CC 04-13-2023 Item No. 6 FY 2023-24 Proposed Budget_Late Written CommunicationsCC 04-13-2023
Item No. 6
Consider the FY 2023-24
10-Year Budget Forecast
Informational Update
presentation
Written Communications
From:Zhang YiWei
To:Cupertino City Manager"s Office; City Council; City of Cupertino Planning Commission; City Clerk
Subject:Cupertino Budget Problem for City Council Meeting of Tonight April 13
Date:Thursday, April 13, 2023 3:46:12 PM
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Dear Mayor Wei, vice-mayor Mohan, and city council members Chao, Moore, and Fruen and
Planning Commission Scharf, Mahdipatla, Lindskog, Fung, and Mistry, and city manager Wu:
Cupertino is in financial crisis because of loss sales tax. Its not be possible just spending less.
We need to get more money.
There are three things we can do besides cut spending to get budget balanced.
1. We need to increase more taxes. We can try a 0.25% sales tax increase. We can try a
business tax like Mountain View did where they head tax large corporation like Google. Apple
is not paying enough tax in Cupertino.
2. We should build way more expensive housing as much as we can because it will generate
more property tax money. $2 million condominium has property tax of around $25,000 per
year and Cupertino gets $1750. Affordable housing unit cost only $400,000 and generate
property tax of only $5000 per year and Cupertino gets only $350 of that. You can’t run the
city services on $350 a year. Where will money come from to run the city?
Someone told me that that the State can fines the city because of not much low-income
housing but we can worry later. If the city bankruptcy then we can get Apple to give us money
since it would look bad for Apple if Cupertino went bankrupt.
3. We should support laws that will help Vallco owner. There is new bill that will reduce the
amount of affordable housing cities are allowed to require that developer build. This will also
encourage low-income residents that pay very little taxes to move away since they can’t afford
housing. We need more bills like this to be made laws. We need to reduce affordable housing
and get low-income people to go away to someplace else like San Jose or Sacramento or
Texas. Rich people also spend more so they make the City more money in sales tax. We don’t
want rich people moving to Nevada or Texas or Florida, we want them to stay here and pay
more tax.
Too many liberal Democrat groups are trying to stop these new laws that will stop having to
make developers build affordable housing which doesn’t make them as much money and
which doesn’t make the city as much money either. I was born in China during the Cultural
Revolution. It is like communism to stop private landlords from making as much money as
possible. Housing is not a right, you need to work to make money to buy housing, everyone
knows that there are no free dinners.
We should have nice shelters with food for poor people so they are safe but criminals should
go to prison in another state. The old city manager Debra Feng sent homeless people from
Cupertino to a motel in San Jose. The governors of Florida and Texas sent illegal immigrants to
other states. We should support laws to make only expensiver housing for people in California
because that makes the most money for everyone. Tell our politicians to support Weiner Scott
and make more laws that get rid of poor people in California.
Zhang Wei (Zhang.YiWei2@hotmail.com)
Cupertino homeowner for 19 years
From:Liang Chao
To:City Clerk
Cc:Kitty Moore
Subject:Written Communication: Revisit the 2023-25 Work Program
Date:Thursday, April 13, 2023 7:46:30 PM
What I shared at the Council meeting.
Liang Chao
Council Member
City Council
LiangChao@cupertino.org
408-777-3192
From: Kitty Moore <Kmoore@cupertino.org>
Sent: Thursday, April 13, 2023 11:31 AM
To: Liang Chao <LiangChao@cupertino.org>; Peggy Griffin <griffin@compuserve.com>; Pamela Wu
<PamelaW@cupertino.org>
Cc: Matt Morley <MattM@cupertino.org>; Chad Mosley <ChadM@cupertino.org>; Debra
Nascimento <DebraN@cupertino.org>
Subject: Re: Revisit the 2023-25 Work Program
Hi Liang,
I agree to revisit the Work Program.
I think we need more information to do our jobs regarding the budget moving forward.
I suggest we collect more complete information, and in one packet, to provide the following at a
future agenda:
1. New Work Program items proposed for FY 23-24
2. Work Program still underway and cost to complete
3. Work Program items approved in the Budget and not yet begun (to evaluate for elimination)
4. CIP items still underway with an explanation if they are past design and into construction, or
just in design, to evaluate for elimination, stoppage, or fund to completion
a. Tamien Trail, for example, may not get funding to complete, may need Public-Private-
Partnership (P3) to complete
b. Lawrence-Mitty is funded to completion, continues (as an example)
c. Jollyman All-Inclusive playground has various grants, continues (with added funds, for
example)
5. CIP items planned to begin, to evaluate for elimination
6. Special Projects, suggest Special Projects not completed at the end of the Fiscal Year they
were introduced in should have been eliminated and only be returned to the next FY by the
request of the department. That being said, Special Projects could be considered for removal
from the Special Projects designation and would be in the budget as regular item details by
department. Painting a building, for example, should be within building maintenance and not
a Special Project. The Department would decide the scheduling. The McClellan AR project, no
offense, should have been suggested to Council, and not as a Special Project without
deliberation especially when we are not looking at dropping a lower-priced Shakespeare
event. Staff needs to figure Special Projects out.
a. Cut all Special projects and move them to regular projects if they are to continue?
b. Departments list Special projects as regular projects?
7. Grants: accounting for grants proposed in the Budget with a recommendation to align the
amount with peer cities in similar financial condition (the CDTFA condition). If this means stop
grants, then suggest it.
8. Waivers
a. Festival fee waivers to be listed with cost breakdown and recommendation to reduce
costs to the City
b. Facility use waivers to be listed with cost breakdown and recommendation to reduce
costs to the City. This is for transparency to the public.
i. Sister Cities facility use waivers per Sister City Policy 2018
1. Sister Cities Budget item under City Council, Budget Unit 100-10-110
ii. Senior Volunteer Advisory Council use waivers, staff, materials
1. Bingo, Hidden Treasures, Appreciation Event
iii. Audubon McClellan lease agreement
iv. Friends of Stevens Creek Trail lease agreement
v. 4H use agreement
vi. Coffee Society lease agreement and Covid adjustment
vii. Blue Pheasant lease agreement and Covid adjustment
viii. Any other space leased or let?
c. Cultural Events – which Cultural events are either waived and provided by an outside
entity or contracted by the City?
8. Neighborhood Events – Cost Breakdown
9. Library – Cost of adding hours and contract for Budget Unit 100-60-636. Should Cupertino
fund this exclusively? $600,266 in the Budget for FY 22-23.
What do you think?
Kitty
Kitty Moore
Councilmember
City Council
Kmoore@cupertino.org
(408) 777-1389
From: Liang Chao <LiangChao@cupertino.org>
Date: Wednesday, April 12, 2023 at 11:16 PM
To: Peggy Griffin <griffin@compuserve.com>, Pamela Wu <PamelaW@cupertino.org>, Kitty
Moore <Kmoore@cupertino.org>
Cc: Matt Morley <MattM@cupertino.org>, Chad Mosley <ChadM@cupertino.org>, Debra
Nascimento <DebraN@cupertino.org>
Subject: Revisit the 2023-25 Work Program
Pamela,
I hereby request a future agenda item to revisit the adopted 2023-25 Work Program, given the fact
that the Council made the decision without knowing the extent of the budget shortfalls.
Councilmember Moore,
Would you please kindly recons my request?
Thanks.
Liang
Image removed by sender.
Liang Chao
Council Member
City Council
LiangChao@cupertino.org
408-777-3192
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From: Peggy Griffin <griffin@compuserve.com>
Sent: Wednesday, April 12, 2023 11:04 PM
To: Pamela Wu <PamelaW@cupertino.org>
Cc: Liang Chao <LiangChao@cupertino.org>; Matt Morley <MattM@cupertino.org>; Chad Mosley
<ChadM@cupertino.org>; Debra Nascimento <DebraN@cupertino.org>
Subject: Re: 2023-04-13 City Council Mtg-ITEM6 FY 2023-24 Budget Forecast - CIP and WORK PLAN
ITEMS
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City Manager Wu,
The Council was forced to make CIP and Work Plan priority assignments given no
indication/information that this current budget crisis was severe. In fact, several Council members
kept asking for an update before making these priority decisions, concerned, but were ignored and
told to prioritize anyway.
The priorities are no longer valid! Given the severity of this situation, re-doing a bike plan is very low
on the list. It can wait along with several other items but it’s not my opinion and not staff’s job. It’s
the Council’s!
The Council’s job is to give direction and they need information to make reasonable, informed
decisions. The staff has the ability to review all CIP and Work Plan items, identifying which are
critical, nice-to-have or future.
How can you do a budget without first having the Council review the priorities? This is not a
business-as-usual event! The “plan” needs to change.
Thank you,
Peggy Griffin
On Apr 12, 2023, at 5:38 PM, Pamela Wu <PamelaW@cupertino.org> wrote:
Councilmember Chao and Peggy, I believe bike master plan update is part of the adopted Council
Work Program, not a CIP project. The $200,000 estimate is to retain a consultant to prepare the
necessary update.
As for your other suggestions on ongoing CIP projects and all city contracts, they are duly noted.
However, given staff is focused on the preparation of FY23-24 budget, we will provide a response to
your questions later in the year.
Pamela
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Pamela Wu
City Manager
City Manager's Office
PamelaW@cupertino.org
(408)777-1322
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From: Liang Chao <LiangChao@cupertino.org>
Sent: Wednesday, April 12, 2023 2:39 AM
To: Peggy Griffin <griffin@compuserve.com>; Pamela Wu <PamelaW@cupertino.org>
Cc: Matt Morley <MattM@cupertino.org>; Chad Mosley <ChadM@cupertino.org>
Subject: Re: 2023-04-13 City Council Mtg-ITEM6 FY 2023-24 Budget Forecast - CIP and WORK PLAN
ITEMS
Removed the city council.
Peggy,
Thanks for the input.
Pamela,
I found that Palo Alto's Bike Master Plan was adopted in 2012. And they are only moving towards
updating the plan this year, after they received a $160,000 grant from the federal Department of
Transportation.
See this article for more details.
https://www.paloaltoonline.com/news/2023/02/14/palo-alto-bicyclists-get-a-boost-in-push-for-
safe-system
Cupertino's Bike Master Plan was adopted in 2016. The Pedestrian Master Plan was adopted in 2018.
The City has just finished the Road Safety Plan this year and the Bike Ped Commission is still working
on the Vision Zero plan, which was started in 2021.
Why do we need to spend another $200,000 to update the Bike Master Plan at this time?
I'd like to suggest that we consider all existing ongoing CIP projects and proposed ones and
categorize them as "necessity", "nice-to-have", "plan for the future".
We should do the same for all current and likely to-be-renewed contracts.
The contract for the Shakespeare in the Park is a start. What other contracts are there?
We should have a list and then categorize them and prioritize.
We must examine our current expenditures honestly first to reduce our operating expenses.
Please propose how we could examine our operating expenses critically in the next month.
Thanks.
Liang
Liang Chao
Council Member
City Council
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LiangChao@cupertino.org
408-777-3192
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From: Peggy Griffin <griffin@compuserve.com>
Sent: Tuesday, April 11, 2023 11:24 PM
To: City Council <CityCouncil@cupertino.org>
Cc: City Clerk <CityClerk@cupertino.org>
Subject: 2023-04-13 City Council Mtg-ITEM6 FY 2023-24 Budget Forecast - CIP and WORK PLAN
ITEMS
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PLEASE INCLUDE THIS EMAIL AND BOTH ATTACHMENTS AS PART OF WRITTEN COMMUNICATION
FOR THE 4-13-2023 CITY COUNCIL MEETING, AGENDA ITEM #6 FY 2023-24 BUDGET FORECAST.
Dear City Council,
I’ve attached the following 2 documents I thought might be helpful to you:
latest CIP Projects list provided in the 2-21-2023 Written Communications
Work Plan Items as of FY 2022-23 Qtr2. City Manager Wu stated Qtr3 would be on the
website at the end of April 2023.
As you can see, there are several big ticket items that can be postponed or significantly reduced in
scope to help mitigate this budget situation.
Do a complete review of all CIP and Work Plan projects
Projects can be brought to a close/postpone state.
Q: What contracts can be paused, discontinued or not signed?
Stop the subsidies, fee waivers, free use of facilities all over the city
Lower the contract approval amount for staff.
Lower/significantly reduce the spending accounts/contingency accounts.
Add an opt in for electronic receipt of the Parks and Rec brochures and the Cupertino Scene
to reduce printing costs. Use cheaper paper.
REQUEST: DO NOT SELL ASSETS, except the Byrne property. It does not solve the problem of living
within our means. Solve the problem! Every bit of savings helps.
You are all bright, creative people. PLEASE work together on this. You each bring skills to the table.
Peggy Griffin