HomeMy WebLinkAboutCC 06-16-2026 Item No. 6. FY 26-27 Operating and Capital Improvements Budget_Desk Item1
ADMINISTRATIVE SERVICES DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
CITY COUNCIL STAFF REPORT
DESK ITEM
Meeting: June 16, 2026
Agenda Item # 6
Subject
Consideration of Recommended Operating and Capital Improvement Program Budgets for
Fiscal Year (FY) 2026-27, adoption of the Operating and Capital Improvement Program
Budgets for FY 2026-27, establishment of the Appropriation Limit, and related actions
Recommended Action
1. Adopt Resolution No. 26-XXX establishing an Operating Budget of $141,318,264 for
FY 2026-27, which includes the following changes to the FY 2026-27 Proposed
Budget, published on May 4, 2026:
a. Approve the operating budget of $141,293,145 outlined in the FY 2026 -
27 Proposed Budget.
b. Approve a reduction in appropriations of $47,000 for recurring
Chamber of Commerce funding agreement
c. Approve additional appropriations of $25,000 for City Work Program
Special Projects PR & Strategic Comm Strategy
d. Approve additional appropriations of $34,119 for the Council
approved salary adjustment of Senior Assistant City Attorney
e. Approve additional appropriations of $13,000 for RISE Housing
Solutions
f. Approve the allocation of $200,000 for RISE Housing funds to be
budgeted in the General Fund previously funded in Special Revenue
Fund as approved by Council on May 19, 2026
g. Approve a reduction in revenues of ($224,320) relating to at-risk ERAF
property tax
h. Approve additional revenues of $15,000 for Law Enforcement related
administrative fees
i. Approve any other recommended changes as directed by City Council
2. Adopt Resolution No. 26-XXX establishing a Capital Improvement Program
Budget of $14,235,000 for FY 2026-27.
2
3. Adopt Resolution No. 26-XXX establishing an Appropriation Limit of
$148,461,383 for FY 2026-27
Background:
Staff’s responses to questions received from councilmember s are shown in italics.
Q1: Expand on how property taxes increased by .9%.
Staff Response: Staff recently identified that the comparison to HdL's estimate inadvertently
excluded Educational Revenue Augmentation Fund (ERAF) revenues, which are recorded within
the same property tax revenue account in the City's general ledger. As a result, actual property tax
revenues may ultimately exceed the amount included in the Proposed Budget. Given recent
uncertainties surrounding major City revenues and expenditure, staff believes a conservative
budgeting approach remains appropriate and can return to Council with updated projections if
warranted.
Attachments Provided with Original Staff Report:
A – Draft Resolution – Operating Budget for Fiscal Year 2026-27
B – Draft Resolution – Capital Budget for Fiscal Year 2026-27
C – Draft Resolution – Appropriations Limit for Fiscal Year 2026-27
D – Budget Proposals Summary
E – Appropriation Limit for Fiscal Year 2026-27
F – Appropriation Limit Price and Population Factors for Fiscal Year 2026 -27
G – Proposed Budget Study Session Supplemental Report
H – Planning Commission Adopted Resolution
I – Adopted FY 2025-27 City Work Program Budget Details
J – FY 2026-27 Capital Improvement Budget (CIP) Book (Draft)