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Home My WebLink AboutCC 06-16-2026 Item No. 6. FY 26-27 Operating and Capital Improvements Budget_Staff Presentation (Updated)June 16, 2026 Fiscal Year 2026-27 Final Budget Adoption Agenda 2 Final Budget FY26-27 Changes since the Proposed Budget Study Session Next Steps Recommendations Questions Roadmap to FY 2026-27 Budget Adoption and Balancing Last Updated 6.12.2026 4 Changes From Proposed -> Final Budget 4 Changes since the Proposed Budget Study Session (redline changes) Changes by Fund Expenditure Change Revenue Change Changes to Estimated Fund Balance GENERAL FUND Reallocation of RISE Housing Funds to General Fund from Special Revenue* $200,000 $0 ($200,000) City Work Program (CWP) – Special Projects PR & Strategic Comm Strategy $25,000 $0 ($25,000) Law Enforcement Related Administrative Fees $0 $15,000 $15,000 Reduction of Chamber of Commerce Funding ($47,000)$0 $47,000 Reduction of Property Tax $0 ($224,320)(224,320) RISE Housing Solutions Additional Appropriations $13,000 $0 ($13,000) Salary Alignment of Senior Assistant City Attorney $34,119 $0 ($34,119) Removal of Automated License Plate Readers ($60,000)$0 $60,000 TOTAL GENERAL FUND $225,119 $165,119 ($209,320)($434,439) ($374,439) SPECIAL REVENUE Reallocation of RISE Housing Funds from Special Revenue to General Fund* ($200,000)$0 $200,000 TOTAL SPECIAL REVENUE ($200,000)$0 $200,000 Total $25,119 ($34,881) ($209,320)($234,439) ($174,439) *Approved Council allocation 5 6 Final Budget Revenue Changes as of June 16, 2026 Fund Budget 2026 Changes Budget as of June 16, 2026 General Fund 109,727,857 (209,320)109,518,537 Special Revenue Funds 12,399,553 -12,399,553 Debt Service Funds 2,675,100 -2,675,100 Capital Projects Funds 9,330,000 -9,330,000 Enterprise Funds 6,679,600 -6,679,600 Internal Service Funds 9,775,989 -9,775,989 Total All Funds 150,588,099 (209,320)150,378,779 7 Final Budget Expenditure Changes as of June 16, 2026 Fund Budget 2026 Changes Budget as of June 16, 2026 General Fund 109,696,957 165,119 109,862,076 Special Revenue Funds 9,766,776 (200,000)9,566,776 Debt Service Funds 2,675,100 -2,675,100 Capital Projects Funds 14,235,000 -14,235,000 Enterprise Funds 8,514,580 -8,514,580 Internal Service Funds 10,639,732 -10,639,732 Total All Funds 155,528,145 (34,881)155,493,264 8 Final Budget Financial Overview by Fund as of June 16, 2026 Fund Revenues Expenditures Balance/ Net Position General Fund 109,518,537 109,862,076 (343,539) Special Revenue Funds 12,399,553 9,566,776 2,832,777 Debt Service Funds 2,675,100 2,675,100 - Capital Projects Funds 9,330,000 14,235,000 (4,905,000) Enterprise Funds 6,679,600 8,514,580 (1,834,980) Internal Service Funds 9,775,989 10,639,732 (863,743) Total All Funds 150,378,779 155,493,264 (5,114,485) FY 2026- 16,903,174 4,919,216 301,592 176,155 80,718 26,683 2,266,552 1,937,599 1,661,889 454,392 3,000 566,083 - - 109,518,537 12,289,403 General Fund Revenues Category FY 2025-26 Adopted FY 2026-27 Proposed FY 2026-27 Final $ Change from Adopted % Change from Adopted Sales Tax 11,983,958 16,903,174 4,919,216 41.0 Property Tax 35,413,310 35,939,222 301,592 0.9 Transient Occupancy 7,500,000 7,676,155 176,155 2.3 Utility Tax 4,206,907 4,102,431 (104,476)(2.5) Franchise Fees 4,394,563 4,475,281 80,718 1.8 Other Taxes 1,736,718 1,763,401 26,683 1.5 Licenses & Permits 4,261,859 6,528,411 2,266,552 53.2 Use of Money & Property 6,538,880 8,476,479 1,937,599 29.6 Intergovernmental 3,569,332 5,231,221 1,661,889 46.6 Charges for Services 15,162,032 15,616,424 454,392 3.0 Fines & Forfeitures 410,760 413,760 3,000 0.7 Miscellaneous 1,668,815 2,219,898 566,083 33.9 Transfers in 15,000 15,000 -- Other financing sources 367,000 367,000 -- Total Revenues 12,289,403 12.6 9 General Fund Expenditures Category FY 2025- Adopted FY 2026-27 Proposed FY 2026- Final Adopted % Change from Adopted Employee Compensation 1,925,155 8.0 Employee Benefits 569,422 5.3 Total Personnel Costs 2,494,577 7.2 Materials 627,281 10.2 Contract Services 10,378,721 33.0 Cost Allocation 174,742 1.5 Capital Outlays & Special Projects (73.8) Contingencies -- Transfers Out (1,589,553)(15.0) Other Financing Uses 1,065,000 1,842,000 1,842,000 777,000 73.0 Total Expenditures 99,189,741 109,696,957 109,862,076 10,672,335 10.8 10 Classification Year End Projection 2025-26 Final 2026-27 Projected 2035-36 Restricted 21,935,307 24,592,503 41,677,196 Committed 86,127,891 88,645,785 94,942,934 Economic Uncertainty Reserve 24,000,000 26,517,894 32,815,043 Reserve for Future Use 62,000,000 62,000,000 62,000,000 Sustainability Reserve 127,891 127,891 127,891 Assigned -224,320 - Unassigned 65,879,182 64,897,986 60,734,992 59,155,037 - Other Classifications 4,037,435 4,037,435 4,037,435 Total Fund Balance 177,979,815 176,998,619 178,010,715 176,655,080 140,657,565 Fund Balance – General Fund 11 Department Requests 12 Fund Department Request One – Time Expense Recurring Expense 100 Administration City Work Program Special Projects PR & Strategic Comm Strategy 25,000 - 100 Administration Assistant City Attorney Salary Adjustment -34,119 100 Administration Law Enforcement ALPR -(60,000) 100 Administration Removed Budget for Annual Contract with Chamber of Commerce -(47,000) CMO Total 25,000 (72,881) 100 CDD Planning – On Call Contract for Design Review 35,000 - 100 CDD Planning – On Call Contract for Environmental Review 82,000 - 100 CDD RISE Housing Solutions- Additional Appropriations -13,000 CDD Total 117,000 13,000 Department Requests Cont. 13 Fund Department Request One – Time Expense Recurring Expense 100 I&T Video – AJA Ki Pro Ultra 6,500 - 100 I&T Video – City Hall Lobby Monitor Replacements 7,500 - 100 I&T Video – Tally System for Ross Carbonite Switcher 12,000 - 100 I&T Video – Panasonic PTZ Cameras and Controller 115,000 - 100 I&T Video – Tiger Technology 17,000 - 100 I&T Applications – Doc Access -15,000 100 I&T Applications – Open Counter -37,000 610 I&T Infrastructure – Regional vCISO (Pilot)45,000 - 610 I&T Infrastructure - MFPs 150,000 - 610 I&T Infrastructure – Network Access Control and Wi-Fi refresh 150,000 - 610 I&T GIS – Ichi Plan -10,000 I&T Total 503,000 62,000 100 P&R QCC Round Table Replacement 15,500 - P&R Total 15,500 - Department Requests Cont. 14 Department Request One – Time Expense Recurring Expense 100 PW Sustainability Intern – 81-122 and 520-81-801 -25,205 100 PW Sustainability Intern – 81-122 and 520-81-801 -356 100 PW Sustainability Intern – 81-122 and 520-81-801 -319 100 PW Grounds Memorial Park Asphalt Repairs – 84-809 36,000 - 100 PW Trees/ROW Median Sleave – 86-824 95,000 - 100 PW Facilities – Library VAV HVAC Upgrade – 87-828 130,000 - 100 PW Facilities – QCC - Control Valves & Circuit Setters – 87- 830 52,000 - 100 PW Facilities – Wilson Park – Dry Rot and New Rook – 87-834 80,000 - 100 PW Facilities – BBF Painting – 87-841 60,000 - 100 PW Transportation – DeAnza Traffic Signal Synce 88-844 110,000 - 100 PW Transportation – SCB Traffic Signal Synce -88-844 115,000 - 100 PW Transportation – Traffic Signal Video Detection Upgrade – 88-844 -50,000 100 PW Transportation Bike Ped Education – 88-846 15,000 - 100 PW Transportation – eBike education 88-846 -5,000 Department Requests Cont. 15 Department Request One – Time Expense Recurring Expense 520 PW Sustainability Intern – 81-122 and 520-81-801 -8,179 520 PW Sustainability Intern – 81-122 and 520-81-801 -119 520 PW Sustainability Intern – 81-122 and 520-81-801 -106 630 PW Fleet – Replace Fuel Dispensers – 85-849 60,000 - 630 PW Fleet – Vehicle and Equipment Replacement List – 90-985 890,000 - PW Total 1,643,000 89,284 Grand Total 2,303,500 91,403 Community Funding 16 Non – Profit Organization FY 2025-2026 Funding FY 25-26 Program/Project/Event FY 2026-2027 Funding FY 26-27 Program/Project/Event Active Circle 2,000 All Inclusive Family Picnic 2,000 Neuro-Inclusive Picnic with Purpose AINAK 4,000 Eyecare and Eyeglasses 1,550 Eyecare and Eyeglasses Asian America Parents Association 3,000 AAPI Multicultural Festival Did Not Apply Colorful Minds Did Not Apply 1,500 Colorful Minds Cupertino Symphonic Band 3,000 Band Equipment 2,000 Music, Band Equipment, Rental Venue Elder Aid 5,000 Background Verification Integration and Support Did Not Apply Fremont Union High Schools Did Not Apply 8,500 Environmental Education Classroom for the Fremont Union High Schools District iTalented 900 iSpark Did Not Apply Mind4Youth Did Not Apply 2,500 HeartCare No Time To Waste 5,000 5/1000 Feed the Need 4,000 GRoW: Grocery Rescue Weekly Community Funding Cont. 17 Non – Profit Organization FY 2025-2026 Funding FY 25-26 Program/Project/Event FY 2026-2027 Funding FY 26-27 Program/Project/Event Remember the Tooth Fairy 1,000 Dental Treatment program 2,000 Rotary Club of Cupertino 1,600 Thanksgiving Meal Sharing Program 3,000 Special Olympics Northern California 5,000 2025 Cupertino Bowling Team Program Did Not Apply Teens Talk Did Not Apply 450 Cuper-Teens Got Laughs! Via Rehabilitation Services 1,000 STEAM & Outdoor Education Did Not Apply West Valley Community Services 2,000 Gift of Hope 2025 5,000 Gift of Hope 2026 Total 33,500 -32,500 - Additional Community Funding If Available 18 Applicant Commission Ranking Amount Requested Recommended Award Amount Recommended if Extra Funding West Valley Community Services 1 5,000 5,000 0 Fremont Union High Schools Foundation 2 15,000 8,500 6,500 No Time to Waste 3 5,000 4,000 1,000 Teens Talk 4 450 450 0 Colorful Minds 5 1,500 1,500 0 Remember the ToothFairy 6 2,000 2,000 0 Cupertino Symphonic Band 7 4,870 2,000 2,870 Mind4Youth 8 2,500 2,500 0 Active Circle 9 2,000 2,000 0 AINAK 10 6,500 1,550 4,950 Additional Community Funding If Available Cont. 19 Applicant Ranking Amount Requested Recommended Award Amount Recommended if Extra Funding Rotary Club of Cupertino 11 4,000 3,000 1,000 Cupertino Host Lions Club 12 5,000 0 5,000 Bay Area Cats 13 19,050 0 19,050 Tessellations School 14 20,000 0 20,000 American Legion Post 642 Cupertino 15 20,000 0 20,000 Institute for the Study of Western Civilization 16 5,000 0 5,000 SunflowerMagic 17 1,000 0 1,000 Total -118,870 32,500 86,370 Capital Improvement Plan Project Program External Funding City Funding Total Proposed Budget Citywide Building Conditions FCA Implementation (annually funded)420-99-063 -1,250,000 1,250,000 City Hall Annex 420-99-248 -5,000,000 5,000,000 BBG Golf Course Pro Shop Renovation 420-99-277 -120,000 120,000 Sports Center Courts Resurfacing 420-99-278 -210,000 210,000 SCB/SR 85 NB Ramp Intersection Improvements 420-99-279 600,000 -600,000 Memorial Park Pickleball Sound Attenuation 420-99-280 -150,000 150,000 Blesch Property Improvements 420-99-281 TBD TBD TBD CIP Preliminary Planning & Design 420-99-047 -125,000 125,000 Capital Project Support 420-99-048 -50,000 50,000 Total -600,000 6,905,000 7,505,000 20 21 $1.0M $1.5M $0.2M -$0.6M -$1.8M -$4.7M -$5.9M -$7.3M -$8.6M -$10.2M General Fund Annual Operating Surplus/(Deficit) 22 •No changes in Staffing Changes in Staffing Request 23 •Approve recommended actions 1- 3 Recommendations 24 Next Steps 26 Next Steps1 May 11, 2026 Proposed Budget Study Session June 16, 2026 Final Budget Hearing and Adoption Nov 2026 1st Quarter Financial Report 1Additional meetings to be added if needed Questions?