 $ 666,612 $ 364,150 $ 469,230 Cost Allocation $ 3,196,843 $ 3,111,654 $ 2,833,625 $ 3,045,555 Special Projects $ 805,938 $ 962,442 $ 200,000 $ 860,000 Other Financing Uses $ 619,687 $ 482,077 $ 925,000 $ 1,065,000 Contingencies $ 277 $ -$ 4,048 $ - Total Expenditures $ 11,693,554 $ 11,498,725 $ 12,949,001 $ 13,812,355 Fund Balance $ (575,649)$ (516,260)$ 3,335,610 $ 3,713,424 General Fund Costs $ 5,104,982 $ 4,601,434 $ 6,253,623 $ 6,071,336 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 323 382 CC 05-15-2025 382 of 655 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.75 1.75 1.75 1.75 ASSISTANT HOUSING COORDINATOR 0 0 0 0.85 ASSISTANT PLANNER 2.00 3.00 2.00 2.00 ASSIST DIR OF COMMITY DEV 1.00 1.00 1.00 1.00 ASSOCIATE PLANNER 5.00 5.00 5.00 3.00 BUILDING INSPECTOR 3.92 3.92 3.92 3.92 BUILDING OFFICIAL 0 1.00 1.00 1.00 CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 2.00 CODE ENFORCEMENT SUPERVISOR 0 0 0 1.00 DEPUTY BUILDING OFFICIAL 1.00 1.00 1.00 1.00 DIRECTOR OF COMM DEVELOPMENT 0.94 0.94 0.94 0.94 ECONOMIC DEVELOPMENT MANAGER 0 0 0 1.00 MANAGEMENT ANALYST 1.00 1.00 1.00 1.00 OFFICE ASSISTANT 2.00 1.00 1.00 1.00 PERMIT CENTER MANAGER 1.00 0 0 0 PERMIT TECHNICIAN 4.00 4.00 4.00 4.00 PLAN CHECK ENGINEER 2.00 2.00 2.00 2.00 PLANNING MANAGER 1.90 1.90 2.00 1.00 SENIOR HOUSING COORDINATOR 0 0 0.80 0.85 SENIOR PLANNER 5.00 1.90 1.90 2.90 SR BUILDING INSPECTOR 0.98 0.98 0.98 0.98 SR CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 1.00 Total 37.49 34.39 34.29 34.19 FY 2025-26 Proposed Budget Community Development 324 383 CC 05-15-2025 383 of 655 Community Development Administration Budget Unit 100-70-700 General Fund - Community Development - Community Development Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 423,697 Fund Balance $ - General Fund Costs $ 423,697 % 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. Proposed Budget It is recommended that City Council approve a budget of $423,697 for the Community Development Administration program. This represents an increase of $10,120 (2.4%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 325 384 CC 05-15-2025 384 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 96,867 $ 103,687 $ 110,446 $ 111,663 Employee Benefits $ 35,699 $ 43,250 $ 49,688 $ 44,400 Materials $ 3,694 $ 2,157 $ 8,154 $ 14,597 Contract Services $ 144,679 $ 157,556 $ -$ - Cost Allocation $ 572,700 $ 334,114 $ 245,187 $ 253,037 Special Projects $ 126,047 $ 136,895 $ -$ - Contingencies $ 277 $ -$ 102 $ - Total Expenditures $ 979,963 $ 777,659 $ 413,577 $ 423,697 Fund Balance $ -$ -$ -$ - General Fund Costs $ 979,963 $ 777,659 $ 413,577 $ 423,697 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget DIRECTOR OF COMM DEVELOPMENT 0.30 0.30 0.30 0.30 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 2025-26 Proposed Budget Community Development 326 385 CC 05-15-2025 385 of 655 Current Planning Budget Unit 100-71-701 General Fund - Planning - Current Planning Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,895,300 Total Expenditures $ 3,626,108 Fund Balance $ - General Fund Costs $ 1,730,808 % Funded by General Fund 47.7% Total Staffing 9.6 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. Proposed Budget It is recommended that City Council approve a budget of $3,626,108 for the Current Planning program. This represents an increase of $291,580 (8.7%) from the FY 2024-25 Adopted Budget. The increase is due to a reallocation of staff and the inclusion of the following City Work Program item: Permit Streaming and Simplification for Small Home Upgrades $250,000 and Add notifications for SB 330 and other projects during application and approval process $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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 327 386 CC 05-15-2025 386 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 934,481 $ 895,566 $ 829,373 $ 1,502,000 Miscellaneous Revenue $ 40,570 $ 19,331 $ 51,300 $ 51,300 Other Financing Sources $ 272,396 $ 127,037 $ 342,000 $ 342,000 Total Revenues $ 1,247,447 $ 1,041,934 $ 1,222,673 $ 1,895,300 Expenditures Employee Compensation $ 902,953 $ 696,297 $ 1,295,740 $ 1,364,294 Employee Benefits $ 296,845 $ 360,086 $ 625,489 $ 545,956 Materials $ 15,401 $ 2,792 $ 4,351 $ 16,055 Contract Services $ 60,583 $ 170,877 $ 220 $ 220 Cost Allocation $ 858,254 $ 879,776 $ 858,671 $ 889,583 Special Projects $ 60,958 $ 79,473 $ -$ 260,000 Other Financing Uses $ 243,267 $ 149,969 $ 550,000 $ 550,000 Contingencies $ -$ -$ 57 $ - Total Expenditures $ 2,438,261 $ 2,339,270 $ 3,334,528 $ 3,626,108 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,190,816 $ 1,297,336 $ 2,111,855 $ 1,730,808 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.60 0.60 0.60 0.60 ASSISTANT HOUSING COORDINATOR 0 0 0 0.40 ASSISTANT PLANNER 2.00 2.10 2.00 2.00 ASSOCIATE PLANNER 3.65 3.25 3.25 2.20 DIRECTOR OF COMM DEVELOPMENT 0.28 0.28 0.28 0.28 MANAGEMENT ANALYST 0.40 0.40 0.40 0.40 OFFICE ASSISTANT 0.50 0 0 0 PERMIT TECHNICIAN 1.00 1.00 1.00 1.00 PLANNING MANAGER 0.50 0.50 0.40 0.40 SENIOR HOUSING COORDINATOR 0 0 0.10 0.40 SENIOR PLANNER 1.65 1.35 1.35 1.95 Total 10.58 9.48 9.38 9.63 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Community Development 328 387 CC 05-15-2025 387 of 655 Mid and Long Term Planning Budget Unit 100-71-702 General Fund - Planning - Mid and Long Term Planning Budget at a Glance 2026 Proposed Budget Total Revenues $ 78,750 Total Expenditures $ 886,746 Fund Balance $ - General Fund Costs $ 807,996 % Funded by General Fund 91.1% Total Staffing 2.9 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. Proposed Budget It is recommended that City Council approve a budget of $886,746 for the Mid and Long Term Planning program. This represents a decrease of $340,481 (-27.7%) from the FY 2024-25 Adopted Budget. The decrease is due to staffing reallocations and having no special projects this 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 329 388 CC 05-15-2025 388 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 52,613 $ 300,000 $ -$ - Charges for Services $ 58,913 $ 56,958 $ 110,000 $ 50,000 Miscellaneous Revenue $ -$ -$ 3,750 $ 3,750 Other Financing Sources $ -$ -$ 25,000 $ 25,000 Total Revenues $ 111,526 $ 356,958 $ 138,750 $ 78,750 Expenditures Employee Compensation $ 530,985 $ 355,990 $ 560,593 $ 493,024 Employee Benefits $ 179,264 $ 163,101 $ 255,942 $ 186,792 Materials $ 4,270 $ 1,379 $ 3,214 $ 8,933 Contract Services $ (4,345)$ -$ 7,500 $ 7,500 Cost Allocation $ 316,560 $ 350,186 $ 199,844 $ 190,497 Special Projects $ 466,756 $ 686,015 $ 200,000 $ - Contingencies $ -$ -$ 134 $ - Total Expenditures $ 1,493,490 $ 1,556,671 $ 1,227,227 $ 886,746 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,381,965 $ 1,199,714 $ 1,088,477 $ 807,996 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.15 0.15 0.15 0.15 ASSOCIATE PLANNER 1.35 1.75 1.75 0.80 DIRECTOR OF COMM DEVELOPMENT 0.24 0.24 0.24 0.24 MANAGEMENT ANALYST 0.20 0.20 0.20 0.20 PLANNING MANAGER 0.60 0.60 0.60 0.60 SENIOR PLANNER 1.55 0.55 0.55 0.95 Total 4.09 3.49 3.49 2.94 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Community Development 330 389 CC 05-15-2025 389 of 655 Economic Development Budget Unit 100-71-705 General Fund - Planning - Economic Development Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 999,057 Fund Balance $ - General Fund Costs $ 999,057 % Funded by General Fund 100.0% Total Staffing 1.0 FTE Program Overview The Economic Development Division oversees the development and implementation of policies and programs to promote business resiliency while undertaking a wide variety of business attraction, retention, and expansion efforts. 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 Proposed Budget It is recommended that City Council approve a budget of $999,057 for the Economic Development program. Reduction in benefits is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings.  This budget is a new addition to the Community Development Department for this fiscal year, it was transferred in from the Administration Department. A request to fund a part-time management analyst to assist with City Work Program items and to carry out duties of the Economic Development division to support businesses to enable job creation, new business formation, and outreach to existing small businesses to create strong working relationships. This budget includes the following City Work Program items: Economic Development for Retail and Small Businesses and Defensible Impact Fee Nexus Study for Traffic Impact Fee, Retail Impact Fee, BMR Impact Fee, and Parkland Impact Fee $350,000 CWP items are no longer considered Special Projects per the new City Council Special Project Policy but are discussed here for ease of tracking and transparency. CWP will remain in the Special Project expense category as a way to track these projects but will be reported separately from all other Special Projects that fall under the policy. Revenues and Expenditures FY 2025-26 Proposed Budget Community Development 331 390 CC 05-15-2025 390 of 655 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ -$ -$ -$ 265,819 Employee Benefits $ -$ -$ -$ 94,337 Materials $ -$ -$ -$ 34,410 Contract Services $ -$ -$ -$ 71,250 Cost Allocation $ -$ -$ -$ 183,241 Special Projects $ -$ -$ -$ 350,000 Total Expenditures $ -$ -$ -$ 999,057 Fund Balance $ -$ -$ -$ - General Fund Costs $ -$ -$ -$ 999,057 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ECONOMIC DEVELOPMENT MANAGER 0 0 0 1.00 Total 0 0 0 1.00 Due to the reorganization of this program from the City Manager's Office, positions within the program have been transferred accordingly. FY 2025-26 Proposed Budget Community Development 332 391 CC 05-15-2025 391 of 655 CDBG General Admin Budget Unit 260-72-707 CDBG - Housing Services - CDBG General Admin Budget at a Glance 2026 Proposed Budget Total Revenues $ 77,400 Total Expenditures $ 72,695 Fund Balance $ 4,705 General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.4 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. Proposed Budget It is recommended that City Council approve a budget of $72,695 for the CDBG General Admin program. This represents a decrease of $112,948 (-60.8%) from the FY 2024-25 Adopted Budget. The decrease is due to salary and benefits decrease from a reallocation of staff that includes a proposed new classification of Assistant Housing Coordinator. The Assistant Housing Coordinator will help with the coordination of housing and grant programs, the BMR Affordable Housing program, housing strategies, assist with homelessness prevention efforts, and the CDBG and Human Service Grants 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 333 392 CC 05-15-2025 392 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 71,338 $ 46,213 $ 38,131 $ 77,400 Total Revenues $ 71,338 $ 46,213 $ 38,131 $ 77,400 Expenditures Employee Compensation $ 80,482 $ 12,955 $ 127,825 $ 48,965 Employee Benefits $ 29,409 $ 18,249 $ 57,818 $ 23,730 Materials $ 37,593 $ 22,952 $ -$ - Total Expenditures $ 147,484 $ 54,156 $ 185,643 $ 72,695 Fund Balance $ (76,146)$ (7,942)$ (147,512)$ 4,705 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT HOUSING COORDINATOR 0 0 0 0.20 ASSISTANT PLANNER 0 0.10 0 0 PLANNING MANAGER 0.39 0.39 0.50 0 SENIOR HOUSING COORDINATOR 0 0 0.20 0.20 SENIOR PLANNER 0.20 0 0 0 Total 0.59 0.49 0.70 0.40 Staff time is being reallocated to beDer reflect actual time spent in this program, including a proposed new classification of Assistant Housing Coordinator. FY 2025-26 Proposed Budget Community Development 334 393 CC 05-15-2025 393 of 655 CDBG Capital/Housing Projects Budget Unit 260-72-709 CDBG - Housing Services - CDBG Capital/Housing Projects Budget at a Glance 2026 Proposed Budget Total Revenues $ 282,067 Total Expenditures $ 359,467 Fund Balance $ (77,400) 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. Proposed Budget It is recommended that City Council approve a budget of $359,467 for the CDBG Capital/Housing Projects program. This represents a decrease of $101,020 (-21.9%) from the FY 2024-25 Adopted Budget. The decrease is due to a decrease in Materials. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 335 394 CC 05-15-2025 394 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 28,909 $ 29,535 $ 7,944 $ 7,944 Intergovernmental Revenue $ 65,818 $ 92,536 $ 151,706 $ 274,123 Total Revenues $ 94,727 $ 122,071 $ 159,650 $ 282,067 Expenditures Materials $ 65,818 $ 92,536 $ 460,487 $ 359,467 Total Expenditures $ 65,818 $ 92,536 $ 460,487 $ 359,467 Fund Balance $ 28,909 $ 29,535 $ (300,837)$ (77,400) General Fund Costs $ -$ -$ -$ - Staffing There is no staffing associated with this program. There is no staffing associated with this program. FY 2025-26 Proposed Budget Community Development 336 395 CC 05-15-2025 395 of 655 CDBG Public Service Grants Budget Unit 260-72-710 CDBG - Housing Services - CDBG Public Service Grants Budget at a Glance 2026 Proposed Budget Total Revenues $ 58,000 Total Expenditures $ 58,000 Fund Balance $ - 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. Proposed Budget It is recommended that City Council approve a budget of $58,000 for the CDBG Public Service Grants program. This represents an increase of $2,972 (5.4%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Materials. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 337 396 CC 05-15-2025 396 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 59,460 $ 55,028 $ 28,600 $ 58,000 Total Revenues $ 59,460 $ 55,028 $ 28,600 $ 58,000 Expenditures Materials $ 59,460 $ 55,028 $ 55,028 $ 58,000 Total Expenditures $ 59,460 $ 55,028 $ 55,028 $ 58,000 Fund Balance $ -$ -$ (26,428)$ - General Fund Costs $ -$ -$ -$ - Staffing There is no staffing associated with this program. There is no staffing associated with this program. FY 2025-26 Proposed Budget Community Development 338 397 CC 05-15-2025 397 of 655 BMR Affordable Housing Fund Budget Unit 265-72-711 BMR Housing - Housing Services - BMR Affordable Housing Fund Budget at a Glance 2026 Proposed Budget Total Revenues $ 4,532,926 Total Expenditures $ 746,807 Fund Balance $ 3,786,119 General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.5 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) Manage agreement for the provision of Fair Housing investigation and enforcement. Commit funding for the development of new proposed affordable housing projects with awards contingent upon acquiring planning entitlements. Proposed Budget It is recommended that City Council approve a budget of $746,807 for the BMR Affordable Housing Fund program. This represents an increase of $24,268 (3.4%) from the FY 2024-25 Adopted Budget. The overall increase is a result of a reallocation of staff and the City Work Program (CWP) item included in this budget: Develop ELI Housing $250,000 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 339 398 CC 05-15-2025 398 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Other Taxes $ 170,824 $ -$ 4,532,926 $ 4,532,926 Intergovernmental Revenue $ -$ 50,000 $ -$ - Charges for Services $ 1,640 $ -$ -$ - Miscellaneous Revenue $ 28,082 $ 50,000 $ -$ - Transfers In $ 25,000 $ -$ -$ - Total Revenues $ 225,546 $ 100,000 $ 4,532,926 $ 4,532,926 Expenditures Employee Compensation $ 156,825 $ 103,636 $ 172,795 $ 61,207 Employee Benefits $ 58,574 $ 55,719 $ 79,149 $ 29,997 Materials $ 319,360 $ 324,927 $ 347,713 $ 366,047 Contract Services $ 57,477 $ 7,577 $ 20,700 $ 21,300 Cost Allocation $ 144,366 $ 95,908 $ 102,182 $ 18,256 Special Projects $ 17,357 $ 50,085 $ -$ 250,000 Total Expenditures $ 753,959 $ 637,852 $ 722,539 $ 746,807 Fund Balance $ (528,412)$ (537,853)$ 3,810,387 $ 3,786,119 General Fund Costs $ 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT HOUSING COORDINATOR 0 0 0 0.25 ASSISTANT PLANNER 0 0.80 0 0 OFFICE ASSISTANT 0.50 0 0 0 PLANNING MANAGER 0.41 0.41 0.50 0 SENIOR HOUSING COORDINATOR 0 0 0.50 0.25 SENIOR PLANNER 1.60 0 0 0 Total 2.51 1.21 1.00 0.50 Staff time is being reallocated to better reflect the actual time spent in this program. FY 2025-26 Proposed Budget Community Development 340 399 CC 05-15-2025 399 of 655 Human Service Grants Budget Unit 100-72-712 General Fund - Housing Services - Human Service Grants Budget at a Glance 2026 Proposed Budget Total Revenues $ 50,000 Total Expenditures $ 55,615 Fund Balance $ - General Fund Costs $ 5,615 % Funded by General Fund 10.1% Total Staffing FTE Program Overview The City of Cupertino sets aside $129,000 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. Proposed Budget It is recommended that City Council approve a budget of $55,615 for the Human Service Grants program. This represents a decrease of $74,881 (-57.4%) from the FY 2024-25 Adopted Budget. The decrease is due to a reduction in Materials. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 341 400 CC 05-15-2025 400 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ -$ -$ 50,000 $ 50,000 Total Revenues $ -$ -$ 50,000 $ 50,000 Expenditures Materials $ 112,671 $ 122,135 $ 125,000 $ 50,000 Cost Allocation $ 5,290 $ 5,140 $ 5,496 $ 5,615 Total Expenditures $ 117,961 $ 127,275 $ 130,496 $ 55,615 Fund Balance $ -$ -$ -$ - General Fund Costs $ 117,961 $ 127,275 $ 80,496 $ 5,615 Staffing There is no staffing associated with this program. There is no staffing associated with this program. FY 2025-26 Proposed Budget Community Development 342 401 CC 05-15-2025 401 of 655 General Building Budget Unit 100-73-713 General Fund - Building - General Building Budget at a Glance 2026 Proposed Budget Total Revenues $ 315,000 Total Expenditures $ 1,083,311 Fund Balance $ - General Fund Costs $ 768,311 % Funded by General Fund 70.9% 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 aDributed 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 Proposed Budget It is recommended that City Council approve a budget of $1,083,311 for the General Building program. This represents an increase of $1,595 (0.1%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 343 402 CC 05-15-2025 402 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Licenses and Permits $ 269,509 $ 345,319 $ 315,000 $ 315,000 Total Revenues $ 269,509 $ 345,319 $ 315,000 $ 315,000 Expenditures Employee Compensation $ 440,485 $ 449,645 $ 462,726 $ 458,984 Employee Benefits $ 153,510 $ 189,829 $ 235,381 $ 206,505 Materials $ 7,355 $ 6,005 $ 7,865 $ 10,498 Contract Services $ 420 $ 420 $ -$ - Cost Allocation $ 274,264 $ 269,096 $ 375,646 $ 407,324 Special Projects $ -$ 856 $ -$ - Contingencies $ -$ -$ 98 $ - Total Expenditures $ 876,034 $ 915,851 $ 1,081,716 $ 1,083,311 Fund Balance $ -$ -$ -$ - General Fund Costs $ 606,525 $ 570,532 $ 766,716 $ 768,311 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.50 0.50 0.50 0.50 ASSIST DIR OF COMMITY DEV 0.60 0.60 0.60 0.60 BUILDING OFFICIAL 0 0.20 0.20 0.20 DEPUTY BUILDING OFFICIAL 0.20 0.20 0.20 0.20 DIRECTOR OF COMM DEVELOPMENT 0.12 0.12 0.12 0.12 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 0 0 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 2025-26 Proposed Budget Community Development 344 403 CC 05-15-2025 403 of 655 Building Plan Review Budget Unit 100-73-714 General Fund - Building - Building Plan Review Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,800,000 Total Expenditures $ 2,341,590 Fund Balance $ - General Fund Costs $ 541,590 % Funded by General Fund 23.1% 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. Proposed Budget It is recommended that City Council approve a budget of $2,341,590 for the Building Plan Review program. This represents an increase of $44,999 (2.0%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior fiscal year but does include a budget request of $90,000 in recurring costs for Building On call contracts. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 345 404 CC 05-15-2025 404 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Licenses and Permits $ 1,575,817 $ 1,634,094 $ 1,200,000 $ 1,800,000 Miscellaneous Revenue $ 20,000 $ -$ -$ - Total Revenues $ 1,595,817 $ 1,634,094 $ 1,200,000 $ 1,800,000 Expenditures Employee Compensation $ 930,184 $ 1,005,700 $ 1,042,991 $ 1,038,717 Employee Benefits $ 388,761 $ 449,037 $ 527,699 $ 471,115 Materials $ 6,404 $ 4,620 $ 4,522 $ 11,492 Cost Allocation $ 384,759 $ 422,138 $ 371,322 $ 380,266 Special Projects $ 134,820 $ 9,118 $ -$ - Other Financing Uses $ 376,420 $ 309,238 $ 350,000 $ 440,000 Contingencies $ -$ -$ 57 $ - Total Expenditures $ 2,221,348 $ 2,199,851 $ 2,296,591 $ 2,341,590 Fund Balance $ -$ -$ -$ - General Fund Costs $ 625,532 $ 565,757 $ 1,096,591 $ 541,590 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed 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 OFFICIAL 0 0.80 0.80 0.80 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 0 0 PERMIT TECHNICIAN 2.40 2.40 2.40 2.40 PLAN CHECK ENGINEER 2.00 2.00 2.00 2.00 Total 6.70 6.70 6.70 6.70 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Community Development 346 405 CC 05-15-2025 405 of 655 Building Code Enforcement Budget Unit 100-73-715 General Fund - Building - Building Code Enforcement Budget at a Glance 2026 Proposed Budget Total Revenues $ 2,120,000 Total Expenditures $ 1,415,320 Fund Balance $ - General Fund Costs $ (704,680) % Funded by General Fund -49.8% 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 aDributed 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. Proposed Budget It is recommended that City Council approve a budget of $1,415,320 for the Building Code Enforcement program. This represents an increase of $17,859 (1.3%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior fiscal year but does include a budget request of $50,000 for recurring costs for Building On call contracts. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document Special Projects FY 2025-26 Proposed Budget Community Development 347 406 CC 05-15-2025 406 of 655 Special Projects The following table shows the special projects for the fiscal year. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category.  Prior special projects have been moved to the contract or material expense categories. 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Licenses and Permits $ 2,219,071 $ 2,402,299 $ 2,120,000 $ 2,120,000 Total Revenues $ 2,219,071 $ 2,402,299 $ 2,120,000 $ 2,120,000 Expenditures Employee Compensation $ 707,048 $ 637,763 $ 718,711 $ 715,135 Employee Benefits $ 290,199 $ 306,558 $ 384,182 $ 348,336 Materials $ 13,069 $ 9,717 $ 9,550 $ 10,756 Cost Allocation $ 368,088 $ 401,589 $ 259,899 $ 266,093 Other Financing Uses $ -$ 22,870 $ 25,000 $ 75,000 Contingencies $ -$ -$ 119 $ - Total Expenditures $ 1,378,404 $ 1,378,497 $ 1,397,461 $ 1,415,320 Fund Balance $ -$ -$ -$ - General Fund Costs $ (840,667)$ (1,023,801)$ (722,539)$ (704,680) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed 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 2025-26 Proposed Budget Community Development 348 407 CC 05-15-2025 407 of 655 Muni Code Enforcement Budget Unit 100-73-718 General Fund - Building - Muni Code Enforcement Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 70,117 Fund Balance $ - General Fund Costs $ 70,117 % 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, unpermiDed 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. Proposed Budget It is recommended that City Council approve a budget of $70,117 for the Muni Code Enforcement program. This represents a decrease of $2,180 (-3.0%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 349 408 CC 05-15-2025 408 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 35,581 $ 30,396 $ 34,870 $ 35,033 Employee Benefits $ 14,608 $ 14,864 $ 18,797 $ 17,237 Materials $ (199)$ -$ -$ - Cost Allocation $ 34,805 $ 35,421 $ 18,630 $ 17,847 Total Expenditures $ 84,795 $ 80,681 $ 72,297 $ 70,117 Fund Balance $ -$ -$ -$ - General Fund Costs $ 84,795 $ 80,682 $ 72,297 $ 70,117 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed 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 2025-26 Proposed Budget Community Development 350 409 CC 05-15-2025 409 of 655 Code Enforcement Budget Unit 100-74-202 General Fund - Code Enforcement - Code Enforcement Budget at a Glance 2026 Proposed Budget Total Revenues $ 245,000 Total Expenditures $ 1,653,825 Fund Balance $ - General Fund Costs $ 1,408,825 % Funded by General Fund 85.2% 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 José. Proposed Budget It is recommended that City Council approve a budget of $1,653,825 for the Code Enforcement program. This represents an increase of $82,414 (5.2%) from the FY 2024-25 Adopted Budget. The increase is aDributed to the proposed new Code Enforcement Supervisor classification, which consolidates an existing vacant Code Enforcement Officer role with a Senior Code Enforcement Officer position to beDer align with the program’s operational needs. The increase is also due to increase in Contract Services and Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Community Development 351 410 CC 05-15-2025 410 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 8,772 $ 15,818 $ 10,258 $ 20,000 Fines and Forfeitures $ 134,714 $ 261,300 $ 215,000 $ 225,000 Total Revenues $ 143,486 $ 277,118 $ 225,258 $ 245,000 Expenditures Employee Compensation $ 370,446 $ 411,059 $ 538,843 $ 587,176 Employee Benefits $ 161,728 $ 217,371 $ 289,533 $ 274,095 Materials $ 6,559 $ 6,500 $ 7,076 $ 9,798 Contract Services $ 300,087 $ 330,182 $ 335,730 $ 348,960 Cost Allocation $ 237,757 $ 318,286 $ 396,748 $ 433,796 Contingencies $ -$ -$ 3,481 $ - Total Expenditures $ 1,076,577 $ 1,283,398 $ 1,571,411 $ 1,653,825 Fund Balance $ -$ -$ -$ - General Fund Costs $ 933,092 $ 1,006,280 $ 1,346,153 $ 1,408,825 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 2.00 CODE ENFORCEMENT SUPERVISOR 0 0 0 1.00 SR CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 1.00 Total 4.00 4.00 4.00 4.00 Staff time is being reallocated to beDer reflect actual time spent in this program. A reclassification/promotion is using an existing vacant code enforcement officer position and combining it with a senior code enforcement officer position. This will result in one less full-time employee (FTE), keeping the total at 3.5 FTE officers. FY 2025-26 Proposed Budget Community Development 352 411 CC 05-15-2025 411 of 655 Building Abatement Budget Unit 100-74-716 General Fund - Code Enforcement - Building Abatement Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 20,000 Fund Balance $ - General Fund Costs $ 20,000 % Funded by General Fund 100.0% Total Staffing FTE Program Overview Code enforcement programs aim to ensure compliance with municipal codes, including building, zoning, and safety regulations, to maintain a safe, healthy, and aDractive community. A key objective is to prevent or remove conditions that constitute a public nuisance, which can negatively impact residents and property values. This is an “as-needed only” abatement account which funds remedial actions related to Code Enforcement nuisance cases. Service Objectives Address conditions like illegal dumping, overgrown vegetation, or unsafe structures that pose a threat to public health and safety. Issue notices of violations and providing opportunities for residents to address issues before enforcement actions are necessary. Take appropriate enforcement actions, including administrative citations, fines, or legal action when violations persist. Proposed Budget It is recommended that City Council approve a budget of $20,000 for the Building Abatement 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Contract Services $ -$ -$ -$ 20,000 Total Expenditures $ -$ -$ -$ 20,000 Fund Balance $ -$ -$ -$ - General Fund Costs $ -$ -$ -$ 20,000 Staffing FY 2025-26 Proposed Budget Community Development 353 412 CC 05-15-2025 412 of 655 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Community Development 354 413 CC 05-15-2025 413 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Community Development 355 414 CC 05-15-2025 414 of 655 Public Works FY 2025-26 Proposed Budget Public Works 356 415 CC 05-15-2025 415 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Public Works 357 416 CC 05-15-2025 416 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget Public Works Administration $ 1,594,162 100-80-800 Public Works Administration $ 1,594,162 Environmental Programs $ 5,439,315 100-81-122 Sustainability $ 418,126 520-81-801 Resource Recovery $ 2,966,958 230-81-802 Non-Point Source $ 1,457,191 230-81-853 Storm Drain Fee $ - 230-81-854 General Fund Subsidy $ 11,990 230-81-855 Storm Drain Maintenance $ 585,050 Developmental Services $ 2,543,221 100-82-804 Plan Review $ 1,395,413 100-82-806 CIP Administration $ 1,147,808 Service Center $ 1,108,056 100-83-807 Service Center Administration $ 1,108,056 Grounds $ 6,792,673 560-84-268 Golf Grounds Maintenance $ 339,558 100-84-808 McClellan Ranch Park $ 195,091 100-84-809 Memorial Park $ 829,549 100-84-811 BBF Ground Maintenance $ 320,775 100-84-812 School Site Maintenance $ 1,498,026 100-84-813 Neighborhood Parks $ 2,571,070 100-84-814 Sport Fields Jollyman, Creekside $ 816,611 100-84-815 Civic Center Maintenance $ 221,993 Streets $ 10,676,100 270-85-820 Sidewalk Curb and Gutter $ 1,419,712 270-85-821 Street Pavement Maintenance $ 5,310,436 270-85-822 Street Sign Marking $ 773,774 100-85-848 Street Lighting $ 1,097,276 630-85-849 Equipment Maintenance $ 1,867,792 100-85-850 Environmental Materials $ 207,110 Trees and Right of Way $ 4,920,156 100-86-261 Trail Maintenance $ 222,833 100-86-824 Overpasses and Medians $ 1,789,535 100-86-825 Street Tree Maintenance $ 2,266,017 Total $ 47,545,655 FY 2025-26 Proposed Budget Public Works 358 417 CC 05-15-2025 417 of 655 100-86-826 Sheriff Work Program $ 641,771 Facilities and Fleet $ 6,412,391 560-87-260 BBF Golf Maintenance $ 112,649 100-87-827 City Hall Maintenance $ 506,171 100-87-828 Library Maintenance $ 1,347,650 100-87-829 Service Center Maintenance $ 555,292 100-87-830 Quinlan Community Center Maintenance $ 637,103 100-87-831 Senior Center Maintenance $ 375,834 100-87-832 McClellan Ranch Maintenance $ 300,636 100-87-833 Monta Vista Community Center Maintenance $ 237,282 100-87-834 Wilson Park Maintenance $ 181,494 100-87-835 Portal Park Maintenance $ 31,870 570-87-836 Sports Center Maintenance $ 920,491 100-87-837 Creekside Park Maintenance $ 133,489 100-87-838 Community Hall Maintenance $ 283,406 100-87-839 Teen Center Maintenance $ 2,167 100-87-840 Park Bathrooms Maintenance $ 168,840 100-87-841 Blackberry Farm Maintenance $ 549,423 100-87-852 Franco Traffic Operations Center $ 64,548 100-87-857 City Hall Annex $ 4,046 Transportation $ 7,259,697 100-88-265 Community Shuttle $ 4,070,272 100-88-844 Traffic Engineering $ 1,422,418 100-88-845 Traffic Signal Maintenance $ 737,456 100-88-846 Safe Routes 2 School $ 1,029,551 Non-Departmental $ 799,884 630-90-985 Fixed Assets Acquisition $ 799,884 Total $ 47,545,655 Budget Unit Program 2026 Proposed Budget FY 2025-26 Proposed Budget Public Works 359 418 CC 05-15-2025 418 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 16,383,811 Total Expenditures $ 47,545,655 Fund Balance $ (8,627,515) General Fund Costs $ 24,375,996 % Funded by General Fund 51.3% Total Staffing 89.1 FTE Organization Chad Mosley, Director of Public Works The increase in staffing is due to the addition of one FTE in the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. Additionally, as part of an operational efficiencies strategy, three Part Time Maintenance Worker positions were combined into one FTE for the Trees and Right of Way Division. Notable Accomplishments Vision Zero Action Plan – The City Council unanimously adopted the Cupertino Vision Zero Action Plan. The Vision Zero Action Plan advances to the next level the efforts to achieve transportation safety improvements by identifying strategies to eliminate all fatal and serious injury accidents and by seDing achievable goals to do so. This initiative included the FY 2025-26 Proposed Budget Public Works 360 419 CC 05-15-2025 419 of 655 successful hosting of two community meetings, one stakeholder meeting and three Bicycle Pedestrian Commission (BPC) meetings. Speed Limit Reductions for Bike and Pedestrian Safety - In response to recent California legislation aimed at providing greater flexibility in seDing and adjusting speed limits, the Transportation Division has reduced speed limits on the street segments listed below. The street segments were chosen due to their importance as a walking or biking corridor, making the reduced speed limits a vital step towards achieving the City’s crash reduction goals outlined in Cupertino’s Vision Zero Action Plan. 11th annual Cupertino Fall Bike Fest - On Saturday, September 28, Safe Routes to School hosted the 11 annual Cupertino Fall Bike Fest at City Hall Plaza. The plaza was abuzz with more than 30 bike-related activities organized by local bike and environmental organizations and was attended by more than 600 people making it the most successful Fall Bike Fest to date. Silicon Valley Hopper - Successfully integrated three new, all-electric wheelchair-accessible vehicles (WAVs), replacing the fleet's previous gas-powered WAVs boasting an entirely all-electric lineup, ensuring all trips are zero-emission. Additionally, in collaboration with the City of Santa Clara, secured $500,000 from the Transportation Fund for Clean Air (TFCA) Program to help fund the third year (FY25-26) of the SV Hopper program. Bicycle and Pedestrian Safety Grant Funding – The Transportation Division received a $160,000 grant from the California Office of Transportation Safety (OTS) to enhance its Safe Routes to School (SR2S) Bicycle and Pedestrian Safety Program. The initiative, running through September 2025, aims to promote safe walking and biking practices and raise awareness among drivers to be mindful of pedestrians and cyclists. The grant will fund several activities, including pedestrian and bicycle safety training, helmet distribution and fitting, and community and school presentations on safety. McClellan Road Separated Bikeways Phase 3 – This bicycle and pedestrian enhancement project, located at the intersection of De Anza Boulevard and McClellan Road/Pacifica Drive, was completed and includes modification of the traffic signals, reconfiguration of the intersection layout, and new bicycle and pedestrian facilities including a new crosswalk across De Anza Blvd on the south leg of the intersection. The project completes the missing link between the recently completed Phases 1 and 2, and was partially funded by $1,000,000 in Congestion Mitigation and Air Quality (CMAQ) grant funding though the Vehicle Emissions Reduction Based at School (VERBS). SB 1383 update - Provided SB 1383 outreach to over 100 businesses and worked with Recology, the waste hauler, to ensure full SB 1383 compliance with the 600+ businesses and ensure proper sorting at CUSD elementary and middle schools. Garage Sale - Hosted the Citywide Garage Sale on September 28 & 29 with over 165 homes participating, over 4,000 views on the online map, and many buyers from all over the Bay Area Environmental Recycling and Paper Shredding Events - Staff collaborates with Recology to host four free opportunities per year for residents to drop off difficult-to-recycle materials such as e-waste, appliances, yard waste, and confidential documents Coat Collection - Collaborated with Recology and the Cupertino Library to collect over 5 barrels of new and gently used coats and jackets, which were donated to Sacred Heart Community Services to provide warmth to those in need Community Composting Classes - Staff coordinated with the UC Cooperative Extension to host two free backyard compost classes for residents to learn how to build compost piles, vermicompost, and apply the compost in their own garden or landscape Compliance activities - To comply with stormwater pollution prevention regulations, the City will conduct 78 preventative Industrial and Commercial Site Controls (IND) stormwater inspections. So far in 24-25 staff has responded to and resolved 38 reports of discharges and threats of discharge to the storm drain system for the Illicit Discharge Detection and Elimination (IDDE) program Creek Cleanups - Hosted a site at Wilson Park for Coastal Cleanup Day on September 21, 2024 with over fiVy-eight volunteers and a total of 196 pounds of trash and debris removed. The next event will be National River Clean Up Day in May 2025. “Decarbonization” of new buildings - Following suspension of Cupertino’s all-electric reach code in response to a court ruling in early 2024, in September 2024 the City Council approved an update to the building code to require newly constructed residential and commercial buildings to meet stricter energy efficiency requirements. Fleet electrification - Added two electric trucks to the fleet as required to comply with California’s Advanced Clean Fleet Regulation Climate Action Plan tracking - Launched an interactive climate action plan website in September 2024 to educate residents th FY 2025-26 Proposed Budget Public Works 361 420 CC 05-15-2025 420 of 655 about opportunities and programs, called ClimateNav Utility use and cost tracking - Contracted with a new utility management soVware called Nimble Energy to track over 400 monthly water and energy bills and streamline the payment process with the Finance Division Electric Vehicle Charger Study - Partnered with community engineers to conduct a detailed analysis of the location of electric vehicle chargers and determined where additional chargers could be located. The 719 locations were prioritized based on equity considerations, feasibility, and grant funding available. Cooper’s Clean Air Quest - On April 5, 2025, staff plan to publicly release the virtual reality home decarbonization game and supplementary website game at the Earth and Arbor Day Festival. This was funded by a grant from Silicon Valley Clean Energy. Grant to support LED streetlight conversion - Received approval for an Energy Efficiency and Conservation Block Grant (EECBG) program equipment rebate voucher from the Department of Energy for $127,590. The availability of the funds is now uncertain due to federal actions, but these funds would be used to help pay for the conversion of streetlights to use LED technology in order to reduce energy use and frequency of bulb replacements. Grant to support installation of Electric Vehicle Chargers - Joined a coalition of cities lead by the City of San Jose and Silicon Valley Clean Energy in applying for the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. The project received notice of being selected, but that is now uncertain due to federal action. The grant would have provided about $500,000 for the installation of electric vehicle chargers at the Sports Center that would have allowed public charging during the day and SV Hopper vehicle charging overnight. Access to CRV Redemption - Continued partnership with Recycletek, which operates an AI- assisted California Redemption Value (CRV) recycling EcoTrailer designed to make geDing the five, ten, or twenty-five cents back per container easier. The trailer operates two days a week in Cupertino, at Creekside Park and Mary Avenue. Since Recycletek began operations in Cupertino in August 2023, two thousand customers have redeemed 801,000 containers. Plan reviews - To comply with debris management, sustainability, and stormwater regulations, the division has conducted 426 reviews of building and demolition permits. If trends continue, staff expects to review about 700 plan reviews during the year. Between January 1, 2024 and December 31, 2024, 126 development applications and 442 encroachment permit applications were received and processed. Additionally, 562 customer visits were registered at the Public Works counter. The following CIP projects were completed this year: Vai Avenue Storm Drain Outfall repair, with the outfall replacement at a future date Regnart Road Improvements (Phase 1) Blackberry Farm Pools Improvements McClellan Road Separated Bike Corridor, Phase 3 – the intersection at De Anza and Pacifica De Anza Boulevard Buffered Bike Lanes Successful application for external funding - EECBG grant from US DOE for City Lighting LED improvements project ($125,790) Cupertino Municipal Water System – Completed the new lease agreement with San Jose Water to operate and maintain the City’s Municipal Water System for 12 years with an option to extend the lease for an additional 8 years for a total of 20 years. San Jose Water will complete Capital Improvement Projects to improve the water system annually. Storm Drain Outfall Assessment Project – Completed the inspection of the storm drain outfall (last segment pipeline) and structure to determine its condition. Information will be used to development a rehabilitation or replacement of the outfall infrastructure. Street Sweeping Services – A new contract was initiated and completed to continue the street sweeping service for residential, commercial and bicycle lanes within the City. New Initiatives Post-Collection Services -Staff continues to work to assemble options for disposal and management of garbage and construction and demolition debris aVer collection. Staff plans to bring that item to Council for consideration in Spring 2025. Compliance activities - Division staff is actively working with GIS to digitize two stormwater inspection forms for the IND and IDDE programs, leading to staff time efficiency Bi-lingual Induction Cooking Demo - Following a successful induction cooking demonstration event with celebrity chef Martin Yan, the City plans to host a second cooking demonstration focused on Indian cuisine. Induction cooking technology is a very responsive and energy efficient electric alternative to cooking on a gas stove. Decarbonization of Existing Buildings – Policy Development - In September 2024, staff hosted a workshop for commercial business and property owners to discuss potential new regulations regarding building energy benchmarking and FY 2025-26 Proposed Budget Public Works 362 421 CC 05-15-2025 421 of 655 performance standards. An additional workshop was held in partnership with the Chamber of Commerce on December 5, 2024, specifically designed to educate small business owners about available resources. Additional meetings will be organized to ensure ongoing input and engagement from commercial property stakeholders. From March to April 2025, staff will conduct a residential survey to gather feedback from residents about existing home electrification policies and programs. Outreach efforts will focus on inclusive engagement, targeting residents in Below Market Rate rental and ownership programs, low-income and fixed-income individuals, historically underserved communities, seniors, and individuals with disabilities requiring access support. This approach aims to ensure that future electrification policies and programs are equitable and comprehensive. Surveys will be distributed through the City’s Green NewsleDer, social media channels, in-person community pop-up events, and door-to-door outreach. This community engagement will help fulfill specific actions outlined in Measure BE-2 of the City’s Climate Action Plan 2.0. FY 2025-26 Proposed Budget Public Works 363 422 CC 05-15-2025 422 of 655 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Percentage of projects completed on budget 100%100%100%95% Percentage of construction projects completed on time 100%100%100%95% Environment Goal: Protect our natural environment for current and future generations. Benefit: Current and future residents enjoy a healthy, sustainable environment. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Percent of businesses in compliance during annual proactive stormwater pollution prevention inspections 95%93%67%75% Percent of non-exempt businesses and multi-family accounts separating organics 87%98%99%100% (SB1383) Percent trash/litter reduction achieved to meet Stormwater Permit requirements 94%97%N/A 100% by 7/1/2025 Diversion rate from all single-family, multi-family, and commercial accounts as reported by Recology tonnage reports 53%48%50%55% Respond to reports of actual or potential discharge the same business day 86%72%71%95% % of plan reviews completed in required number of days 93%92%92%100% Cubic yards of compost distributed via compost site Quarry: 600CY SMaRT Station: 789CY Compost; 239CY Mulch Quarry: 180 CY SMaRT Station: 580 CY Compost 45.45 CY Mulch Quarry: 0 CY SMaRT Station: 278.18 CY Compost 21.82 CY Mulch 1,000 CY % of vegetation obstructions resolved within 15 days from time of report* 37%68%N/A 100% *Inspections occur in the spring only Development Services FY 2025-26 Proposed Budget Public Works 364 423 CC 05-15-2025 423 of 655 Goal: Provide timely review and permitting of privately completed improvements within the public right of way. Benefit: Customers can expect quality reviews and permiDing on a defined schedule, and the community can expect quality public facilities. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Respond to complete plan submittals or applications within two (2) weeks 94%88%77%90% Respond to complete encroachment permit applications within two (2) weeks 94%92%90%90% Respond to public inquiries at the Public Works counter in City Hall within 15 minutes 95%95%95%95% 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Percentage of 311 requests that are responded to and closed within 3 business days 62%59%47%80% Percentage of the 1,872 park inspections, including play grounds, performed weekly 31%37%59%100% Percentage of Backflow Prevention Devices inspected, tested and repaired annually 100%100%100%100% 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 2025-26 Proposed Budget Public Works 365 424 CC 05-15-2025 424 of 655 Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Pavement condition index (PCI) > or equal to 82 81 82 82 82 Percent of the 2087 storm drain inlets inspected and cleaned in fiscal year 53%21%12%100% Percent of Inlets with Trash Capture Screens inspected and cleaned twice yearly 100%100%50%100% Percentage of roadway regulatory & street name signs repaired or replaced 2.0%5.0%5.0%7% Percentage of trip and fall complaints investigated and mitigated within 2 business days 72%60%84%98% Percentage of reported streetlight outages investigated and repaired in 3 business days 90%90%90%90% 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Percentage of 311 requests that are responded to and closed within 3 business days 90%90%90%95% Percentage of trees inspected and maintained in the yearly maintenance zone (8-year maintenance cycle)22%87%48%100% Percentage of trees planted versus trees removed # planted/# removed 146% 153/105 68% 77/114 88% 44/55 101% 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Percentage of preventative maintenance work orders completed for Fleet assets within 14 days of the due date.54%69%72%85% Percentage of facilities maintenance requests closed within 30 days.35%66%63 90% FY 2025-26 Proposed Budget Public Works 366 425 CC 05-15-2025 425 of 655 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 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 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target % community-wide emissions reduced from baseline of 307,288 MT CO2e/yr 2018 inventory: 24% decrease in emissions from baseline (258,659 MT CO2e/yr) 15% reduction by 2020 (261,195 MT CO2e/yr) Initiate, develop, and complete actions from the Climate Action Plan 2.0 % initiated % complete or ongoing (CAP 1.0)100% 79% 6% 4% 28% 10% 100% 100% % municipal operations emissions reduced from baseline of 1,865 MT CO2e/yr 2018 inventory: 66% reduction in emissions from baseline: 642 MTCO2e 15% reduction by 2020 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. Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Ongoing Target Percentage of non-emergency traffic signal requests addressed within 72 hours. 95%100%100%100% Percentage of emergency traffic signal requests addressed within 2 hours.100%100%100%100% Percentage of traffic engineering requests responded to within 72 hours 85%90%90%95% Annual mileage increase of separated bicycle lanes and pedestrian paths..82 0.00 0.2 1 mile FY 2025-26 Proposed Budget Public Works 367 426 CC 05-15-2025 426 of 655 Workload Indicators Capital Improvement Program Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of projects started in the first year funded 4/5 2/2 6/6 Number of active projects versus total number of projects 24/26 23/28 17/25 Environmental Programs Division Performance Measure FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of actual versus potential discharges 93 actual 27 potential 104 actual 17 potential 25 actual 13 potential Number of stormwater pollution prevention industrial commercial inspections 136 160 2 so far Number of building and demolition permits reviewed 754 662 327 so far Number of non-exempt businesses and multi-family accounts required to separate organics 272 475 471 Tons of waste entering landfill from single-family, multi-family, and commercial accounts as reported by Recology 'July 1,2022- June 30,2023: 11,879.39 13,008 6,324 Number of visitors to compost site '(FY22-23) Quarry: 910; SMaRT Station: Compost (397) Mulch (103) 'Quarry: 913 SMaRT Station: Compost (506) Mulch (148) 'Quarry: 411 SMaRT Station: Compost (220) Mulch (54) Number of vegetation obstructions reported 95 25 N/A Developmental Services Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of development applications received 127 111 70 Number of encroachment permit applications received 449 478 218 Number of customer service visits 358 471 206 Grounds Division FY 2025-26 Proposed Budget Public Works 368 427 CC 05-15-2025 427 of 655 Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Maintain city grounds (#) with total acreage (SF)29 sites/149 AC 29 sites/149AC 29 sites/149AC Maintain school sites (#)with total acreage (SF)9 sites/46AC 9 sites/46AC 9 sites/46AC Total Number of 311 Requests 45 69 32 Total number of playgrounds maintained 37 37 37 Total number of irrigation controllers maintained 74 74 74 Total number of park trees maintained 5,223 5,361 5,361 Total number of park furniture maintained (tables and benches)431 431 431 Total number of city trash receptacles maintained 420 420 420 Total number of backflow preventers maintained 174 174 174 Streets Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Total roadway miles 138 138 138 Total concrete sidewalk miles 196 196 196 Total number of unique sidewalk repair sites addressed 730 258 211 Total square footage of sidewalk, curb and gutter repaired/replaced 46,466 30,996 5,425 Total number of storm drain inlets 2,094 2,103 2,103 Total number of drain inlets with trash capture devices 179 182 200 Total number of streetlights 3,413 3,421 3,421 Total number of roadway signs 10,394 10,444 10,494 Total miles of storm drain pipe maintained 104.7 104.7 104.7 Total number of crosswalks maintained 723 723 723 Total miles of pavement striping maintained 162 162 162 Total number of street miles swept monthly 696 696 696 Trees and Right of Way Division FY 2025-26 Proposed Budget Public Works 369 428 CC 05-15-2025 428 of 655 Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Total number of street trees 1,922 Trees Maintained 2,828 Trees Maintained 1,696 Trees Maintained Total acreage of medians maintained 40 AC 40 AC 40 AC Total number of median islands maintained 185 185 185 Total square feet of median landscape converted or installed to water efficent landscaping 16,873 0 Defunded 0 Defunded Total number of irrigation controllers maintained 45 45 45 Total number of 311 Requests for tree maintenance 386 473 332 Miles of pedestrian and bicycle trails maintained 0.85 3.0+3.0+ Facilities and Fleet Division Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Total number of city facilities maintained 51/221,500 SF 51/221,500 SF 51/221,500 SF Total number of Fleet vehicles maintained 105 107 107 Total number of special equipment maintained (tractors, trailers, chippers, riding mowers, club car, forklift, generator)329 329 329 Total number of small equipment maintained 278 278 278 Total number of work orders completed 1,836 Facilities 553 Fleet 1,772 Facilities 693 Fleet 1,105 Facilities 395 Fleet Fleet vehicles replaced with hybrid and/or electric models 1 3 2 Annual number of site visits to ensure janitorial compliance 1,628 1,628 1,628 Sustainability Division FY 2025-26 Proposed Budget Public Works 370 429 CC 05-15-2025 429 of 655 Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Climate Action Plan 2.0 Actions initiated or in Progress 8 22 30 Climate Action Plan 2.0 Actions Completed 5 7 14 Community Education and Outreach Activities Held 5 5 14 Cross-Departmental Projects Supporting 9 5 9 Number of municipal and community programs leading or supporting 8 8 3 Transportation Workload Indicator FY 2023 July-June FY 2024 July-June FY 2025 July-Dec Number of signalized intersections 60 60 60 Special Projects The following table shows the special projects for the department. Special Project Appropriation Revenue Funding Source Description Greenhouse Gas Inventory Assessment $40,000 $40,000 General Fund The City of Cupertino must conduct a greenhouse gas emissions assessment at least every three years to maintain CEQA certification, with the last assessment conducted for CY 2021. These assessments are essential to track progress to the City’s goal of carbon neutrality by 2040. Energy Management System Replacement $160,000 $160,000 General Fund The Energy Management System (EMS) at the Sports Center has reached the end of its useful life. EMS upgrades are required every 10 years. The new EMS allows remote HVAC adjustments, which will greatly enhance the building comfort for residents after hours and weekends. Total $200,000 $200,000 Proposed Budget FY 2025-26 Proposed Budget Public Works 371 430 CC 05-15-2025 430 of 655 Proposed Budget It is recommended that City Council approve a budget of $47,545,655 for the Public Works department. This represents an increase of $4,570,716 (10.6%) from the FY 2024-25 Adopted Budget. This increase is due mainly to an increase in Cost Allocation expenses, five new City Work Program (CWP) projects, Contract Services, and Materials which now includes Contingencies in addition to utility rate increases. This budget includes $5,266,412 under Special Projects. CWP items are no longer considered Special Projects per the new City Council Special Project Policy but are discussed here for ease of tracking and transparency. CWP will remain in the Special Project expense category as a way to track these projects but will be reported separately from all other Special Projects that fall under the policy. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract, material, contract services, or capital outlay expense categories. In addition, contingency dollars have been calculated off of department's FY 2025-2026 base budget materials and contracts and have been consolidated into materials. For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. This budget also includes the following City Work Program items in addition to department requests totaling, $2,048,699: City Properties: Planning for Optimal Use - $200,000 Traffic Impact Fee - $300,000 Parkland Impact Fee - $300,000 Water Conservation Policy - $250,000 Urban Forest Program/Tree List - $140,000 Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. FY 2025-26 Proposed Budget Public Works 372 431 CC 05-15-2025 431 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 22.5% 15.3% 14.3%13.5% 11.4% 10.3% 5.3%Streets Transportation Grounds Facilities and Fleet Environmental Programs Trees and Right of Way Developmental Services Public Works Administration Service Center Non-Departmental $35.7M $36.8M $43.0M $47.5M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Public Works 373 432 CC 05-15-2025 432 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 476,593 $ 460,753 $ 404,702 $ 2,383,889 Intergovernmental Revenue $ 2,046,373 $ 3,704,979 $ 5,568,027 $ 6,405,432 Charges for Services $ 6,234,697 $ 7,274,754 $ 8,475,550 $ 7,503,009 Fines and Forfeitures $ 23,371 $ 2,746 $ 20,000 $ 10,000 Miscellaneous Revenue $ 83,004 $ 912,796 $ 79,289 $ 66,481 Transfers In $ 861,140 $ 15,467 $ 15,000 $ 15,000 Total Revenues $ 9,725,178 $ 12,371,495 $ 14,562,568 $ 16,383,811 Expenditures Employee Compensation $ 10,465,362 $ 9,960,336 $ 10,518,310 $ 10,511,117 Employee Benefits $ 4,261,311 $ 4,890,084 $ 5,551,949 $ 5,237,756 Materials $ 4,294,618 $ 4,222,395 $ 4,975,752 $ 5,075,685 Contract Services $ 4,223,613 $ 6,522,314 $ 8,457,958 $ 9,538,041 Cost Allocation $ 6,429,988 $ 6,614,696 $ 7,493,827 $ 9,320,179 Capital Outlays $ 1,042,673 $ 1,045,618 $ 1,030,224 $ 1,857,508 Special Projects $ 4,323,798 $ 3,028,103 $ 4,104,420 $ 5,266,412 Other Financing Uses $ 674,604 $ 527,123 $ 674,604 $ 738,957 Transfers Out $ -$ 20,000 $ -$ - Contingencies $ -$ -$ 167,895 $ - Total Expenditures $ 35,715,967 $ 36,830,669 $ 42,974,939 $ 47,545,655 Fund Balance $ (4,992,722)$ (1,416,086)$ (6,625,874)$ (8,627,515) General Fund Costs $ 20,998,068 $ 23,043,551 $ 21,786,497 $ 24,375,996 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.95 1.95 1.95 1.95 ASSISTANT ENGINEER 2.00 2.00 1.90 2.00 ASSIST DIR OF PW ENGINEER 1.00 0 0 0 ASSIST DIR PUBLIC WORKS OPS 1.00 1.00 1.00 1.00 ASSOCIATE CIVIL ENGINEER 0 0 1.00 1.00 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 COMPLIANCE TECH 0 0 1.00 1.00 ENVIRONMENTAL PROGRAM MGR 1.00 1.00 1.00 1.00 FY 2025-26 Proposed Budget Public Works 374 433 CC 05-15-2025 433 of 655 ENVIRONMENTAL PROGRAMS ASSISTANT 3.65 3.65 4.00 4.00 ENVIRONMENTAL PROG SPECIALIST 0 0 0 1.00 ENV. PROG. COMPLIANCE TECHNICIAN 1.00 1.00 1.00 1.00 ENV. PROGRAMS SPECIALIST 1.00 1.00 0.95 0.95 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 43.00 41.00 43.00 MAINTENANCE WORKER III 8.00 7.00 8.00 8.00 MANAGEMENT ANALYST 1.20 1.20 1.00 2.00 PUBLIC WORKS INSPECTOR 2.00 2.00 2.00 2.00 PUBLIC WORKS PROJECT MANAGER 4.00 2.00 1.00 1.00 PUBLIC WORKS PROJECT MANAGER 2.00 2.00 1.00 1.00 PUBLIC WORKS PROJECT MANAGER LT 1.00 0 0 0 PUBLIC WORKS SUPERVISOR 4.00 4.00 5.00 4.00 RECREATION COORDINATOR 0.12 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 0 SR BUILDING INSPECTOR 0.02 0.02 0.02 0.02 SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00 SR. PUBLIC WORKS PROJECT MANAGER 0 1.00 0 0 STREET LIGHTING WORKER 1.00 1.00 1.00 1.00 SUSTAINABILITY MANAGER 0.20 0.20 0 0 TRAFFIC SIGNAL TECHNICIAN 2.00 2.00 2.00 2.00 TRANSIT & TRANSPORTATION PLANNER 1.00 1.00 1.00 1.00 TRANSPORTATION MANAGER 0.90 0.90 1.00 1.00 Total 94.12 88.12 87.02 89.12 Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Public Works 375 434 CC 05-15-2025 434 of 655 Public Works Administration Budget Unit 100-80-800 General Fund - Public Works Administration - Public Works Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ 107,241 Total Expenditures $ 1,594,162 Fund Balance $ - General Fund Costs $ 1,486,921 % Funded by General Fund 93.3% Total Staffing 4.0 FTE Program Overview The Public Works Department is comprised of the following eight divisions: Capital Improvement Program Administration Development Services (including inspection services) Environmental Programs & Sustainability Facilities and Fleet Grounds Streets Transportation Trees and Right-of-Way Service Objectives Provide capital project delivery, development plan check, permiDing 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 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, sustainability efforts and recycling programs. Proposed Budget It is recommended that City Council approve a budget of $1,594,162 for the Public Works Administration program. This represents an increase of $282,512 (21.5%) from the FY 2024-25 Adopted Budget. This increase is due to the addition of two City Work Programs: $200,000 City Properties: Planning for Optimal Use and $300,000 for Parkland Impact Fee Study. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 376 435 CC 05-15-2025 435 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 88,625 $ 104,625 $ 80,580 $ 107,241 Total Revenues $ 88,625 $ 104,625 $ 80,580 $ 107,241 Expenditures Employee Compensation $ 638,605 $ 668,388 $ 748,080 $ 729,570 Employee Benefits $ 210,435 $ 248,207 $ 286,549 $ 276,207 Materials $ 8,195 $ 8,692 $ 10,837 $ 15,480 Contract Services $ 792 $ 267 $ 792 $ 792 Cost Allocation $ -$ -$ 65,247 $ 72,113 Special Projects $ -$ 16,866 $ 200,000 $ 500,000 Contingencies $ -$ -$ 145 $ - Total Expenditures $ 858,027 $ 942,420 $ 1,311,650 $ 1,594,162 Fund Balance $ -$ -$ -$ - General Fund Costs $ 769,401 $ 837,795 $ 1,231,070 $ 1,486,921 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.95 0.95 0.95 0.95 ASSIST DIR OF PW ENGINEER 0.50 0 0 0 DIRECTOR OF PUBLIC WORKS 1.00 1.00 1.00 1.00 MANAGEMENT ANALYST 1.00 1.00 1.00 2.00 SENIOR MANAGEMENT ANALYST 1.00 1.00 1.00 0 Total 4.45 3.95 3.95 3.95 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 377 436 CC 05-15-2025 436 of 655 Sustainability Budget Unit 100-81-122 General Fund - Environmental Programs - Sustainability Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 418,126 Fund Balance $ - General Fund Costs $ 418,126 % Funded by General Fund 100.0% Total Staffing 1.1 FTE Program Overview The Sustainability Division works to implement the City's Climate Action Plan, provides subject maDer 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. Support the City's Sustainability Commission, a citizen advisory body that helps the City Council to implement effective climate actions. 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. Proposed Budget It is recommended that City Council approve a budget of $418,126 for the Sustainability program. This represents an increase of $18,863 (4.7%) from the FY 2024-25 Adopted Budget. In FY 2024-2025, this program was moved from the City Manager's Office. The prior year data can be found under Budget Unit 100-12-122. The increase is primarily due to the request for a special project listed below. Special Projects FY 2025-26 Proposed Budget Public Works 378 437 CC 05-15-2025 437 of 655 Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Greenhouse Gas Inventory Assessment $40,000 $40,000 General Fund The City of Cupertino must conduct a greenhouse gas emissions assessment at least every three years to maintain CEQA certification, with the last assessment conducted for CY 2021. These assessments are essential to track progress to the City’s goal of carbon neutrality by 2040. Total $40,000 $40,000 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Miscellaneous Revenue $ -$ 4,193 $ -$ - Total Revenues $ -$ 4,193 $ -$ - Expenditures Employee Compensation $ -$ 11,583 $ 133,784 $ 136,157 Employee Benefits $ -$ 53,353 $ 68,839 $ 56,389 Materials $ -$ 9,656 $ 13,881 $ 22,605 Contract Services $ -$ 138,621 $ 32,150 $ 72,000 Cost Allocation $ -$ 178,396 $ 90,034 $ 90,975 Special Projects $ -$ 8,560 $ 60,000 $ 40,000 Contingencies $ -$ -$ 575 $ - Total Expenditures $ -$ 400,169 $ 399,263 $ 418,126 Fund Balance $ -$ -$ -$ - General Fund Costs $ -$ 395,976 $ 399,263 $ 418,126 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ENVIRONMENTAL PROGRAM MGR 0 0 0.10 0.10 ENVIRONMENTAL PROGRAMS ASSISTANT 0 0 0.50 0.50 ENV. PROGRAMS SPECIALIST 0 0 0.45 0.45 Total 0 0 1.05 1.05 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 379 438 CC 05-15-2025 438 of 655 Resource Recovery Budget Unit 520-81-801 Resource Recovery - Environmental Programs - Resource Recovery Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,668,508 Total Expenditures $ 2,966,958 Fund Balance $ (1,298,450) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 4.8 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; manages the City's garbage disposal contract; 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 commiDees. 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, garbage disposal, 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. Proposed Budget It is recommended that City Council approve a budget of $2,966,958 for the Resource Recovery program. This represents a decrease of $256,032 (-7.9%) from the FY 2024-25 Adopted Budget. The decrease is primarily due to a reduction in Special Projects from last fiscal year. The decrease is also due to a Public Works Supervisor position that was underfilled as an Environmental Program Specialist based on the current duties and tasks assigned to that position. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 380 439 CC 05-15-2025 439 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 55,692 $ 93,792 $ -$ 64,374 Intergovernmental Revenue $ 98,851 $ -$ 14,000 $ 14,812 Charges for Services $ 1,673,401 $ 1,563,696 $ 1,645,000 $ 1,589,322 Miscellaneous Revenue $ -$ 799,800 $ -$ - Total Revenues $ 1,827,944 $ 2,457,288 $ 1,659,000 $ 1,668,508 Expenditures Employee Compensation $ 491,610 $ 539,745 $ 627,624 $ 600,806 Employee Benefits $ (4,589)$ 287,207 $ 310,226 $ 251,368 Materials $ 53,654 $ 6,609 $ 233,125 $ 260,497 Contract Services $ 1,052,344 $ 862,334 $ 1,380,016 $ 1,386,403 Cost Allocation $ 231,017 $ 267,029 $ 440,614 $ 464,570 Special Projects $ 213,765 $ 264,858 $ 210,733 $ - Other Financing Uses $ 513 $ -$ 513 $ 3,314 Transfers Out $ -$ 20,000 $ -$ - Contingencies $ -$ -$ 20,139 $ - Total Expenditures $ 2,038,314 $ 2,247,782 $ 3,222,990 $ 2,966,958 Fund Balance $ (210,370)$ 209,506 $ (1,563,990)$ (1,298,450) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ENVIRONMENTAL COMPLIANCE TECH 0 0 0.50 0.50 ENVIRONMENTAL PROGRAM MGR 0.50 0.50 0.50 0.50 ENVIRONMENTAL PROGRAMS ASSISTANT 2.30 2.30 2.15 2.15 ENVIRONMENTAL PROG SPECIALIST 0 0 0 0.70 ENV. PROG. COMPLIANCE TECHNICIAN 0.05 0.05 0.50 0.50 ENV. PROGRAMS SPECIALIST 0.40 0.40 0.40 0.40 MANAGEMENT ANALYST 0.05 0.15 0 0 PUBLIC WORKS SUPERVISOR 0 0 0.70 0 SUSTAINABILITY MANAGER 0.20 0.20 0 0 Total 3.50 3.60 4.75 4.75 A Public Works Supervisor position was underfilled as an Environmental Program Specialist based on the current duties and tasks assigned to that position. FY 2025-26 Proposed Budget Public Works 381 440 CC 05-15-2025 440 of 655 Non-Point Source Budget Unit 230-81-802 Env Mgmt Cln Creek Storm Drain - Environmental Programs - Non-Point Source Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,514,373 Total Expenditures $ 1,457,191 Fund Balance $ 57,182 General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 2.5 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 liDer reduction plan are among the requirements of the City’s Non-Point Source program. Collection and management of storm water for the City is regulated under the terms of a Bay Area-wide State-mandated National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit. 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 liDer 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. Represent the City on county and regional commiDees to prevent creek and San Francisco Bay pollution, erosion, and illegal dumping. Proposed Budget It is recommended that City Council approve a budget of $1,457,191 for the Non-Point Source program. This represents a decrease of $25,556 (-1.7%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged since last fiscal year. FY 2025-26 Proposed Budget Public Works 382 441 CC 05-15-2025 441 of 655 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 864 $ 2,849 $ -$ - Charges for Services $ 1,497,204 $ 1,500,757 $ 1,865,000 $ 1,504,373 Fines and Forfeitures $ 23,371 $ 2,746 $ 20,000 $ 10,000 Total Revenues $ 1,521,439 $ 1,506,352 $ 1,885,000 $ 1,514,373 Expenditures Employee Compensation $ 393,277 $ 417,081 $ 326,870 $ 324,750 Employee Benefits $ 157,891 $ 177,674 $ 168,021 $ 143,125 Materials $ 34,765 $ 34,052 $ 38,097 $ 45,666 Contract Services $ 291,791 $ 302,890 $ 365,570 $ 393,007 Cost Allocation $ 195,816 $ 200,578 $ 568,436 $ 550,643 Special Projects $ 12,161 $ -$ 10,707 $ - Contingencies $ -$ -$ 5,046 $ - Total Expenditures $ 1,085,701 $ 1,132,275 $ 1,482,747 $ 1,457,191 Fund Balance $ 435,739 $ 374,077 $ 402,253 $ 57,182 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget BUILDING INSPECTOR 0.08 0.08 0.08 0.08 ENVIRONMENTAL COMPLIANCE TECH 0 0 0.50 0.50 ENVIRONMENTAL PROGRAM MGR 0.50 0.50 0.40 0.40 ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0.35 0.35 0.35 ENVIRONMENTAL PROG SPECIALIST 0 0 0 0.30 ENV. PROG. COMPLIANCE TECHNICIAN 0.95 0.95 0.50 0.50 ENV. PROGRAMS SPECIALIST 0.60 0.60 0.10 0.10 MAINTENANCE WORKER III 0.10 0 0 0 PUBLIC WORKS INSPECTOR 0.10 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0 0 0.30 0 RECREATION COORDINATOR 0.12 0.12 0.12 0.12 SR BUILDING INSPECTOR 0.02 0.02 0.02 0.02 Total 2.82 2.72 2.47 2.47 FY 2025-26 Proposed Budget Public Works 383 442 CC 05-15-2025 442 of 655 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 384 443 CC 05-15-2025 443 of 655 Storm Drain Fee Budget Unit 230-81-853 Env Mgmt Cln Creek Storm Drain - Environmental Programs - Storm Drain Fee Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing FTE Program Overview A portion of the collected Clean Water and Storm Protection Fee is allocated for rebates on activities that reduce stormwater runoff and pollution. Currently, these are split between offering matching Valley Water rebates on rainwater gardens, rainwater collection, and turf replacement installations and offering City-managed rebates for residential pervious pavement installations. Collection and management of storm water for the City is regulated under the terms of a Bay Area-wide State-mandated National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit. 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. Proposed 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Cost Allocation $ 528 $ 924 $ -$ - Special Projects $ 175 $ 19,512 $ -$ - Total Expenditures $ 703 $ 20,436 $ -$ - Fund Balance $ (703)$ (20,436)$ -$ - General Fund Costs $ -$ -$ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Public Works 385 444 CC 05-15-2025 444 of 655 General Fund Subsidy Budget Unit 230-81-854 Env Mgmt Cln Creek Storm Drain - Environmental Programs - General Fund Subsidy Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 11,990 Fund Balance $ (11,990) 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. Proposed Budget It is recommended that City Council approve a budget of $11,990 for the General Fund Subsidy 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Contract Services $ -$ -$ -$ 10,967 Cost Allocation $ 347 $ 1,296 $ -$ 1,023 Special Projects $ 8,984 $ 47 $ -$ - Total Expenditures $ 9,331 $ 1,343 $ -$ 11,990 Fund Balance $ (9,331)$ (1,343)$ -$ (11,990) General Fund Costs $ -$ -$ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Public Works 386 445 CC 05-15-2025 445 of 655 Storm Drain Maintenance Budget Unit 230-81-855 Env Mgmt Cln Creek Storm Drain - Environmental Programs - Storm Drain Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 585,050 Fund Balance $ (585,050) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 1.9 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 State-mandated National Pollutant Discharge Elimination System (NPDES) 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. Proposed Budget It is recommended that City Council approve a budget of $585,050 for the Storm Drain Maintenance program. This represents an increase of $155,324 (36.1%) from the FY 2024-25 Adopted Budget. This program also includes $40,000 one-time costs for Storm Drain Grates Replacement. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 387 446 CC 05-15-2025 446 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 813 $ -$ -$ - Total Revenues $ 813 $ -$ -$ - Expenditures Employee Compensation $ 233,198 $ 135,296 $ 197,556 $ 206,852 Employee Benefits $ 95,921 $ 81,259 $ 112,588 $ 107,007 Materials $ 32,796 $ 26,191 $ 37,924 $ 66,527 Contract Services $ 21,556 $ 130,506 $ 50,000 $ 50,000 Cost Allocation $ 136,173 $ 143,344 $ 30,559 $ 154,664 Special Projects $ -$ 128,895 $ -$ - Contingencies $ -$ -$ 1,099 $ - Total Expenditures $ 519,644 $ 645,491 $ 429,726 $ 585,050 Fund Balance $ (518,831)$ (645,490)$ (429,726)$ (585,050) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 1.80 1.75 1.00 1.05 MAINTENANCE WORKER III 0.20 0.20 0.60 0.60 PUBLIC WORKS SUPERVISOR 0.25 0.25 0.25 0.25 Total 2.25 2.20 1.85 1.90 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Public Works 388 447 CC 05-15-2025 447 of 655 Plan Review Budget Unit 100-82-804 General Fund - Developmental Services - Plan Review Budget at a Glance 2026 Proposed Budget Total Revenues $ 3,048,070 Total Expenditures $ 1,395,413 Fund Balance $ - General Fund Costs $ 189,010 % Funded by General Fund 13.5% Total Staffing 3.9 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 aVer 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 ADorney’s Office, Public Works Maintenance and Operations and Parks and Recreation as needed to facilitate private developments and public infrastructure projects. Proposed Budget It is recommended that City Council approve a budget of $1,395,413 for the Plan Review program. This represents an increase of $18,156 (1.3%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 389 448 CC 05-15-2025 448 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 186,315 $ 180,954 $ 186,315 $ 2,092,796 Charges for Services $ 824,123 $ 1,020,162 $ 1,302,923 $ 954,500 Miscellaneous Revenue $ 228 $ 1,240 $ 228 $ 774 Total Revenues $ 1,010,666 $ 1,202,356 $ 1,489,466 $ 3,048,070 Expenditures Employee Compensation $ 808,538 $ 634,452 $ 589,108 $ 585,399 Employee Benefits $ 312,429 $ 264,836 $ 286,348 $ 277,793 Materials $ 4,374 $ 2,019 $ 6,389 $ 8,476 Contract Services $ 55,124 $ 149,795 $ 88,268 $ 93,145 Cost Allocation $ 278,699 $ 274,644 $ 405,961 $ 430,600 Special Projects $ 31,649 $ 30,403 $ -$ - Contingencies $ -$ -$ 1,183 $ - Total Expenditures $ 1,490,813 $ 1,356,149 $ 1,377,257 $ 1,395,413 Fund Balance $ -$ -$ -$ - General Fund Costs $ 480,147 $ 153,793 $ (112,209)$ 189,010 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSIST DIR OF PW ENGINEER 0.20 0 0 0 ASSOCIATE CIVIL ENGINEER 0 0 1.00 1.00 ENGINEERING TECHNICIAN 1.00 1.00 1.00 1.00 PUBLIC WORKS INSPECTOR 0.90 0.90 0.90 0.90 SENIOR CIVIL ENGINEER 2.00 2.00 1.00 1.00 Total 4.10 3.90 3.90 3.90 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 390 449 CC 05-15-2025 449 of 655 CIP Administration Budget Unit 100-82-806 General Fund - Developmental Services - CIP Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 1,147,808 Fund Balance $ - General Fund Costs $ 1,147,808 % Funded by General Fund 100.0% Total Staffing 4.3 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. Proposed Budget It is recommended that City Council approve a budget of $1,147,808 for the CIP Administration program. This represents an increase of $79,744 (7.5%) from the FY 2024-25 Adopted Budget. The increase is primarily due to staffing reallocation. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 391 450 CC 05-15-2025 450 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 1,029,501 $ 651,436 $ 689,299 $ 756,817 Employee Benefits $ 393,281 $ 314,553 $ 298,259 $ 300,650 Materials $ 9,869 $ 2,994 $ 12,823 $ 15,378 Cost Allocation $ -$ -$ 67,523 $ 74,963 Contingencies $ -$ -$ 160 $ - Total Expenditures $ 1,432,651 $ 968,983 $ 1,068,064 $ 1,147,808 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,432,651 $ 968,983 $ 1,068,064 $ 1,147,808 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT ENGINEER 0.50 0.50 0.50 1.00 ASSIST DIR OF PW ENGINEER 0.20 0 0 0 CIP MANAGER 1.00 1.00 1.00 1.00 PUBLIC WORKS PROJECT MANAGER 3.25 1.25 0.25 0.25 PUBLIC WORKS PROJECT MANAGER 2.00 2.00 1.00 1.00 PUBLIC WORKS PROJECT MANAGER LT 0.50 0 0 0 SENIOR CIVIL ENGINEER 0 0 1.00 1.00 SR. PUBLIC WORKS PROJECT MANAGER 0 1.00 0 0 Total 7.45 5.75 3.75 4.25 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Public Works 392 451 CC 05-15-2025 451 of 655 Service Center Administration Budget Unit 100-83-807 General Fund - Service Center - Service Center Administration Budget at a Glance 2026 Proposed Budget Total Revenues $ 67,757 Total Expenditures $ 1,108,056 Fund Balance $ - General Fund Costs $ 1,040,299 % Funded by General Fund 93.9% Total Staffing 3.0 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 guDer, 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 wriDen 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. Proposed Budget It is recommended that City Council approve a budget of $1,108,056 for the Service Center Administration program. This represents an increase of $48,909 (4.6%) from the FY 2024-25 Adopted Budget. The increase is due to increases 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 393 452 CC 05-15-2025 452 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 111,719 $ 44,156 $ 111,719 $ 67,150 Miscellaneous Revenue $ 155 $ 32,319 $ 155 $ 607 Total Revenues $ 111,874 $ 76,475 $ 111,874 $ 67,757 Expenditures Employee Compensation $ 469,977 $ 430,891 $ 449,862 $ 445,492 Employee Benefits $ 197,212 $ 196,301 $ 229,031 $ 210,430 Materials $ 200,772 $ 140,573 $ 154,202 $ 168,991 Contract Services $ 31,508 $ 22,605 $ 17,682 $ 50,000 Cost Allocation $ 294,735 $ 229,276 $ 156,221 $ 233,143 Special Projects $ 38,152 $ 53,445 $ 50,000 $ - Contingencies $ -$ -$ 2,149 $ - Total Expenditures $ 1,232,356 $ 1,073,091 $ 1,059,147 $ 1,108,056 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,120,481 $ 996,617 $ 947,273 $ 1,040,299 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00 1.00 ASSIST DIR OF PW ENGINEER 0.10 0 0 0 ASSIST DIR PUBLIC WORKS OPS 1.00 1.00 1.00 1.00 MANAGEMENT ANALYST 0.15 0.05 0 0 SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00 Total 3.25 3.05 3.00 3.00 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 394 453 CC 05-15-2025 453 of 655 Golf Grounds Maintenance Budget Unit 560-84-268 Blackberry Farm - Grounds - Golf Grounds Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 339,558 Fund Balance $ (339,558) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing FTE Program Overview This program maintains the grounds at the Blackberry Farm Golf Course. The Blackberry Farm Gold Course maintenance budget (560-63-616) was transferred from Parks and Recreation to Public Works FY 24-25. Service Objectives Provide citizens with the cleanest and safest recreational area to enjoy. Provide daily general clean up and trash removal at the golf course. Provide maintenance of tee boxes, fairways and greens areas that includes mowing, fertilization and aerification. Provide maintenance of irrigation system in good operation and program irrigation controllers to maintain golf course appearance and health of vegetation while maximizing water conservation. Provide tree maintenance by keeping trees trimmed. Provide maintenance of perimeter fencing and safety netting. Proposed Budget It is recommended that City Council approve a budget of $339,558 for the Golf Grounds Maintenance program. This represents a decrease of $15,629 (-4.4%) from the FY 2024-25 Adopted Budget. This program also includes $10,000 recurring costs for BBF Golf Course - Vegetation Management. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 395 454 CC 05-15-2025 454 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Materials $ -$ 92,798 $ 120,802 $ 99,398 Contract Services $ -$ 4,500 $ 230,000 $ 240,160 Contingencies $ -$ -$ 4,385 $ - Total Expenditures $ -$ 97,298 $ 355,187 $ 339,558 Fund Balance $ -$ (97,298)$ (355,187)$ (339,558) General Fund Costs $ -$ -$ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Public Works 396 455 CC 05-15-2025 455 of 655 McClellan Ranch Park Budget Unit 100-84-808 General Fund - Grounds - McClellan Ranch Park Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 195,091 Fund Balance $ - General Fund Costs $ 195,091 % 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. Proposed Budget It is recommended that City Council approve a budget of $195,091 for the McClellan Ranch Park program. This represents an increase of $35,620 (22.3%) from the FY 2024-25 Adopted Budget. This increase is mainly due to an increase in Contract Services and an increase in Cost Allocation expenses. This program also includes a request for partial recurring costs for Vegetation Management of $5,000. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 397 456 CC 05-15-2025 456 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 40,638 $ 44,901 $ 44,708 $ 45,754 Employee Benefits $ 19,155 $ 22,528 $ 25,920 $ 24,008 Materials $ 41,393 $ 39,599 $ 40,511 $ 43,988 Contract Services $ 65,728 $ 16,526 $ 2,000 $ 28,974 Cost Allocation $ 60,685 $ 53,729 $ 45,801 $ 52,367 Special Projects $ -$ 24,600 $ -$ - Contingencies $ -$ -$ 531 $ - Total Expenditures $ 227,599 $ 201,883 $ 159,471 $ 195,091 Fund Balance $ -$ -$ -$ - General Fund Costs $ 227,599 $ 201,883 $ 159,471 $ 195,091 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.20 0.20 0.20 0.20 MAINTENANCE WORKER III 0.10 0.10 0.10 0.10 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 the current level of staffing. FY 2025-26 Proposed Budget Public Works 398 457 CC 05-15-2025 457 of 655 Memorial Park Budget Unit 100-84-809 General Fund - Grounds - Memorial Park Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 829,549 Fund Balance $ - General Fund Costs $ 829,549 % 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. Proposed Budget It is recommended that City Council approve a budget of $829,549 for the Memorial Park program. This represents an increase of $33,263 (4.2%) from the FY 2024-25 Adopted Budget. This program also includes a request for partial recurring costs for Vegetation Management of $10,000. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 399 458 CC 05-15-2025 458 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 202,135 $ 223,464 $ 239,020 $ 235,076 Employee Benefits $ 103,883 $ 112,320 $ 142,892 $ 133,643 Materials $ 137,505 $ 185,442 $ 214,825 $ 204,207 Contract Services $ 66,417 $ 41,320 $ 6,892 $ 17,113 Cost Allocation $ 247,980 $ 205,635 $ 189,886 $ 239,510 Capital Outlays $ 5,250 $ 6,982 $ -$ - Special Projects $ 15,400 $ -$ -$ - Contingencies $ -$ -$ 2,771 $ - Total Expenditures $ 778,570 $ 775,163 $ 796,286 $ 829,549 Fund Balance $ -$ -$ -$ - General Fund Costs $ 778,570 $ 775,163 $ 796,286 $ 829,549 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 2.20 1.20 2.20 2.20 MAINTENANCE WORKER III 0.20 0.20 0.20 0.20 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 2.50 1.50 2.50 2.50 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 400 459 CC 05-15-2025 459 of 655 BBF Ground Maintenance Budget Unit 100-84-811 General Fund - Grounds - BBF Ground Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 320,775 Fund Balance $ - General Fund Costs $ 320,775 % 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. Proposed Budget It is recommended that City Council approve a budget of $320,775 for the BBF Ground Maintenance program. This represents an increase of $35,957 (12.6%) from the FY 2024-25 Adopted Budget. This program also includes a request for partial recurring costs for Vegetation Management of $30,000. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 401 460 CC 05-15-2025 460 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 78,797 $ 101,559 $ 101,380 $ 101,540 Employee Benefits $ 42,340 $ 53,976 $ 62,258 $ 58,153 Materials $ 6,774 $ 8,018 $ 23,345 $ 8,066 Contract Services $ 26,542 $ 45,123 $ 49,925 $ 81,522 Cost Allocation $ 66,296 $ 65,044 $ 46,994 $ 71,494 Special Projects $ 17,900 $ -$ -$ - Contingencies $ -$ -$ 916 $ - Total Expenditures $ 238,649 $ 273,720 $ 284,818 $ 320,775 Fund Balance $ -$ -$ -$ - General Fund Costs $ 238,649 $ 273,720 $ 284,818 $ 320,775 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.80 0.80 0.80 0.80 MAINTENANCE WORKER III 0.10 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 1.00 1.00 1.00 1.00 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 402 461 CC 05-15-2025 461 of 655 School Site Maintenance Budget Unit 100-84-812 General Fund - Grounds - School Site Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 255,721 Total Expenditures $ 1,498,026 Fund Balance $ - General Fund Costs $ 1,242,305 % Funded by General Fund 82.9% 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, soVball 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. Proposed Budget It is recommended that City Council approve a budget of $1,498,026 for the School Site Maintenance program. This represents an increase of $124,600 (9.1%) from the FY 2024-25 Adopted Budget. The increase is due to increased Cost Allocation Plan charges. This program also includes a request for partial recurring costs for Vegetation Management, $22,000 one-time costs for Dugout Roof Replacements Faria & Regnart Schools and $43,000 one-time costs for Irrigation Pump Replacements – Eaton. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 403 462 CC 05-15-2025 462 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 170,843 $ 222,366 $ 196,469 $ 255,721 Total Revenues $ 170,843 $ 222,366 $ 196,469 $ 255,721 Expenditures Employee Compensation $ 377,171 $ 390,325 $ 402,854 $ 405,421 Employee Benefits $ 184,391 $ 216,380 $ 258,057 $ 250,699 Materials $ 309,621 $ 330,731 $ 392,319 $ 353,489 Contract Services $ 82,055 $ 6,592 $ 25,980 $ 29,200 Cost Allocation $ 390,409 $ 394,645 $ 278,487 $ 394,217 Special Projects $ 40,289 $ 24,950 $ 10,500 $ 65,000 Contingencies $ -$ -$ 5,229 $ - Total Expenditures $ 1,383,936 $ 1,363,623 $ 1,373,426 $ 1,498,026 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,213,094 $ 1,141,256 $ 1,176,957 $ 1,242,305 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 3.40 3.40 3.40 3.40 MAINTENANCE WORKER III 0.60 0.60 0.60 0.60 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 4.20 4.20 4.20 4.20 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 404 463 CC 05-15-2025 463 of 655 Neighborhood Parks Budget Unit 100-84-813 General Fund - Grounds - Neighborhood Parks Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 2,571,070 Fund Balance $ - General Fund Costs $ 2,571,070 % Funded by General Fund 100.0% Total Staffing 7.1 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. Proposed Budget It is recommended that City Council approve a budget of $2,571,070 for the Neighborhood Parks program. This represents an increase of $460,217 (21.8%) from the FY 2024-25 Adopted Budget. The increase is due to a new City Work Program and increases in Cost Allocation expenses. This program also includes requests for partial recurring costs for Vegetation Management $40,000. This budget includes a request for $250,000 for City Work Program (CWP) item Water Conservation Policies. Lastly, a request for $10,000 for park assets is included in this budget. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories. Revenues and Expenditures FY 2025-26 Proposed Budget Public Works 405 464 CC 05-15-2025 464 of 655 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Miscellaneous Revenue $ -$ 5,200 $ -$ - Total Revenues $ -$ 5,200 $ -$ - Expenditures Employee Compensation $ 751,121 $ 668,900 $ 645,367 $ 661,901 Employee Benefits $ 340,267 $ 360,846 $ 403,127 $ 378,718 Materials $ 381,433 $ 409,310 $ 481,183 $ 445,051 Contract Services $ 166,011 $ 110,923 $ 39,238 $ 79,238 Cost Allocation $ 687,393 $ 695,660 $ 535,433 $ 746,162 Special Projects $ 80,207 $ 70,119 $ -$ 260,000 Contingencies $ -$ -$ 6,505 $ - Total Expenditures $ 2,406,432 $ 2,315,758 $ 2,110,853 $ 2,571,070 Fund Balance $ -$ -$ -$ - General Fund Costs $ 2,406,432 $ 2,310,558 $ 2,110,853 $ 2,571,070 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 7.80 7.80 6.30 6.30 MAINTENANCE WORKER III 0.60 0.60 0.60 0.60 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 8.60 8.60 7.10 7.10 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 406 465 CC 05-15-2025 465 of 655 Sport Fields Jollyman, Creekside Budget Unit 100-84-814 General Fund - Grounds - Sport Fields Jollyman, Creekside Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 816,611 Fund Balance $ - General Fund Costs $ 816,611 % Funded by General Fund 100.0% Total Staffing 2.0 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, soVball 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. Proposed Budget It is recommended that City Council approve a budget of $816,611 for the Sport Fields Jollyman, Creekside program. This represents an increase of $71,611 (9.6%) from the FY 2024-25 Adopted Budget. This program also includes requests for partial recurring costs for Vegetation Management $20,000. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 407 466 CC 05-15-2025 466 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 215,980 $ 212,803 $ 191,568 $ 193,500 Employee Benefits $ 104,306 $ 109,195 $ 116,530 $ 108,487 Materials $ 170,391 $ 225,475 $ 236,052 $ 239,623 Contract Services $ 18,402 $ 32,305 $ 9,598 $ 36,322 Cost Allocation $ 232,990 $ 239,281 $ 177,681 $ 238,679 Capital Outlays $ -$ 23,600 $ -$ - Special Projects $ -$ 14,000 $ 10,500 $ - Contingencies $ -$ -$ 3,071 $ - Total Expenditures $ 742,069 $ 856,659 $ 745,000 $ 816,611 Fund Balance $ -$ -$ -$ - General Fund Costs $ 742,068 $ 856,658 $ 745,000 $ 816,611 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 2.00 2.00 1.50 1.50 MAINTENANCE WORKER III 0.30 0.30 0.30 0.30 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 2.50 2.50 2.00 2.00 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 408 467 CC 05-15-2025 467 of 655 Civic Center Maintenance Budget Unit 100-84-815 General Fund - Grounds - Civic Center Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 173,292 Total Expenditures $ 221,993 Fund Balance $ - General Fund Costs $ 48,701 % Funded by General Fund 21.9% 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. Proposed Budget It is recommended that City Council approve a budget of $221,993 for the Civic Center Maintenance program. This represents an increase of $3,050 (1.4%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 409 468 CC 05-15-2025 468 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 238,705 $ 220,710 $ 174,161 $ 173,292 Total Revenues $ 238,705 $ 220,710 $ 174,161 $ 173,292 Expenditures Employee Compensation $ 81,561 $ 83,720 $ 82,967 $ 81,648 Employee Benefits $ 39,525 $ 44,940 $ 53,884 $ 49,966 Materials $ 52,514 $ 50,278 $ 47,824 $ 53,759 Contract Services $ 4,572 $ 750 $ -$ - Cost Allocation $ -$ -$ 33,670 $ 36,620 Contingencies $ -$ -$ 598 $ - Total Expenditures $ 178,172 $ 179,688 $ 218,943 $ 221,993 Fund Balance $ -$ -$ -$ - General Fund Costs $ (60,534)$ (41,022)$ 44,782 $ 48,701 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.60 0.60 0.60 0.60 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 0.80 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 410 469 CC 05-15-2025 469 of 655 Sidewalk Curb and Gutter Budget Unit 270-85-820 Transportation Fund - Streets - Sidewalk Curb and Gutter Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 1,419,712 Fund Balance $ (1,419,712) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 2.0 FTE Program Overview Maintain sidewalks, curb and guDer 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. Proposed Budget It is recommended that City Council approve a budget of $1,419,712 for the Sidewalk Curb and GuDer program. This represents an increase of $95,732 (7.2%) from the FY 2024-25 Adopted Budget. The increase is due to increases in Cost Allocation expenses. This budget includes $652,547 for annual sidewalk curb and guDer maintenance. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 411 470 CC 05-15-2025 470 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 14,985 $ -$ 15,000 $ - Total Revenues $ 14,985 $ -$ 15,000 $ - Expenditures Employee Compensation $ 215,283 $ 194,693 $ 235,242 $ 239,902 Employee Benefits $ 94,332 $ 106,577 $ 141,140 $ 133,287 Materials $ 9,773 $ 3,556 $ 10,019 $ 11,226 Contract Services $ 200 $ -$ 27,198 $ 28,068 Cost Allocation $ 154,905 $ 200,552 $ 277,603 $ 354,682 Special Projects $ 177,576 $ 724,228 $ 632,313 $ 652,547 Contingencies $ -$ -$ 465 $ - Total Expenditures $ 652,069 $ 1,229,606 $ 1,323,980 $ 1,419,712 Fund Balance $ (637,085)$ (1,229,607)$ (1,308,980)$ (1,419,712) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.70 0.75 0.75 0.75 MAINTENANCE WORKER III 0 0 0.15 0.15 PUBLIC WORKS INSPECTOR 1.00 1.00 1.00 1.00 PUBLIC WORKS SUPERVISOR 0.10 0.15 0.10 0.10 Total 1.80 1.90 2.00 2.00 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 412 471 CC 05-15-2025 471 of 655 Street Pavement Maintenance Budget Unit 270-85-821 Transportation Fund - Streets - Street Pavement Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 3,174,460 Total Expenditures $ 5,310,436 Fund Balance $ (2,135,976) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 3.6 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. Proposed Budget It is recommended that City Council approve a budget of $5,310,436 for the Street Pavement Maintenance program. This represents an increase of $845,357 (18.9%) from the FY 2024-25 Adopted Budget. The increase is due to increases in Contract Services for isolated dig outs, Capital Outlays for increased costs of the Annual Asphalt allocations (fog and slurry seal), and increases in Cost Allocation expenses. This budget includes $2,005,865 for the Annual Asphalt 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 413 472 CC 05-15-2025 472 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 1,680,917 $ 3,135,133 $ 3,393,531 $ 3,172,941 Charges for Services $ 287 $ -$ -$ - Miscellaneous Revenue $ 680 $ 1,519 $ -$ 1,519 Total Revenues $ 1,681,884 $ 3,136,652 $ 3,393,531 $ 3,174,460 Expenditures Employee Compensation $ 433,990 $ 513,147 $ 416,814 $ 412,672 Employee Benefits $ 182,380 $ 220,683 $ 220,949 $ 199,473 Materials $ 18,820 $ 20,992 $ 21,788 $ 26,299 Contract Services $ 296,130 $ 173,365 $ 81,536 $ 178,913 Cost Allocation $ 351,039 $ 361,186 $ 898,809 $ 904,139 Capital Outlays $ 1,023,661 $ 578,662 $ 880,224 $ 1,583,075 Special Projects $ 1,901,218 $ 71,656 $ 1,943,667 $ 2,005,865 Contingencies $ -$ -$ 1,292 $ - Total Expenditures $ 4,207,238 $ 1,939,691 $ 4,465,079 $ 5,310,436 Fund Balance $ (2,525,354)$ 1,196,960 $ (1,071,548)$ (2,135,976) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 2.40 2.35 2.20 2.15 MAINTENANCE WORKER III 1.25 0.25 0.40 0.40 PUBLIC WORKS PROJECT MANAGER 0.75 0.75 0.75 0.75 PUBLIC WORKS SUPERVISOR 0.30 0.25 0.25 0.25 Total 4.70 3.60 3.60 3.55 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Public Works 414 473 CC 05-15-2025 473 of 655 Street Sign Marking Budget Unit 270-85-822 Transportation Fund - Streets - Street Sign Marking Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 773,774 Fund Balance $ (773,774) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 3.1 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. Proposed Budget It is recommended that City Council approve a budget of $773,774 for the Street Sign Marking program. This represents an increase of $51,455 (7.1%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 415 474 CC 05-15-2025 474 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 680 $ 2,223 $ -$ - Miscellaneous Revenue $ 1,321 $ 3,280 $ -$ - Transfers In $ -$ 467 $ -$ - Total Revenues $ 2,001 $ 5,970 $ -$ - Expenditures Employee Compensation $ 301,242 $ 286,901 $ 308,373 $ 307,908 Employee Benefits $ 137,367 $ 152,564 $ 173,741 $ 161,259 Materials $ 134,852 $ 75,000 $ 76,657 $ 80,662 Contract Services $ -$ -$ 10,000 $ 10,320 Cost Allocation $ 208,393 $ 216,826 $ 152,465 $ 213,625 Special Projects $ 16,118 $ -$ -$ - Contingencies $ -$ -$ 1,083 $ - Total Expenditures $ 797,972 $ 731,291 $ 722,319 $ 773,774 Fund Balance $ (795,972)$ (725,322)$ (722,319)$ (773,774) General Fund Costs $ -$ 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 2.75 2.50 2.30 2.30 MAINTENANCE WORKER III 0.20 0.35 0.55 0.55 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 3.15 3.05 3.05 3.05 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 416 475 CC 05-15-2025 475 of 655 Street Lighting Budget Unit 100-85-848 General Fund - Streets - Street Lighting Budget at a Glance 2026 Proposed Budget Total Revenues $ 22,637 Total Expenditures $ 1,097,276 Fund Balance $ - General Fund Costs $ 1,074,639 % Funded by General Fund 97.9% Total Staffing 1.6 FTE Program Overview Maintain city-owned streetlights (3,049), parking lot lights (90) and park lighting (282). 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. Proposed Budget It is recommended that City Council approve a budget of $1,097,276 for the Street Lighting program. This represents an increase of $158,003 (16.8%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in electricity costs and increases in Cost Allocation expenses. This budget includes $209,000 for steel light pole replacements throughout the city at a rate of 30-40 per 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 417 476 CC 05-15-2025 476 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Miscellaneous Revenue $ 38,906 $ 24,595 $ 38,906 $ 22,637 Total Revenues $ 38,906 $ 24,595 $ 38,906 $ 22,637 Expenditures Employee Compensation $ 134,510 $ 142,542 $ 192,600 $ 192,455 Employee Benefits $ 55,227 $ 70,403 $ 101,110 $ 93,659 Materials $ 396,161 $ 381,874 $ 311,755 $ 404,044 Contract Services $ 4,405 $ 6,256 $ 49,152 $ 50,725 Cost Allocation $ 182,467 $ 131,461 $ 105,145 $ 147,393 Special Projects $ 226,823 $ 171,163 $ 175,000 $ 209,000 Contingencies $ -$ -$ 4,511 $ - Total Expenditures $ 999,593 $ 903,699 $ 939,273 $ 1,097,276 Fund Balance $ -$ -$ -$ - General Fund Costs $ 960,686 $ 879,105 $ 900,367 $ 1,074,639 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0 0.10 0.30 0.30 MAINTENANCE WORKER III 0 0.05 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.05 0.10 0.15 0.15 STREET LIGHTING WORKER 1.00 1.00 1.00 1.00 Total 1.05 1.25 1.55 1.55 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 418 477 CC 05-15-2025 477 of 655 Equipment Maintenance Budget Unit 630-85-849 Vehicle/Equip Replacement - Streets - Equipment Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,580,629 Total Expenditures $ 1,867,792 Fund Balance $ (287,163) 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. Proposed Budget It is recommended that City Council approve a budget of $1,867,792 for the Equipment Maintenance program. This represents an increase of $302,509 (19.3%) from the FY 2024-25 Adopted Budget. The increase is due to an increased contingency cost of $173,427 and increases in Cost Allocation expenses. This program also includes requests for $16,000 one-time costs for air compressor replacement and $18,000 one-time costs for a diagnostic scan tool. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 419 478 CC 05-15-2025 478 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 1,568,633 $ 1,523,066 $ 1,356,136 $ 1,580,629 Miscellaneous Revenue $ -$ 262 $ -$ - Total Revenues $ 1,568,633 $ 1,523,328 $ 1,356,136 $ 1,580,629 Expenditures Employee Compensation $ 357,161 $ 327,659 $ 327,448 $ 327,769 Employee Benefits $ 199,745 $ 161,159 $ 178,732 $ 164,112 Materials $ 344,802 $ 282,126 $ 309,131 $ 326,411 Contract Services $ 37,260 $ 104,121 $ 90,389 $ 93,141 Cost Allocation $ -$ -$ 77,449 $ 281,867 Special Projects $ 49,615 $ -$ -$ 34,000 Other Financing Uses $ 577,140 $ 431,271 $ 577,140 $ 640,492 Contingencies $ -$ -$ 4,994 $ - Total Expenditures $ 1,565,723 $ 1,306,336 $ 1,565,283 $ 1,867,792 Fund Balance $ 2,909 $ 216,992 $ (209,147)$ (287,163) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed 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 the current level of staffing. FY 2025-26 Proposed Budget Public Works 420 479 CC 05-15-2025 479 of 655 Environmental Materials Budget Unit 100-85-850 General Fund - Streets - Environmental Materials Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 207,110 Fund Balance $ - General Fund Costs $ 207,110 % 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. Proposed Budget It is recommended that City Council approve a budget of $207,110 for the Environmental Materials program. This represents an increase of $18,453 (9.8%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 421 480 CC 05-15-2025 480 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Miscellaneous Revenue $ 1,209 $ 388 $ -$ - Total Revenues $ 1,209 $ 388 $ -$ - Expenditures Employee Compensation $ 76,101 $ 70,719 $ 72,894 $ 72,944 Employee Benefits $ 31,238 $ 37,698 $ 37,291 $ 33,959 Materials $ 27,098 $ 31,965 $ 30,739 $ 41,596 Cost Allocation $ 61,314 $ 65,311 $ 47,349 $ 58,611 Contingencies $ -$ -$ 384 $ - Total Expenditures $ 195,751 $ 205,693 $ 188,657 $ 207,110 Fund Balance $ -$ -$ -$ - General Fund Costs $ 194,543 $ 205,305 $ 188,657 $ 207,110 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.35 0.55 0.45 0.45 MAINTENANCE WORKER III 0.25 0.15 0.20 0.20 PUBLIC WORKS SUPERVISOR 0.10 0.05 0.05 0.05 Total 0.70 0.75 0.70 0.70 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 422 481 CC 05-15-2025 481 of 655 Trail Maintenance Budget Unit 100-86-261 General Fund - Trees and Right of Way - Trail Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 222,833 Fund Balance $ - General Fund Costs $ 222,833 % 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 BurneD 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 BurneD 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. Proposed Budget It is recommended that City Council approve a budget of $222,833 for the Trail Maintenance program. This represents a decrease of $40,334 (-15.3%) from the FY 2024-25 Adopted Budget. The decrease is due to an operational efficiencies strategy where three Part Time Maintenance Worker positions were combined into one FTE for the Weekend Work Program. This program also includes $8,000 recurring costs for Gopher and Squirrel control. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 423 482 CC 05-15-2025 482 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 90,095 $ 111,535 $ 153,802 $ 113,399 Employee Benefits $ 43,734 $ 48,802 $ 76,864 $ 66,400 Materials $ 3,517 $ 2,661 $ 4,917 $ 5,349 Contract Services $ 12,045 $ 13,950 $ 8,421 $ 16,690 Cost Allocation $ -$ -$ 18,996 $ 20,995 Contingencies $ -$ -$ 167 $ - Total Expenditures $ 149,391 $ 176,948 $ 263,167 $ 222,833 Fund Balance $ -$ -$ -$ - General Fund Costs $ 149,391 $ 176,949 $ 263,167 $ 222,833 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.90 0.75 0.90 0.90 MAINTENANCE WORKER III 0.15 0 0.15 0.15 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 1.15 0.85 1.15 1.15 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 424 483 CC 05-15-2025 483 of 655 Overpasses and Medians Budget Unit 100-86-824 General Fund - Trees and Right of Way - Overpasses and Medians Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 1,789,535 Fund Balance $ - General Fund Costs $ 1,789,535 % 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 soVscapes 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. Proposed Budget It is recommended that City Council approve a budget of $1,789,535 for the Overpasses and Medians program. This represents an increase of $123,995 (7.4%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Contract Services for mainline repairs, Capital Outlays for retaining wall replacements, and increases in Cost Allocation expenses. This program also includes request for $30,000 one-time costs for RP & Mainline repair South De Anza, and $25,000 one-time costs for SCB at Janice Retaining Wall Installation. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 425 484 CC 05-15-2025 484 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 563,194 $ 621,410 $ 632,666 $ 606,045 Employee Benefits $ 271,883 $ 327,744 $ 409,621 $ 355,344 Materials $ 173,831 $ 197,167 $ 183,928 $ 201,365 Contract Services $ 43,823 $ 15,589 $ 31,000 $ 61,000 Cost Allocation $ 456,324 $ 475,268 $ 405,638 $ 540,781 Capital Outlays $ -$ -$ -$ 25,000 Special Projects $ 89,029 $ -$ -$ - Contingencies $ -$ -$ 2,687 $ - Total Expenditures $ 1,598,084 $ 1,637,178 $ 1,665,540 $ 1,789,535 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,598,084 $ 1,637,178 $ 1,665,540 $ 1,789,535 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 5.10 5.25 5.10 5.10 MAINTENANCE WORKER III 0.85 1.00 0.85 0.85 PUBLIC WORKS SUPERVISOR 0.30 0.30 0.30 0.30 Total 6.25 6.55 6.25 6.25 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 426 485 CC 05-15-2025 485 of 655 Street Tree Maintenance Budget Unit 100-86-825 General Fund - Trees and Right of Way - Street Tree Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 16,500 Total Expenditures $ 2,266,017 Fund Balance $ - General Fund Costs $ 2,249,517 % Funded by General Fund 99.3% 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. Proposed Budget It is recommended that City Council approve a budget of $2,266,017 for the Street Tree Maintenance program. This represents an increase of $320,096 (16.4%) from the FY 2024-25 Adopted Budget. The increase is due to a new City Work Program and increases in Cost Allocation expenses. This budget includes a request for $140,000 for City Work Program (CWP) item Urban Forest Program. This budget also includes a request for $25,000 for the Sonic Tomography citywide tree maintenance asset, and $15,000 for the annual tree planting asset 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 427 486 CC 05-15-2025 486 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 35,251 $ 7,154 $ 35,251 $ 1,500 Transfers In $ 61,140 $ 15,000 $ 15,000 $ 15,000 Total Revenues $ 96,391 $ 22,154 $ 50,251 $ 16,500 Expenditures Employee Compensation $ 652,329 $ 721,732 $ 711,621 $ 719,060 Employee Benefits $ 329,223 $ 390,065 $ 446,908 $ 435,993 Materials $ 106,240 $ 36,982 $ 96,316 $ 77,355 Contract Services $ 8,290 $ 22,145 $ 10,398 $ 11,969 Cost Allocation $ 533,396 $ 549,401 $ 664,344 $ 841,640 Special Projects $ 13,737 $ 3,325 $ 15,000 $ 180,000 Contingencies $ -$ -$ 1,334 $ - Total Expenditures $ 1,643,215 $ 1,723,650 $ 1,945,921 $ 2,266,017 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,546,823 $ 1,701,495 $ 1,895,670 $ 2,249,517 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 6.00 6.00 6.00 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 7.40 7.40 7.40 7.40 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 428 487 CC 05-15-2025 487 of 655 Sheriff Work Program Budget Unit 100-86-826 General Fund - Trees and Right of Way - Sheriff Work Program Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 641,771 Fund Balance $ - General Fund Costs $ 641,771 % Funded by General Fund 100.0% Total Staffing 3.2 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. Proposed Budget It is recommended that City Council approve a budget of $641,771 for the Sheriff Work Program program. This represents an increase of $104,280 (19.4%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in FTE benefits, increases due to a new position request, and the reallocation of staff and increased Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 429 488 CC 05-15-2025 488 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 224,703 $ 152,990 $ 272,793 $ 262,132 Employee Benefits $ 116,970 $ 91,945 $ 114,351 $ 147,323 Materials $ 7,153 $ 5,229 $ 5,182 $ 5,495 Contract Services $ 6,489 $ 6,406 $ 5,913 $ 6,450 Cost Allocation $ 187,481 $ 234,622 $ 139,113 $ 220,371 Contingencies $ -$ -$ 139 $ - Total Expenditures $ 542,796 $ 491,192 $ 537,491 $ 641,771 Fund Balance $ -$ -$ -$ - General Fund Costs $ 542,796 $ 491,192 $ 537,491 $ 641,771 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 2.00 2.00 2.00 3.00 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 2.20 2.20 2.20 3.20 As part of an operational efficiencies strategy, three Part Time Maintenance Worker positions were combined into one FTE for this program. FY 2025-26 Proposed Budget Public Works 430 489 CC 05-15-2025 489 of 655 BBF Golf Maintenance Budget Unit 560-87-260 Blackberry Farm - Facilities and Fleet - BBF Golf Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 112,649 Fund Balance $ (112,649) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.1 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. Proposed Budget It is recommended that City Council approve a budget of $112,649 for the BBF Golf Maintenance program. This represents a decrease of $8,358 (-6.9%) from the FY 2024-25 Adopted Budget. The decrease in Materials is due to water utilities being charged to Golf Grounds Maintenance 560-84-260. This program also includes $17,000 one-time costs to replace epoxy flooring, $20,000 for BBF Golf Course Restroom Project and $5,000 for BBF Golf Course Shed Bathroom Project. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 431 490 CC 05-15-2025 490 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ -$ -$ 8,167 $ 8,575 Employee Benefits $ -$ -$ 4,420 $ 4,167 Materials $ 98,672 $ 29,098 $ 72,363 $ 33,331 Contract Services $ 23,459 $ 16,416 $ 33,087 $ 64,750 Cost Allocation $ -$ -$ 1,652 $ 1,826 Contingencies $ -$ -$ 1,318 $ - Total Expenditures $ 122,131 $ 45,514 $ 121,007 $ 112,649 Fund Balance $ (122,131)$ (45,514)$ (121,007)$ (112,649) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0 0 0.10 0.10 Total 0 0 0.10 0.10 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 432 491 CC 05-15-2025 491 of 655 City Hall Maintenance Budget Unit 100-87-827 General Fund - Facilities and Fleet - City Hall Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 287,893 Total Expenditures $ 506,171 Fund Balance $ - General Fund Costs $ 218,278 % Funded by General Fund 43.1% Total Staffing 0.6 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. Proposed Budget It is recommended that City Council approve a budget of $506,171 for the City Hall Maintenance program. This represents a decrease of $4,466 (-0.9%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 433 492 CC 05-15-2025 492 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 379,605 $ 468,887 $ 265,226 $ 287,893 Total Revenues $ 379,605 $ 468,887 $ 265,226 $ 287,893 Expenditures Employee Compensation $ 101,665 $ 79,413 $ 74,462 $ 74,888 Employee Benefits $ 49,316 $ 38,706 $ 40,192 $ 36,938 Materials $ 186,644 $ 207,359 $ 233,279 $ 227,498 Contract Services $ 94,918 $ 92,400 $ 111,156 $ 114,713 Cost Allocation $ -$ -$ 45,243 $ 52,134 Special Projects $ 103,867 $ -$ 2,000 $ - Contingencies $ -$ -$ 4,305 $ - Total Expenditures $ 536,410 $ 417,878 $ 510,637 $ 506,171 Fund Balance $ -$ -$ -$ - General Fund Costs $ 156,805 $ (51,009)$ 245,411 $ 218,278 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.10 0.10 0 0 MAINTENANCE WORKER III 0.70 0.40 0.40 0.40 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 1.00 0.70 0.60 0.60 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 434 493 CC 05-15-2025 493 of 655 Library Maintenance Budget Unit 100-87-828 General Fund - Facilities and Fleet - Library Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,452,828 Total Expenditures $ 1,347,650 Fund Balance $ - General Fund Costs $ (105,178) % Funded by General Fund -7.8% Total Staffing 0.9 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. Proposed Budget It is recommended that City Council approve a budget of $1,347,650 for the Library Maintenance program. This represents an increase of $9,522 (0.7%) from the FY 2024-25 Adopted Budget. This program also includes a request for $47,137 one-time costs for baDery back-up system at the library. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 435 494 CC 05-15-2025 494 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 24,627 $ 33,199 $ 24,627 $ 52,328 Charges for Services $ 505 $ 925,523 $ 1,007,998 $ 1,400,500 Total Revenues $ 25,132 $ 958,722 $ 1,032,625 $ 1,452,828 Expenditures Employee Compensation $ 53,709 $ 91,622 $ 83,054 $ 92,854 Employee Benefits $ 23,541 $ 40,868 $ 45,626 $ 48,951 Materials $ 350,698 $ 404,389 $ 534,043 $ 448,026 Contract Services $ 391,010 $ 391,975 $ 461,171 $ 474,950 Cost Allocation $ 78,451 $ 84,287 $ 201,794 $ 235,732 Capital Outlays $ -$ -$ -$ 47,137 Special Projects $ 3,209 $ -$ -$ - Contingencies $ -$ -$ 12,440 $ - Total Expenditures $ 900,618 $ 1,013,141 $ 1,338,128 $ 1,347,650 Fund Balance $ -$ -$ -$ - General Fund Costs $ 875,487 $ 54,418 $ 305,503 $ (105,178) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.40 0.20 0.40 0.50 MAINTENANCE WORKER III 0.10 0.30 0.30 0.30 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.60 0.60 0.80 0.90 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 436 495 CC 05-15-2025 495 of 655 Service Center Maintenance Budget Unit 100-87-829 General Fund - Facilities and Fleet - Service Center Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 555,292 Fund Balance $ - General Fund Costs $ 555,292 % 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. Proposed Budget It is recommended that City Council approve a budget of $555,292 for the Service Center Maintenance program. This represents an increase of $214,028 (62.7%) from the FY 2024-25 Adopted Budget. This program also includes $80,000 one-time costs for radio replacement, and $103,000 one-time costs for fascia board replacement and painting. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 437 496 CC 05-15-2025 496 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 63,778 $ 59,391 $ 86,709 $ 80,549 Employee Benefits $ 30,039 $ 26,310 $ 41,581 $ 38,151 Materials $ 88,374 $ 76,851 $ 53,482 $ 77,561 Contract Services $ 57,550 $ 94,252 $ 60,937 $ 62,888 Cost Allocation $ 84,790 $ 85,176 $ 95,125 $ 113,143 Capital Outlays $ 13,186 $ 429,350 $ -$ 103,000 Special Projects $ 17,424 $ 195,965 $ 2,000 $ 80,000 Contingencies $ -$ -$ 1,430 $ - Total Expenditures $ 355,141 $ 967,295 $ 341,264 $ 555,292 Fund Balance $ -$ -$ -$ - General Fund Costs $ 355,141 $ 967,294 $ 341,264 $ 555,292 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.40 0.20 0.30 0.30 MAINTENANCE WORKER III 0.20 0.20 0.20 0.20 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.20 0.20 Total 0.70 0.50 0.70 0.70 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 438 497 CC 05-15-2025 497 of 655 Quinlan Community Center Maintenance Budget Unit 100-87-830 General Fund - Facilities and Fleet - Quinlan Community Center Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 3,500 Total Expenditures $ 637,103 Fund Balance $ - General Fund Costs $ 633,603 % Funded by General Fund 99.5% Total Staffing 0.6 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. Proposed Budget It is recommended that City Council approve a budget of $637,103 for the Quinlan Community Center Maintenance program. This represents an increase of $110,112 (20.9%) from the FY 2024-25 Adopted Budget. This program also includes request for $7,000 one-time costs for QCC Activity Room Hardwood Floor Sand/Buffing, $21,000 for QCC Dance Room Hardwood Floor Sand/Buffing, and $20,000 recurring costs for Quinlan Community Center Door Hardware Upgrade. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 439 498 CC 05-15-2025 498 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ 25 $ -$ 3,500 Total Revenues $ -$ 25 $ -$ 3,500 Expenditures Employee Compensation $ 75,991 $ 63,364 $ 60,890 $ 62,616 Employee Benefits $ 32,306 $ 26,138 $ 30,939 $ 28,296 Materials $ 179,883 $ 196,916 $ 175,588 $ 213,427 Contract Services $ 153,184 $ 113,382 $ 122,294 $ 174,206 Cost Allocation $ 106,204 $ 102,648 $ 131,556 $ 158,558 Capital Outlays $ -$ 7,024 $ -$ - Special Projects $ 22,020 $ 7,826 $ 2,000 $ - Contingencies $ -$ -$ 3,724 $ - Total Expenditures $ 569,588 $ 517,298 $ 526,991 $ 637,103 Fund Balance $ -$ -$ -$ - General Fund Costs $ 569,587 $ 517,271 $ 526,991 $ 633,603 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.70 0.50 0.50 0.50 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.80 0.60 0.60 0.60 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 440 499 CC 05-15-2025 499 of 655 Senior Center Maintenance Budget Unit 100-87-831 General Fund - Facilities and Fleet - Senior Center Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 375,834 Fund Balance $ - General Fund Costs $ 375,834 % Funded by General Fund 100.0% Total Staffing 0.6 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. Proposed Budget It is recommended that City Council approve a budget of $375,834 for the Senior Center Maintenance program. This represents an increase of $38,858 (11.5%) from the FY 2024-25 Adopted Budget. The increase is due to increases in Cost Allocation and conference and training expenses. This program also includes a request for $11,225 one-time costs for Senior Center guDer replacement on Mary Ave. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 441 500 CC 05-15-2025 500 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ 25 $ -$ - Total Revenues $ -$ 25 $ -$ - Expenditures Employee Compensation $ 61,951 $ 24,643 $ 56,117 $ 56,361 Employee Benefits $ 27,754 $ 13,950 $ 35,662 $ 33,482 Materials $ 73,196 $ 73,735 $ 70,419 $ 82,225 Contract Services $ 132,243 $ 61,552 $ 88,236 $ 91,058 Cost Allocation $ 78,035 $ 84,689 $ 82,559 $ 101,483 Capital Outlays $ 576 $ -$ -$ 11,225 Special Projects $ 23,247 $ 65,259 $ 2,000 $ - Contingencies $ -$ -$ 1,983 $ - Total Expenditures $ 397,002 $ 323,828 $ 336,976 $ 375,834 Fund Balance $ -$ -$ -$ - General Fund Costs $ 397,003 $ 323,802 $ 336,976 $ 375,834 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.70 0.50 0.50 0.50 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.80 0.60 0.60 0.60 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 442 501 CC 05-15-2025 501 of 655 McClellan Ranch Maintenance Budget Unit 100-87-832 General Fund - Facilities and Fleet - McClellan Ranch Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 944 Total Expenditures $ 300,636 Fund Balance $ - General Fund Costs $ 299,692 % Funded by General Fund 99.7% Total Staffing 0.8 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. Proposed Budget It is recommended that City Council approve a budget of $300,636 for the McClellan Ranch Maintenance program. This represents an increase of $64,835 (27.5%) from the FY 2024-25 Adopted Budget. This increase is due to the addition of one new FTE across the Fleet & Facilities Division, Capital Outlays for asset replacements, and an increase in Cost Allocation expenses. Lastly, this program also includes a request for $35,000 one-time costs for EEC sliding door replacement. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 443 502 CC 05-15-2025 502 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 1,461 $ 1,178 $ 1,461 $ - Miscellaneous Revenue $ 505 $ -$ -$ 944 Total Revenues $ 1,966 $ 1,178 $ 1,461 $ 944 Expenditures Employee Compensation $ 40,141 $ 63,940 $ 62,481 $ 77,518 Employee Benefits $ 14,410 $ 28,618 $ 31,661 $ 42,298 Materials $ 40,131 $ 35,355 $ 46,043 $ 38,695 Contract Services $ 52,986 $ 28,868 $ 37,486 $ 38,686 Cost Allocation $ 51,328 $ 61,256 $ 55,086 $ 68,439 Capital Outlays $ -$ -$ -$ 35,000 Special Projects $ 18,653 $ 47,395 $ 2,000 $ - Contingencies $ -$ -$ 1,044 $ - Total Expenditures $ 217,649 $ 265,432 $ 235,801 $ 300,636 Fund Balance $ -$ -$ -$ - General Fund Costs $ 215,683 $ 264,255 $ 234,340 $ 299,692 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.30 0.40 0.40 0.60 MAINTENANCE WORKER III 0 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.40 0.60 0.60 0.80 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 444 503 CC 05-15-2025 503 of 655 Monta Vista Community Center Maintenance Budget Unit 100-87-833 General Fund - Facilities and Fleet - Monta Vista Community Center Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 237,282 Fund Balance $ - General Fund Costs $ 237,282 % 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. Proposed Budget It is recommended that City Council approve a budget of $237,282 for the Monta Vista Community Center Maintenance program. This represents an increase of $51,377 (27.6%) from the FY 2024-25 Adopted Budget. This increase is due to the addition of one new FTE across the Fleet & Facilities Division, and an increase in Contract Services for building painting. This program also includes $37,000 one-time costs for building painting. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 445 504 CC 05-15-2025 504 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ -$ 25 $ -$ - Total Revenues $ -$ 25 $ -$ - Expenditures Employee Compensation $ 33,061 $ 33,647 $ 35,562 $ 43,071 Employee Benefits $ 14,071 $ 15,548 $ 17,721 $ 22,759 Materials $ 37,871 $ 37,359 $ 43,782 $ 39,249 Contract Services $ 54,555 $ 28,946 $ 33,250 $ 71,314 Cost Allocation $ 51,535 $ 54,435 $ 52,627 $ 60,889 Special Projects $ -$ -$ 2,000 $ - Contingencies $ -$ -$ 963 $ - Total Expenditures $ 191,093 $ 169,935 $ 185,905 $ 237,282 Fund Balance $ -$ -$ -$ - General Fund Costs $ 191,093 $ 169,911 $ 185,905 $ 237,282 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.30 0.10 0.10 0.20 MAINTENANCE WORKER III 0 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.40 0.30 0.30 0.40 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 446 505 CC 05-15-2025 505 of 655 Wilson Park Maintenance Budget Unit 100-87-834 General Fund - Facilities and Fleet - Wilson Park Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 181,494 Fund Balance $ - General Fund Costs $ 181,494 % Funded by General Fund 100.0% Total Staffing 0.5 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. Proposed Budget It is recommended that City Council approve a budget of $181,494 for the Wilson Park Maintenance program. This represents an increase of $79,190 (77.4%) from the FY 2024-25 Adopted Budget. The increase is due to the addition of one new FTE across the Fleet & Facilities Division, asset replacements in Capital Outlays, utility cost increases in Materials, and an increase in Cost Allocation expenses. This program also includes a request for $46,000 one-time costs to replace siding, paint, and repair dry rot at Wilson poDery and restrooms. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 447 506 CC 05-15-2025 506 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 20,072 $ 14,963 $ 26,348 $ 42,214 Employee Benefits $ 12,237 $ 6,552 $ 13,801 $ 26,130 Materials $ 26,862 $ 29,240 $ 27,773 $ 31,636 Contract Services $ 19,789 $ 17,617 $ 15,631 $ 16,131 Cost Allocation $ 36,714 $ 33,391 $ 18,208 $ 19,383 Capital Outlays $ -$ -$ -$ 46,000 Special Projects $ -$ 2,400 $ -$ - Contingencies $ -$ -$ 543 $ - Total Expenditures $ 115,674 $ 104,163 $ 102,304 $ 181,494 Fund Balance $ -$ -$ -$ - General Fund Costs $ 115,674 $ 104,163 $ 102,304 $ 181,494 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0 0.10 0.30 0.50 MAINTENANCE WORKER III 0.20 0 0 0 Total 0.20 0.10 0.30 0.50 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 448 507 CC 05-15-2025 507 of 655 Portal Park Maintenance Budget Unit 100-87-835 General Fund - Facilities and Fleet - Portal Park Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 31,870 Fund Balance $ - General Fund Costs $ 31,870 % Funded by General Fund 100.0% Total Staffing 0.0 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. Proposed Budget It is recommended that City Council approve a budget of $31,870 for the Portal Park Maintenance program. This represents a decrease of $29 (-0.1%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 449 508 CC 05-15-2025 508 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 9,487 $ -$ -$ - Employee Benefits $ 6,254 $ -$ -$ - Materials $ 7,741 $ 8,747 $ 11,598 $ 9,719 Contract Services $ 12,969 $ 4,800 $ 10,519 $ 10,855 Cost Allocation $ 29,828 $ 24,401 $ 9,506 $ 11,296 Contingencies $ -$ -$ 276 $ - Total Expenditures $ 66,279 $ 37,948 $ 31,899 $ 31,870 Fund Balance $ -$ -$ -$ - General Fund Costs $ 66,279 $ 37,948 $ 31,899 $ 31,870 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER III 0.10 0 0 0 Total 0.10 0 0 0 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 450 509 CC 05-15-2025 509 of 655 Sports Center Maintenance Budget Unit 570-87-836 Sports Center - Facilities and Fleet - Sports Center Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 920,491 Fund Balance $ (920,491) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.6 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. Proposed Budget It is recommended that City Council approve a budget of $920,491 for the Sports Center Maintenance program. This represents an increase of $133,379 (16.9%) from the FY 2024-25 Adopted Budget. This increase is due to a special project of $160,000 for Sports Center Energy Management System Upgrade, and $100,000 one-time costs for Sports Center Lighting Controls Upgrade included under Contract Services. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Energy Management System Replacement $160,000 $160,000 General Fund The Energy Management System (EMS) at the Sports Center has reached the end of its useful life. EMS upgrades are required every 10 years. The new EMS allows remote HVAC adjustments, which will greatly enhance the building comfort for residents after hours and weekends. Revenues and Expenditures FY 2025-26 Proposed Budget Public Works 451 510 CC 05-15-2025 510 of 655 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 68,675 $ 79,270 $ 64,176 $ 64,353 Employee Benefits $ (7,375)$ 83,289 $ 42,632 $ 40,358 Materials $ 146,551 $ 164,303 $ 177,167 $ 180,801 Contract Services $ 137,318 $ 128,018 $ 149,247 $ 254,023 Cost Allocation $ 73,222 $ 81,070 $ 100,859 $ 125,805 Capital Outlays $ -$ -$ 150,000 $ - Special Projects $ 83,250 $ 21,126 $ 2,000 $ 160,000 Other Financing Uses $ 96,951 $ 95,852 $ 96,951 $ 95,151 Contingencies $ -$ -$ 4,080 $ - Total Expenditures $ 598,592 $ 652,928 $ 787,112 $ 920,491 Fund Balance $ (598,592)$ (652,927)$ (787,112)$ (920,491) 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed 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 0 Total 0.70 0.70 0.60 0.60 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 452 511 CC 05-15-2025 511 of 655 Creekside Park Maintenance Budget Unit 100-87-837 General Fund - Facilities and Fleet - Creekside Park Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 133,489 Fund Balance $ - General Fund Costs $ 133,489 % Funded by General Fund 100.0% Total Staffing 0.4 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. Proposed Budget It is recommended that City Council approve a budget of $133,489 for the Creekside Park Maintenance program. This represents an increase of $23,011 (20.8%) from the FY 2024-25 Adopted Budget. This increase is due to the addition of one new FTE spread across the Fleet & Facilities Division, utility rate increases in Materials, and an increase in Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 453 512 CC 05-15-2025 512 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 19,697 $ 30,360 $ 33,161 $ 40,523 Employee Benefits $ 7,028 $ 12,793 $ 14,867 $ 20,061 Materials $ 14,207 $ 16,533 $ 18,089 $ 21,253 Contract Services $ 21,200 $ 19,131 $ 19,984 $ 20,623 Cost Allocation $ 37,854 $ 41,446 $ 23,901 $ 31,029 Contingencies $ -$ -$ 476 $ - Total Expenditures $ 99,986 $ 120,263 $ 110,478 $ 133,489 Fund Balance $ -$ -$ -$ - General Fund Costs $ 99,987 $ 120,263 $ 110,478 $ 133,489 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.10 0.20 0.20 0.30 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.20 0.30 0.30 0.40 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 454 513 CC 05-15-2025 513 of 655 Community Hall Maintenance Budget Unit 100-87-838 General Fund - Facilities and Fleet - Community Hall Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 283,406 Fund Balance $ - General Fund Costs $ 283,406 % Funded by General Fund 100.0% Total Staffing 0.8 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. Proposed Budget It is recommended that City Council approve a budget of $283,406 for the Community Hall Maintenance program. This represents an increase of $37,936 (15.5%) from the FY 2024-25 Adopted Budget. This increase is due to the addition of one new FTE across the Fleet & Facilities Division, utility rate increases in Materials, asset replacement in Capital Outlays, and an increase in Cost Allocation expenses. This program also includes a request for $7,071 one-time costs to Replace All BaDeries on BaDery Back-Up System at Community Hall. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 455 514 CC 05-15-2025 514 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Charges for Services $ 505 $ -$ -$ - Total Revenues $ 505 $ -$ -$ - Expenditures Employee Compensation $ 38,000 $ 35,482 $ 64,407 $ 72,485 Employee Benefits $ 19,649 $ 17,045 $ 40,816 $ 45,185 Materials $ 48,547 $ 55,605 $ 51,661 $ 60,744 Contract Services $ 40,875 $ 30,513 $ 32,920 $ 33,973 Cost Allocation $ 61,230 $ 59,538 $ 52,609 $ 63,948 Capital Outlays $ -$ -$ -$ 7,071 Special Projects $ -$ -$ 2,000 $ - Contingencies $ -$ -$ 1,057 $ - Total Expenditures $ 208,301 $ 198,183 $ 245,470 $ 283,406 Fund Balance $ -$ -$ -$ - General Fund Costs $ 207,797 $ 198,183 $ 245,470 $ 283,406 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.40 0.20 0.50 0.60 MAINTENANCE WORKER III 0.10 0.10 0.20 0.20 Total 0.50 0.30 0.70 0.80 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 456 515 CC 05-15-2025 515 of 655 Teen Center Maintenance Budget Unit 100-87-839 General Fund - Facilities and Fleet - Teen Center Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 2,167 Fund Balance $ - General Fund Costs $ 2,167 % Funded by General Fund 100.0% Total Staffing 0.0 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. Proposed Budget It is recommended that City Council approve a budget of $2,167 for the Teen Center Maintenance 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 10,100 $ 11,390 $ -$ - Employee Benefits $ 5,488 $ 6,403 $ -$ - Materials $ 664 $ 329 $ -$ - Cost Allocation $ 24,764 $ 24,165 $ -$ 2,167 Total Expenditures $ 41,016 $ 42,287 $ -$ 2,167 Fund Balance $ -$ -$ -$ - General Fund Costs $ 41,015 $ 42,286 $ -$ 2,167 Staffing FY 2025-26 Proposed Budget Public Works 457 516 CC 05-15-2025 516 of 655 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER III 0.10 0.10 0 0 Total 0.10 0.10 0 0 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 458 517 CC 05-15-2025 517 of 655 Park Bathrooms Maintenance Budget Unit 100-87-840 General Fund - Facilities and Fleet - Park Bathrooms Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 168,840 Fund Balance $ - General Fund Costs $ 168,840 % Funded by General Fund 100.0% Total Staffing 0.1 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. Proposed Budget It is recommended that City Council approve a budget of $168,840 for the Park Bathrooms Maintenance program. This represents an increase of $10,779 (6.8%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 459 518 CC 05-15-2025 518 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 15,891 $ 9,887 $ 10,362 $ 9,951 Employee Benefits $ 8,164 $ 4,325 $ 4,831 $ 4,395 Materials $ 16,978 $ 12,956 $ 14,562 $ 16,669 Contract Services $ 122,907 $ 114,237 $ 112,659 $ 116,264 Cost Allocation $ 40,754 $ 35,829 $ 14,057 $ 21,561 Contingencies $ -$ -$ 1,590 $ - Total Expenditures $ 204,694 $ 177,234 $ 158,061 $ 168,840 Fund Balance $ -$ -$ -$ - General Fund Costs $ 204,694 $ 177,234 $ 158,061 $ 168,840 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0.20 0.10 0.10 0.10 Total 0.20 0.10 0.10 0.10 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 460 519 CC 05-15-2025 519 of 655 Blackberry Farm Maintenance Budget Unit 100-87-841 General Fund - Facilities and Fleet - Blackberry Farm Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 549,423 Fund Balance $ - General Fund Costs $ 549,423 % Funded by General Fund 100.0% Total Staffing 0.6 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. Proposed Budget It is recommended that City Council approve a budget of $549,423 for the Blackberry Farm Maintenance program. This represents an increase of $85,056 (18.3%) from the FY 2024-25 Adopted Budget. This increase is due to the addition of one new FTE across the Fleet & Facilities Division and an increase in Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 461 520 CC 05-15-2025 520 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ 21,755 $ 80,618 $ 47,461 $ 55,310 Employee Benefits $ 6,991 $ 45,500 $ 29,822 $ 37,508 Materials $ 92,041 $ 123,408 $ 128,418 $ 134,899 Contract Services $ 56,167 $ 61,310 $ 73,799 $ 76,160 Cost Allocation $ 194,564 $ 161,698 $ 182,339 $ 245,546 Special Projects $ 5,000 $ 6,803 $ -$ - Contingencies $ -$ -$ 2,528 $ - Total Expenditures $ 376,518 $ 479,337 $ 464,367 $ 549,423 Fund Balance $ -$ -$ -$ - General Fund Costs $ 376,518 $ 479,337 $ 464,367 $ 549,423 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 1.30 1.30 0.30 0.40 MAINTENANCE WORKER III 0 0.10 0.20 0.20 Total 1.30 1.40 0.50 0.60 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 462 521 CC 05-15-2025 521 of 655 Franco Traffic Operations Center Budget Unit 100-87-852 General Fund - Facilities and Fleet - Franco Traffic Operations Center Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 64,548 Fund Balance $ - General Fund Costs $ 64,548 % Funded by General Fund 100.0% Total Staffing 0.3 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. Proposed Budget It is recommended that City Council approve a budget of $64,548 for the Franco Traffic Operations Center program. This represents an increase of $20,806 (47.6%) from the FY 2024-25 Adopted Budget. This increase is due to changes to the current level of staffing allocation, and utilities which were inadvertently not budgeted 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 463 522 CC 05-15-2025 522 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Employee Compensation $ -$ -$ 18,446 $ 25,869 Employee Benefits $ -$ -$ 9,520 $ 15,376 Materials $ 1,568 $ 7,932 $ 229 $ 8,994 Contract Services $ 15,431 $ 8,989 $ 9,996 $ 10,316 Cost Allocation $ 4,410 $ 4,904 $ 5,423 $ 3,993 Contingencies $ -$ -$ 128 $ - Total Expenditures $ 21,409 $ 21,825 $ 43,742 $ 64,548 Fund Balance $ -$ -$ -$ - General Fund Costs $ 21,410 $ 21,825 $ 43,742 $ 64,548 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER I/II 0 0 0.20 0.30 Total 0 0 0.20 0.30 The increase in staffing is due to the addition of one FTE spread across the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. FY 2025-26 Proposed Budget Public Works 464 523 CC 05-15-2025 523 of 655 City Hall Annex Budget Unit 100-87-857 General Fund - Facilities and Fleet - City Hall Annex Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 4,046 Fund Balance $ - General Fund Costs $ 4,046 % Funded by General Fund 100.0% Total Staffing 0.0 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. Proposed Budget It is recommended that City Council approve a budget of $4,046 for the City Hall Annex program. This represents an increase of $445 (12.4%) from the FY 2024-25 Adopted Budget. This increase is due an increase in utility costs. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 465 524 CC 05-15-2025 524 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 7,290 $ -$ -$ - Total Revenues $ 7,290 $ -$ -$ - Expenditures Employee Compensation $ -$ 10,118 $ -$ - Employee Benefits $ (828)$ 6,122 $ -$ - Materials $ 1,808 $ 2,986 $ 3,557 $ 4,046 Contract Services $ 9,208 $ -$ -$ - Contingencies $ -$ -$ 44 $ - Total Expenditures $ 10,188 $ 19,226 $ 3,601 $ 4,046 Fund Balance $ -$ -$ -$ - General Fund Costs $ 2,898 $ 19,226 $ 3,601 $ 4,046 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MAINTENANCE WORKER III 0 0.10 0 0 Total 0 0.10 0 0 There is no longer staffing associated with this program. FY 2025-26 Proposed Budget Public Works 466 525 CC 05-15-2025 525 of 655 Community Shuttle Budget Unit 100-88-265 General Fund - Transportation - Community Shuttle Budget at a Glance 2026 Proposed Budget Total Revenues $ 2,899,936 Total Expenditures $ 4,070,272 Fund Balance $ - General Fund Costs $ 1,170,336 % Funded by General Fund 28.8% Total Staffing FTE Program Overview The Silicon Valley (SV) Hopper, formerly Via-Cupertino, is an on-demand ride-share community shuDle. The app-based service, initiated as a pilot in 2019 serving only Cupertino, has been expanded to provide transportation to anywhere in Cupertino, a portion of Santa Clara, and El Camino Hospital and Caltrain in Mountain View as a result of State TIRCP grant funding the expansion and a conversion to an EV-only fleet. Service Objectives Provide safe, affordable and convenient transportation alternative to the single-occupancy vehicle Reduce greenhouse gas emissions and congestion by providing first- and last-mile connections to regional transit systems such as Caltrain, VTA, Amtrak and BART Support climate change goals through deployment of a completely electrified vehicle fleet Augment transportation alternatives for disadvantaged communities in Silicon Valley Proposed Budget It is recommended that City Council approve a budget of $4,070,272 for the Community ShuDle program. This represents an increase of $216,314 (5.6%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Contract Services, which are 75% cost-recovered. Per the original agreement, the rate for year three is $4,070,272. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 467 526 CC 05-15-2025 526 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ -$ 335,459 $ 1,903,000 $ 2,899,936 Charges for Services $ -$ -$ 808,855 $ - Total Revenues $ -$ 335,459 $ 2,711,855 $ 2,899,936 Expenditures Contract Services $ -$ 2,558,925 $ 3,806,378 $ 4,070,272 Contingencies $ -$ -$ 47,580 $ - Total Expenditures $ -$ 2,558,925 $ 3,853,958 $ 4,070,272 Fund Balance $ -$ -$ -$ - General Fund Costs $ -$ 2,223,466 $ 1,142,103 $ 1,170,336 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Public Works 468 527 CC 05-15-2025 527 of 655 Traffic Engineering Budget Unit 100-88-844 General Fund - Transportation - Traffic Engineering Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 1,422,418 Fund Balance $ - General Fund Costs $ 1,422,418 % Funded by General Fund 100.0% Total Staffing 3.0 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) subcommiDees 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 paDerns, 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. Proposed Budget It is recommended that City Council approve a budget of $1,422,418 for the Traffic Engineering program. This represents a decrease of $117,436 (-7.6%) from the FY 2024-25 Adopted Budget. This budget includes a request for $300,000 for City Work Program (CWP) item Traffic Impact Fee Study. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 469 528 CC 05-15-2025 528 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 37,936 $ -$ -$ - Transfers In $ 800,000 $ -$ -$ - Total Revenues $ 837,936 $ -$ -$ - Expenditures Employee Compensation $ 544,285 $ 520,342 $ 556,714 $ 504,880 Employee Benefits $ 197,816 $ 220,565 $ 257,150 $ 209,235 Materials $ 21,202 $ 14,525 $ 13,937 $ 17,610 Contract Services $ 155,535 $ 114,387 $ 157,114 $ 164,466 Cost Allocation $ 259,181 $ 218,675 $ 222,801 $ 226,227 Special Projects $ 1,051,444 $ 1,006,277 $ 330,000 $ 300,000 Contingencies $ -$ -$ 2,138 $ - Total Expenditures $ 2,229,463 $ 2,094,771 $ 1,539,854 $ 1,422,418 Fund Balance $ -$ -$ -$ - General Fund Costs $ 1,391,527 $ 2,094,771 $ 1,539,854 $ 1,422,418 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT ENGINEER 1.50 1.50 1.40 1.00 PUBLIC WORKS PROJECT MANAGER LT 0.50 0 0 0 TRANSIT & TRANSPORTATION PLANNER 1.00 1.00 1.00 1.00 TRANSPORTATION MANAGER 0.90 0.90 1.00 1.00 Total 3.90 3.40 3.40 3.00 Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Public Works 470 529 CC 05-15-2025 529 of 655 Traffic Signal Maintenance Budget Unit 100-88-845 General Fund - Transportation - Traffic Signal Maintenance Budget at a Glance 2026 Proposed Budget Total Revenues $ 19,522 Total Expenditures $ 737,456 Fund Balance $ - General Fund Costs $ 717,934 % Funded by General Fund 97.4% 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. Proposed Budget It is recommended that City Council approve a budget of $737,456 for the Traffic Signal Maintenance program. This represents an increase of $39,900 (5.7%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Cost Allocation expenses. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 471 530 CC 05-15-2025 530 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 11,027 $ 12,021 $ 11,027 $ 12,022 Charges for Services $ -$ 42,501 $ -$ 7,500 Total Revenues $ 11,027 $ 54,522 $ 11,027 $ 19,522 Expenditures Employee Compensation $ 273,059 $ 275,548 $ 282,130 $ 282,109 Employee Benefits $ 108,997 $ 103,086 $ 111,275 $ 97,274 Materials $ 161,470 $ 92,290 $ 138,360 $ 148,621 Contract Services $ 44,182 $ 28,879 $ 48,174 $ 48,174 Cost Allocation $ 182,220 $ 187,207 $ 115,285 $ 161,278 Special Projects $ -$ 50,491 $ -$ - Contingencies $ -$ -$ 2,332 $ - Total Expenditures $ 769,928 $ 737,501 $ 697,556 $ 737,456 Fund Balance $ -$ -$ -$ - General Fund Costs $ 758,901 $ 682,979 $ 686,529 $ 717,934 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget TRAFFIC SIGNAL TECHNICIAN 2.00 2.00 2.00 2.00 Total 2.00 2.00 2.00 2.00 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 472 531 CC 05-15-2025 531 of 655 Safe Routes 2 School Budget Unit 100-88-846 General Fund - Transportation - Safe Routes 2 School Budget at a Glance 2026 Proposed Budget Total Revenues $ 90,000 Total Expenditures $ 1,029,551 Fund Balance $ - General Fund Costs $ 939,551 % Funded by General Fund 91.3% Total Staffing 1.0 FTE Program Overview Safe Routes to 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 students by increasing the number of students who walk or bike to school. Develop partnerships with school administrators, staff, parents, and students. 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. Proposed Budget It is recommended that City Council approve a budget of $1,029,551 for the Safe Routes 2 School program. This represents an increase of $160,372 (18.5%) from the FY 2024-25 Adopted Budget. The increase is due to an increase in Contract Services for Crossing Guard and Bike and Pedestrian Education programs, as well as increases in Cost Allocation expenses. This program also includes a request for $25,000 one-time costs for Annual Bike Ped Education. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document. 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Public Works 473 532 CC 05-15-2025 532 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Intergovernmental Revenue $ 46,799 $ -$ 50,000 $ 50,000 Miscellaneous Revenue $ 40,000 $ 40,000 $ 40,000 $ 40,000 Total Revenues $ 86,799 $ 40,000 $ 90,000 $ 90,000 Expenditures Employee Compensation $ 153,328 $ 118,466 $ 153,363 $ 152,022 Employee Benefits $ 46,907 $ 43,051 $ 56,197 $ 69,740 Materials $ 33,207 $ 22,490 $ 46,831 $ 49,678 Contract Services $ 336,643 $ 400,828 $ 461,802 $ 598,100 Cost Allocation $ 68,673 $ 77,905 $ 144,628 $ 160,011 Special Projects $ 57,729 $ 10,118 $ -$ - Contingencies $ -$ -$ 6,358 $ - Total Expenditures $ 696,487 $ 672,858 $ 869,179 $ 1,029,551 Fund Balance $ -$ -$ -$ - General Fund Costs $ 609,688 $ 632,857 $ 779,179 $ 939,551 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 Proposed Budget for the current fiscal year. Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ENVIRONMENTAL PROGRAMS ASSISTANT 1.00 1.00 1.00 1.00 Total 1.00 1.00 1.00 1.00 There are no changes to the current level of staffing. FY 2025-26 Proposed Budget Public Works 474 533 CC 05-15-2025 533 of 655 Fixed Assets Acquisition Budget Unit 630-90-985 Vehicle/Equip Replacement - Non-Departmental - Fixed Assets Acquisition Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ 799,884 Fund Balance $ (799,884) 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. Proposed Budget It is recommended that City Council approve a budget of $799,884 for the Fixed Assets Acquisition program. This represents an increase of $340,773 (74.2%) from the FY 2024-25 Adopted Budget. The increase is due to mandated EV purchases required to comply with California Air Resources Control Board (CARB) zero- emission and grant requirements. This budget includes $780,000 for vehicle and equipment replacement assets listed below. FY 2025-26 Proposed Budget Public Works 475 534 CC 05-15-2025 534 of 655 Asset Appropriation Revenue Funding Source Description Fixed Assets Acquisition $80,000 $80,000 Vehicle/Equipment Replacement Fund Grounds vehicle #418 2013 Ford F350. Replacement vehicle Ford Lightning EV Truck. Fixed Assets Acquisition $80,000 $80,000 Vehicle/Equipment Replacement Fund Streets vehicle #421 2016 Fusion. Replacement vehicle Ford Lightning EV Truck. Fixed Assets Acquisition $80,000 $80,000 Vehicle/Equipment Replacement Fund Fleet vehicle #488 2015 C-Max. Replacement vehicle Ford Lightning EV Truck. Fixed Assets Acquisition $80,000 $80,000 Vehicle/Equipment Replacement Fund Streets vehicle #8 2002 Ford 350 Utility Bed Lift Gate. Replacement vehicle Ford Lightning EV Truck. Fixed Assets Acquisition $95,000 $95,000 Vehicle/Equipment Replacement Fund Facilities vehicle #416 014 F-250. Replacement vehicle E-Transit High Roof. Fixed Assets Acquisition $70,000 $70,000 Vehicle/Equipment Replacement Fund Parks and Recreation vehicle #42 2002 Ford F250. Replacement vehicle Ford F250. Fixed Assets Acquisition $95,000 $95,000 Vehicle/Equipment Replacement Fund Trees/ROW vehicle #449 2013 Ford F350 Utility bed with Dump. Replacement vehicle One-Ton Utility Bed with Dump. Fixed Assets Acquisition $95,000 $95,000 Vehicle/Equipment Replacement Fund Trees/ROW vehicle #478 2012 F-350. Replacement vehicle One-Ton Utility Bed with Dump. Fixed Assets Acquisition $90,000 $90,000 Vehicle/Equipment Replacement Fund Grounds vehicle #31 2008 F350. Replacement vehicle Ford F350 Truck Fixed Assets Acquisition $15,000 $15,000 Vehicle/Equipment Replacement Fund Trees/ROW equipment #37 1000 Gallon Water Trailer. Replacement vehicle 500 Gallon Trailer. 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Total Revenues $ -$ -$ -$ - Expenditures Cost Allocation $ 7,844 $ 7,868 $ 19,111 $ 19,884 Special Projects $ 5,157 $ (12,184)$ 440,000 $ 780,000 Total Expenditures $ 13,001 $ (4,316)$ 459,111 $ 799,884 Fund Balance $ (13,001)$ 4,316 $ (459,111)$ (799,884) General Fund Costs $ -$ -$ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Public Works 476 535 CC 05-15-2025 535 of 655 Non-Departmental FY 2025-26 Proposed Budget Non-Departmental 477 536 CC 05-15-2025 536 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Non-Departmental 478 537 CC 05-15-2025 537 of 655 Department Overview Budget Units Budget Unit Program 2026 Proposed Budget Non-Departmental $ 15,305,253 100-90-001 General Fund Non-Departmental $ 10,613,653 281-90-001 Tree Fund Non-Departmental $ 15,000 365-90-001 Debt Service Non-Departmental $ - 429-90-001 Capital Reserve Non-Departmental $ 2,000,000 365-90-500 Facility Lease Debt Service $ 2,676,600 Total $ 15,305,253 FY 2025-26 Proposed Budget Non-Departmental 479 538 CC 05-15-2025 538 of 655 Budget at a Glance 2026 Proposed Budget Total Revenues $ 73,977,332 Total Expenditures $ 15,305,253 Fund Balance $ (13,723) General Fund Costs $ (57,009,202) % Funded by General Fund -372.5% Total Staffing FTE Proposed Budget It is recommended that City Council approve a budget of $15,305,253 for the Non-Departmental department. This represents a decrease of $3,006,389 (-16.4%) from the FY 2024-25 Adopted Budget. This decrease is primarily due to a decrease in Capital Improvement Funds due to less projects. FY 2025-26 Proposed Budget Non-Departmental 480 539 CC 05-15-2025 539 of 655 Proposed Expenditures by Division Department Expenditure History 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 Proposed Budget for the current fiscal year. 100.0% Non-Departmental $15.9M $12.7M $18.3M $15.3M 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Non-Departmental 481 540 CC 05-15-2025 540 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Sales Tax $ 34,819,341 $ 30,961,166 $ 11,648,962 $ 11,983,958 Property Tax $ 31,889,638 $ 33,036,853 $ 33,174,977 $ 35,413,310 Transient Occupancy Tax $ 7,062,150 $ 6,486,798 $ 7,731,947 $ 7,500,000 Utility Tax $ 4,103,906 $ 3,935,917 $ 4,130,140 $ 4,206,907 Franchise Fees $ 3,995,018 $ 4,313,669 $ 3,509,346 $ 4,394,563 Other Taxes $ 1,471,789 $ 1,621,328 $ 1,684,329 $ 1,736,718 Licenses and Permits $ 29,235 $ 30,345 $ 30,866 $ 26,859 Use of Money and Property $ 2,169,598 $ 8,743,383 $ 4,026,000 $ 3,908,613 Intergovernmental Revenue $ 6,261,952 $ 263,134 $ 100,400 $ 124,404 Charges for Services $ 10,639 $ 12,219 $ -$ 5,400 Miscellaneous Revenue $ 141,840 $ 978,958 $ -$ - Transfers In $ 8,291,964 $ 3,073,600 $ 2,676,200 $ 4,676,600 Total Revenues $ 100,247,070 $ 93,457,370 $ 68,713,167 $ 73,977,332 Expenditures Materials $ 26,036 $ 8,948 $ 23,264 $ 19,000 Contract Services $ 1,500 $ 1,500 $ -$ - Capital Outlays $ 675 $ -$ -$ - Debt Service $ 2,675,800 $ 2,677,600 $ 2,676,200 $ 2,676,600 Transfers Out $ 13,205,485 $ 9,994,583 $ 15,612,178 $ 12,609,653 Total Expenditures $ 15,909,496 $ 12,682,631 $ 18,311,642 $ 15,305,253 Fund Balance $ 4,546,486 $ (2,761,120)$ (8,260,580)$ (13,723) General Fund Costs $ (71,499,123)$ (80,558,259)$ (55,985,905)$ (57,009,202) Staffing There is no staffing associated with this department. FY 2025-26 Proposed Budget Non-Departmental 482 541 CC 05-15-2025 541 of 655 General Fund Non-Departmental Budget Unit 100-90-001 General Fund - Non-Departmental - General Fund Non-Departmental Budget at a Glance 2026 Proposed Budget Total Revenues $ 69,299,455 Total Expenditures $ 10,613,653 Fund Balance $ - General Fund Costs $ (59,685,802) % Funded by General Fund -562.3% Total Staffing FTE Program Overview Non-Departmental programs encompass a variety of revenues that are not directly tied to any specific department or program. These revenues include sales tax, property tax, and transient occupancy tax revenues, which are then allocated to various departments as required. Additionally, Non-Departmental programs also account for the transfers of monies between various funds, which provide subsidies and resources to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies are included in these transfers, which are evaluated annually to ensure that funds outside of the General Fund end the year with sufficient fund balance. Typically, transfers are made to Special Revenue and Enterprise Funds that require subsidies due to their revenues falling short of full program costs. Furthermore, the City has recurring transfers to fund the costs associated with Annual Debt Payment and Compensated Absences. For more detailed information on General Fund revenues, please refer to the Financial Schedules: General Fund Revenues. Proposed Budget It is recommended that City Council approve a budget of $10,613,653 for the General Fund Non-Departmental program. This represents an increase of $3,240,791 (44.0%) from the FY 2024-25 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 Proposed Budget for the current fiscal year. FY 2025-26 Proposed Budget Non-Departmental 483 542 CC 05-15-2025 542 of 655 Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Sales Tax $ 34,819,341 $ 30,961,166 $ 11,648,962 $ 11,983,958 Property Tax $ 31,889,638 $ 33,036,853 $ 33,174,977 $ 35,413,310 Transient Occupancy Tax $ 7,062,150 $ 6,486,798 $ 7,731,947 $ 7,500,000 Utility Tax $ 4,103,906 $ 3,935,917 $ 4,130,140 $ 4,206,907 Franchise Fees $ 3,995,018 $ 4,313,669 $ 3,509,346 $ 4,394,563 Other Taxes $ 1,471,789 $ 1,621,328 $ 1,684,329 $ 1,736,718 Licenses and Permits $ 29,235 $ 30,345 $ 30,866 $ 26,859 Use of Money and Property $ 2,381,446 $ 8,414,389 $ 4,024,000 $ 3,907,336 Intergovernmental Revenue $ 6,261,952 $ 263,134 $ 100,400 $ 124,404 Charges for Services $ 5,829 $ 4,319 $ -$ 5,400 Miscellaneous Revenue $ 141,840 $ 976,173 $ -$ - Transfers In $ -$ 96,000 $ -$ - Total Revenues $ 92,162,144 $ 90,140,091 $ 66,034,967 $ 69,299,455 Expenditures Materials $ 26,036 $ 8,948 $ 23,264 $ 19,000 Capital Outlays $ 675 $ -$ -$ - Transfers Out $ 12,344,345 $ 6,595,284 $ 7,349,598 $ 10,594,653 Total Expenditures $ 12,371,056 $ 6,604,232 $ 7,372,862 $ 10,613,653 Fund Balance $ -$ -$ -$ - General Fund Costs $ (79,791,087)$ (83,535,859)$ (58,662,105)$ (59,685,802) Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Non-Departmental 484 543 CC 05-15-2025 543 of 655 Tree Fund Non-Departmental Budget Unit 281-90-001 Tree Fund - Non-Departmental - Tree Fund Non-Departmental Budget at a Glance 2026 Proposed Budget Total Revenues $ 1,277 Total Expenditures $ 15,000 Fund Balance $ (13,723) 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. Proposed Budget It is recommended that City Council approve a budget of $15,000 for the Tree Fund Non-Departmental 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ 1,823 $ 2,877 $ 2,000 $ 1,277 Charges for Services $ 4,810 $ 7,900 $ -$ - Miscellaneous Revenue $ -$ 2,785 $ -$ - Total Revenues $ 6,633 $ 13,562 $ 2,000 $ 1,277 Expenditures Transfers Out $ 61,140 $ 15,000 $ 15,000 $ 15,000 Total Expenditures $ 61,140 $ 15,000 $ 15,000 $ 15,000 Fund Balance $ (54,507)$ (1,438)$ (13,000)$ (13,723) General Fund Costs $ -$ -$ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Non-Departmental 485 544 CC 05-15-2025 544 of 655 Debt Service Non-Departmental Budget Unit 365-90-001 Public Facilities Corp - Non-Departmental - Debt Service Non-Departmental Budget at a Glance 2026 Proposed Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing FTE Program Overview The Debt Service Non-Departmental Program accounts for the refinancing of debt instruments for the City’s Public Facilities Corporation. Proposed Budget There is no budget requested for this program. This budget was previously misallocated to a program intended for refinancing debt. It has now been correctly reclassified under the Facility Lease Debt Service program 365-90-500, which appropriately reflects its purpose of financing 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ (5,099)$ -$ -$ - Transfers In $ 2,675,800 $ 2,677,600 $ 2,676,200 $ - Total Revenues $ 2,670,701 $ 2,677,600 $ 2,676,200 $ - Expenditures Total Expenditures $ -$ -$ -$ - Fund Balance $ 2,670,701 $ 2,677,600 $ 2,676,200 $ - General Fund Costs $ 2,675,800 $ 2,677,600 $ 2,676,200 $ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Non-Departmental 486 545 CC 05-15-2025 545 of 655 Capital Reserve Non-Departmental Budget Unit 429-90-001 Capital Reserve - Non-Departmental - Capital Reserve Non-Departmental Budget at a Glance 2026 Proposed Budget Total Revenues $ 2,000,000 Total Expenditures $ 2,000,000 Fund Balance $ - General Fund Costs $ - % 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. AVer this review, the remaining balance of the project left to fund is then transferred from the Capital Reserve Fund. Proposed Budget It is recommended that City Council approve a budget of $2,000,000 for the Capital Reserve Non-Departmental program. This represents a decrease of $6,247,580 (-75.8%) from the FY 2024-25 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Use of Money and Property $ (208,572)$ 326,117 $ -$ - Transfers In $ 5,616,164 $ 300,000 $ -$ 2,000,000 Total Revenues $ 5,407,592 $ 626,117 $ -$ 2,000,000 Expenditures Transfers Out $ 800,000 $ 3,384,299 $ 8,247,580 $ 2,000,000 Total Expenditures $ 800,000 $ 3,384,299 $ 8,247,580 $ 2,000,000 Fund Balance $ 4,607,592 $ (2,758,182)$ (8,247,580)$ - General Fund Costs $ 5,616,164 $ 300,000 $ -$ - Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Non-Departmental 487 546 CC 05-15-2025 546 of 655 Facility Lease Debt Service Budget Unit 365-90-500 Public Facilities Corp - Non-Departmental - Facility Lease Debt Service Budget at a Glance 2026 Proposed Budget Total Revenues $ 2,676,600 Total Expenditures $ 2,676,600 Fund Balance $ - General Fund Costs $ 2,676,600 % Funded by General Fund 100.0% 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. Schedule of Lease Payments FY 2025-26 Proposed Budget Non-Departmental 488 547 CC 05-15-2025 547 of 655 Bond Year (Ending June 1)Principal Interest Annual Lease Payment 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 $16,065,000 $2,671,200 $18,736,200 Proposed Budget It is recommended that City Council approve a budget of $2,676,600 for the Facility Lease Debt Service program. This represents an increase of $400 (0.0%) from the FY 2024-25 Adopted Budget. This budget is relatively unchanged from the prior 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 Proposed Budget for the current fiscal year. Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues Transfers In $ -$ -$ -$ 2,676,600 Total Revenues $ -$ -$ -$ 2,676,600 Expenditures Contract Services $ 1,500 $ 1,500 $ -$ - Debt Service $ 2,675,800 $ 2,677,600 $ 2,676,200 $ 2,676,600 Total Expenditures $ 2,677,300 $ 2,679,100 $ 2,676,200 $ 2,676,600 Fund Balance $ (2,677,300)$ (2,679,100)$ (2,676,200)$ - General Fund Costs $ -$ -$ -$ 2,676,600 Staffing There is no staffing associated with this program. FY 2025-26 Proposed Budget Non-Departmental 489 548 CC 05-15-2025 548 of 655 Appendix FY 2025-26 Proposed Budget Appendix 490 549 CC 05-15-2025 549 of 655 This page intentionally left blank. FY 2025-26 Proposed Budget Appendix 491 550 CC 05-15-2025 550 of 655 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. California Department of Tax and Fee Administration - A state agency responsible for administering various taxes, fees, and surcharges in California. This includes the collection and administration of sales and use taxes, which is a major revenue source for the state and local governments. 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. Deficit - Occurs when expenditures exceed revenues. 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 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 FY 2025-26 Proposed Budget Appendix 492 551 CC 05-15-2025 551 of 655 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. Structural Deficit –The amount by which a government's expense is higher than its revenue received, regardless of the economic climate. Subsidy – Supplemental resources provided to ensure adequate funding when anticipated expenditures exceed revenues. 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 2025-26 Proposed Budget Appendix 493 552 CC 05-15-2025 552 of 655 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 CWP City Work Program 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 GFOA Governmental Finance Officers Association HVAC Heating Ventilation and Air Conditioning JPA Joint Powers Authority FY 2025-26 Proposed Budget Appendix 494 553 CC 05-15-2025 553 of 655 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 CalPERS) 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 2025-26 Proposed Budget Appendix 495 554 CC 05-15-2025 554 of 655 Revenues, Expenditures, and Fund Balance Table Sample Revenues, Expenditures, and Fund Balance Table Taxes – Money received from taxes such as sales, property, transient occupancy, and utility tax Licenses and Permits – Money received from license and permit fees Use of Money and Property – Interest earnings, and facility and concession rents Intergovernmental Revenue – Money received from federal, state, or local governments such as grants Charges for Services – Fees collected for services provided by City departments Fines and Forfeitures – Money received from fines and penalties Miscellaneous Revenue – Money received from various sources such as donations, salvage, and legal settlements Other Financing Sources – Money received from bond proceeds, fixed asset proceeds, and refundable deposits Interdepartmental Revenue – Interdepartmental service charges and transfers Total Revenues – Total of all revenue categories FY 2025-26 Proposed Budget Appendix 496 555 CC 05-15-2025 555 of 655 Employee Compensation – Cost of full-time and part-time salaries and overtime Employee Benefits – Cost of employee benefits including CalPERS retirement, health insurance, and other benefits Materials – All materials purchased for repair and maintenance, operational activities such as books, uniforms and recreation supplies, office supplies, and conference and training costs Contract Services – All legal, consulting, and other professional goods and services, contract repair and maintenance, utility charges, training and memberships, equipment rentals, insurance, and employment services Cost Allocation – Cost of services from other City departments Capital Outlay – Expenditures for tangible fixed assets including land, buildings, vehicles, infrastructure, furniture, equipment, and City vehicles used in operation beyond one year Special Projects – One-time projects or costs Other Financing Uses – Depreciation and refundable deposit expenses Debt Service – Principal and interest payments for outstanding debt Transfers Out – Transfers out to other City funds Contingencies – Funds for unexpected expenses and emergencies (1.25% of budgeted materials and contract costs) 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 Costs – 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 2025-26 Proposed Budget Appendix 497 556 CC 05-15-2025 556 of 655 CIP Schedule The City’s Capital Improvement Programs (CIP) details will be included in the City's CIP book that is produced by the CIP division of the Public Works department. Additional details on these and other CIP projects can be found there. Budgeted appropriations for CIP Preliminary Planning & Design and Capital Project Support are part of the CIP base budget. As these are not projects they were not presented to the Council at the CIP study session, but are being included here to show the total CIP budget. FY 2025-26 Proposed Budget Appendix 498 557 CC 05-15-2025 557 of 655 Personnel Schedule FY 2025-26 Proposed Budget Appendix 499 558 CC 05-15-2025 558 of 655 FY 2025-26 Proposed Budget Appendix 500 559 CC 05-15-2025 559 of 655 Adopted June 2025 PUBLIC WORKS DEPARTMENT Roger Lee, Director CITY HALL 10300 TORRE AVENUE ~ CUPERTINO, CA 95014-3266 (408) 777-3354 ~ FAX (408) 777-3333 CUPERTINO.ORG CAPITAL IMPROVEMENT PROGRAMS FY 2025-2026 Chad Mosley, Director 560 CC 05-15-2025 560 of 655 i Introduction May 1, 2025 Subject: CIP Status Report and Adopted Fiscal Year 2025-26 CIP and 5-Year Plan Honorable Mayor and members of the City Council: I am pleased to present this comprehensive document outlining the City’s Capital Improvement Program (CIP), which includes descriptions and the current status of both active and new CIP projects. The CIP serves as a strategic guide for the City, supporting the planning, funding, and scheduling of infrastructure improvements over multiple years. The FY 2025–2026 Adopted Budget reflects the City’s continued commitment to delivering high- quality public services while maintaining a fiscally responsible approach. The City maintains a conservative financial posture as it navigates ongoing economic challenges. In the past, the City regularly transferred significant funds from the General Fund to the Capital Reserve to support long-term capital investments. Over the past five fiscal years, due to budget concerns, these transfers have varied: • FY 2025–26: $2,000,000 • FY 2024–25: $0 • FY 2023–24: $0 • FY 2022–23: $2,500,000 • FY 2021–22: $10,000,000 Historically, these transfers were not part of the initial budget projections but were made mid-year if sufficient funding was available. However, with the City’s aging infrastructure and growing capital needs, it has become clear that regular, predictable contributions to the Capital Reserve are necessary—when financially feasible. Maintaining a minimum balance of $5 million in the Capital Reserve continues to be a key financial priority. Thanks to an improved financial outlook, the FY 2025–26 budget includes a $2 million transfer from the General Fund to the Capital Reserve—the first such contribution in three years. While this contribution helps to sustain the program, but it meets only the minimum annual contribution recommended by the City's “Committed, Unassigned Fund Balance, and Use of One-Time Funds” policy. This policy supports responsible financial management and aims to reduce future debt burdens. The absence of General Fund transfers in recent years has narrowed the CIP’s scope , resulting in a prioritization of only revenue-generating or critical public safety projects. The CIP is funded through a mix of sources—described in more detail later in this introduction— and is allocated based on City Council direction. Because most CIP projects span multiple years, 561 CC 05-15-2025 561 of 655 ii allocated funds are carried over each year until the project is completed or otherwise closed. When a project concludes, any remaining funds are either returned to their original source—such as Park Dedication Funds—or transferred back to the Capital Reserve. This process typically occurs during the third quarter of the fiscal year. Due to the absence of General Fund transfers in FY 2023–24 and FY 2024–25, the Capital Reserve balance has declined. As of the end of FY 2024–25, the Capital Reserve stood at approximately $8.53 million. For FY 2025–26, the CIP includes $43.6 million in funded projects: $33.2 million from City sources, and $12.4 million in external funding. Background Information A capital improvement project is defined as a project that enhances, restores, or extends the useful life of a physical asset, or adapts it for a new or different use. The CIP Division within the Department of Public Works is responsible for the planning, design, procurement, and construction management of all CIP projects. These projects encompass a wide range of public infrastructure, including streets, sidewalks, storm drainage systems, buildings, parks, and bicycle and pedestrian facilities. The division ensures that all public improvements are delivered in alignment with community expectations and in compliance with City and State of California regulations. Protecting public health and safety remains the highest priority in the planning and execution of all CIP projects. The City undertakes various types of projects, and not all capital-related work is included in the CIP. What distinguishes a CIP project from maintenance efforts, Special Projects, or City Work Program (CWP) initiatives is the requirement for professional design services. These services typically involve specialized expertise, technical analysis, and formal documentation. Routine maintenance tasks—such as street resurfacing or sidewalk patching—are not considered CIP projects and are instead funded and managed through the City’s Operations Budget. While most CIP projects focus on the design and construction of public infrastructure, some may involve preliminary planning efforts—such as feasibility studies or other technical assessments— that also require design and engineering input. In such cases, these planning-related efforts may be classified as CIP projects. These general guidelines vary depending on the specifics of each project. Project Priorities As a tool to help make decisions about funding and the scheduling of resources, new and existing projects were prioritized using the following criteria: 562 CC 05-15-2025 562 of 655 iii TABLE 1: PRIORITIES FOR CIP PROJECTS, LEGEND • Health and Safety: assets that require repair or upgrading to protect public health and safety, including protection of public and private property, take highest priority. Example: Repair of Stormwater Drain Outfalls is a high priority to avoid further deterioration of public/private property. • Council, Commissions, and Community Priorities: Incorporates Council priorities, suggestions from Commissions, and Community input. Example: Lawrence-Mitty Trail and Park project is prioritized by the City Council, Parks and Recreation Commission, and members of the public. • Master Plan Priorities: The City’s master plans have many stated goals and policies that affect the generation of CIP projects. Staff reviews the goals found in these documents, including stated priorities of commissions. Example: Projects to remove natural gas appliances from the City’s facilities are prioritized by the Climate Action Plan as part of the City’s decarbonization initiatives. • Ongoing phases: some projects advance as subsequent phases of existing/completed projects. Example: Regnart Road Improvements, Phase 2 project is a subsequent phase of the overall Regnart Road Improvements project, initiated in FY 16-17. • Fiscally Responsible: Improvements or projects that enhance fiscally responsible use of City resources, including staff time and City funds. Projects that have secured (or could secure) outside funding, such as grants, are also given priority. Example: The Bollinger Road Corridor Design project is included in the CIP because the majority of the study will be funded through a grant. 563 CC 05-15-2025 563 of 655 iv Staff evaluates and prioritizes new project proposals based on the factors listed above. The highest priority is given to projects that require repair of existing facilities to address public health and safety and to protect public and private property. Other factors, including available funding and resources to complete the project, are then considered within the context of other City goals. For the FY25-26 proposal, specific emphasis was placed on projects that improve our facilities and storm drain systems as those aspects of our City’s infrastructure have the greatest need for improvement. FY 2024-25 CIP Status Report The CIP currently includes 28 projects that vary in size, complexity, and budget. These projects span across multiple areas of public infrastructure, including parks, public buildings, transportation corridors, and environmental improvements. More detailed information on each of these projects is provided in the main body of this report, following this introduction. Projects completed in FY 24-25, or which are scheduled for completion this fiscal year include: • Blackberry Farm Pool Improvements • De Anza Boulevard Buffered Bike Lanes • McClellan Road Separated Bike Corridor, Phase 3 • Vai Avenue Outfall - Repairs* • All-Inclusive Play Area & Adult-Assistive Bathroom Facility at Jollyman Park** *The existing outfall was temporarily repaired, but the larger project to replace the outfall has not yet occurred. **Project that is projected to be complete by July 2025 Staff anticipate that these projects will underspend their respective budgets by approximately $200,000. These underspent funds will be returned to the Capital Reserve (or other appropriate accounts based on the original source of any restricted funds). Public Works and Finance staff work together as part of the year-end process to close out completed projects, presenting this information as part of the first quarter report for the following fiscal year. FY 2025 – 2026 CIP – New Projects This year, the list of new projects was driven by the need to implement health and safety-driven projects and was further impacted by limited staffing resources and $2 million in funding. The focus is to initiate projects that will promote public safety, protect both public and private property, and update our existing infrastructure. // // 564 CC 05-15-2025 564 of 655 v FY25-26 NEW CIP PROJECTS & EXISTING PROJECTS WITH ADDITIONAL FUNDING Project name Project Description FY25-26 Funding INTERNAL EXTERNAL Outfall Repairs Repair various storm drain outfalls following the recommendations of the 2024 Storm Drain Outfalls Assessment. $950,000 $950,000 $0 ADA (Americans with Disabilities Act) Improvements (Annually funded) This is an ongoing program, funded annually, to improve accessibility of public facilities throughout the City. $110,000 $110,000 $0 Citywide Facilities Condition Assessment (FCA) Implementation This is an ongoing initiative to address improvements needed throughout City buildings. Implement priority recommendations identified in the 2018 & 2022 FCA reports. $940,000 $940,000 $0 subtotal $2,000,000 $2,000,000 $0 The proposed FY 25-26 CIP includes ongoing funding for two existing facilities projects and funding for storm drain utility repairs. The projects proposed this year are a result of information from existing facility assessments, which show the need for extensive improvements and repairs to the City’s aging infrastructure. Due to the extensive nature of the work needed, staff envision some of these projects becoming regular or even annual requests for the foreseeable future. FY 2025 – 2026 CIP – Five-year Plan The five-year plan focuses on rehabilitating critical infrastructure that has aged beyond its life cycle. While the City has focused its rehabilitation efforts in recent years on revitalizing its pavement condition, the City must now shift some of this focus onto its buildings and storm drain system to address public health and safety issues. FY 25-26 CIP PROJECTS - FIVE-YEAR PLAN Project FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost ADA Improvements (Annually funded) $110,000 $115,000 $120,000 $125,000 $130,000 Citywide Facilities Condition $940,000 $2,300,000 $1,000,000 $1,000,000 $1,000,000 565 CC 05-15-2025 565 of 655 vi Assessment (FCA) Implementation Outfalls Repairs $950,000 $600,000 $600,000 $600,000 $600,000 BBF Golf Renovation: minimal repairs $1,580,150 totals $2,000,000 $3,015,000* $1,720,000 $3,305,150* $1,730,000 * Current annual CIP funding is $2M/year. Project estimates may be refined prior to requested CIP funding. Proposed annual CIP funding that exceeds $2M/year will require additional funds beyond the $2M annual funding being allocated to the program. Where possible, staff will search for external funding to address funding requests of more than $2M. FY 2025 – 2026 CIP Project Narratives The following narrative pages have project descriptions and funding information for each project in the CIP. The estimated project costs shown are inclusive of all anticipated direct and indirect costs, including for administration and management of the project, design, community outreach, permits, construction management and inspections, internal cost allocation, and the construction contract. CIP projects typically fall into four categories: Parks, Streets and Infrastructure, Transportation, and Facilities. This year we are introducing a fifth category – Sustainability projects. It is a more accurate reflection of the City’s goals to highlight efforts towards Sustainability and Resilience. LEGEND: 1 Facilities: Yellow 2 Parks: Green 3 Streets and Infrastructure: Orange 4 Transportation/ Bike and Pedestrian: Blue 5 Sustainability: Maroon Allocation of each project into a ‘category’ does not have financial implications and many projects could be placed into more than one category. However, the classification is useful for reviewing the distribution of funds to the type of assets receiving capital improvements. Wherever possible, we use color coding to illustrate the project category, as indicated in the list above. Fund Types for CIP Tax Supported Funds Capital Improvement Fund (General Fund) - 420 The General Fund is the primary operating fund for governmental services. Within the General Fund, the Capital Improvement Fund is utilized for the acquisition or construction of major capital facilities. Funds in this account are previously approved by Council and dedicated to CIP projects. 566 CC 05-15-2025 566 of 655 vii Typically, these funds roll-over until the project[s] are completed or defunded. A copy of the Capital Improvement Policy is attached at the end of this letter. Capital Reserve (General Fund) - 429 The City’s Capital Reserve is intended to be used for capital improvement projects in the City. Funding for this reserve is governed by the City’s Assigned and Unassigned Fund Balance and Use of One Time Funds Policy that can be found in the Financial Policies and Schedules section of the City’s proposed and final budget documents. Per that policy, any unassigned fund balance in the General Fund at year-end over $500,000 will be transferred to the Capital Reserve. Stevens Creek Corridor Park Capital Projects - 427 This fund pays for the design and construction of the Stevens Creek Corridor Park projects. Special Revenue Funds Storm Drain Improvement Fund - 210 This fund pays for the construction and maintenance of storm drain facilities. Revenues are collected as a line item on the city’s behalf via the County property tax billing. Park Dedication Fund - 280 This fund pays 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 collected as a development “in-lieu” fee with new residential development, excluding exempted ADU’s per state regulation and designated Below Market Rate Housing (BMR). Transportation Fund - 270 This fund pays for expenditures related to the maintenance and construction of City streets. Revenues are collected from Vehicle License Fees, Gas Tax, Cal Recycle State Grant funding (for rubberized pavement) as well as SB1 dollars. Transportation Impact Fee - 271 This fund pays for the cost of transportation improvements required to serve new development. Impact fees are one-time charges on new development, additions to existing structures, change in use, or similar construction activity that requires a building permit and results in additional peak hour vehicle trips, and is collected and used by the City to cover the cost of capital facilities and infrastructure that are required to serve new growth. Housing & Community Development -260 This fund pays for the Federal Housing and Community Development Grant Program activities administered by the City. This fund also pays for activities related to the Below Market Rate Housing Program. Revenues are collected as a development “in-lieu” fee with new residential development, excluding exempted ADU’s per state regulation and designated Below Market Rate Housing (BMR). Enterprise Funds 567 CC 05-15-2025 567 of 655 viii Blackberry Farm Golf Course Fund - 560 This fund pays for operating costs related to the Blackberry Farm Golf Course. Revenues are collected as fees from users of the golf course. Sports Center Fund - 570 This fund pays for operating costs related to the Sports Center. Revenues are collected as fees from users of the Sports Center. Recreation Programs Fund - 580 This fund pays for operating costs related to the City’s community centers and park facilities. Revenues are collected as fees for recreation programs at the City’s community centers and park facilities. In summary, due to the ongoing budget concerns, the City’s Capital Improvement Programs over the next 5 years have taken a “back to the basics” approach. The projects are focused on essential repairs and upgrades to existing City assets and proposed projects have shifted away from the implementation of new amenities which require additional ongoing resources to maintain. We anticipate this shift in focus for the foreseeable future, or until the City can improve its economic outlook. Respectfully submitted, Susan Michael Capital Improvement Programs Manager _____________ 568 CC 05-15-2025 568 of 655 ix FISCAL POLICIES Capital Improvement Programs Policy PURPOSE To establish a Capital Improvement Programs (CIP) Policy to assist in future budget projections. SCOPE All anticipated CIP projects for the current fiscal year plus four additional fiscal years. POLICY The City will prepare an annual CIP for the current fiscal year that includes a projection of anticipated programming and funding for a total of five fiscal years. Projects included in the CIP will have information on the need for the project (project justification), description and scope of work, total cost estimates, future operating and maintenance impacts, and funding sources. The project justification will incorporate information on the factors that affect the prioritization of the project. The factors to be considered include (but are not limited to) the Health & Safety of the community, continuation of ongoing work, Community requests, General Plan and Master Plans' directives, staffing and operational demands, sustainability and resiliency, and internal and external funding viability. Changes to the CIP such as the addition of new projects, significant 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 facilities 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. 569 CC 05-15-2025 569 of 655 x 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. Revised April 2023 570 CC 05-15-2025 570 of 655 xi 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 – $21,329,593 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 Sales Tax Repayment Reserve – $77,554,500 and represents the funds committed for potential sales tax repayments. The result of the California Department of Tax and Fee Administration (CDTFA) audit of a City taxpayer is expected to have significant financial implications for the City’s operations. To prepare for a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge, the City established a General Fund Sales Tax Repayment Reserve. The purpose of this reserve is to set aside funds for potential sales tax repayments to the CDTFA. An initial allocation of $56.5 million corresponds to sales tax revenue received between April 2021 and June 2023 that the City may need to repay to the CDTFA. All or part of the funds will be transferred to General Fund Unassigned if the City’s efforts to contest CDTFA’s decision are ultimately successful, in whole or in part. This reserve can be augmented when additional disputed sales tax revenue is received. PERS – $19,088,859 and represents the funds restricted for the City's pension obligations. In response to the increasing retirement costs based on actuarial forecasts, the City created a secondary pension trust to help stabilize the impact of pension cost volatility on the City's operating budget. To fund this secondary trust, the City made an initial contribution. After that, the annual contributions are determined based on the difference between CalPERS' current discount 571 CC 05-15-2025 571 of 655 xii rate and a more conservative rate determined by the City. This difference will then be transferred to the pension trust and used exclusively for the benefit of members in the plan. The primary goal of establishing this secondary trust is to ensure that the City can continue to provide its employees with the retirement benefits they have earned while maintaining fiscal responsibility. By using a more conservative rate for calculating contributions, the City can better anticipate and manage pension costs and mitigate potential negative impacts on the City's budget. 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. 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 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: 572 CC 05-15-2025 572 of 655 xiii 1 As of June 30, 2023 2 Rounded to the nearest hundred thousand 3 Excludes Transfers Out 4 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. 573 CC 05-15-2025 573 of 655 xiv 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 Reserve 2) Sales Tax Repayment Reserve 3) PERS 4) Sustainability Reserve 5) Unassigned Revised May 1, 2024 574 CC 05-15-2025 574 of 655 Capital Improvement Programs Status Report The Fiscal Year (FY) 2024-2025 Capital Improvement Programs (CIP) contains 28 active projects. Four projects were successfully completed this fiscal year, with one additional project scheduled to be completed prior to July 2025. The new projects and additional funding for FY 25-26 CIP considers the current staffing levels and ensures that future projects are planned in a way that aligns with available resources for effective execution. This document provides a summary of the existing projects, broken into five categories of projects, for ease of discussion. Within each section on the type of project, you will find a summary of the existing projects, proposed projects, unfunded projects, projects that can be defunded, and the five-year plan for each of the categories. CIP projects typically fall into four categories: Parks, Streets and Infrastructure, Transportation, and Facilities. This year we are introducing a fifth category – Sustainability projects. It is a more accurate reflection of the City’s goals to highlight efforts towards Sustainability and Resilience. LEGEND: 1 Facilities: Yellow 2 Parks: Green 3 Streets and Infrastructure: Orange 4 Transportation/ Bike and Pedestrian: Blue 5 Sustainability: Maroon Allocation of each project into a ‘category’ does not have financial implications and many projects could be placed into more than one category. However, the classification is useful for reviewing the distribution of funds to the type of assets receiving capital improvements. Wherever possible, we use color coding to illustrate the project category, as indicated in the list above. 575 CC 05-15-2025 575 of 655 CIP Status Report Page 2 of 38 CIP: FACILITIESCity of Cupertino 576 CC 05-15-2025 576 of 655 CIP Status Report Page 3 of 38 1. Facilities A. Existing Facilities CIP Projects: There are three funded and active CIP projects that are considered Facilities projects, and two other funded projects that are in the queue. TABLE 1 – ACTIVE FACILITIES CIP PROJECTS # Project name Project Description Year Initiated Approved Funding Project Total Remaining Funds* F1 ADA Improvements (Annually funded) This is an ongoing program, funded annually, to improve accessibility at all public facilities throughout the City. FY15-16 $970,000 $1,080,000 $191,990 City funding FY25-26 $110,000 F2 Citywide Facilities Condition Assessment Implementation (FCA) Implement priority recommendations identified in the Facility Condition Assessment reports. FY18-19 $1,000,000 $3,369,890 $1,536,282 CAP FY22-23 $6,470 City funding FY23-24 $1,000,000 CDBG FY23-24 $367,951 CDBG FY24-25 $55,469 City funding FY25-26 $940,000 F3 City Hall Annex Program, plan and build facility improvements required for interim facility to accommodate staff while City Hall is remodeled, as well as the long- term use of this facility. FY21-22 $3,000,000 $3,000,000 $1,872,539 F4Q City Hall Improvements Programming, Feasibility and Community Outreach to form the basis of a renovation strategy for the buildings. Queued pending revised Council direction, especially concerning financial strategy. FY21-22 $500,000 $500,000 $378,036 F5Q Library Expansion Project (landscaping and other misc. scope) Develop a design and construct a 5600 SF addition to the existing Library building. Grant funding (CPF, Ro Khanna) planned to complete the courtyard and exterior landscaping scopes of work. FY19-20 $8,705,438 $9,705,438 $1,391,910 CPF FY24-25 $1,000,000 subtotal $17,655,328 $17,655,328 $4,370,757 *Table Note: The funds indicated in the “Remaining Funds” column are a calculation based on the transactions to date (3/14/25) and contracts encumbered on each project. It does not fully account for the 577 CC 05-15-2025 577 of 655 CIP Status Report Page 4 of 38 amount of grant funds that are expensed/received to date. If the project were to be defunded, for example, a more thorough accounting of the funds remaining on the project would be required. Facilities Condition Assessment Project In 2018 the “Comprehensive Facility Condition and Use Efficiency Assessment” report was completed. This report was updated in 2022 by the “Facility Condition Assessment” (FCA). The FCA reviewed 48 facilities at 24 locations. The report identified $28.8 million of renewal projects, with $4 million in priority one projects. The 2022 FCA report explained that “…conditions in this [priority one] category require immediate action to: a) correct a cited safety hazard, b) stop accelerated deterioration, and/or c) return a facility to operation. Deficiencies in this category should be addressed in 0-12 Months.” Since the updated report was issued, six projects have been initiated: Senior Center Fire Alarm system (FAS) upgrade, Quinlan Community Center (QCC) AC Chiller replacements, Sports Center Locker and Shower rooms improvements, and the replacement of three flat roofs at Sports Center, QCC, and Senior Center. Other completed FCA projects include: Sports Center Fire Control Center panel replacement, and the Sports Center Seismic Retrofit. The cost estimates in the report are based on 2022 figures, and an escalation rate of roughly 5% per year should be applied to account for the projected cost of incomplete projects. This leads to a 21.55% escalation for 2026. The current approved project funding, including the $423,420 in CDBG funding (designated specifically for Senior Center improvements), totals $2,429,890. Of this, $41,342 remains unencumbered and available for new projects. The highest-priority projects include upgrades to life-safety systems at five facilities (listed in the table below). The FY25-26 FCA project additional $940,000 funding will be applied to these scopes of work. Improvements to the Library life-safety systems are also needed, as are repairs to the Sports Center Shower and Locker rooms. It is planned to request additional funding for those projects in FY26-27. TABLE 2 – FCA PROJECT FISCAL SUMMARY FUNDING TO DATE: FY19 City funds $1,000,000 FY23 CAP funds $6,470 FY24 City funds $1,000,000 FY24 CDBG grant $367,951 FY25 CDBG grant $55,469 subtotal (a) $2,429,890 578 CC 05-15-2025 578 of 655 CIP Status Report Page 5 of 38 Current & Completed Projects: Completed FCA Projects (Sports Center Fire Control Panel and Seismic Retrofit) $502,528 QCC Chillers Replacement $350,000 Sports Center Roof $391,600 QCC Flat Roof $462,000 Senior Center Flat Roof $200,000 Sports Center Shower Rooms – Design only $59,000 Senior Center FAS Upgrade (CDBG) $367,951 Senior Center HVAC replacement (CDBG) $55,469 (subtotal (b) $2,388,548 Uncommitted project funds (a-b): $41,342 FY25-26 FCA Projects: Monta Vista - Pre-School Building FAS $75,128 Creekside Park Recreation Building FAS $40,447 Monta Vista - Gymnastics Building FAS $216,842 Service Center Administration Building FAS $164,032 Sports Center FAS $386,928 subtotal (c) $883,377 Uncommitted project funds (a-b): $41,342 FY25-26 estimate (c-a-b): $842,035 additional FY25-26 funds: $940,000 FY26-27 FCA Projects: Library FAS $1,309,738 Sports Center Showers & Locker Rooms $900,000 $2,209,738 B. Evaluation of Facilities CIP Projects to Defund: The FCA projects are critical health and safety improvements to existing facilities. ADA improvements are similarly critical, and federal mandates require that the City continues to make improvements to accessibility to public facilities. The work remaining on the Library Expansion project is completely grant-funded. The City does not recommend defunding any of these projects. C. Unfunded Facilities CIP Projects: In the past five years, several projects have been proposed and remain unfunded. The list that follows notes the years projects were proposed and projected cost in FY25-26 dollars. 579 CC 05-15-2025 579 of 655 CIP Status Report Page 6 of 38 TABLE 3 – UNFUNDED FACILITIES CIP PROJECTS Project FY proposed Project Description Projected Cost City Hall project FY20-21 Design and Construction, following programmatic development for renovation or replacement of the existing facility, including parking facilities. The existing building requires seismic retrofit, the infrastructural systems are antiquated, and the space planning is not appropriate for current workplace practices. Parking areas require expansion. $30M to $90M* City Hall Annex – Additional Funding FY21-22 Program, plan and build facility improvements required for interim facility to accommodate staff while City Hall is remodeled, as well as the long- term use of this facility. $5M - $8M Stocklmeir, Blesch and Blue Pheasant properties FY19-20 Programming, Community Outreach, Design and Construction of the Stocklmeir property and adjacent facilities. $1.2M *Note: Estimated costs reported in 2022 for the renovation of the facility that included seismic reinforcement to meet ‘essential facility’ requirements, HVAC, electrical, life/safety, and IT systems replacements and a complete interior renovation were reported as $29M. Performing the same scope at a level of ‘non-essential’ facility was estimated at $27M, in 2025. Cost estimates should be revisited, in light of current market conditions. The upper end of the projected cost was for a replacement City Hall building as envisioned in the Civic Center Master Plan. City Hall Since the seismic issues following the 1986 renovation were discovered, numerous plans and master plans have been developed. Improvements to the building alone do not address the parking limitations. Options to rework civic center have been investigated and analyzed. City Hall renovation a significant project, both culturally and economically, that has stalled due to the ongoing debates on the appropriate magnitude and scope of the project. Renovation Option: $30M + $5M parking Renovate the City Hall building within the existing footprint, using the existing structure and site plan. While the driving force of the scope will be the seismic upgrade, the development triggers accessibility (ADA) and infrastructure requirements. Additionally, the interior layout of the space does not meet the needs of the workforce or the community. An interior renovation to create community meeting spaces and an updated workplace will be necessary. In this scenario, it is possible to consider adding a story within the confines of the existing footprint. This will have additional cost but will allow for more flexibility in programming the interior uses of the space. The Civic Center regularly has a shortage of parking spaces due to the popularity of the Cupertino Library and events held at both the library and Community Hall. To increase 580 CC 05-15-2025 580 of 655 CIP Status Report Page 7 of 38 the number of parking spaces, above-ground, below-ground, or off-site options would need to be considered in this scenario. A separate project could be generated that analyzes feasible options for parking. • PROS: less time and effort in the design phase, less expensive for the building project (the overall cost, if considering the parking solutions, may be a significant additional cost). • CONS: Building renovations are complicated projects with significant financial investment. Compromises in programming are made to work within the confines of the original enclosure. An additional parking area is not included within the building footprint and would require additional dedicated funding. Replacement Option: up to $80M Using the 2015 Civic Center Master Plan as the foundation, replace City Hall and portions of the Civic Center with a new building and integrated parking to better meet the needs of the community, providing more engaging community spaces and a more effective workplace for the City business. • PROS: more effective spatial and economic solutions are possible, making City Hall and Civic Center a functional hub for the City. Adding underground parking would be a priority. • CONS: A new building and parking structure may be as much as 2 times more expensive than a building renovation project without parking. The design of a new facility will typically require a lengthy and costly public engagement process in addition to the design and construction process. Council has requested that the City Hall project options be considered in the Fall of 2025 at a City Council meeting. If Council wishes to activate the City Hall project, (a) additional funding for design and construction, and additional staffing would be required. (b) direction on the scope of work would be required (renovation of the existing facility, renovation of the existing with an added story, renovation to essential services structural level. City Hall Annex The City Hall Annex property was purchased in 2021, and the renovation project for the facility was funded at $3M in FY21-22. The proximity of this property to the Civic Center, and its central location within the City, lends itself to numerous uses, including a satellite and/or interim City Hall facility. Council approved proceeding with the renovation of the facility to function as an interim facility for City staff while the City Hall building was under construction. The program centered on providing workplace and transactional areas for the public-facing Permit Center and some Finance/Business transactions that bring the public to City Hall regularly. The Council approved adding the Emergency Operations Center to the program in 581 CC 05-15-2025 581 of 655 CIP Status Report Page 8 of 38 late 2022, since the preliminary cost estimates reported that this upgrade of the scope would cost an additional $500,000. When the EOC scope was added, staff made the decision to delay the request for additional project funding for the added scope until the project was ready to award a contract to a general contractor for construction so that more definitive costs would be discussed. However, when cost estimates on the 65% set of drawings and specifications came in at $6.7M in 2024, the decision was made to pause the project until the City Hall project direction was decided, so that priorities and cost-cutting measures could be evaluated in a fuller context. An updated scope of work, with value-engineering options, and cost estimate would be required to continue work on the project. With the news of the inflated costs, numerous options were investigated, from scope reductions to a completely reduced program of ‘carpet-and-paint’ only, and other code required renovations such as accessible entries. The most reduced scope of work was estimated at $2M. While developing the program for the City Hall Annex building as City’s Permit Center and EOC, staff identified additional cost impacts, including: • Increase of construction costs due to the addition of the EOC program and infrastructure. The early estimate was that the addition of the EOC would add approximately $500,000 in construction costs. • Increase of soft costs due to the addition of the EOC program. Cost estimate for soft costs is approximately $1.5M, leaving $1.5M for construction (which is less than required, see below). • An overall increase in the original construction estimate excluding the addition of an EOC. Staff has learned that the original construction cost estimate for the overall project was too low. 2023 estimates for 2024 construction were estimated at $6.7M without moving/logistics cost, furniture, and other contingencies accounted for. At the April 3, 2025 Council meeting, Council gave direction to move forward with the renovation of the City Hall Annex with the understanding that the estimated additional costs would be approximately $8 million. CIP will move forward with the project using the currently appropriated funding to complete the design and documentation required for bid and permitting. Once the project is bid, the project will return to Council for approval of additional funding and award of the contract for construction. Stocklmeir, Blesch and Blue Pheasant properties (scope and cost unknown) Many options for the Stocklmeir property have also been pursued in the years since the property was purchased. Some residents have expressed their desire to make the property into a museum for 1930’s farm life. The Cupertino Historical Society (CHS) and Rotary Club have made proposals in the past to facilitate projects at the site, but for various reasons including funding concerns, nothing has moved forward. Improvements to the facilities are complicated by its location within a special flood hazard area, and many challenges to provide an accessible facility. 582 CC 05-15-2025 582 of 655 CIP Status Report Page 9 of 38 In order to move forward with a project at the Stocklmeir, Blesch and/or Blue Pheasant properties, Council should provide direction on the type of facility or project desired and allocate funding and additional staffing resources for the project. D. Facilities CIP - Five-Year Plan TABLE 4 – 5-YEAR PLAN FOR FACILITIES CIP PROJECTS Note: Grey text in Years 2-5 illustrate 5% escalation costs but are not proposed for implementation in that year and thus are not included in the totals below. Project FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost ADA Improvements (Annually funded) $110,000 $115,000 $120,000 $125,000 $130,000 Citywide Facilities Condition Assessment Implementation (FCA) $940,000 $2,300,000 $1,000,000 $1,000,000 $1,000,000 City Hall project1 (Renovation) $40,000,000 $42,000,000 $44,100,000 $46,305,000 $48,620,250 subtotals $1,050,000 $2,415,000 $1,120,000 $1,125,000 $1,130,000 1 City Hall, City Hall Annex, and Stocklmeir, Blesch and Blue Pheasant properties projects are major projects – staff awaits Council’s direction for inclusion in the five-year plan. FY25-26: The ADA Improvements project and FCA project are essentially ongoing projects, renewed annually. Addressing the most critical deficiencies identified in the 2022 FCA is a priority, especially life-safety systems. The current FCA projects, the Senior Center Fire Alarm system (FAS) upgrades, Quinlan Community Center Chiller replacements, and the flat roof replacements at QCC, Sports Center and Senior Center will be completed in FY25-26. If approved, the additional FY25-26 funding will be directed to FAS upgrades at five facilities noted in Table 2. FY26-27: CIP will request additional funding to replace the FAS in the Cupertino Library building, and to complete the renovations to the Sports Center shower and locker rooms. In this fiscal year we may be able to coordinate these projects with infrastructure improvements at the Library to electrify the appliances, improve energy efficiency, and increase the resiliency of the facility to better serve the community as a cooling/heating center. Public Works (PW) staff is currently working with Santa Clara County Library District (SCCLD) and the Santa Clara County (SCC) to develop a program and technical requirements for this initiative. 583 CC 05-15-2025 583 of 655 CIP Status Report Page 10 of 38 FY26-27: When the CIP division successfully fills the two open positions currently under recruitment, work will resume on the Library Expansion project. The work at the Library is funded by a $1 million grant secured by Congressman Ro Khanna. Anticipated completion of the project is in 2027. FY27-28 and onwards: addressing the highest priority projects in the FCA will be ongoing for both CIP and the Operations staff. More roof repairs are needed and FAS, HVAC systems, and other critical systems need improvements. The FCA project may help to address additional improvements to the various Recreation facilities (Sports Center, McClellan Ranch Preserve, Blackberry Farm, Senior Center, Quinlan Community Center) that could improve accessibility and infrastructure, advancing safety, functionality, and revenue-generating capacity of these facilities. 584 CC 05-15-2025 584 of 655 CIP Status Report Page 11 of 38 CIP: PARKSCity of Cupertino 585 CC 05-15-2025 585 of 655 CIP Status Report Page 12 of 38 2. Parks A. Existing Parks CIP Projects: There are four funded and active CIP projects that are considered Parks projects, and one other funded project that is in the queue. TABLE 5 - ACTIVE PARKS CIP PROJECTS # Project name Project Description Year Initiated Approved Funding Project Total Remaining Funds* P1 All-Inclusive Play Area & Adult- Assistive Bathroom Facility (Jollyman Park) At Jollyman Park, Design and construct an all-inclusive playground and an adult-assistive bathroom facility adjacent to the new AIPG. (Externally Funded, in part) FY18-19 $1,230,000 $4,891,347 $257,024 SCC AIPG grant FY18-19 $1,448,201 CA P&R grant FY21-22 $1,000,000 PG&E donation FY21-22 $25,000 Adult-assistive bathroom added FY22-23 $850,000 Art In-lieu fees FY23-24 $338,146 P2 Lawrence-Mitty Park and Trail Plan Design and construct a new neighborhood park. Located on 7.8 acres adjacent to Saratoga Creek, near the intersection of Lawrence Expressway and Mitty Way. FY18-19 $8,270,994 $6,850,909 $4,422,565 Acquisition & Annexation FY21-22 -$2,330,085 Berm Clean-up FY23-24 $910,000 P3 Park Amenity Improvements Funding for various park amenities such as benches, hydration stations, outdoor table tennis, cornhole, shade structures, pickleball striping, etc. (3yrs funding x $200K) FY20-21 $600,000 $600,000 $417,460 P4 MRP West Parking Lot Improvements (Habitat monitoring continues to 2028) *Only habitat monitoring is active. Design and construct a new “green” meadow-style parking lot that is compatible with the creek environment at McClellan Ranch West, which was designed to have minimal impact to the site. FY16-17 $400,000 $1,069,682 $1,611 City Funding FY17-18 $550,000 City Funding FY18-19 $119,682 P5Q Annual Playground Replacement Replacement of older playground equipment that is dated and worn. (5yrs funding x $300K) FY20-21 $1,500,000 $1,500,000 $913,755 subtotal $14,911,938 $14,911,938 $6,012,415 586 CC 05-15-2025 586 of 655 CIP Status Report Page 13 of 38 *Table Note: The funds indicated in the “Remaining Funds” column are a calculation based on the transactions to date (3/14/25) and contracts encumbered on each project. It does not fully account for the amount of grant funds that are expensed/received to date. If the project were to be defunded, for example, a more thorough accounting of the funds remaining on the project would be required. • The Jollyman Park All-Inclusive Playground is under construction and will be completed before summer 2025. • Lawrence-Mitty Park and Trail is in the design phase. As part of the due diligence for this project, we are generating cost estimates based on the schematic design progress and will return to City Council for review before advancing the design process further. • The Park Amenity Improvements project continues to supply new benches, picnic tables, and other vital features to parks as required. • The Annual Playground Replacement project will activate once CIP recruitments are successful. Varian Park, Little Rancho Park and Canyon Oak Park are targets for improvements. B. Evaluation of Parks CIP Projects to defund: • The Jollyman AIPG is nearing completion. • The Lawrence-Mitty Park and Trail project is in contract through to the end of design and documentation. The funding for the project comes from a developer agreement that would need to be revisited if defunding were to be considered. • The Park Amenity Improvements project could be defunded but has been a valuable resource to address needed improvements and community requests/concerns in our parks. • The Playground Replacement project could be defunded since we are not in-contract presently, but the need to replace our aging playgrounds persists as an ongoing safety concern. If not replaced, many playgrounds will need to be closed, at least in part. • The habitat monitoring at the McClellan Ranch Preserve west parking lot is a requirement of the project’s California Department of Fish and Wildlife permit. The City does not recommend defunding any of these projects. C. Unfunded Parks CIP Projects: In the past five years, several projects have been proposed and remain unfunded. The list that follows notes the years proposed and projected cost in FY25-26 dollars. // // // // 587 CC 05-15-2025 587 of 655 CIP Status Report Page 14 of 38 TABLE 6 – UNFUNDED PARKS CIP PROJECTS Project FY proposed Project Description Projected Cost Park Shade Structures FY23-24 Five locations: Creekside, Portal, Linda Vista, BBF Bocce, and Jollyman. Planned for FY25-26, as noted in the FY24-25 CIP program. Grant funding was not obtained, however. Providing more shade opportunities is a stated priority of the Parks and Recreation System Master Plan (PRSMP) but due to limited resources and other priorities, this project was removed from the 5-year CIP plan. $1.3M BBF Golf Course Irrigation FY24-25 Replacement of the irrigation system is a high priority; however, it is likely that this will be a major project. Prioritized for its potentially strong sustainable infrastructure and improvement of natural habitat, thus addressing the goals of the CAP and the PRSMP. The projects were planned for FY25-26, as noted in the FY24-25 CIP program, however staffing resources and funding remain limited. Staff will look for potential external funding for the project prior to proposing this in future CIP plans. $2.5M BBF Golf Course Pond Restoration FY24-25 The area of the BBF Golf course that was a pond, is visibly undeveloped. This project proposes to replant the area low-water native species. $1.53M Memorial Park projects derived from 2024 MPSP FY25-26 MPSP offered a considerable list of potential projects, including the phasing of certain areas and types of amenities. Priorities from the Community and P&R staff: • Extended Senior Center Deck/Plaza • New Restroom and upgrade Existing Restrooms • Bocce Court • Upgraded Parking Lots (2) • Upgraded Amphitheater and Stage • Reservable Picnic Area (Align with PV work) However, due to limited resources and other priorities, no projects from this plan are proposed at this time. Varies Memorial Park projects: All- Inclusive Playground FY25-26 Grant funding may be available from Santa Clara County for an All- Inclusive Playground. Staff will propose this project if external funding becomes available. $5M Memorial Park projects: Softball Field Lighting FY25-26 The current system has exceeded its useful lifecycle and replacement parts are difficult to obtain. Staff will monitor the system and will propose a project when required. $250,000 to $500,000 Park Pathways Paving FY24-25 Add and/or improve pathways at 8 parks: Three Oaks Park, Creekside Park, Wilson Park, Hoover Park (new), Jollyman Park, Portal Park, Somerset Park, and Varian Park. Improvements to existing park pathways, converting a majority of the paths from asphalt to concrete, improving lighting in limited locations, and design and installation of new pathways in some parks. New pathways are a low priority, PW Operations may propose Special Project funding to repair existing paths as needed. $1.2M 588 CC 05-15-2025 588 of 655 CIP Status Report Page 15 of 38 Blackberry Farm Family Restroom Conversion FY25-26 This project aims to better serve the community by converting one of Blackberry Farm's four restrooms into a family restroom and pool changing area. Blackberry Farm is a popular pool and park facility, and is frequented by families with young children. As a result, there is a high demand for a family restroom and changing area. This project is a priority of the Parks and Recreation Department to address public requests. $500,000 Blackberry Farm Golf Course Restroom Renovation FY25-26 The restrooms at the BBF Golf Course have not been upgraded since 1991. They are dilapidated, require ongoing maintenance, and customers routinely complain about them. The golf course is a high-usage facility with more than 40,000 rounds of golf played each year. A full renovation is required to meet accessibility and building code requirements. Minor maintenance and replacement fixtures are proposed in the FY 25-26 proposed budget to address some of these needs. $500,000 Blackberry Farm Entrance Improvements FY25-26 FY19-20 The entrance to Blackberry Farm needs better pedestrian facilities. Access improvements were unanimously endorsed by City Council in 2015. The Parks and Recreation Commission prioritized this project as a high priority for the 2019 CIP plan. The project has also been noted in the 2006 Stevens Creek Master Plan and Restoration Plan, the 2016 Stevens Creek Master Plan draft, the 2016 Cupertino Bicycle Transportation Plan and was the justification for the City’s purchase of the Byrne residential property and dedication. $2M to $3M Blackberry Farm Play Area Improvements FY19-20, FY25-26 The current playground needs improvements to meet modern standards. Its small size limits capacity, particularly during peak usage by summer camps and school groups. The perimeter shows signs of wear, requiring reinforcement to ensure safety and stability. New scope would include a resilient play surface and nature play elements. $300,000 McClellan Ranch Preserve Barn Renovation FY19-20, FY25-26 Repair and rehabilitate the McClellan Ranch Preserve Barn to enhance safety, preserve its historical significance, support educational activities, and facilitate community engagement. The McClellan Ranch Preserve Barn Evaluation & Conceptual Renovation Plan was adopted by City Council in 2014. The barn is in a dilapidated state and for safety reasons should be improved. $4M Linda Vista Park Improvements FY19-20 Upgrades to park amenities and playgrounds. TBD Portal Park Improvements FY19-20 The existing building is not useful in its current configuration, and parking is not adequate to support activities. TBD New Neighborhood Parks FY19-20 The acquisition of land and development of new parks can be reconsidered after Lawrence-Mitty is completed. No report for potential sites and/or feasibility has been completed. TBD Little Rancho picnic area FY25-26 PW/P&R received a request from residents to consider picnic area improvements rather than replacing the playground at this location. TBD 589 CC 05-15-2025 589 of 655 CIP Status Report Page 16 of 38 Memorial Park The City recently completed the Memorial Park Master Plan, which provides an extensive list of improvements to revitalize and update the park. The plan was assembled by collecting and incorporating public input through an extensive outreach campaign. That process produced a robust road map that will guide the City regarding park improvements for decades. Recently, staff has observed some concern from the public and City Council regarding the cost of the improvements proposed the plan and has heard suggestions regarding reduction of the plan’s scope. Due to the extensive public engagement and input received, it is recommended that the plan remain unchanged, and that projects within the plan be prioritized and scheduled as public sentiment and available funding dictates. At this time, due to fiscal constraints, staff is not proposing any projects for Memorial Park. Blackberry Farm Golf Course The irrigation system at Blackberry Farm has long exceeded its useful life cycle. The system is antiquated, is subject to multiple breaks yearly, and is not efficient in its water use for golf course landscaping. An irrigation replacement project is currently proposed for year 4 of the 5- year CIP and is anticipated to cost $1.6M. This project is anticipated to save the City approximately $65,000 annually in maintenance, repairs, and water use, and will improve water efficiency at this property. This project will safeguard against major failures that would be expensive to repair, would result in down time for the golf course operations (including lost revenue), and would help to protect against environmental impacts to Stevens Creek. The project has an approximate return on investment of 24-years, reduces water use, and safeguards both Stevens Creek and players’ ability to utilize the course. D. Parks CIP - Five-Year Plan TABLE 7 – 5-YEAR PLAN FOR PARKS CIP PROJECTS Note: Grey text in Years 2-5 illustrates 5% escalation costs but are not proposed for implementation in that year and thus are not included in the totals below. Project FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost BBF Golf Renovation: minimal repairs $1,433,250 $1,504,880 $1,580,150 $1,659,158 BBF Golf Renovation: Ponds $1,300,000 $1,365,000 $1,433,250 $1,504,913 Blackberry Farm Bocce Ball Shade Structure $176,400 $185,216 $194,480 $204,204 Creekside Park Picnic Area Shade Structure $176,400 $185,216 $194,480 $204,204 590 CC 05-15-2025 590 of 655 CIP Status Report Page 17 of 38 Linda Vista Park Picnic Area Shade Structure $176,400 $185,216 $194,480 $204,204 Portal Park Picnic Area Shade Structure $176,400 $185,216 $194,480 $204,204 Jollyman Park Picnic Area Shade Structure $176,400 $185,216 $194,480 $204,204 subtotals $0 $0 $0 $1,580,150 $0 FY25-26: Jollyman AIPG will be completed in 2025, and the Lawrence-Mitty Park and Trail project could be completed in 2027. We continue to work on replacing playgrounds with safety concerns and dispersing improved park amenities to locations with the greatest need. Work on the design, procurement, and installation of new equipment at playgrounds could resume in the Fall of 2025. FY26-27 and FY27-28: Lawrence-Mitty Park and Trail project work will continue, and work on the Playgrounds replacements can resume. Park Amenities upgrades will continue. FY28-29: Initiating the improvements to the irrigation system at the Blackberry Farm golf course is also a priority to improve efficient use of our water resources. Staffing prevents initiation of this project in years 1-3, but in year 4 this will be a recommended priority project. FY29-30: Blackberry Farm golf course irrigation system improvements will continue into this fiscal year. Providing Shade Structures at various park locations was a Council-stated priority in years past, and improving shade opportunities is a priority of the PRSMP. Current CIP staff can not initiate these projects in FY25-26, but the City will continue to pursue grant funding for these amenities. 591 CC 05-15-2025 591 of 655 CIP Status Report Page 18 of 38 CIP: STREETS AND INFRASTRUCTURECity of Cupertino 592 CC 05-15-2025 592 of 655 CIP Status Report Page 19 of 38 3. Streets and Infrastructure A. Existing Streets and Infrastructure CIP Projects: There are five active and funded CIP projects that are considered Streets and Infrastructure projects, and one other funded project that is in the queue. TABLE 8 - ACTIVE STREETS AND INFRASTRUCTURE CIP PROJECTS # Project name Project Description Year Initiated Approved Funding Project Total Remaining Funds* ST0 Outfalls Repairs Following the recommendations of the 2024 Outfalls Report FY25-26 $950,000 $950,000 ST1 Stevens Creek Bridge Repair Stevens Creek Blvd Bridge over Stevens Creek. Prepare feasibility study and PS&E to determine and implement appropriate scour countermeasures. (Externally Funded, in part) FY23-24 $172,000 $860,000 $172,000 FHWA highway Bridge Program grant FY23-24 $688,000 ST2 McClellan Road Bridge Reconstruction Reconstruction of the bridge on McClellan Road near the entrance to McClellan Ranch Preserve. (Externally Funded -CA DOT) FY23-24 (State Funding) $5,000,000 $5,850,000 $5,850,000 CPF FY24-25 $850,000 ST3 City Lighting LED improvements Implement the transition of City's streetlight infrastructure from induction and other fixtures to LED fixtures to meet the "Dark Sky" Ordinance requirements and reduce light pollution and energy cost. EECBG grant funding ($139,000) awarded in FY24-25, but will not be included as revenue until the award is re-affirmed in the current federal administration. FY21-22 $50,000 $1,350,000 $501,074 City Funding FY22-23 $1,300,000 ST4 City Bridge Maintenance Repairs Project (Bridge Preventive Maintenance Program, or BPMP) Design and implement the repair of five City bridges as recommended in the Caltrans Bridge Report along with additional improvements to prolong the useful life of the bridges. FY15-16 $165,000 $2,176,105 $174,347 593 CC 05-15-2025 593 of 655 CIP Status Report Page 20 of 38 City Funding FY16-17 $535,000 FHWA FY16-17 $571,151 FHWA FY22-23 $716,296 FHWA FY23-24 $95,227 FHWA FY24-25 $510,521 City Funding FY24-25 $300,000 City Funding FY24-25 $1,176,105 ST5 Street Light Installation - Annual Infill Infill of gaps in streetlight network as requested by residents. (Annually funded) FY17-18 $430,000 $430,000 $142,241 ST6Q Vai Avenue Outfall Investigate, design, and replace existing failing 36” corrugated metal pipe (CMP) storm drain line with new reinforced concrete pipe (RCP) or high- density polyethylene (HDPE) pipe. FY24-25 $490,000 $490,000 $438,756 subtotal $13,999,300 $13,999,300 $8,228,418 *Table Note: The funds indicated in the “Remaining Funds” column are a calculation based on the transactions to date (3/14/25) and contracts encumbered on each project. It does not fully account for the amount of grant funds that are expensed/received to date. If the project were to be defunded, for example, a more thorough accounting of the funds remaining on the project would be required. • The BPMP project will be completed in the summer of 2025. • The engineering contract for the Stevens Creek Bridge project has been awarded, and the investigation into potential options will commence. • The City will hire an engineering firm to assess the current conditions, provide design alternatives, and develop the necessary documentation and cost estimates. Once the documentation is prepared, the project will be considered "shovel-ready," increasing its chances of securing additional grant funding to complete the project. • Procurement for the City Lighting LED Improvements project is in progress, and installations will begin once the fixtures are delivered (Anticipated completion is September 2025). Vai Avenue Outfall project is noted as completed and as an active project, due to the successful temporary repair of the outfall pipe section this fiscal year. However, the replacement of the outfall pipe section is not yet completed. Staff will coordinate permanent repairs through Valley Water as part of their CIP project to stabilize Regnart Creek in this reach. This will create efficiencies in permitting and ensure a repair that is compatible with Valley Water’s efforts. 2024 Outfall Report – Repair projects The purpose of the 2024 Storm Drain Outfall Condition Assessment report was to inventory the storm drain assets and to determine necessary improvements and maintenance activities for the outfall pipes and structures. The City maintains 175 outfall pipe segments, totaling approximately 17,051 feet, within the storm drain network. The outfall pipes discharge urban 594 CC 05-15-2025 594 of 655 CIP Status Report Page 21 of 38 rainfall runoff from the City’s storm drain system into various creeks/channels managed by the Santa Clara Valley Water District (Valley Water). The report documented observations of the condition of outfall pipes, along with their corresponding outfall structure, and nearest upstream structure. The primary assessment method for the pipeline segments and outfall structures consisted of closed circuit television (CCTV), visual examinations and documentation through photographs. The report assessed 205 pipe segments across 175 sites. 31% show structural defects with significant defect grades (NASCO grades 4 and 5). 19% have significant defects that affect operations and maintenance. Most of the defective pipes were CMP outfall pipes that were installed consistent with Valley Water specifications for outfall pipes which were in place at the time of installation. Grade 3, 4, and 5 defects were common in pipelines that were constructed from corrugated metal pipe (CMP). This is due to the susceptibility of CMP to corrosion, which leads to holes developing in the pipes. Though not as common, several CMP pipelines also showed signs of deformation. The report also assessed the condition of 117 outfall structures. Most of the structures were in good to moderate condition. Of the 117 outfalls structures three were in level 5 defective condition, and three were in level 4 defective condition. The City will coordinate with Valley Water to plan for the most efficient and cost-effective manner in repairing these outfall structures. The FY25-26 Outfalls Repair project funding for $950,000 will be applied to repairs of outfall pipe segments that have significant defects. B. Evaluation of Streets and Infrastructure CIP Projects to Defund The BPMP project will be complete in Summer 2025. The Stevens Creek Bridge and McClellan Road Bridge projects are largely funded by external grants, and address health and safety concerns. The LED Streetlight project is in-contract, will reduce our energy usage, and directly addresses dark-sky concerns. The City does not recommend defunding any of the currently funded projects. C. Unfunded Streets and Infrastructure CIP Projects In the past five years, several projects have been proposed and remain unfunded. The list that follows notes the years proposed and projected cost in FY25-26 dollars. TABLE 9 – UNFUNDED STREETS & INFRASTRUCTURE PROJECTS Project FY proposed Project Description Projected Cost Fiber Expansion FY23-24 6 projects: Priority projects outlined in the City's Fiber Master Plan. The City proposes delaying these projects until external funding can be obtained. $10M 595 CC 05-15-2025 595 of 655 CIP Status Report Page 22 of 38 Merriman Road Storm Drain FY23-24 Installation of a storm water collection system on Merriman Road to include approximately 800' of storm drain mainline, 3 standard manholes, and 3 new drop inlets/laterals on the eastern side of the roadway. The project may also include surface drainage improvements such as berms and/or pavement recontouring. Requested by residents. Not a priority of the SDMP. $1M Pumpkin and Fiesta Storm Drain Project (Phase 2) FY21-22 A priority project of the SDMP. This is Phase 2 of the Pumpkin- Fiesta Storm Drain project. This project is currently on hold while the completed phase one project is evaluated for operational efficiency. $750,000 Regnart Road Improvements, (Phase 2) FY18-19 Design and Construction of phase 2 of the Regnart Road Improvements project. Proposed improvements include additional drainage structures, slope stabilization and erosion control measures. Priority for safety criteria, improvements needed to stabilize the road and mitigate slide potential. $2.8M Storm Drain Improvements - Bubb Road, Phases 1-3 FY19-20 A priority project of the SDMP. TBD 2018 Storm Drain Master Plan projects The 2018 Storm Drain Master Plan (SDMP) established a prioritized capital improvement program to reduce the risk of flooding within the City of Cupertino. The basic objective of the report was to evaluate the flow capacity of the City’s storm drain network and recommend improvements to enhance storm drain capacity at key locations within the City. The first priority of the SDMP was Pumpkin Fiesta, Phases 1 and 2. The City completed Phase 1 improvements in 2023, which should mitigate flooding for an area the had experienced repeated storm drain overflows. Phase 2 is not currently scheduled due to funding resources. Further, the Phase 1 improvements should help to mitigate some of the concerns that Phase 2 is intended to address. Staff will continue to monitor the City’s storm drain “hot spots” during rain events and will propose projects as necessary to respond to the City’s needs. 2020 Fiber Master Plan The City has successfully owned and operated a limited fiber network for more than 10 years— and the network has created real value for the City. Specifically, the City has offset the cost of leased circuits in connecting buildings and traffic infrastructure. The network has also provided more capacity, at a higher level of reliability, than would commercial services. Having a dedicated fiber network provides many options for the City to address issues raised in the 2017 Cupertino Communications Risk Report prepared by the Cupertino Office of Emergency Services; concerns about communications resiliency for the City government and the public were also highlighted by the demonstrated vulnerability of commercial communications networks in recent public safety power shutoff (PSPS) events. The fiber network also provides the underpinning of future Smart City infrastructure and services under consideration by the City. The report has a number of recommendations for the fiber-optic network going forward, and one of those is to construct new City-owned and operated fiber to connect City facilities 596 CC 05-15-2025 596 of 655 CIP Status Report Page 23 of 38 and expand the emergency network capabilities of the system in the process. Following this recommendation six projects were proposed in for FY23-24 but were postponed to allow the City time to seek grant funding to support the projects. Expanding the City’s Fiber network remains a priority and increases the effectiveness of all services that the City provides. Regnart Road Investigation Report The Regnart Road Investigation Report identified 6 priority sites that needed immediate attention. Over the last several years, 2 of the sites were fully address with the Regnart Road Improvement Project Phase 1. The City made various minor repairs and improvements along Regnart Road to offset the immediacy to respond to three other priority sites. Priority site 4 will be addressed with an upcoming Storm Drain Outfall project. D. Streets and Infrastructure CIP - 5-year Plan TABLE 10 – 5-YEAR PLAN FOR STREETS AND INFRASTRUCTURE CIP PROJECTS Project FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost Outfalls Repairs $950,000 $600,000 $600,000 $600,000 $600,000 FY25-26: The City expects to have studied options to determine the scope of work for the repairs of Stevens Creek Bridge, by the end of 2025. The engineering team for the McClellan Road Bridge project is anticipated to be identified and contractually engaged, and completion of the City Lighting LED Improvements project is expected in this fiscal year. If approved, significant progress will be made on the Outfall project. FY26-27: Engineering work and funding resourcing will continue for the Stevens Creek Boulevard and McClellan Road bridge projects. Work on the first three outfall projects should be complete in this fiscal year, and the City expects to propose additional outfall projects to address priority projects from the outfall assessment report. FY27-28: Project initiation of the Pumpkin-Fiesta Storm Drain Phase 2 Project and Regnart Road Improvements Phase 2 Project can be considered for implementation if funding is available and observations of Phase 1 scopes of work inform the proposed development areas. Engineering and environmental analysis will continue for both bridge projects. Additional outfall repair projects are anticipated. FY28-29: Engineering and environmental analysis will continue for both bridge projects. Project initiation of the Fiber Expansion project may be proposed if external funding can be acquired. Additional outfall repair projects are anticipated. FY29-30: Engineering and environmental analysis will continue for both bridge projects. Additional outfall repair projects are anticipated. 597 CC 05-15-2025 597 of 655 CIP Status Report Page 24 of 38 CIP: TRANSPORTATIONCity of Cupertino 598 CC 05-15-2025 598 of 655 CIP Status Report Page 25 of 38 4. Transportation A. Existing Transportation CIP Projects: There are six active and funded CIP projects that are considered Transportation projects, and three other funded projects that are in the queue. TABLE 11 - ACTIVE TRANSPORTATION CIP PROJECTS # Project name Project Description Year Initiated Approved Funding Project Total Remaining Funds* T1 Stevens Creek Blvd CL IV Bikeway Phase 2A Design and Construction of the separated bikeway along Stevens Creek Blvd from Wolfe Road to DeAnza Blvd. (Externally Funded, in part) FY20-21 $350,000 $2,350,000 $277,829 Construction, City Funding FY21-22 $2,000,000 OBAG FY24-25 $807,000 SB1 FY24-25 $693,000 T2 Stevens Creek Blvd CL IV Bikeway Phase 2B Design and Construction of the separated bikeway along Stevens Creek Blvd from De Anza Blvd to US-85. This includes signal upgrades at Bandley Drive. The design funding was in conjunction with Phase 2A. (Externally Funded, in part) FY20-21 $0 $0 $0 T3 Bandley Intersection Signal upgrades at Bandley Drive. Scope of work will be included in SCB Phase 2B for efficiency. (Externally Funded, in part) FY18-19 $150,090 $142,210 In-Lieu funds FY18-19 $25,658 City funding FY18-19 $124,432 T4 Bollinger Road Corridor Study Traffic analysis, topographic and utilities survey, and preliminary engineering of Bollinger Road. (Externally Funded, in part) FY24-25 $106,400 $532,000 $532,000 Safe Streets 4 All (SS4A) grant FY24-25 $425,600 T5 Roadway Safety Improvements - HSIP High Friction pavement treatment and speed feedback signage added to seventeen locations. (Externally Funded, in part) FY24-25 $356,180 $3,561,800 $3,500,800 HSIP Grant FY24-25 $3,205,620 599 CC 05-15-2025 599 of 655 CIP Status Report Page 26 of 38 T6 Tamien Innu - East Segment Design and construct an off- street bicycle and pedestrian facility parallel to the I-280 HWY, from Wolfe Rd. to Vallco Parkway (Externally Funded & donation funding) FY20-21 $600,000 $2,536,000 $1,411,377 VTA Measure B FY21-22 $1,936,000 T7Q Tamien Innu - Central Segment Design and construct an off- street bicycle and pedestrian facility parallel to the I-280 HWY, from De Anza Blvd. to Wolfe Road (Externally Funded – donation funding) FY20-21 $600,000 $4,785,000 $4,582,979 VTA Measure B FY20-21 $460,000 VTA Measure B FY20-21 $3,725,000 T8Q Tamien Innu - West Segment Design and construct an off- street bicycle and pedestrian facility parallel to the I-280 HWY, from the Don Burnett Bicycle – Pedestrian Bridge to De Anza Blvd. (Externally Funded – donation funding) FY20-21 $600,000 $600,000 $600,000 T9Q School Walk Audit Implementation Construct infrastructure-related improvements around schools that were identified as part of the comprehensive School Walk Audit study. (Externally Funded - Apple) FY18-19 $250,000 $1,245,852 $939,405 Apple Funding FY19-20 $971,863 City Funds FY20-21 $23,989 subtotal $15,760,742 $15,760,742 $11,986,600 *Table Note: The funds indicated in the “Remaining Funds” column are a calculation based on the transactions to date (3/14/25) and contracts encumbered on each project. It does not fully account for the amount of grant funds that are expensed/received to date. If the project were to be defunded, for example, a more thorough accounting of the funds remaining on the project would be required. • De Anza Boulevard Buffered Bike Lanes project is complete. City is currently working to collect grant funding but expects reimbursement to take some time. • The Stevens Creek Boulevard Class IV Bikeway, Phase 2A will begin construction activities in late spring/early summer. The project is currently acquiring materials with long lead times. • The Stevens Creek Boulevard Class IV Bikeway, Phase 2B is 95% complete in the design phase. The City will search for external funding options prior to commencing with bidding and construction. • The Roadway Safety Improvements project has a design/engineer team working on the design and documentation presently. Once the drawings are complete, the City will advertise the project for bid and construction (anticipated in the fall of 2025). 600 CC 05-15-2025 600 of 655 CIP Status Report Page 27 of 38 • Bollinger Road Corridor Study is searching for a consultant team to perform the analysis – this will be a multi-year project. • The preliminary engineering for the Stevens Creek Bridge repair project has begun with the intent of establishing a scope for the repairs needed by the end of 2025. • The design of Tamien Innu East Segment is under review by the adjacent property owner and Valley Water. School Walk Audit Implementation project In FY16-17, Cupertino Safe Routes to School (SR2S) worked with each public school in Cupertino to develop a list of infrastructure improvements called the Walk Audit Report. The report details improvements that would make walking and biking safer, and drop-off and pick- up smoother. In FY19-20, SR2S worked with each school to update the list and categorize items into three tiers. Tier 1 and 2 items are almost complete, and the following Tier 3 items are currently being analyzed. Recommended work for these projects is anticipated to begin in the latter part of 2025. 1. Lincoln Elementary/ Monta Vista High School: Hyannisport Drive at Fort Baker Drive: - Reconstruct intersection to close slip lane onto Fort Baker Drive. Modify the northeast corner of the intersection by removing the right turn slip lane and reduce the corner radius for the right turning traffic to enhance the pedestrian safety. 2. Sedgwick Elementary: Tantau Ave/Barnhart Ave: Widen sidewalk on Tantau Avenue to match existing paint on street. The sidewalk along Tantau Ave will be widened from 5 feet to approx. 12 to 13 feet. This will require relocation of curb, engineering, surveying, staking work, and modifications/realignments of the high-visibility crosswalk on Barnhart Avenue to increase visibility (after widening sidewalk). B. Evaluation of Transportation CIP Projects to Defund • Stevens Creek Boulevard Class IV Bikeways is the top priority from the Bicycle Transportation plan, and a Tier One priority of the Pedestrian Transportation Plan – improving vehicular, bicyclist and pedestrian safety along one of Cupertino’s busiest arteries was considered a highly important project. • The Bollinger Road Corridor Study will evaluate safety concerns along this corridor and is grant funded. • The Roadway Safety Improvements project is also grant funded with local matching funds. • The Tamien Innu project, specifically the East segment, has been delayed due to design efforts to address physical constraints and Valley Water requirements. If further progress cannot be made, this project could be defunded. However, it is funded by developer and donation funds and grants. Staff does not recommend defunding the transportation projects listed above. C. Unfunded Transportation CIP Projects In the past five years, several projects have been proposed and remain unfunded. The list that follows notes the years proposed and projected cost in FY25-26 dollars. 601 CC 05-15-2025 601 of 655 CIP Status Report Page 28 of 38 TABLE 12 - UNFUNDED TRANSPORTATION CIP PROJECTS Project FY proposed Project Description Projected Cost Bollinger Road Corridor Design and Construction FY23-24 Requested by residents: more follow-up is required before this can become a CIP project. $4.2M Carmen Road Bike/Ped Bridge FY22-23 Requested by the Bicycle Pedestrian Commission and residents, this is a large project, requiring significant staffing and funding resources. $6M Stevens Creek Blvd Separated Class IV Bikeway, Phase 3 - Design & Construction FY21-22 Hwy85 to Foothill Blvd., continuing from Ph.2 to the west. Phase 3 will involve installing precast concrete barriers and traffic signal modifications at the Highway 85 northbound ramp, Bubb Road, and Foothill Blvd intersections to provide protected bicycle signal phasing. $3.5M Active Transportation Plan The Active Transportation Plan (ATP) will guide project prioritization for future bicycle and pedestrian infrastructure projects. Through an extensive, multiphase community outreach strategy, the ATP will develop capital project recommendations based on public input, safety needs, and mobility goals. While no specific projects are currently defined, the ATP, once adopted in 2026, will help determine which active transportation projects are selected for the CIP. This process ensures that future transportation investments align with community needs and City objectives. D. Transportation CIP - 5-year Plan TABLE 13 – 5-YEAR PLAN FOR TRANSPORTATION CIP PROJECTS Note: Grey text in Years 2-5 illustrates 5% escalation costs but are not proposed for implementation in that year and thus are not included in the totals below. Project FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost Bollinger Road Corridor Study $4,410,000 $4,630,400 $4,862,000 $5,105,100 FY25-26: Stevens Creek Boulevard (SCB) Phase 2A will be completed in the fall of 2025. Phase 2B, including work at Bandley Intersection, is not currently planned for the 5-year CIP due to funding and staffing resources. Tamien Innu, East segment design, will be finalized this fiscal year. If design efforts can rectify current physical barriers and achieve Valley Water approval, construction can begin in the Spring of 2026. Once construction is initiated on the East segment, design on the Central segment can resume. 602 CC 05-15-2025 602 of 655 CIP Status Report Page 29 of 38 Design for the Roadway Safety Improvements project is anticipated to be completed this fiscal year, with construction initiation anticipated in summer 2026. FY26-27: Work on SCB Phase 2B may restart if external funding can be acquired. The remaining School Walk Audit Implementation projects are planned to be completed. Tamien Innu and the Roadway Safety Improvements projects are anticipated to continue during this fiscal year. The City expects the Active Transportation Plan to be completed, adopted, and will inform future CIP planning efforts. FY27-28: Potential transportation projects are anticipated based on information from the approved ATP. FY28-29: The pre-design/analysis work on the Bollinger Road Corridor will be a two+ year process that is anticipated to be completed in this fiscal year. Funding for the design and construction can be pursued during that time. It is anticipated that the design and construction would be initiated on FY30-31. FY29-30: Potential transportation projects are anticipated based on information from the approved ATP. 603 CC 05-15-2025 603 of 655 CIP Status Report Page 30 of 38 City of CupertinoCIP: SUSTAINABILITY 604 CC 05-15-2025 604 of 655 CIP Status Report Page 31 of 38 5. Sustainability A. Existing Sustainability CIP Projects: There are two active and funded CIP projects that we consider Sustainability projects. TABLE 14 - ACTIVE SUSTAINABILITY CIP PROJECTS # Project name Project Description Year Initiated Approved Funding Project Total Remaining Funds* SU1 EVCS expansion - Service Center The construction of electric vehicle charging station (EVCS) infrastructure for the electrification of the City’s fleet. Working with SVCE for technical assistance. Estimated Completion: 2026 FY24-25 $560,000 $560,000 $560,000 SU2 Photovoltaics Systems (PV) Design & Installation This project will design- build PV systems at three locations: Quinlan Community Center, Cupertino Sports Center, and Community Hall. Estimated Completion: 2026 FY24-25 $6,300,000 $6,300,000 $6,296,600 SU3Q Silicon Valley Hopper EV parking Provide electric vehicle charging stations (EVCS) for SV Hopper (formerly VIA) fleet. Queued due to staffing resources. FY22-23 $350,000 $350,000 $321,000 subtotal $7,210,000 $7,210,000 $7,177,600 *Table Note: The funds indicated in the “Remaining Funds” column are a calculation based on the transactions to date (3/14/25) and contracts encumbered on each project. It does not fully account for the amount of grant funds that are expensed/received to date. If the project were to be defunded, for example, a more thorough accounting of the funds remaining on the project would be required. • The PV project contracts were approved in February and the design phase is underway. • CIP is working with SVCE to develop design and bid documents for the Service Center expansion of the EVCS for the City’s fleet vehicles. • Silicon Valley (SV) Hopper EV parking: Cupertino was part of a successful Dept. of Transportation Charging Facility Infrastructure coalition grant application lead by SVCE and San Jose that would have provided around $500,000 for 7 dual-port level 2 chargers and 1 dual-port level 3 DC Fast Charger behind the Sports Center for public and Hopper use. That award is uncertain now under the current administration. This project is queued due to staffing constraints. 605 CC 05-15-2025 605 of 655 CIP Status Report Page 32 of 38 B. Evaluation of Sustainability CIP Projects to Defund • The EVCS expansion at Service Center project is necessary for the ongoing electrification of the City’s fleet. This project is currently funded and supported through SVCE. • The PV project is in contract and will reduce the City’s utility costs. • The SV Hopper EV parking would address the need for charging of the shuttles’ fleet of electric vehicles. We do not recommend defunding these projects. C. Unfunded Sustainability CIP Projects The Sustainability team outlined a number of projects that may be proposed as CIP projects once scope, costs, and benefits are further developed. The list that follows notes the years proposed and projected cost in FY25-26 dollars. TABLE 15 - UNFUNDED SUSTAINABILITY CIP PROJECTS Project FY proposed Project Description Projected Cost Building Electrification Analysis FY25-26 Analysis of top gas-consuming City facilities to examine the current appliance infrastructure, evaluate the building envelope, and explore available market alternatives for electrification. This will provide the required details for the cost and timeline of each facility's upgrade needs. Sustainability team is presently working with BayREN to analyze five facilities as a free service. Other facilities will require an engineering consultant team to be engaged and can be funded with CIP Prelim Planning & Design (420-99-047) funds. ~$30,000 Quinlan Community Center Electrification FY25-26 Quinlan Community Center has the highest gas consumption (33.54% of the City’s overall gas usage) and requires an engineered solution due to roof and building space constraints, complex building envelope, and energy efficiency considerations. ~$8M Library Electrification & Resiliency upgrades FY25-26 As the second-highest gas user (22.59% of the City’s overall gas usage), the Library's electrification must be preceded by measures to reduce reliance on reheat energy. The project will optimize the HVAC system before replacing the HVAC and hot water boiler with an electric alternative. Electrification may be best pursued alongside a Resiliency Upgrade to the building, to facilitate use as the Community's Cooling and Heating Center. This will probably include a photovoltaic system and battery back-up system. CIP is currently working with SCCLD to develop a mutually beneficial scope of work. ~$8M 606 CC 05-15-2025 606 of 655 CIP Status Report Page 33 of 38 Blackberry Farm Pools Water Heating Upgrades FY25-26 With high gas usage (approximately 14.27% of the City’s overall gas usage), the Blackberry Farm pool project presents an opportunity to integrate solar thermal storage. The plan involves replacing showers with primary solar thermal and storage and backup small air- source heat pump water heaters. The pool heaters could be replaced with air-source heat pump technology in conjunction with solar and storage. TBD Electrification of other City Facilities FY25-26 Senior Center, Sports Center, BBF Recreation Buildings (medium priorities), Monta Vista Recreation Center, Service Center, McClellan Ranch Preserve, and other Park Facilities (lower priorities) can be upgraded to electric appliances to provide long-term sustainability benefits and reduce operational costs. TBD Replace Non-Functional Turf & Improve water efficiency FY25-26 Government properties must stop watering non- functional turf by January 1, 2027, to comply with state mandate AB 1572. It is recommended to start replacement no later than early 2027 to avoid aesthetic concerns regarding landscaping. TBD D. Sustainability CIP – 5-year Plan: the Sustainability projects can be included in the five-year CIP plan when scope of work and project cost estimates are initiated for the projects listed above. Staff will look for external funding to support potential sustainability projects prior to proposing them. 607 CC 05-15-2025 607 of 655 CIP Status Report Page 34 of 38 CIP: COMPLETED PROJECTSCity of Cupertino 608 CC 05-15-2025 608 of 655 CIP Status Report Page 35 of 38 6. Completed Projects A. Completed CIP Projects: Four projects were completed in FY24-25, and one additional project is scheduled to be complete before July 2025. TABLE 16 – COMPLETED CIP PROJECTS Type Project name Project Description Year Initiated Approved Funding Project Total Remaining Funds* P Blackberry Farm Pool Improvements Make improvements to the pools and facility related to safety, accessibility, and maintenance. FY21-22 $750,000 $750,000 $31,204 ST Vai Avenue Outfall – Repairs** Investigate, design, and replace existing failing 36” corrugated metal pipe (CMP) storm drain line with new reinforced concrete pipe (RCP) or high- density polyethylene (HDPE) pipe. FY24-25 $490,000 $490,000 $438,756 T De Anza Boulevard Buffered Bike Lanes Restripe De Anza Blvd to include a painted buffered zone between the existing bike lane and the vehicle lanes. FY22-23 $525,000 $696,792 $10,194 City Funding FY23-24 $5,533 TDA3 FY24-25 $166,259 T McClellan Road Separated Bike Corridor, Phase 3 Improve pedestrian and bicycle safety by reconfiguring the intersection and vehicle movements. (Externally Funded, in part) FY20-21 $164,410 $2,299,410 $99,273 Apple FY19-20 $160,000 VERBS grant FY19-20 $1,000,000 SB1 FY23-24 $975,000 subtotal $4,236,202 $4,236,202 $140,671 *The funds indicated in the “Remaining Funds” column are a calculation based on the transactions to date (3/14/25) and contracts encumbered on each project. It does not fully account for the amount of grant funds that are expensed/received to date. If the project were to be defunded, for example, a more thorough accounting of the funds remaining on the project would be required. **The existing outfall was temporarily repaired. The larger project to replace the outfall has not yet occurred, but the City is coordinating with Valley Water regarding the repair. Project funds will remain active. One additional project is expected to be completed before the end of the fiscal year: All- Inclusive Play Area & Adult-Assistive Bathroom Facility (Jollyman Park). 609 CC 05-15-2025 609 of 655 CIP Status Report Page 36 of 38 CIP: SUMMARY 610 CC 05-15-2025 610 of 655 CIP Status Report Page 37 of 38 Summary TABLE 17: NEW/ADDED FUNDING FY25-26 CIP PROJECTS Project name Project Description FY25-26 Funding INTERNAL EXTERNAL ADA (Americans with Disabilities Act) Improvements (Annually funded) This is an ongoing program, funded annually, to improve accessibility of public facilities throughout the City. $110,000 $110,000 $0 Citywide Facilities Condition Assessment (FCA) Implementation Implement priority recommendations identified in the Facility Condition Assessment reports. This is an ongoing initiative due to the extent of improvements needed throughout City buildings. $940,000 $940,000 $0 Outfall Repairs Repair various storm drain outfalls following the recommendations of the 2024 Storm Drain Outfalls Assessment. $950,000 $950,000 $0 subtotal $2,000,000 $2,000,000 $0 TABLE 19: PROPOSED FY25-26 CIP FIVE-YEAR PLAN PROJECTS Note: Grey text in Years 2-5 illustrates 5% escalation costs but are not proposed for implementation in that year and thus are not included in the totals below. Project FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost ADA Improvements (Annually funded) $110,000 $115,000 $120,000 $125,000 $130,000 Citywide Facilities Condition Assessment (FCA) Implementation $940,000 $2,300,000 $1,000,000 $1,000,000 $1,000,000 Outfalls Repairs $950,000 $600,000 $600,000 $600,000 $600,000 BBF Golf Renovation: minimal repairs $1,433,250 $1,504,880 $1,580,150 $1,659,158 Totals $2,000,000 $3,015,000* $1,720,000 $3,305,150* $1,730,000 * Current annual CIP funding is $2M/year. Project estimates may be refined prior to requested CIP funding. Proposed annual CIP funding that exceeds $2M/year will require additional funds beyond the $2M annual funding being allocated to the program. Where possible, staff will search for external funding to address funding requests in excess of $2M. In summary, the proposed FY 25-26 CIP includes ongoing funding for two existing facilities projects and funding for storm drain utility repairs. The new and additionally-funded projects are a result of information from existing facility assessments, which show the need for extensive 611 CC 05-15-2025 611 of 655 CIP Status Report Page 38 of 38 improvements and repairs to the City’s aging infrastructure. Due to the extensive nature of the work needed, staff envisions some of these projects becoming regular or even annual requests for the foreseeable future. The CIP has continued to deliver projects, yet the program has 28 existing projects that are working towards completion. The CIP team is currently focused on maximizing productivity despite resource constraints. The proposed five-year plan focuses on rehabilitating critical infrastructure that has aged beyond its life cycle. This is a common theme throughout America, and while the City has focused its rehabilitation efforts in recent years on revitalizing its pavement condition, the City must now shift some of this focus onto its buildings and storm drain system to address public health and safety issues. This year, the proposal for new projects was driven by the need to implement health and safety-driven projects. 612 CC 05-15-2025 612 of 655 FISCAL YEAR 2025 - 2026 CAPITAL IMPROVEMENT PROGRAMS • 5-YEAR PLAN Funding Types LEGEND Approved Plan(s) RUC = Restricted Use Category Parks ADA - ADA Transition Plan AP - Apple Funded Donation Streets & Infrastructure BCSS - Bollinger Road Corridor Safety Study BBF - Blackberry Farm Enterprise Fund (560)(RUC)Transportation BCA - Building Condition Assessment DIL - Developer in Lieu Fund (RUC)Facilities CAP - Climate Action Plan DON - Donation New project for FY25-26 CCMP - Civic Center Master Plan GF - General Fund (420/429) (unrestricted)BTP - Bicycle Transportation Plan PD - Park Dedication Fund (280) (RUC)EP - Santa Clara County Expressway Plan RP - Recreation Program Enterprise Fund (580) (RUC)FMP - 2020 Fiber Master Plan SC - Sports Center Enterprise Fund (570) (RUC)GP - General Plan SCCP - Stevens Creek Corridor Park Capital Projects MPP - McClellan Ranch Preserve Master Plan Fund (427) (RUC)PMP - Pedestrian Master Plan SD - Storm Drain Improvement Fund (210) (RUC)PRSMP - Parks & Recreation System Master Plan TF - Transportation Fund (270) (RUC)PTP - Pedestrian Transportation Plan RRGE - Regnart Road Geotechnical Evaluation SCC - Stevens Creek Corr. Park Master Plan & Restor. SDMP - Storm Drain Master Plan EXISTING & NEW FY25-26 PROJECTS Description City Funding External Project Funding Current Total Project Budget Remaining Funds (3/14/25) FY 25-26 City Funding Funding Type Approved Plan Budget Unit Project No. FY Initiated ADA Improvements (Annually funded)970,000 0 970,000 191,990 110,000 GF GP/ADA 420-99-007 PVAR 002 FY16 Facilities Condition Assessment (FCA) Implementation 2,006,470 423,420 2,429,890 1,536,282 940,000 GF BCA 420-99-063 BAI 001 FY19 City Hall Annex 3,000,000 0 3,000,000 1,872,539 GF CCMP 420-99-248 CIV 010 FY22 City Hall Improvements 500,000 0 500,000 378,036 GF CCMP 420-99-250 CIV 011 FY22 Library Expansion Project: landscaping & courtyard 8,705,438 1,000,000 9,705,438 1,391,910 GF CCMP 420-99-077 CIV 007 FY20 All Inclusive Play Area & Adult-Assistive Bathroom Facility (Jollyman Park) 2,418,146 2,473,201 4,891,347 4,255,313 GF PRSMP 420-99-051 PVAR 007 FY19 Lawrence-Mitty Park and Trail Plan 6,850,909 0 6,850,909 4,422,565 DIL GP, PRSMP 280-99-009 P LM 001 FY19 Park Amenity Improvements 600,000 0 600,000 417,460 GF PRSMP 420-99-086 PVAR 011 FY21 MRP West Parking Lot Improvements (Habitat monitoring)1,069,682 0 1,069,682 1,611 420-99-030 MRW 002 FY17 Annual Playground Replacement 1,500,000 0 1,500,000 913,755 GF PRSMP 420-99-085 PVAR 010 FY21 Stevens Creek Bridge Repair 172,000 688,000 860,000 172,000 TF GP 420-99-267 ST 063 FY24 McClellan Road Bridge Reconstruction 0 5,850,000 5,850,000 5,850,000 - Grants GP 420-99-273 ST 066 FY25 City Lighting LED improvements 1,350,000 1,350,000 501,074 GF GP 420-99-258 ST 052 FY22 City Bridge Maintenance Repairs (BPMP)2,176,105 1,893,195 2,176,105 174,347 TF GP 270-90-960 ST 002 FY15 Street Light Installation - Annual Infill (Annually funded)430,000 0 430,000 142,241 GF GP 420-99-056 ST 024 FY18 Vai Avenue Outfall 490,000 0 490,000 438,756 CR, SD GP 420-99-275 ST 065 FY25 Outfall Repairs 950,000 0 950,000 N.A.950,000 CR, SD GP FY26 Subtotal, Page 1 (Existing & New Projects)33,188,750 12,327,816 43,623,371 22,659,879 2,000,000 FY25-26 CIP Page 1 of 3 ATTACHMENT C 613 CC 05-15-2025 613 of 655 EXISTING & NEW FY25-26 PROJECTS (CON'T.) Description City Funding External Project Funding Current Total Project Budget Remaining Funds (3/14/25) FY 24-25 City Funding Funding Type Approved Plan Budget Unit Project No. FY Initiated Stevens Creek Blvd CL IV Bikeway - Phase 2A & Design 2,350,000 1,500,000 2,350,000 277,829 GF, Grant BTP 420-99-036 ST 053 FY21 Stevens Creek Blvd CL IV Bikeway - Phase 2B (design included in Phase 2A) 0 0 0 0 GF, DIL BTP 420-99-070 ST 044 FY19 Stevens Creek Blvd CL IV Bikeway - Bandley Dr. Signal 124,432 25,658 150,090 142,210 GF, DIL BTP 420-99-070 ST 044 FY19 Bollinger Road Corridor Study 106,400 425,600 532,000 532,000 CR, Grant BCSS 270-99-270 ST 067 FY25 Roadway Safety Improvements - High Friction Pavement & Speed Feedback Signage (HSIP) 356,180 3,205,620 3,561,800 3,500,800 CR/ Grant GP 270-99-271 ST 068 FY25 Tamien Innu - East Segment 0 2,536,000 2,536,000 1,411,377 AP/Grant BTP, PTP 420-99-036 ST 050, ST 046 FY21 Tamien Innu - Central Segment 0 4,785,000 4,785,000 4,582,979 AP/Grant BTP, PTP 420-99-036 ST 050, ST 046 FY21 Tamien Innu - West Segment 0 600,000 600,000 600,000 AP/Grant BTP, PTP 420-99-036 ST 051 FY21 School Walk Audit Implementation 23,989 1,221,863 1,245,852 939,405 AP/GF GP, PTP 420-99-069 ST 034 FY19 Electric Vehicle Charging Station (EVCS) expansion - Service Center 560,000 560,000 560,000 CR CAP 420-99-272 ST 069 FY25 Photovoltaic Systems Design and Installation 6,300,000 0 6,300,000 6,296,600 CR CAP 420-99-274 FVAR 004 FY25 Silicon Valley Hopper EV Parking 350,000 0 350,000 321,000 GF, TIRCP CAP 100-88-265 ST 062 FY23 Subtotal, Page 2 (Existing & New Projects) 10,171,001 14,299,741 22,970,742 19,164,200 0 Total (Existing & New Projects)43,359,751 26,627,557 66,594,113 41,824,079 2,000,000 FY25-26 CIP Page 2 of 3 614 CC 05-15-2025 614 of 655 COMPLETED PROJECTS Description City Funding Revenue Funding Sources Total Project Budget Remaining Funds (3/14/25) Funding Type Approved Plan Budget Unit Project No. FY Initiated Blackberry Farm Pool Improvements 750,000 0 750,000 31,204 GF PRSMP 420-99-073 BBF 004 FY22 Vai Avenue Outfall - Repairs*490,000 0 490,000 438,756 CR, SD GP 420-99-275 ST 065 FY25 De Anza Boulevard Buffered Bike Lanes 530,533 166,259 530,533 10,194 GF BTP 420-99-262 ST 061 FY23 McClellan Road Separated Bike Corridor, Phase 3 164,410 2,135,000 2,299,410 99,273 AP/GF/ Grant BTP 420-99-036 ST 047 FY20 Totals (Completed Projects) (Vai is not included)1,444,943 2,301,259 3,579,943 140,671 FIVE-YEAR PLAN Project (Years 2-5 show 5% escalation costs in grey text) FY25-26 Funding Year 2 FY26-27 Projected Cost Year 3 FY27-28 Projected Cost Year 4 FY28-29 Projected Cost Year 5 FY29-30 Projected Cost Funding Type Approved Plan Budget Unit Project No. CIP project # ADA Improvements (Annually funded)110,000 115,000 120,000 125,000 130,000 GF GP/ADA 420-99-007 PVAR 002 2016-03 Citywide Facilities Condition Assessment Implementation (FCA) 940,000 2,300,000 1,000,000 1,000,000 1,000,000 GF BCA 420-99-063 BAI 001 2019-02 Outfalls Repairs 950,000 600,000 600,000 600,000 600,000 CR, SD GP 420-99-273 ST 066 2025-03 BBF Golf Renovation: minimal repairs 1,433,250 1,504,880 1,580,150 1,659,158 BBF PRSMP, SCC totals 2,000,000 3,015,000 1,720,000 3,305,150 1,730,000 FY25-26 CIP Page 3 of 3 615 CC 05-15-2025 615 of 655 CIP FY 2024-2025 • 5-year plan ATTACHMENT A CAPITAL IMPROVEMENT PROGRAMS FISCAL YEAR 2024-2025 and 5-YEAR PLAN NEW PROJECT NARRATIVES LEGEND Health and Safety Improvements Council, Commissions and/or Community Priority High Priorities established through City’s Master Plans or Condition Assessment Reports Projects that are subsequent phases of existing projects; or projects in the queue that need to be activated Projects that have secured external funding CIP FY24-25 • 5-year plan ATTACHMENT A page 1 Projects that have secured external funding, or which can result in positive fiscal impacts to the City CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVESATTACHMENT B FISCAL YEAR 2025 - 2026 PROJECT NARRATIVES Attachment B 616 CC 05-15-2025 616 of 655 FY25-26 CIP proposal and 5-year Plan Council Meeting 4/02/2025 Page 2 of 34 INSERT SECTION PAGE (GRAPHICS!) CIP: FACILITIESCity of Cupertino CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVESPAGE 2 OF 38 617 CC 05-15-2025 617 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES ADA Improvements Annually Funded FY25-26 City Funding $ 110,000 Total Funding $ 970,000 City Funding FY25-26 $ 110,000 External Funding $ 0 Remaining Funds (Feb 2025) $ 191,990 Funding Source, Approved Plan CR Project Category Facilities Project Type Design and Construction Location Various Origin of Request Public Works Budget Unit 420-99-007, PVAR 002 Initiated: FY15-16 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts An update of the City’s ADA Transition Plan was completed in April 2015. The plan identifies improvements needed and priorities to achieve compliance with ADA in public buildings, parks, and the public right of way. This is an ongoing program, funded annually, to improve accessibility at all public facilities throughout the City. There are no anticipated impacts to the Operating Budget. This is an ongoing initiative funded annually to improve accessibility at all public facilities throughout the City. Accessibility is an ongoing priority for the City. This initiative began in FY15-16 and has been funded annually for a total of $970,000 as of February 2025. 618 CC 05-15-2025 618 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Facilities Condition Assessment Implementation Ongoing initiative to address Facilities Deficiencies FY25-26 Funding $ 940,000 Total Funding (pre-FY25-26) $ 2,429,890 City Funding (pre-FY25-26) $ 2,006,470 External Funding $ 367,951 (FY24 CDBG) $ 55,469 (FY25 CDBG) Remaining Funds (Feb 2025) $ 1,536,282 Funding Source, Approved Plan GF, GP Project Category Facilities Project Type Design and Construction Location Various Origin of Request Public Works Budget Unit 420-99-078, BAI 001 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Ongoing initiative to implement projects from the prioritized recommendations of the 2017/18 “Comprehensive Facility Condition and Use Assessment” and the “2022 Facility Condition Assessment” (FCA) reports. The 2017/18 FCA report and the 2022 FCA report assessed the condition of nearly every City owned facility. Several projects were identified as high priority facilities with significant deficiencies that need to be addressed to avoid costly repairs and extended service interruptions. Six projects have been initiated: Senior Center Fire Alarm system (FAS) upgrade, Quinlan Community Center (QCC) AC Chiller replacements, Sports Center Locker and Shower rooms improvements, and the replacement of three flat roofs (Sports Center, QCC, and Senior Center). Other completed FCA projects include Sports Center Fire Control Center panel replacement and the Sports Center Seismic Retrofit. Projects planned for FY25-26 are the upgrades of five FAS at Monte Vista, Creekside Park Rec, Service Center and Sports Center. Library FAS and Sports Center Shower/Locker rooms projects are planned for FY26-27. As older equipment is replaced with energy efficient equipment and as building systems are upgraded significant, savings are expected in both maintenance and energy costs. Addressing the high-priority FCA projects is the highest priority, as these projects address health and safety concerns. This initiative began in FY18-19 and received additional City funding in FY23-24. CDBG grant funds were received for work on the Senior Center property, in FY23-24 and FY24-25. 619 CC 05-15-2025 619 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES City Hall Annex 10455 Torre Avenue Improvements Total Funding $ 3,000,000 City Funding $ 3,000,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 1,872,539 Funding Source, Approved Plan GF, CCMP Project Category Facilities Project Type Design and Construction Location 10455 Torre Ave. Origin of Request Public Works Budget Unit 420-99-248, CIV 011 Initiated FY21-22 Project Description Project Justification Projected Cost information Program, plan and build facility improvements to facilitate short-term and long-term use[s] of the building. The scope of work will include programming, planning, design, and construction. Emergency Operations Center (EOC) program and requirements added to the scope of this project in late 2022. The proximity of this property to the Civic Center, and its central location within the City, lends itself to numerous uses, including a satellite and/or interim City Hall facility. When the EOC scope was added, staff made the decision to delay the request for additional project funding for the EOC until the project was ready to award a contract to a general contractor for construction so that more definitive costs would be discussed. However, when cost estimates on the 65% set of drawings and specifications came in at $6.7M in 2024, the decision was made to pause the project until the City Hall project direction was decided, so that priorities and cost-cutting measures could be evaluated in a fuller context. An updated scope of work, with value- engineering options, and cost estimate would be required to continue work on the project. With the news of the inflated costs, numerous options were investigated, from scope reductions to a completely reduced program of ‘carpet-and-paint only, and other code required renovations such as accessible entries. The most reduced scope of work was estimated at $2M. While developing the program for the City Hall Annex building as City’s Permit Center and EOC, staff identified additional cost impacts, including: •Increase of construction costs due to the addition of the EOC program and infrastructure. The early estimate was that the addition of the EOC would add approximately $500,000 in construction costs. •Increase of soft costs due to the addition of the EOC program. In October 2022, $101,700 was added to the Design professionals’ contract for this reason. Cost estimate for soft costs is approximately $1.5M, leaving $1.5M for construction (which is less than required, see below). •An overall increase in the original construction estimate excluding the addition of an EOC. Staff has learned that the original construction cost estimate for the overall project was too low. 2023 estimates for 2024 construction were estimated at $6.7M without moving/logistics cost, furniture, and other contingencies accounted for. Operation Budget Impact: Once construction is complete, Facilities and Grounds divisions will need to add this facility to their workload, including maintenance and janitorial. 620 CC 05-15-2025 620 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES City Hall Improvements Programming, Feasibility, Design, Construction Total Funding $ 500,000 City Funding $ 500,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 378,036 5-year Funding Total $ 30M to $90M Funding Source, Approved Plan GF, CCMP Project Category Facilities Project Type Design and Construction Location Civic Center Budget Unit 420-99-250, ST 056 Initiated FY21-22 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Program, plan and build facility improvements at the existing City Hall building site. The scope of work will include programming, planning, design, and construction. The Emergency Operations Center (EOC) moves to another facility, but this facility is planned as a “Risk Category IV” Essential Services facility as part of the structural system upgrades. The existing building does not meet current or projected needs for workplace or meeting spaces; all infrastructure systems (structural HVAC, etc.) are well beyond their useful life and require full replacement. In the first fiscal year, the design can be initiated. Construction is projected for future fiscal years, depending on the scope and Environmental Review requirements. Renovations to the existing facility, or a new facility, are expected to improve operational efficiencies and ultimately reduce costs. Improvements to the existing building, whether in the form of a renovation project or a new City Hall facility, are the highest priority for the health and safety of staff and the community. Funding required for a renovated or new City Hall is greater than the CIP annual allocations. Alternative funding means are required. 621 CC 05-15-2025 621 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Library Expansion - Landscaping Final scope of the Library Expansion project Total Funding $ 9,705,438 City Funding $ 8,705,438 External Funding $ 1,000,000 Remaining Funds (Feb 2025)$ 1,393,310 Funding Source, Approved Plan CR, GF Project Category Facilities Project Type Design and Construction Location Cupertino Library Origin of Request Public Works Budget Unit 420-99-077, CIV 007 Initiated: FY19-20 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Some of the areas in and around the Cupertino Library lack appeal and appropriate facilities for residents who use the library and the Civic Center space. Providing more usable and efficient infrastructure, as well as better landscaping, will improve the positive experience of visiting the library and Civic Center. Landscaping of the building perimeter and courtyard is designed, documented, and ready for a public bid process. Additional scope under consideration (building electrification, extending electrical junctions to Library field, etc.) will require supplementary engineering and documentation. Staffing needs are deferring this work. The expanded areas of landscaping may impact the operating budget slightly, but the improved irrigation will have a positive effect as well. Update existing landscape areas adjacent to the Cupertino Library incorporating appropriate drought resistant plantings, pedestrian amenities including seating and shade structures, and other features to encourage community activation of the Civic Center. Grant funding awarded in 2024 can be applied to installation of a photovoltaic system, battery back-up, extension of an electrical service to Library Field, completing construction of exterior improvements such as the landscaping scope of work, parking and pedestrian improvements, improvements to the drainage and irrigation systems and water conservation efforts. The grant funding must be expensed by 2030. The Library Expansion project completed the building scope of work, except the courtyard renovations and exterior landscaping, in 2022. The federal grant facilitated by Ro Khanna’s office was awarded in 2024. The grant must be used for work that has not yet been completed. 622 CC 05-15-2025 622 of 655 FY25-26 CIP proposal and 5-year Plan Council Meeting 4/02/2025 Page 10 of 34 INSERT SECTION PAGE (GRAPHICS!) CIP: PARKSCity of Cupertino CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES 623 CC 05-15-2025 623 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES All Inclusive Playground – Jollyman And Adult-Assistive Bathroom facility Total Funding $ 4,891,347 City Funding $ 1,230,000 + $ 850,000 External Funding $ 1,448,201 + $ 1,000,000 + $ 25,000 + $ 338,146 Remaining Funds (Feb 2025) $ 262,315 Funding Source, Approved Plan GF, Grant, PRSMP, DIL Project Category Parks, Facilities Project Type Design and Construction Location Jollyman Park Origin of Request Public Works, Parks Budget Unit 420-99-051, PVAR 007 Initiated FY18-19 Project Description Project Justification Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Design and construct an all-inclusive playground at Jollyman Park, and a new adult-assistive bathroom facility adjacent to the All-Inclusive Play Area. Community input secured during the Parks and Recreation System Master Plan process favors having an All-Inclusive play area in Cupertino. The new "All-Inclusive Playground" (AIPG) project is intended to serve the broad needs of the [inclusive] community The added bathroom facility can serve all ages who require mobility assistance and will vastly improve the usability of the new play area. Anticipated construction completion date is June 2025. Anticipated to be a slight impact to the Operating Budget due to the specialized nature of the play equipment and the addition of a bathroom facility. By accepting the grant, the City agreed to construct and maintain the playground for 20 years. Santa Clara County All-inclusive Playground funding grant was secured in 2019 for $1,448,201. This requires $2,201,799 in matching funds and required fund-raising of $1M. CA Parks and Recreation department awarded a second grant in the amount of $1,000,000 as a Specified Grant program, which met the fund-raising requirement. PG&E also donated $25,000. Art In-Lieu fees were used to design, procure, and install the “kaleidoscope” art feature, with a budget of $338,146. The Adult-Assistive Bathroom Facility scope was funded by Council in FY22-23 ($850K) and added to this project funding. 624 CC 05-15-2025 624 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Lawrence-Mitty Park and Trail Plan Design and Construction Total Funding $ 6,850,909 City Funding $ 6,850,909 External Funding $ 0 Remaining Funds (Feb 2025)$ 4,422,565 Funding Source, Approved Plan GF, DIL, PRSMP Project Category Parks Project Type Design and Construction Location Near Sterling Barnhart Park Origin of Request Public Works, Parks Budget Unit 280-99-009, PLM 001 Initiated FY18-19 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Design and Construct (with programming, public outreach and environmental studies) a neighborhood park located on several acres of land adjacent to Saratoga Creek, near the intersection of Lawrence Expressway and Mitty Way. The City is under-served for neighborhood parks to meet the level of service goal of the City’s General Plan. The east side of the City is particularly under-served. Land acquired in September 2020. Design process underway. Due to the extent of environmental permitting required, the project is expected to remain active until the Spring of 2027. Adding a park to the inventory will have an impact on the operational budget. Public Works can evaluate more fully once the design is complete. In FY18-19, Apple fees for their project development were applied to the purchase, annexation, and development of this park ($8,270,994). The purchase and annexation costs were approximately $2,330,085. In FY23-24, additional operational funds were secured to reduce the existing berms on site. The berms reduction can occur once the design is more established. The design process is underway, after a conceptual design process with an enhanced public outreach component. Adding this park is important for the residents on this side of the city. 625 CC 05-15-2025 625 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Park Amenity Improvements Multi-year initiative Total Funding $ 600,000 City Funding $ 200,000 x 3years External Funding $ 0 Remaining Funds (Feb 2025)$ 427,010 Funding Source, Approved Plan GF, PRSMP Project Category Parks Project Type Design and Construction Location Various Origin of Request Parks and Recreation Budget Unit 420-99-086, PVAR 011 Initiated FY 20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Funding for various park amenities such as benches, hydration stations, outdoor table tennis, cornhole, shade (structures and/or trees), dog-off-leash, pickleball striping, etc. Residents requested upgrades to the Park amenities, and this program provides the funding and staffing for the procurement and implementation. The existing Park sites’ Amenities were evaluated by staff and the Parks and Recreation Commission, and a prioritization schedule developed. Installations are underway. There are no anticipated additional impacts to the Operating Budget. This is a departmental low priority, however it has been a valuable resource to address community concerns in our parks. This initiative began in FY20-21 and was funded for three years. 626 CC 05-15-2025 626 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES McClellan Ranch - West Parking Lot Improvement Mitigation Measure Monitoring & Reporting Total Funding $ 1,069,682 City Funding $ 1,069,682 External Funding $ 0 Remaining Funds (Feb 2025)$ 1,611 Funding Source, Approved Plan CR Project Category Parks Project Type Design and Construction Location McClellan Ranch Preserve Origin of Request Parks and Recreation Budget Unit 420-99-030, MRW 002 Initiated: FY16-17 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts The riparian mitigation site between the parking lot and Stevens Creek was planted in 2018 and replanted in 2023. Performance Monitoring and reporting is required for five years, starting in 2023. The McClellan Ranch West site was used informally for staff and overflow parking without a suitable, stable surface, and which is not available for use during wet weather due to mud. The opening of the Environmental Education Center in 2015 increased the parking demand at McClellan Ranch Preserve. The removal of the Simms house on the site allowed for the installation of the additional needed parking with a suitable parking surface. The mitigation measure performance monitoring and reporting will continue until 2027. Establishment of the native planting requires monitoring and irrigation that will decrease once the plantings mature. After 2027, the operational impact will decrease. This mitigation measure performance monitoring and reporting is required to continue to meet the requirements of the Lake or Streambed Alteration Agreement (LSAA; Notification No. 1600-2018-0207-R3) issued by the California Department of Fish and Wildlife (CDFW) on December 14, 2018. This project received City funding in FY16-17, FY17-18 and FY18-19. The monies that remain fund the mitigation measure performance monitoring and reporting required by the LSAA permit. 627 CC 05-15-2025 627 of 655 FY25-26 CIP proposal and 5-year Plan Council Meeting 4/02/2025 Page 17 of 34 INSERT SECTION PAGE (GRAPHICS!) CIP: STREETS AND INFRASTRUCTURECity of Cupertino CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES 628 CC 05-15-2025 628 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Storm Drain Outfalls Repairs Priority projects from 2024 Outfalls report FY25-26 Funding $ 950,000 City Funding $ 950,000 External Funding $ 0 5-year Funding Total $ TBD Funding Source, Approved Plan GF Project Category Streets and Infrastructure Project Type Design and Construction Location Near 10516 Whitney Way Origin of Request Public Works Proposed: FY25-26 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts The 2024 Storm Drain Outfall Condition Assessment report assessed 205 pipe segments across 175 sites. Of the 117 outfalls three were in level 5 defective condition, and three were in level 4 defective condition. The FY25-26 funding requested will address the three outfalls that have the most severe damage and present as imminent failures. In following years, additional funding will be requested to address deficiencies noted in the report. The three locations for FY25-26 are: #SWPP398 is an 48-inch diameter corrugated metal pipeline (CMP) near the vicinity of Whitney Way and Pacific Drive, #SWPP1546 is an 15-inch diameter corrugated metal pipeline (CMP) near the vicinity of Richwood Court and Miller Avenue, and #SWPP3360 is an 30-inch diameter corrugated metal pipeline (CMP) near the vicinity of Finch Avenue and Stevens Creek Boulevard. All three show sign of corrosion and need to be rehabilitated. The Storm Drain Outfall Condition Assessment Project completed in 2024 identified multiple structural defects of existing storm drain pipelines that need to be rehabilitated. These defects pose a significant risk to the integrity of the storm drain system. Addressing the issues through timely rehabilitation is crucial to maintain the functionality of the system. It is estimated that the construction of these three outfall repairs can be completed within a year. There are no operating budget impacts to completing this project. This project will mitigate the defects to prevent further deterioration of the pipeline. The project is of high importance to address the risk of pipeline failure. Funding source for this project will be from either General Fund or Stormwater Fund. No grant funds are available. 629 CC 05-15-2025 629 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Stevens Creek Bridge Repair Improve structural foundations Total Funding $ 860,000 City Funding $ 98,642 External Funding $ 761,358 Remaining Funds (Feb 2025)$ 860,000 Funding Source, Approved Plan GF/Grants, GP Project Category Streets and Infrastructure Project Type Design and Construction Location Stevens Creek Blvd over Stevens Creek Origin of Request Public Works Budget Unit 420-99-267, ST 063 Initiated FY23-24 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Repairs to the bridge supports to include countermeasures to scouring (undermining) of the support bases. The design of the existing bridge utilizes mat foundations for the bridge supports that have started to become undermined. This project will perform modifications to create a firm structural footing for the supports. The condition of the support foundations has been noted in recent biennial bridge inspection reports and the repairs are recommended by Caltrans. The repair work is funded by the FHWA Highway Bridge Program for 88.53% of the design and construction costs. Engineering consultants have initialized the preliminary design phase of the project. Once the scope of work required is more defined, a projected schedule will be developed. Construction of the project will not increase operating budget expenses. Improving the safety of our City bridges is a leading priority. Grant funding has been secured which enables the project team to proceed with preliminary engineering. The engineering firm is in contract with the City. This will provide insight into final scope and costs. FHWA funding was awarded for this project. Funding for the design phase is currently programmed in the FTIP for the 2023/24 FFY and construction funding is programmed for ‘beyond 2025/26.’ Staff will continue to work with Caltrans to identify opportunities to make construction funds available sooner to minimize time from end of design to the start of construction. 630 CC 05-15-2025 630 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES McClellan Road Bridge Reconstruction Projected Costs $ 8,000,000 City Funding $ 0 External Funding $ 5,850,000 Remaining Funds (Feb 2025) $ 5,850,000 Funding Source, Approved Plan GF, GP Project Category Streets and Infrastructure Project Type Design and Construction Location McClellan Road 300’ east of Club House Lane Priority Medium Origin of Request Public Works Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule Funding Information Operating Budget Impacts Reconstruction of the bridge on McClellan Road near the entrance to McClellan Ranch Preserve. The existing bridge was constructed in 1920 and is beyond its design life. It does not meet current requirements for pedestrian access and lacks the width to facilitate bicycle lanes. A reconstructed bridge will enhance pedestrian facilities. Design and Construction will be a multi-year endeavor, requiring environmental permits and Caltrans approvals for both design and construction procurement. $5.85M in grant funding has been secured. Approximately $2.2M in funding is still required. Priority for Safety criteria, following recommendations from inspection reports issued by Caltrans. CIP is starting preliminary design in FY 24-25 to support efforts to obtain additional grant funding. Design and construction will require approximately $8M in funding. Staff proposes to utilize the existing grant funding to initiate preliminary engineering design which will provide further opportunities to apply for grants to complete the project funding. Construction of the project will not increase operating budget expenses. 631 CC 05-15-2025 631 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES City Lighting LED Improvements Updates to meet Dark Sky requirements Total Funding $ 1,350,000 City Funding $ 1,350,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 501,074 Funding Source, Approved Plan GF, GP Project Category Streets and Infrastructure Project Type Feasibility Location Various Origin of Request Public Works Budget Unit 420-99-258, ST 052 Initiated FY21-22 Project Description Project Justification Prioritization Projected Schedule Operating Budget Impacts Develop a strategy to transition the City's streetlight infrastructure, and other City operated lights, from induction to LED fixtures to meet the “Dark Sky” requirements and reduce light pollution. Assess the costs, benefits, and opportunities of the proposed improvements. In March 2021 the City ratified the "Dark Sky" night lighting requirements for private development. As City street lighting and other facility lighting may create unintended light pollution, and in some cases is nearing the end of its useful life, this study will evaluate lighting needs and compliance with dark sky requirements for the City's nearly 3000 streetlights, various path lighting and exterior facility lighting. Procurement is underway. The construction schedule is listed to be completed by December 2025. There are no anticipated additional impacts to the Operating Budget by this work. This project brings the City streetlights into compliance with the Dary Sky codes and reduces energy costs. It is a highly prioritized project for these reasons and because it is nearing completion. 632 CC 05-15-2025 632 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES City Bridge Maintenance Repairs Repairs from Caltrans report Total Funding $ 2,176,105 City Funding $ 282,910 External Funding $ 1,893,195 Remaining Funds (Feb 2025)$ 174,347 Funding Source, Approved Plan TF, GP Project Category Streets and Infrastructure Project Type Design and Construction Location Homestead/ McClellan @ Stevens Ck., Stevens Creek/ Vallco/ Miller/ Tantau @ Calabazas Ck. Origin of Request Public Works Budget Unit 270-90-960, ST 002 Initiated FY15-16 Project Description Project Justification Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Design and construct 6 bridges' repairs as recommended in the Caltrans Bridge Report along with additional improvements to prolong the useful life of the bridges. The City of Cupertino owns and maintains a total of eight vehicular bridges. Caltrans inspects these bridges and prepares a biennial report detailing the recommended repairs. Six of the eight bridges require rehabilitation; SCB over Stevens Creek has issues not covered by maintenance. The rehabilitation includes the required repairs as recommended in the Caltrans Bridge Report as well as additional work to prolong the life and use of the bridges. Approximately 88% of the project costs are eligible for Federal reimbursement through FHWA’s Bridge Preventive Maintenance Program (BPMP), which is administered by Caltrans. Construction is anticipated to be complete in April 2025. There are no anticipated impacts to the Operating Budget. The Federal Highway Administration (FHWA) grant funding begun as $571,151 and was increased since FY15-16 to be a total of $1,893,195. This grant will be a reimbursement and requires $245,284 in matching funds. 633 CC 05-15-2025 633 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Streetlight Installation – Annual Infill Annually funded Proposed FY25-26 Funding $ 0 Total Funding $ 430,000 City Funding FY25-26 $ 0 External Funding $ 0 Remaining Funds (Feb 2025)$ 139,741 Funding Source, Approved Plan GF, GP Project Category Streets and Infrastructure Project Type Design and Construction Location Various Origin of Request Public Works Budget Unit 420-99-056, ST 024 Initiated FY17-18 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Design and install streetlights on an as needed basis, to infill lights and poles when requested by residents. There are areas of the city where streetlight spacing is insufficient to meet current standards for illumination. Several locations are identified annually for infill with one or two lights. This annual appropriation allows these deficiencies to be readily addressed. Ongoing program. This program uses staff time for the installation of these lights. Additional annual energy costs will be extremely minor. Providing these services and fixtures for resident safety and welfare is important. This initiative began in FY17-18 and has been funded annually for a total of $430,000 as of February 2025. Most years had allocations of $75,000 per year. This amount was reduced in recent years to be $35,000. No request for additional funds in FY25-26. This may move to become Streets division “Special Project” in FY26-27. 634 CC 05-15-2025 634 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Vai Avenue Outfall Total Funding $ 490,000 City Funding $ 490,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 438,756 Funding Source, Approved Plan CR/SD, GP/SDMP Project Category Streets and Infrastructure Project Type Design and Construction Location Vai Ave outfall near Regnart Creek Origin of Request Public Works Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule/5-year Plan Information Funding Information Operating Budget Impacts Investigate, design, and replace existing failing 36” corrugated metal pipe (CMP) storm drain line with new reinforced concrete pipe (RCP) or high-density polyethylene (HDPE) pipe. In December 2023, the City was made aware of damage to this storm drain outfall. The City operates and maintains the storm drain facilities throughout Cupertino. The storm drain pipe in question has corroded, undermined the creek bank, and needs to be replaced before further erosion and property damage occurs. The outfall was patched with a new section of CMP as a quick fix in October 2024. The repair should last one or two rainy seasons, then we can pursue full replacement of the CMP that has eroded. Site access is difficult and will require environmental permitting. No ongoing operational impacts are expected. Replacement of the pipe is necessary to ensure proper operation to protect public and private property and safety. The initial repair used approximately $25,000. The proposed budget will enable design, construction, and environmental permitting of the CMP replacement. Storm Drain funds (210) will be used if available. 635 CC 05-15-2025 635 of 655 FY25-26 CIP proposal and 5-year Plan Council Meeting 4/02/2025 Page 24 of 34 INSERT SECTION PAGE (GRAPHICS!) CIP: TRANSPORTATIONCity of Cupertino CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES 636 CC 05-15-2025 636 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Stevens Creek Blvd Class IV Bikeway – Phase 2A Separated Bikeway & Signal Upgrades Total City Funding $ 2,350,000 City Funding $ 2,350,000 External Funding $ 807,000 (OBAG) External Funding $ 693,000 (SB1) Remaining Funds (Feb 2025)$ 277,829 Funding Source, Approved Plan GF/GF, BTP Project Category Transportation Project Type Design and Construction Location SCB: Wolfe to De Anza Origin of Request Public Works Budget Unit 420-99-036, ST 053 and ST 059 Initiated FY20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Phase 2A includes design and construction of the separated bikeway along Stevens Creek Blvd (SCB) from Wolfe Road to De Anza Blvd. Improvements include traffic signal modifications at Wolfe Road and De Anza Blvd to provide separate bicycle phasing. The 2016 Bicycle Transportation Plan identifies improvements needed and priorities to enhance and promote safer bicycle transportation in the City. The number one priority of the Plan was to provide a separated Class IV bicycle lane on Stevens Creek Blvd. This project is the second phase to address that priority. Design and Documentation, and community outreach for Phase 2A (Wolfe Road to De Anza Blvd.) is complete. The construction contract for Phase 2A was awarded in February 2025. Construction will be complete before the end of the calendar year. See Phase 2B project narrative for more information on the subsequent work on this project. It is anticipated that separated bike lanes will require additional maintenance to sweep bike lanes clean of debris. This cost will be in addition to normal street sweeping operations and will be included in the Operating budget. Improving vehicular, pedestrian and bicyclist safety is a primary concern. The Bike Transportation plan named this the first priority, and the Pedestrian Transportation assigned this Tier 1 priority. External grant funding has been secured for this project (OBAG and SB1 funding) and this will be used to reduce the City’s costs on Phase 2A. The remainder of the funds allocated by the City for Phase 2 will be used on Phase 2B. 637 CC 05-15-2025 637 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Stevens Creek Blvd Class IV Bikeway – Phase 2B Separated Bikeway & Signal Upgrades Total City Funding*$ TBD City Funding*$ 0 External Funding $ 0 Remaining Funds (Feb 2025)N.A. Funding Source, Approved Plan GF/GF, BTP Project Category Transportation Project Type Design and Construction Location SCB: De Anza to Highway 85 Origin of Request Public Works Budget Unit 420-99-036, ST 053 and ST 059 Initiated FY20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Phase 2B includes design and construction of the separated bikeway along Stevens Creek Blvd (SCB) from De Anza Blvd. to Highway 85. Upgrades to the traffic signal at Bandley Dr. and Stevens Creek Blvd. will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto Stevens Creek Blvd. *Note: SCB Phase 2A and 2B were jointly funded in design. SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency, however funding is noted separately because the Bandley intersection project is funded with DIL fees. The 2016 Bicycle Transportation Plan identifies improvements needed and priorities to enhance and promote safer bicycle transportation in the City. The number one priority of the Plan was to provide a separated Class IV bicycle lane on Stevens Creek Blvd. This project is the second phase to address that priority. It is anticipated that separated bike lanes will require additional maintenance to sweep bike lanes clean of debris. This cost will be in addition to normal street sweeping operations and will be included in the Operating budget. Design and Documentation of Phase 2B and the Bandley project is 95% complete. The project will be permitted, bid, and constructed once Phase 2A is complete. Improving vehicular, pedestrian and bicyclist safety is a primary concern. The Bike Transportation plan named this the first priority, and the Pedestrian Transportation assigned this Tier 1 priority. *External grant funding has been secured for Phase 2A of this project and this will be used to reduce the City’s costs on Phase 2A. The remainder of the funds allocated by the City for Phase 2 will then be used on Phase 2B. External funding may be available for Phase 2B. 638 CC 05-15-2025 638 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Bandley Drive Signal Upgrades Traffic & Signal Upgrades Total Funding $ 150,090 City Funding $ 124,432 External Funding $ 25,658 (DIL) Remaining Funds (Feb 2025)$ 142,210 Funding Source, Approved Plan GF & DIL/GF, BTP Project Category Transportation Project Type Design and Construction Location SCB & Bandley Intersection Origin of Request Public Works Budget Unit 420-99-070, ST044 Initiated FY18-19 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Upgrades to the traffic signal at Bandley Dr. and Stevens Creek Blvd. will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto Stevens Creek Blvd. Note: SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency. Funding is noted separately because the Bandley intersection project is funded with DIL fees. The Bandley Drive Signal Upgrades will significantly enhance pedestrian safety and pedestrian connectivity across Stevens Creek Blvd within the Crossroads district by reducing pedestrian-vehicle conflicts. Vehicle safety will also be increased for vehicles exiting the Crossroads driveway and Bandley Drive. The signal upgrades will not increase operational costs. Design and Documentation of Phase 2B and the Bandley project is 95% complete. The project will be permitted, bid, and constructed once Phase 2A is complete. Improving vehicular, pedestrian and bicyclist safety is a primary concern. This project will significantly enhance pedestrian and vehicular safety. External grant funding has been secured for Phase 2A. Additional external funding may be available for Phase 2B. The remainder of the City funds allocated for Phase 2 will be applied to Phase 2B once Phase 2A is complete. The scope of work for the Bandley intersection will be included in the Phase 2B scope of work for efficiency. 639 CC 05-15-2025 639 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Bollinger Road Corridor Study Traffic Analysis, Feasibility and Preliminary Design Total Funding $ 532,000 City Funding $ 106,400 External Funding $ 425,600 5-year Funding Total $ 4,000,000 Remaining Funds (Feb 2025)$ 532,000 Funding Source, Approved Plan GF, BTP & BCSS Project Category Transportation Project Type Design and Construction Location Bollinger Road, De Anza Blvd to Lawrence Exp. Origin of Request Public Works, BPC Budget Unit 270-99-270, ST 067 Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts In December 2020, City staff initiated a safety and operational study of the Bollinger Road from De Anza Boulevard to Lawrence Expressway to identify improvements that will enhance pedestrian, bicycle, motor-vehicle, and transit operations as a safety corridor. This is a collaboration between the City of Cupertino and City of San José. Further design and analysis work is required. This includes a topographic and utilities survey of Bollinger Road, preliminary engineering, and traffic analysis. The traffic analysis will determine the potential for the road diet (Alternative A from 2020 Feasibility Study) to increase congestion or divert traffic onto residential streets, and any corresponding mitigation measures to limit that impact (Alternative B from 2020 Feasibility Study). Year 1 work includes preliminary design, feasibility, public outreach, traffic analysis, and topographic surveying. Year 2 will see continuation of Year One activities and initial preliminary engineering. Year 3 will encompass final preliminary engineering and preparation of final plans, specifications, and estimates. T.B.D. External grant funding obtained; 20% matching funds required. Improves safety and sustainable means of transportation and builds upon master plan priorities. Initial Traffic Study and preliminary designs can be initiated in this FY by PW. Funding for analyses, public outreach, and preliminary plans, and estimates. Construction of improvements will require additional funding. 640 CC 05-15-2025 640 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Roadway Safety Improvements High Friction Pavement & Speed Feedback Signage Total Funding $ 3,561,800 City Funding $ 356,180 External Funding $ 3,205,620 Remaining Funds (Feb 2025)$ 3,500,800 Funding Source, Approved Plan CR/grant, GP Project Category Transportation Project Type Design and Construction Location Various Origin of Request Public Works Budget Unit 270-99-271, ST 068 Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule/5-year Plan Information Funding Information Operating Budget Impacts High Friction pavement treatment and speed feedback signage added to seventeen locations within the City. Roadway segments include sections of: De Anza Blvd, Homestead Rd, Bollinger Rd, Wolfe Rd, McClellan Rd, Bubb Rd, Mariani Ave, Tantau Ave, Mary Ave, Blaney Ave, Rainbow Dr, Miller Ave, Stelling Rd, Valley Green Dr, and Calvert Dr. Improves safety on roadway segments by reducing unsafe speed violations and rear end collision by implementing dynamic/variable speed warning signs at the curves along the corridor and improving pavement friction. This scope of work supports the Local Roadway Safety Plan (LRSP), which identifies transportation safety improvement needs for all ages, abilities, and modes of transportation for the purpose of reducing fatal and severe injury collisions. In July 2023, City Council accepted state funding from the Highway Safety Improvement Program (HSIP) grant for safety improvements on 17 roadway segments in the City of Cupertino. The project is currently in design. The construction is scheduled to be completed in winter 2025/2026. Construction of the project will not significantly increase operating budget expenses. $3.2M in grant funding has been secured, 10% matching funding required by the City. Priority for Safety criteria. Funding will be applied to design and construction. 641 CC 05-15-2025 641 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Tamien Innu, East Segment East Segment of the Trail Total Funding $ 2,536,000 City Funding $ 0 Dev Funding $ 600,000 External Funding $ 1,936,000 (VTA Meas B + TDA3) Remaining Funds (Feb 2025)$ 1,829,816 Funding Source, Approved Plan AP/Grant, BTP, PTP Project Category Transportation Project Type Design and Construction Location Wolfe Road to Calabazas Creek Origin of Request Public Works Budget Unit 420-99-036, ST 046 Initiated FY20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Design of an off-street bicycle and pedestrian facility parallel to the existing Junipero Serra Channel from De Anza Blvd. Wolfe Road (Central), and from Wolfe Rd. to Vallco Parkway (East). Highly prioritized in the 2016 Bicycle Transportation Plan, the Tamien Innu is one of the trail segments that would make up “The Loop” to provide an off-street bicycle and pedestrian facility that runs parallel to the existing Junipero Serra Channel and Calabazas Creek and would provide a connection between the Don Burnett Bicycle – Pedestrian Bridge and Vallco Parkway when all the sections are completed. Schematic design for both the Central and East segments have been submitted for environmental review. Construction and permitting documentation for the East segment are underway. The Central segment design and construction will progress once the first segment enters construction, and the environmental report is reviewed. It is anticipated that trail will require additional maintenance. However, it is anticipated that these impacts will be minimal. Facilitating alternative means of transportation is a valuable resource for the City and its businesses. Developer funding was contracted in FY18-19, and Council added the project to the CIP in FY20-21. VTA Measure B and TDA3 funding has been awarded. 642 CC 05-15-2025 642 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Tamien Innu, Central Segment Central Segment of the Trail Total Funding $ 4,785,000 City Funding $ 0 Dev Funding $ 600,000 External Funding $ 460,000 (VTA Meas B) External Funding $ 3,725,000 (VTA Meas B) Remaining Funds (Feb 2025)$ 4,582,979 Funding Source, Approved Plan AP/Grant, BTP, PTP Project Category Transportation Project Type Design and Construction Location De Anza Blvd. to Wolfe Road Origin of Request Public Works Budget Unit 420-99-036, ST 050 Initiated FY20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Highly prioritized in the 2016 Bicycle Transportation Plan, the Tamien Innu Trail is one of the trail segments that would make up “The Loop” to provide an off-street bicycle and pedestrian facility that runs parallel to the existing Junipero Serra Channel and Calabazas Creek and would provide a connection between the Don Burnett Bicycle – Pedestrian Bridge and Vallco Parkway when all the sections are completed. It is anticipated that trail will require additional maintenance. However, it is anticipated that these impacts will be minimal. Design of an off-street bicycle and pedestrian facility parallel to the existing Junipero Serra Channel from De Anza Blvd. Wolfe Road (Central), and from Wolfe Rd. to Vallco Parkway (East). Schematic design for both the Central and East segments have been submitted for environmental review. Construction and permitting documentation for the East segment are underway. The Central segment design and construction will progress once the first segment enters construction, and the environmental report is reviewed. Facilitating alternative means of transportation is a valuable resource for the City and its businesses. Developer funding was contracted in FY18-19, and Council added the project to the CIP in FY20-21. VTA Measure B and TDA3 funding has been awarded. 643 CC 05-15-2025 643 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Tamien Innu, West Segment West Segment of the Trail Total Funding $ 600,000 City Funding $ 0 Dev Funding $ 600,000 Remaining Funds (Feb 2025)$ 600,000 Funding Source, Approved Plan AP/Grant, BTP, PTP Project Category Transportation Project Type Design and Construction Location Don Burnett bridge to De Anza Origin of Request Public Works Budget Unit 420-99-036, ST 051 Initiated FY20-21 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Highly prioritized in the 2016 Bicycle Transportation Plan, the Tamien Innu Trail is one of the trail segments that would make up “The Loop” to provide an off-street bicycle and pedestrian facility that runs parallel to the existing Junipero Serra Channel and Calabazas Creek and would provide a connection between the Don Burnett Bicycle – Pedestrian Bridge and Vallco Parkway when all the sections are completed. It is anticipated that trail will require additional maintenance. However, it is anticipated that these impacts will be minimal. Design of an off-street bicycle and pedestrian facility parallel to the existing Junipero Serra Channel from De Anza Blvd. Wolfe Road (Central), and from Wolfe Rd. to Vallco Parkway (East). Schematic design for both the Central and East segments have been submitted for environmental review. Construction and permitting documentation for the East segment are underway. The Central segment design and construction will progress once the first segment enters construction, and the environmental report is reviewed. The design and construction of the west segment will follow the central segment. Facilitating alternative means of transportation is a valuable resource for the City and its businesses. Developer funding was contracted in FY18-19, and Council added the project to the CIP in FY20-21. 644 CC 05-15-2025 644 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES School Walk Audit Implementation Tier 3 Improvements Total Funding $ 1,245,852 City Funding $ 23,989 External Funding $ 1,221,863 Remaining Funds (Feb 2025) $ 939,405 Funding Source, Approved Plan AP/GF, GP & PTP Project Category Transportation Project Type Design and Construction Location Citywide, in the vicinity of 14 public schools Origin of Request Public Works Budget Unit 420-99-069, ST 034 Initiated FY18-19 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts This project will construct infrastructure-related improvements around schools that were identified as part of the comprehensive School Walk Audit study. Traffic improvements will improve walkability and safety around 14 Cupertino schools: Lincoln ES, Monta Vista HS, Lawson MS, Sedgwick ES, Hyde MS, Garden Gate ES, Homestead HS, Collins ES, Faria ES, Stevens Creek ES, Regnart ES, Cupertino HS, Kennedy MS, Eaton ES. A walk audit is an assessment of travel behaviors for drivers, bicyclists, pedestrians (both parents and students), developed by observing a school pick up or drop-off period on and around school grounds. Walk audits provide insight into the specific barriers to walking and biking at each school. The assessment team included Alta Planning + Design staff; City of Cupertino staff, nearby residents, and concerned parents. After the audit period completed, audit participants returned to discuss and document their findings on a large-scale school area map. Based on observations and input provided by school staff, audit participants, and others, the project team developed walk audit reports. Tier 1 and 2 items are almost complete, and three Tier 3 items are being initiated: Hyannisport Drive at Fort Baker Drive intersection reconstruction and Tantau Ave/Barnhart Ave sidewalk widening. It’s estimated that design and construction of the project will have a 3-year duration. There are no anticipated impacts to the Operating Budget. The walk audit items identify barriers to walking and biking to school and recommend ways to improve safety and traffic conditions around local schools. Health and safety are the first priority. In 2019, Apple, Inc. granted funds for the cost of implementing all the walk audit improvements in the City's ROW. 645 CC 05-15-2025 645 of 655 FY25-26 CIP proposal and 5-year Plan Council Meeting 4/02/2025 Page 30 of 34 INSERT SECTION PAGE (GRAPHICS!) City of CupertinoCIP: SUSTAINABILITY CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES 646 CC 05-15-2025 646 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES EVCS expansion - Service Center Total Funding $ 560,000 City Funding $ 560,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 560,000 Funding Source, Approved Plan GF, GP Project Category Sustainability, Facilities Project Type Construction Location 10555 Mary Avenue Origin of Request Public Works Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts The construction of electric vehicle charging station (EVCS) infrastructure at the Service Center is needed for the electrification of the City’s fleet in order to meet the Advanced Clean Fleet (ACF) regulation by California Air Resources Board (CARB). The scope of work follows the Silicon Valley Clean Energy (SVCE) report which identified the charging infrastructure needs to meet ACF regulation. The SVCE systematic assessment of City fleet vehicles had the primary goals of identifying vehicle electrification opportunities, establishing an electrification timeline based on vehicle replacements and the City’s climate action goals and regulatory compliance, and determining the costs and emissions benefits of fleet electrification. The design will be completed by the SVCE Consultant, Optony, Inc in Spring 2024. The City will need to coordinate with PG&E to obtain new electrical service which could take some time. It is currently anticipated that the project can begin construction in the latter half of 2025. As EV infrastructure charging units are implemented, staff or contractor resources will be necessary for installation and maintenance of the units. It is difficult to determine the overall operation budget at this time. The maintenance of a Level 2 charger is estimated at $500 per station annually, and $3000 per station annually for Level 3 EVCS. State regulations require the conversion of City fleet vehicles to electric vehicles, and the EVCS infrastructure is needed to address operations in response to those requirements. Funding for construction of the infrastructure required for operation of the EVCS. Procurement and installation of units, ongoing operation of the facilities, as well as potential upgrades to electrical service, may require additional funding. 647 CC 05-15-2025 647 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Photovoltaic Systems Design & Installation Total Funding $ 6,300,000 City Funding $ 6,300,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 6,296,600 Funding Source, Approved Plan CR, CAP Project Category Sustainability, Facilities Project Type Design and Construction Location Community Hall, Sports Center, Quinlan Community Center Origin of Request Public Works Initiated FY24-25 Project Description Project Justification Prioritization Projected Schedule/5-year Plan Information Funding Information Operating Budget Impacts In 2023 PG&E announced a rate decrease for electricity generated by photovoltaic (PV) systems (NEM 3) but provided a window to allow grandfathering the more economically-attractive NEM 2.0 rates if interconnection applications were successfully submitted and corresponding systems operational by 2026. NEM 2.0 Interconnection Applications were successfully submitted to PG&E for five Cupertino facilities: Blackberry Farm, Civic Center, Library, Quinlan Community Center & Senior Center, and Sports Center. This project aims to design and build PV systems at three locations. Council reviewed and approved the conceptual designs for Community Hall, Quinlan Community Center and Sports Center in December 2024 before awarding the Design Build contract in February 2025. The City must connect the proposed photovoltaic systems to the grid by 4/15/2026 in order to take advantage of the NEM 2.0 applications, which provides 75 – 80% greater compensation than NEM 3 rates for electricity that is fed back into the electrical system. The savings in utility costs are projected to be $290K annually, and $13.4M over a 30yr lifespan. Conceptual Design development and cost analysis completed in 2024. Design-Build: March 2025 to April 2026 Installation of the PV systems is projected to save $290K annually in utility costs. While additional maintenance will be required for the PV systems, additional staffing will not be required for ongoing operations and maintenance. Installation of the PV systems is projected to provide substantial savings on utility costs, going forward. The use of cleaner energy sources is a CAP goal. The proposed budget will enable design and construction of the systems. Inflation Reduction Act credits projected for this project are approximately $1.4M. Staff will also pursue other grant funding opportunities. 648 CC 05-15-2025 648 of 655 649 CC 05-15-2025 649 of 655 FY25-26 CIP proposal and 5-year Plan Council Meeting 4/02/2025 Page 30 of 34 INSERT SECTION PAGE (GRAPHICS!) CIP: COMPLETED PROJECTSCity of Cupertino CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES 650 CC 05-15-2025 650 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES Blackberry Farm Pool Improvements Replaster the pools, and miscellaneous upgrades Total Funding $ 750,000 City Funding $ 750,000 External Funding $ 0 Remaining Funds (Feb 2025)$ 31,204 Funding Source, Approved Plan GF, PRSMP & ADA Project Category Facilities, Parks Project Type Design and Construction Location BBF Pools Facility Origin of Request Parks and Recreation Budget Unit 420-99-073, PVAR 012 Initiated FY21-22 Project Description Project Justification Projected Schedule/5-year Plan information Operating Budget Impacts Make improvements to the pools and facility related to safety, accessibility, and maintenance. The scope includes replastering the recreation and the slide pools, redirection of the existing deck drains to existing bioswale, and removing accessibility barriers within the pool house dressing rooms as identified in the 2015 ADA Transition Plan, the 2021 Site Accessibility Report and 2020 building permit application comments. For multiple years, the two pools at Blackberry Farm have displayed all the signs that are indicative of the need to re- plaster a pool including mineral stains, peeling of the surface, and a rough surface area. The rough surface has been the cause of several injuries, including a worker's compensation claim. The replastering of pools at Blackberry Farm was last performed in 2009. This maintenance scope, as well as the sanitary and accessibility corrections required by the 2020 permit application process for this scope, are required to continue operations of the aquatic facilities beyond the 2021 aquatic season. Completed in Summer 2024. There are no anticipated additional impacts to the Operating Budget. 651 CC 05-15-2025 651 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES DeAnza Blvd Buffered Bike Lanes Restripe De Anza Blvd for Bike lanes Total Funding $ 530,533 City Funding $ 364,274 External Funding $ 166,259 Remaining Funds (Feb 2025)$ 176,259 Funding Source, Approved Plan GF, BTP Project Category Transportation Project Type Design and Construction Location De Anza Blvd, entire segment within City limits (Bollinger Road to Homestead Road). Budget Unit 420-99-078, CIV 009 Initiated FY22-23 Project Description Project Justification Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Restripe De Anza Blvd to include a painted buffered zone between the existing bike lane and the vehicle lanes. Project is identified as the highest of the Tier 2 priority projects in the 2016 Bicycle Transportation Plan. Project will install a painted buffer area between the existing bike lane and the adjacent vehicle lane. This will require restriping De Anza Blvd to narrow the vehicle lanes to provide room for the painted buffer. Design will be done in-house, funding is for construction only. Construction was completed in early 2025. There are no anticipated impacts to the Operating Budget. TDA3 grant was secured in FY24-25 for $166,259. The project budget was not increased, but the grant funding will be used to reduce the City’s expenses. 652 CC 05-15-2025 652 of 655 CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES McClellan Road Separated Bike Corridor De Anza and Pacifica/McClellan intersection Total Funding $ 2,299,410 City Funding $ 164,410 External Funding $ 2,135,000 Remaining Funds (Feb 2025)$ 99,273 Funding Source, Approved Plan AP/GF/Grant, BTP Project Category Transportation Project Type Design and Construction Location De Anza Blvd, McClellan Road, Pacifica Avenue Intersections Budget Unit 420-99-036, ST 047 Initiated FY20-21 Project Description Project Justification Projected Schedule/5-year Plan information Funding Information Operating Budget Impacts Improves pedestrian and bicycle safety by realigning the intersection and reconfiguring the vehicle movements. Improvements include relocating two signal mast arms and poles, related electrical, concrete and striping work, and elimination of the free right turn lanes from eastbound McClellan Road and westbound Pacifica Drive. Improve traffic flow, efficiency, and bicycle safety at this complex intersection. The project was completed in the Summer of 2024. There are no anticipated impacts to the Operating Budget. Apple funding ($160,000) and a VERBS grant ($1,000,000) were awarded in FY19-20. SB1 funding was applied in FY23- 24 for $975,000. 653 CC 05-15-2025 653 of 655 Community Funding recommendation from Parks and Recreation Commission The City provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the public. The Community Funding Grant application process opened on January 1, 2025 and closed on February 1, 2025. Fifteen applications were received for the FY 2025-2026 Community Funding Grant Program cycle and were brought to the Parks and Recreation Commission for review on March 6, 2025. The Commission evaluated and scored the applications on April 3, 2025 and a recommendation was provided regarding funding to City Council for final approval. Parks and Recreation Commission Motion: Chair Swamy motioned to recommend to City Council to fund the following for the Community Funding Grant Program Fiscal Year 2025-26 totaling $32,500; and if there is additional funding available, to fund the organizations requested amount in rank order at Council ’s discretion. Vice Chair Bono seconded. Motion carried unanimously Recommended ranking if additional funding is available: Applicant Commission Ranking Amount Requested by Applicant Current Recommended Award Amount Recommended if extra funding available No Time to Waste 1 $5,000 $5,000 $0 ElderAid 2 $6,000 $5,000 $1,000 Active Circle 3 $2,000 $2,000 $0 Special Olympics Northern California 4 $5,760 $5,000 $760 AINAK 5 $5,000 $4,000 $1,000 Cupertino Symphonic Band 6 $8,858 $3,000 $5,858 654 CC 05-15-2025 654 of 655 Remember the ToothFairy 7 $1,000 $1,000 $0 Friends of Deer Hollow Farm 8 $7,300 $2,000 $5,300 iTalented 9 $900 $900 $0 Via Rehabilitation Services 10 $5,000 $1,000 $4,000 Rotary Club of Cupertino 11 $4,000 $1,600 $2,400 West Valley Community Services 12 $10,000 $2,000 $8,000 Chinese American Coalition for Compassionate Care 13 $7,500 0 $7,500 Innovart Foundation 14 $8,000 0 $8,000 Asian American Parents Association 15 $4,000 0 $4,000 TOTAL $80,318 $32,500 $47,818 655 CC 05-15-2025 655 of 655