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Budget 2020-2021x. •! �c'�l• z- �i ��- .. � �� ''' �S .i�' ', � - �"'r.'t'j ��'-,.� � r � �+. „'t • x. � _ 000 • �.; �1. 5 .� � n ` . � _ '� Sys ylyY } �, ..�... m .�{� i . k' �'� • • �'� `'�il�`'":.;•�: i es. ya f � i ,� � � J � ! r Pi ate+ a +, �� i.; '� -" �' ii o ,. a! �. a.:►t+ ; �., ° : i� M ,u. T1. �• r '"� T•�'-a1 .S Yww¢¢ t�rii •�� "!. - �1. �•.-'• s• °i� r-,y' a, r' *w•, �r.a. ��rlok Mwwl jw •�-�.`-.L1.•, n,`''•:ky. kw yam•.' 't ��. .�J, �~•y�� : 4•. �A:•��_.`l+` 1:�a -. J, -,.�. .�,��i • �.;."f :�`r• '^k' ",�w:�'`ea-'f f� _ } •.' 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t/ �/I V ` t ry'S.lpsa any . _ . u c � ._. - - � TINS .CU-PER Table of Contents CityOrganizational Chart.......................................................................................................................1 Directoryof City Officials....................................................................................................................... 3 Commissions and Committees............................................................................................................... 4 GFOA Distinguished Budget Award.................................................................................................... 5 CSMFO Operating Budget Excellence Award..................................................................................... 6 Resolutions................................................................................................................................................. 7 BudgetMessage.......................................................................................................................................15 BudgetMessage............................................................................................................................... 15 Notable Accomplishments and New Initiatives..........................................................................18 AdoptedBudget Overview............................................................................................................ 33 BudgetGuide........................................................................................................................................... 49 OurMission...................................................................................................................................... 49 Elements of the Budget Document................................................................................................ 50 Glossary of Budget Terminology................................................................................................... 52 Commonly Used Acronyms........................................................................................................... 55 Revenues, Expenditures, and Fund Balance Table..................................................................... 57 CommunityProfile................................................................................................................................. 59 History............................................................................................................................................... 59 CommunityEconomic Profile........................................................................................................ 60 CityProfile........................................................................................................................................ 62 Education.......................................................................................................................................... 64 Programs and Applications............................................................................................................ 65 CommunityStatistics....................................................................................................................... 67 Community and Recreation Services............................................................................................ 69 Thingsto Do and See....................................................................................................................... 70 Financial Policies and Schedules......................................................................................................... 73 AnnualBudget Process................................................................................................................... 73 Structure of City Finances............................................................................................................... 75 FundStructure.................................................................................................................................. 77 FiscalPolicies.................................................................................................................................... 81 Appropriations & Legal Debt Margin........................................................................................... 94 Financial Overview by Fund.......................................................................................................... 96 i Table of Contents Flow of Funds Chart (Sankey)........................................................................................................ 97 General Fund Contribution Schedule........................................................................................... 98 FundBalance Report..................................................................................................................... 102 GeneralFund Summary................................................................................................................ 103 GeneralFund Revenues................................................................................................................ 104 General Fund Revenue Comparison with Other Jurisdictions...............................................118 General Fund Expenditures......................................................................................................... 122 General Fund Classification of Fund Balance............................................................................126 AllFunds Summary....................................................................................................................... 129 5-Year and 20-Year General Fund Forecast................................................................................137 5-Year Forecast Schedules............................................................................................................. 162 DepartmentOperating Budgets............................................................................................................... COUNCIL AND COMMISSIONS................................................................................................181 DepartmentOverview.................................................................................................................182 City Council CityCouncil............................................................................................................................... 186 CommunityFunding................................................................................................................ 188 SisterCities................................................................................................................................. 191 Commissions Technology, Information & Communications Commission...............................................193 LibraryCommission................................................................................................................. 195 FineArts Commission..............................................................................................................197 Public Safety Commission.......................................................................................................199 Bicycle and Pedestrian Commission...................................................................................... 201 Parks and Recreation Commission......................................................................................... 203 TeenCommission...................................................................................................................... 205 PlanningCommission.............................................................................................................. 207 HousingCommission............................................................................................................... 209 SustainabilityCommission...................................................................................................... 211 AuditCommittee...................................................................................................................... 213 ADMINISTRATION........................................................................................................................ 215 DepartmentOverview................................................................................................................. 216 City Manager CityManager............................................................................................................................. 227 Sustainability............................................................................................................................. 229 Officeof Communications....................................................................................................... 232 ii Table of Contents Video........................................................................................................................................... 234 PublicAccess Support.............................................................................................................. 237 Community Outreach and Neighborhood Watch............................................................... 239 DisasterPreparedness.............................................................................................................. 241 EconomicDevelopment........................................................................................................... 243 City Clerk CityClerk................................................................................................................................... 245 Duplicating and Mail Services................................................................................................ 247 Elections..................................................................................................................................... 249 City Manager Discretionary Fund CityManager Contingency...................................................................................................... 251 City Attorney CityAttorney............................................................................................................................. 253 LAWENFORCEMENT.................................................................................................................... 255 DepartmentOverview................................................................................................................. 256 Law Enforcement LawEnforcement...................................................................................................................... 261 InteroperabilityProject............................................................................................................. 263 CodeEnforcement.................................................................................................................... 265 INNOVATION AND TECHNOLOGY......................................................................................... 267 DepartmentOverview................................................................................................................. 268 Innovation & Technology Innovation & Technology Administration............................................................................ 276 Video Video.......................................................................................................................................... 279 PublicAccess Support.............................................................................................................. 281 Applications Applications.............................................................................................................................. 283 Infrastructure Infrastructure............................................................................................................................ 286 GIS GIS............................................................................................................................................... 289 ADMINISTRATIVE SERVICES.................................................................................................... 293 DepartmentOverview................................................................................................................. 294 iii Table of Contents Administration Administration.......................................................................................................................... 300 Finance Accounting................................................................................................................................. 302 BusinessLicenses...................................................................................................................... 304 Human Resources HumanResources..................................................................................................................... 306 RetireeBenefits.......................................................................................................................... 308 Insurance Administration........................................................................................................ 310 Workers Compensation Insurance......................................................................................... 312 LongTerm Disability................................................................................................................ 314 Compensated Absences........................................................................................................... 316 PARKS AND RECREATION.......................................................................................................... 319 DepartmentOverview................................................................................................................. 320 Parks and Recreation Recreation Administration...................................................................................................... 325 Park Planning and Restoration............................................................................................... 327 LibraryServices......................................................................................................................... 329 Business and Community Services Administration.......................................................................................................................... 331 CulturalEvents.......................................................................................................................... 333 Facilities...................................................................................................................................... 335 Community Outreach & Neighborhood Watch................................................................... 337 Recreation and Education Administration......................................................................................................................... 339 YouthTeen Recreation............................................................................................................ 341 SeniorCenter............................................................................................................................ 343 TeenPrograms.......................................................................................................................... 345 NeighborhoodEvents.............................................................................................................. 347 Sports, Safety and Outdoor Recreation ParkFacilities............................................................................................................................ 349 Administration......................................................................................................................... 352 Blackberry Farm Golf Course................................................................................................. 354 OutdoorRecreation................................................................................................................. 356 Sports Center Operations........................................................................................................ 358 Disaster Preparedness............................................................................................................. 360 iv Table of Contents COMMUNITY DEVELOPMENT.................................................................................................. 363 DepartmentOverview................................................................................................................. 364 Community Development Community Development Administration........................................................................... 369 Planning CurrentPlanning...................................................................................................................... 371 Mid and Long Term Planning................................................................................................ 373 Annexations.............................................................................................................................. 375 EconomicDevelopment.......................................................................................................... 377 Housing Services CDBGGeneral Admin............................................................................................................. 379 CDBG Capital/Housing Projects............................................................................................ 381 CDBG Public Service Grants.................................................................................................. 383 BMR Affordable Housing Fund............................................................................................. 385 Human Services Grants........................................................................................................... 387 Building GeneralBuilding....................................................................................................................... 389 BuildingPlan Review.............................................................................................................. 391 Building Code Enforcement................................................................................................... 393 MuniCode Enforcement......................................................................................................... 395 Code Enforcement CodeEnforcement.................................................................................................................... 397 PUBLICWORKS............................................................................................................................... 399 DepartmentOverview................................................................................................................. 401 Public Works Administration Public Works Administration................................................................................................. 409 Environmental Programs Resource Recovery.................................................................................................................... 412 Non -Point Source...................................................................................................................... 415 Storm Drain Maintenance........................................................................................................ 418 Development Services PlanReview............................................................................................................................... 420 CIPAdministration................................................................................................................... 423 Service Center Administration.......................................................................................................................... 425 Grounds McClellanRanch Park.............................................................................................................. 428 v Table of Contents MemorialPark.......................................................................................................................... 430 BBFGround Maintenance....................................................................................................... 432 SchoolSite Maintenance......................................................................................................... 434 NeighborhoodParks................................................................................................................. 437 Sports Field Jollyman, Creekside........................................................................................... 440 CivicCenter Maintenance....................................................................................................... 442 Streets Storm Drain Maintenance........................................................................................................ 444 Sidewalk Curb and Gutter...................................................................................................... 446 Street Pavement Maintenance................................................................................................ 448 StreetSign Marking................................................................................................................. 450 StreetLighting.......................................................................................................................... 452 EquipmentMaintenance......................................................................................................... 454 Environmental Materials........................................................................................................ 456 Trees and Right of Way Overpasses and Medians........................................................................................................ 458 Street Tree Maintenance.......................................................................................................... 460 SherriffWork Program............................................................................................................ 462 Facilities and Fleet CityHall Maintenance............................................................................................................. 464 LibraryMaintenance............................................................................................................... 466 ServiceCenter Maintenance................................................................................................... 468 Quinlan Community Center Maintenance........................................................................... 470 Senior Center Maintenance..................................................................................................... 472 McClellan Ranch Maintenance............................................................................................... 474 Monta Vista Community Center Maintenance.................................................................... 476 Wilson Park Maintenance....................................................................................................... 478 Portal Park Maintenance......................................................................................................... 480 Sports Center Maintenance..................................................................................................... 482 CreeksidePark Maintenance.................................................................................................. 484 CommunityHall Maintenance............................................................................................... 486 Teen Center Maintenance....................................................................................................... 488 ParkBathrooms Maintenance................................................................................................ 490 Blackberry Farm Maintenance............................................................................................... 492 Transportation Franco Traffic Operations Center.......................................................................................... 494 TrafficEngineering.................................................................................................................. 496 Traffic Signal Maintenance..................................................................................................... 498 vi Table of Contents SafeRoutes 2 School................................................................................................................ 500 Citywide — Non Departmental Minor Storm Drain Improvement......................................................................................... 502 FixedAssets Acquisition.......................................................................................................... 504 NON-DEPARTMENTAL................................................................................................................ 507 DepartmentOverview................................................................................................................. 508 Transfers Out General Fund Transfers Out.................................................................................................... 511 Tree Fund Transfers Out.......................................................................................................... 513 Capital Reserve Transfers Out................................................................................................ 515 FacilityLease Debt Service...................................................................................................... 517 Employee Housing Assistance................................................................................................ 520 PersonnelSummary.............................................................................................................................. 523 Capital Improvement Program Summary........................................................................................ 525 Capital Improvement Program................................................................................... See CIP FY 2021 vii Table of Contents This page intentionally left blank. viii Table of Contents City Organizational Chart Citizens of Cupertino City Council Committees and Commissions .M City Treasurer City Attorney City Manager's Office (Director ofndministrative Internal Auditor Services) Economic Sustainability Community Outreach Disaster Preparedness and Neighborhood Development Programs Watch Law Enforcement Administrative Community (Santa Clara County Services Development Parks and Recreation Public Works Sheriffs- Contract) Finance and Budget Building Recreation and Development Services Capital Improvement Infrastructure Education Program Human ResourcesH Planning Sports, Safety, and Environmental Transportation Outdoor Recreation Programs LF Code Enforcement Business and Community Services Housing City Clerk Innovation and Technology Service Center Facilities and Fleet 1 1 Trees and ROW GIS Applications Streets CUPERTINO Office of Communications -F Video Grounds Table of Contents This page intentionally left blank. Table of Contents CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2020-21 CITY COUNCIL V, Steven Scharf Mayor Liang Chao Council member Rod Sinks Council member Darcy Paul Vice Mayor Jon Willey Council member DIRECTORY OF CITY OFFICIALS Deborah L. Feng — City Manager Dianne Thompson — Assistant City Manager Heather Minner — City Attorney (Contract) Bill Mitchell — Chief Technology Officer Kristina Alfaro — Director of Administrative Services Ben Fu — Director of Community Development Roger Lee — Director of Public Works Joanne Magrini — Director of Parks and Recreation 3 Table of Contents CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2020-21 COMMISSIONS AND COMMITTEES BICYCLE PEDESTRIAN PUBLIC SAFETY COMMISSION COMMISSION Eric Shan Erik Lindskog Hymanand Nellore Gerhard Eschelbeck Lakshminarasimha Ankireddipally Ilango Ganga Tiffany Wang Muni Madhdhipatla Yvonne Chao FINE ARTS COMMISSION SUSTAINABILITY Diana Matley COMMISSION Janki Chokshi Anna Weber Rajeswari Mahalingam Gary Latshaw Sonia Dhami Meera Ramanathan Sudha Kasamsetty Ram Mohan Vignesh Swaminathan HOUSING COMMISSION Connie Cunningham TEEN COMMISSION Sanjiv Kapil Alden Gu Siva Gandikota Alex Zhang Sue Bose Anagaa Nathan Tessa Parish Arya Srivastava Jay Yeung LIBRARY COMMISSION Maple Leung Amando Wo Nitya Devisetti Christie Wang Rushil Jayant Liana Crabtree Samikshaa Natarajan Qin Pan Sophia Chen Rahul Vasanth Zehra Naqvi PARKS AND RECREATION TECHNOLOGY, INFORMATION COMMISSION & COMMUNICATIONS Carol Stanek COMMISSION Gopal Kumarappan Eliza Du Neesha Tambe Mukesh Garg Sashikala Begur Naidu Bollineni Xiangchen Xu Prabir Mohanty Rajaram Soundararajam PLANNING COMMISSION Alan Takahashi David Fung Kitty Moore R "Ray" Wang Vikram Saxena AUDIT COMMITTEE Angela Chen Darcy Paul Eno Schmidt Mingming (Daisy) Liang Rod Sinks DESIGN REVIEW COMMITTEE David Fung R "Ray' Wang ENVIRONMENTAL REVIEW COMMITTEE Liang Chao Kitty Moore Dianne Thompson Ben Fu Chad Mosley LEGISLATIVE REVIEW COMMITTEE Liang Chao Steven Scharf 4 Table of Contents G�9 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Cupertino California For the Fiscal Year Beginning July 1, 2019 Lgj�6 �-4 Executive Director 5 40 Hur.,... .,,w �a./ \\'l_..... q ��\,1 J'. rrr VV -- VV 'VV" VV VV VV VV '-- VV WV VVCaCifornia Society of i' lMuniq"paCFinance Ofrtcers Certificate l / / / --� Operating Budget Excellence �) lV - Fiscal c� o �o�� `) of Cupertino For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting. } January 2020 GNS Steve Heide Yolanda Rodriguez, Chair CSMF0 President Recognition Committee !r �� >�� rrvY!//•. �`� �7 \�,{t;y.§ % '�" '� \\��iy"�// �` �T �\� �//• �� 1 \ ,4zri l� �� '� �� ' \� tixii �� "� '� \� �,: �� + "� \~ Siii� �� `� '�' rljlt r �� r �� I�4 ll�V I I 4 l __�7llH 1111 �ll r 11' lllr 1111 _ �/l11 111 _ .- I 11\�`�_._ I i tNt`�-- � i 1111. Table of Contents RESOLUTION NO. 20-084 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING AN OPERATING BUDGET FOR FISCAL YEAR 2020-21 BY RATIFYING THE ADEQUACY OF ESTIMATED REVENUES AND FUND BALANCES IN EACH FUND TO COVER APPROPRIATED MONIES, APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS, AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS, the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and WHEREAS, the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monies made available for that purpose; and WHEREAS, the City Manager has submitted her estimates of anticipated revenues and fund balances, has determined that estimated revenues and fund balances are adequate to cover appropriations, and has recommended the allocation of monies for specified program activities; NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby adopt the following sections as a part of its fiscal policy: Section 1: The estimates of available fund balances and anticipated resources to be received in each of the several funds during Fiscal Year 2020-21, as submitted by the City Manager in her proposed budget and amended during the budget study sessions, are sufficient to cover appropriations. Section 2. There is appropriated from each of the several funds the sum of money set forth as expenditures for the funds named in the Fiscal Year 2020-21 Adopted Budget Financial Overview by Fund (Exhibit A), as amended during the budget sessions, and stated for the purposes as expressed and estimated for each department. Section 3. The City Manager is hereby authorized to administer and transfer appropriations between Budget Accounts within the Operating Budget when in her opinion such transfers become necessary for administrative purposes. 7 Resolution No. 20-084 Page 2 Table of Contents Section 4. The Director of Administrative Services shall prepare and submit to City Council quarterly a revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 1611, day of June, 2020, by the following vote: Vote Members of the City Council AYES: Scharf, Paul, Chao, Sinks, Willey NOES: None ABSENT: None ABSTAIN: None SIGN : t� ?% Steven Scharf, Mayor Date City of Cupertino ATTEST: �'- 06/19/2020 Date Kirsten Squarcia, City Clerk .. Table of Contents FISCAL YEAR 2020-21 ADOPTED BUDGET FINANCIAL OVERVIEW BY FUND Sales Tax $ 20,910,889 $ - $ - $ - $ - $ - $ 20,910,889 Property Tax $ 25,353,783 $ - $ - $ - $ - $ - $ 25,353,783 Transient Occupancy $ 7,546,894 $ - $ - $ - $ - $ - $ 7,546,884 Utility Tax $ 3,223,712 $ - $ - $ - $ - $ - $ 3,223,712 Franchise Fees $ 3,280,447 $ - $ - $ - $ - $ - $ 3,280,447 Other Taxes $ 1,212,939 $ 3,102,882 $ - $ - $ - $ - $ 4,315,821 .icenses & Permits $ 3,139,473 $ - $ - $ - $ - $ - $ 3,139,473 Ise of Money & Property $ 1,246,510 $ 4,205 $ - $ - $ 290,000 $ - $ 1,540,715 ntergovernmental $ 335,567 $ 3,295,595 $ $ $ 15,000 $ $ 3,646,162 :harges for Services $ 11,091,064 $ 1,526,471 $ - $ - $ 3,813,042 $ 4,314,949 $ 20,745,526 'fines & Forfeitures $ 425,000 $ 10,000 $ - $ - $ - $ - $ 435,000 miscellaneous $ 1,003,857 $ 87,057 $ - $ - $ - $ - $ 1,090,914 'ransfers WOther Financing Uses $ 290,000 $ 4,000,000 $ 3,169,138 $ 1,430,000 $ 2,849,000 $ 736,385 $ 12,474,523 TOTAL REVENUE $ 79,060,125 $ 12,026,210 $ 3,169,138 $ 1,430,000 $ 6,967,042 $ 5,051,334 $ 107,703,849 oyee Compensation $ 20,295,000 $ oyee Benefits $ 8,959,632 $ rials $ 6,058,121 $ ract Services $ 21,995,314 $ Allocation $ 10,473,534 $ :al Outlays $ - $ al Projects $ 1,448,852 $ ingencies $ 824,350 $ fifers Out $ 9,948,689 $ Service/Other Uses $ 525,000 $ TOTAL EXPENDITURES $ 80,528,492 $ Net Increase (Decrease) in Fund $ (1,468,367) $ Balance/Retained Earnings 1,576,185 $ $ 780,434 $ $ 861,666 $ $ 1,373,698 $ $ 1,046,834 $ - $ 11000,000 $ - �$ 1,090,700 $ - $ 34,044 $ $ 15,000 $ - $ - $ 3,169,138 $ 7,778,561 $ 3,169,138 $ $ 1,601,475 $ $ 531,530 $ $ 371,297 $ 175,000 $ 3,222,769 $ 168,274 $ 923,089 $ 1,430,000 $ 577,000 $ - $ 32,500 $ - $ 128,141 $ 1,989,449 $ - $ - $ 291,445 $ 1,615,524 $ 1,896,696 $ 1,044,242 $ 1,427,629 $ 52,343 $ 679,000 $ 59,947 $ 897,684 $ 7,673,065 $ 4,247,649 $ - $ (2,332,723) $ (712,204) $ (2,621,731) $ 25,088,184 12,168,292 8,335,326 29,194,410 12,664,074 3,007,000 3,251,052 1,046,482 11,953,138 4,883,267 110,591,225 (2,887,376) X Table of Contents RESOLUTION NO.20-085 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING A CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2020-21 BY RATIFYING THE ADEQUACY OF ESTIMATED REVENUES AND FUND BALANCES IN EACH FUND TO COVER APPROPRIATED MONIES, APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS, AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS, the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and WHEREAS, the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monies made available for that purpose; and WHEREAS, the City has independently studied the proposed Capital Improvements Program (CIP) and has determined that the CIP is exempt from environmental review pursuant to the exemption in 14 Cal. Code Regs. §15601(b)(3) in that it can be seen with certainty that there is no possibility that this action will have a significant effect on the environment because approval of the CIP is a budgeting action, and does not involve approval of any specific project that may have a significant effect on the environment; WHEREAS, the City Council, using its independent judgment, before taking action on this Resolution, determines that the CIP is exempt from CEQA as stated above; NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby adopt the following sections as a part of its fiscal policy: Section 1: The estimates of available fund balances and anticipated resources to be received in each of the several funds during Fiscal Year 2020-21, as submitted by the City Manager in the proposed budget and amended during the budget study sessions, are sufficient to cover appropriations. Section 2. The Director of Administrative Services shall prepare and submit to City Council quarterly a revised estimate of Capital Improvement projects. 10 Resolution No. 20-085 Page 2 Table of Contents Section 3. The Director of Administrative Services is hereby authorized to carry over, from the prior fiscal year, unexpended appropriations for Capital Improvement projects. Section 4. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 16th day of June, 2020, by the following vote: Vote Members of the City Council AYES: Scharf, Paul, Chao, Sinks, Willey NOES: None ABSENT: None ABSTAIN: None SIGN D Steven Scharf, Mayor City of Cupertino ATTEST: Kirsten Squarcia, City Clerk Date 06/19/2020 Date 11 Table of Contents FISCAL YEAR 2020-21 ADOPTED BUDGET FINANCIAL OVERVIEW BY FUND Sales Tax $ 20,910,889 $ Property Tax $ 25,353,793 $ Transient Occupancy $ 7,546,884 $ Utility Tax $ 3,223,712 $ Franchise Fees $ 3,280,447 $ Other Taxes $ 1,212,939 $ Icenses & Permits $ 3,139,473 $ Jse of Money & Property $ 1,246,510 $ ntergovemmental $ 335,567 $ :barges for Services $ 11,091,064 $ 'ines & Forfeitures $ 425,000 $ Riscellaneous $ 1,003,857 $ 'ransfers In/Other Financing Uses $ 290,000 $ TOTAL REVENUE $ 79,060,125 $ Employee Compensation $ 20,295,000 $ Employee Benefits $ 8,959,632 $ Materials $ 6,058,121 $ Contract Services $ 21,995,314 $ Cost Allocation $ 10,473,534 $ Capital Outlays $ - $ Special Projects $ 1,448,852 $ Contingencies $ 824,350 $ Transfers Out $ 9,948,689 $ Debt Service/Other Uses $ 525,000 $ TOTAL EXPENDITURES $ 80,528,492 $ Net Increase (Decrease) in Fund $ (1,468,367) $ Balance/Retained Earnings 3,102,882 $ - $ 4,205 $ $ 3,295,595 $ - $ 1,526,471 $ - $ 10,000 $ $ 87,057 $ $ 4,000,000 $ 3,169,138 $ 12,026,210 $ 3,169,138 $ $ 290,000 $ $ 15,000 $ - $ 3,813,042 $ 1,430,000 $ 2,849,000 $ 1,430,000 $ 6,967,042 $ - $ 20,910,889 - $ 25,353,783 - $ 7,546,884 - $ 3,223,712 - $ 3,280,447 - $ 4,315,821 - $ 3,139,473 - $ 1,540,715 - $ 3,646,162 4,314,949 $ 20,745,526 $ 435,000 - $ 1,090,914 736,385 $ 12,474,523 5,051,334 $ 107,703,849 1,576,185 $ $ - $ 1,601,475 $ 1,615,524 $ 25,098,184 780,434 $ - $ - $ 531,530 $ 1,896,696 $ 12,168,292 861,666 $ - $ - $ 371,297 $ 1,044,242 $ 8,335,326 1,373,698 $ - $ 175,000 $ 3,222,769 $ 1,427,629 $ 28,194,410 1,046,834 $ - $ 168,274 $ 923,089 $ 52,343 $ 12,664,074 1,000,000 $ �$ 1,430,000 $ 577,000 $ - $ 3,007,000 1,090,700 $ - $ - $ 32,500 $ 679,000 $ 3,251,052 34,044 $ - $ - $ 128,141 $ 59,947 $ 1,046,482 15,000 $ - $ 1,989,449 $ - $ - $ 11,953,139 - $ 3,169,138 $ - $ 291,445 $ 897,684 $ 4,883,267 7,778,561 $ 3,169,138 $ 3,762,723 $ 7,679,246 $ 7,673,065 $ 110,591,225 4,247,649 $ - $ (2,332,723) $ (712,204) $ (2,621,731) $ (2,887,376) 12 Table of Contents RESOLUTION NO. 20-086 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ESTABLISHING AND ADOPTING THE APPROPRIATION LIMIT IN THE AMOUNT OF $109,062,934 FOR FISCAL YEAR 2020-21 WHEREAS, the State of California has adopted legislation requiring local jurisdictions to calculate their appropriation limits in complying with Article XIII B of the State Constitution; and WHEREAS, pursuant to Proposition 111, passed by the voters of California on June 5, 1990, said limits are determined by an adjustment formula based upon change in population, (either city or county), combined with either the change in inflation (California per capita income) or the change in the local assessment roll due to local nonresidential construction; and WHEREAS, the local governing body is required to set an appropriation limit each year by adoption of a resolution; and WHEREAS, the city/county population percentage change over the prior year is - .18% /.33% respectively, and the California per capita personal income change is 3.85%; and WHEREAS, In computing the 2020-21 limit based upon the adjustment factors provided pursuant to Proposition 111, the City Council has elected to use the county population percentage change along with the California per capita income change, but the Council expressly reserves the right to use the non-residential assessed valuation percentage change when the figure is available. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby approves a 2020-21 fiscal appropriation limit of $109,062,934, based on Proposition 111 guidelines allowing for use of the county population percentage change along with the California Per Capita Personal Income change to adjust base year appropriations. BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby reserves the right to use the non-residential assessed valuation percentage change when the figure is available. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 16t' day of June, 2020, by the following vote: 13 Resolution No. 20-086 Page 2 Vote Members of the City Council AYES: Scharf, Paul, Chao, Sinks, Willey NOES: None ABSENT: None ABSTAIN: None SIG D: Steven Scharf, Mayor City of Cupertino ATTEST: Kirsten Squarcia, City Clerk �; ) Z 7 / 2, Date 06/19/2020 Date Table of Contents 14 Table of Contents CITY OF CUPERTINO May 1, 2020 CITY MANAGER'S OFFICE CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 • FAX: (408) 777-3366 CUPERTINO.ORG To the Residents of Cupertino, Honorable Mayor, and Members of the City Council: As the City of Cupertino enters a time of economic uncertainty, I am pleased to present the City Council with a balanced budget for Fiscal Year 2020/2021. Forecasting anything, be it the economy or the weather, is not an exact science. There are many variables and a lot that we cannot see. But what we can do, and what we are doing, is preparing for the worst while taking steps to ensure the continual financial stability of our organization. The COVID-19 pandemic, and the ensuing lockdowns, has negatively affected the economies of all countries and likely caused a worldwide recession. The City, for purposes of our budget forecast, is anticipating at least a two-year recession. The Fiscal Year 2020/2021 Adopted Budget presents a General Fund with revenues of $79.1 million and expenditures of $80.5 million. The City's top three revenue sources have been property, sales, and transient occupancy taxes. While this will continue to be true, the City will not see the same level of revenue as in recent years. Sales tax is anticipated to experience an approximately 20% decline, while transient occupancy tax is expected to drop by 25%. The City also expects a decline in fee revenues, mostly attributed to Parks & Recreation Departments programs being ceased, but also due to economic strains on the local, state, and national levels. With declining revenues for the next several years, difficult but necessary decisions must be made to bring expenditures into line. The City is implementing several budget balancing strategies to the General Fund forecast as noted below: • Phasing in an increase of vacant staff positions from five (5) to twenty (20) within a three-year period, which will result in up to $3.2 million in annual savings. • Reducing contingencies by 50%, which is expected to save approximately $850,000. • Reducing materials by 10%, which is expected to save approximately $670,000 in Fiscal Year 2020/2021. • Reducing contract services by $1 million. • Reducing special projects by $500,000. 15 Table of Contents While we expect these actions to be enough in the short-term, staff will continue to monitor the situation and adjust when necessary. Staff fully intends on keeping the City Council and community informed with regular updates. Having the latest information and up-to-date data will allow for informed decision making. It is said that even the darkest cloud has a silver lining. The COVID-19 pandemic has shone a bright light on quite a few positive things going on in Cupertino. I would like to highlight them for the City Council and community below: Long -Term Financial Planning The foresight of the City Council and staff in previous years to focus on ensuring healthy reserves is paying off in full. While we will focus on reducing expenditures to offset declining revenues, we do have healthy reserves that could be used to mitigate any unforeseen shortfalls. The City's Economic Uncertainty Reserve remains intact, with $19 million, and may be used to mitigate potential shortfalls in future fiscal years. The City's Section 115 Pension Trust ($12 million) also could be used to mitigate potential increases to Ca1PERS' annual required contribution rate or further reductions in the discount rate as set by Ca1PERS. The City's unassigned fund balance remains healthy and will be able to assist in addressing funding gaps. Virtual Activities, Meetings, and Services The future is virtual. That we already knew. But the COVID-19 pandemic provided an impetus to move some of our most significant activities and services online —most likely permanently. The City's Innovation Technology Department (IT) had the vision years ago to slowly migrate full-time employees to laptop computers. This allowed staff to be more mobile. Coupled with IT's decision to move to a VoIP phone system, which allows staff to answer their work lines from a computer, the transition from working in the office to working at home was practically seamless for many employees. With the addition of Zoom virtual conferencing and Microsoft Teams, an online collaboration tool, staff was able to keep internal meetings and communication moving forward. It also allowed the City to quickly offer its services and activities online once the first Shelter -in -Place Order was given in March 2020. The City began utilizing standard video conferencing software to provide virtual inspections for essential activities. In addition, the Geographic Information System (GIS) Division and the Building Division worked to develop a longer -term solution that allows applicants to submit building inspection videos in lieu of a physical inspection. Applicants upload their submission through an online form, the videos are stored into a que, and inspectors review the video remotely. While the form was developed in response to the COVID-19 pandemic, the Building Division expects this new video 16 Table of Contents inspection review process to remain a part of Cupertino's inspection process for limited scopes of work. The Parks & Recreation Department also began utilizing teleconferencing software in April 2020 to offer residents free virtual fitness classes. These classes quickly gained in popularity, going from about 10 attendees in the first week about 100 after just a few class offerings. Residents have already requested that the City continue some form of virtual classes once the Shelter -in -Place Order is lifted and in -person classes begin. Embracing Change and Innovation Change is difficult for everyone. It can be uncomfortable and stressful. That is why I have been so impressed with City staff, which has quickly and eagerly embraced change and innovation. Along with the move to new equipment and software, the reason the City's was able to continue its services with little interruption was because of our employees. Work is being completed and internal virtual meetings have been utilized to a great extent. Our staff has been a critical link to our City's success. It gives me confidence that our employees will readily accept more changes and continue to improve our programs and services. The City Council and residents should be heartened to know that Cupertino is in good hands. In conclusion, the City —along with every other municipality —is heading into much uncertainty. While there is a lot we do not know, the picture will become clearer as we move forward and receive more information. Fortunately, the City stands on a solid financial foundation and decisions have already been made, and will continue to be made, to ensure that stays true into the foreseeable future. Respectfully Submitted, Z4 L:,q, Deborah L. Feng City Manager 17 Table of Contents Notable Accomplishments and New Initiatives NOTABLE ACCOMPLISHMENTS IN FISCAL YEAR 2019-20 Reducing Youth Access to Tobacco In February, the City approved a tobacco ordinance to reduce youth access to tobacco. Most notably the ordinance prohibits the sale of vaping products and flavored tobacco. This effort was funded through a $48,608 grant the City was awarded from the Santa Clara County Public Health Department. Next year the City will pursue options to reduce exposure to secondhand smoke through another grant received from the County. Reach Code: The City of Cupertino Acts on Fossil Fuels in New Buildings Cupertino's Climate Action Plan outlines a path towards creating a healthy, livable, and vibrant place for its current and future residents to live, learn, work, and play. It was found that fossil fuels used in buildings and cars presents the biggest remaining challenge to meeting the 2030 greenhouse gas emissions targets. The City Council took steps to enhance the safety and cost savings of the City's buildings by adopting a local reach code that requires most new buildings to utilize clean electricity for uses like water heating and cooking. Eliminating the natural gas line for new developments is expected to save money for both consumers and contractors in most cases. With this step Cupertino joins the vanguard of 30 other California cities, and several across the nation, in starting a long-term reduction in fossil fuel use in the community. Outreach was conducted by City staff and regional partners Silicon Valley Clean Energy. Homeowners, students, contractors, real estate professionals, and business owners in Cupertino provided feedback on what an all -electric reach code would mean for them. Greenhouse Gas Inventory Shows Cupertino Meeting 2020 Emissions Targets The City of Cupertino Climate Action Plan goal is to reduce GHG emissions by 15% by 2020, compared to 2010 GHG levels. Since 2010, Cupertino has experienced an estimated 6% increase in population, 18% increase in jobs, and a 10% increase in service population. However, due to the City's climate actions, there is an overall 24% decrease in community GHG emissions during that period of economic growth. The path forward to the 2030 target remains ambitious, with transportation and natural gas used in buildings becoming the largest remaining categories of greenhouse gas emissions and air pollutants, and the State of California considering plans for zero emissions by 2045. 18 Table of Contents Employee Commute Program Helps Employees Get to Work and Reduce Climate Impacts Staff created a pilot program to help City employees get to work using alternatives to driving alone. The pilot program resulted in 70 employees signing up to reduce their solo car trips. Over the course of the pilot program, which ran from August 2019 to March 2020, employees took 2,541 "alternative trips" to work which includes transit, carpooling, biking, or taking the VIA shuttle to work. This resulted in reduced parking impacts at City Hall, paycheck incentives paid directly to staff, and an estimated 12 million pounds of carbon emissions avoided. The program's early success led to a successful grant award for the City to continue with a Phase II employee commute pilot, which is being designed and rolled out by staff. Master Plan Adoption This year, the Parks and Recreation System Master Plan was completed and adopted, following an extensive public input process. A final draft Master Plan as well as the associated environmental clearance documents were circulated for public review. The documents were presented to the Planning Commission, Parks and Recreation Commission, and Environmental Review Committee. On February 18, 2020, the City Council adopted the environmental clearance documents and adopted the Parks and Recreation System Master Plan. Program Overview and Marketing Analysis Completed The City contracted with the Learning Resource Network (LERN) to provide a two day program review that would analyze recreation program offerings in addition to: provide benchmark tracking to measure department performance, provide recommendations and key actions to implement to reduce costs and boost revenue and registration, and describe specific steps to improve marketing strategies and overall department operations. Recommendations on best practices and trends in the delivery of recreation services were presented to the Parks and Recreation Commission in March 2020. Volunteers, Wellness, and Collaboration The Senior Center strives to create a culture of collaboration and engages the community at all levels —this can be noted in the diverse program offerings at the facility. The Cupertino Senior Center celebrated the commitment of its 230 volunteers who have devoted 24,000 hours to serving the community through various volunteer opportunities at the Senior Center. The 50+ Scene newsletter underwent an expansive content and aesthetic overhaul in order to adhere to the Office of Communication's branding guidelines, as well as ensure the publication is more readable and user-friendly. The Smart Living and Wellness Health Fair provided valuable information and services to the 50+ community on how best to maintain a healthy and independent lifestyle, coordinated by the City's own Case Management team. The yearly Hidden Treasures event brought in the most sales ever at $15,000, which helps support the case management program and the Stay Active Fund to keep Cupertino seniors stay active and 19 Table of Contents engaged. These innovative services for the 50+ population continue to respond to the City's changing community needs. Appointment of Cupertino's Sixth Poet Laureate On February 18, 2020 Cupertino's City Council approved the Library Commission's recommendation of Jing Jing Yang for the appointment of the new Cupertino Poet Laureate. A celebration event was held on February 27th at Quinlan Community Center with nearly 100 attendees to thank the outgoing Poet Laureate, Kaecey McCormick for her contributions to the Poet Laureate program and to welcome Jing Jing Yang as the new Poet Laureate. The event also featured the revealing of Kaecey's final project as Poet Laureate, "Celebrate Creativity: A Cupertino Community Anthology", with 350 pages featuring creative writing from over 80 contributors from the Cupertino community. A copy of the Anthology will be available at the Cupertino Library. Summer Events The Summer Events program ran from June 2019 to September 2019 and offered activities at 12 different sites. The program included themed activities, 11 Movies, 11 Concerts, 10 Free Fitness in the Park classes (Zumba and Yoga), 5 Art in the Park Parent/Child classes. It also included Shakespeare in the Park, Cupertino's first Night Market, Game Night, Astronomy Night, Hawaiian Luau, Chess, Bollywood Night and Cupertino Campout with 230 campers. Attendance was slightly under 12,000. Other offered events highlighted celebrity guests, non- profits, and local partnerships. Teen Offerings Teen programs were enhanced to address the teen stress levels in Cupertino through innovative, collaborative and educational approaches while addressing community livability amongst the teens. The Bobatino event had its second successful year with over 600 teens enjoying various activities while drinking free milk tea provided by the City. Techie Teens began in August of 2019. The primary goal of Cupertino's Techie Teens volunteer program at the Senior Center is to help teens give back to the community by engaging the 50+ community to assist in developing their technological skills. The volunteers can expect to gain the following experiences: leadership roles, public speaking opportunities, interpersonal communication, and much more. The Cupertino Cafe run by the Youth Activity Board started in May 2019 but expanded in winter 2020 with more dates and partnerships with the library. 20 Table of Contents Corridor Stroll On Friday, August 2, the Parks & Recreation Department held the first annual Corridor Stroll on the Stevens Creek Corridor. Participants strolling between McClellan Ranch Preserve and Blackberry Farm enjoyed acoustic music, a magician, wine tasting, food trucks, crafts, ranger activities, reptile and insect presentations and blacksmith demonstrations. Signing Santa On February 27, the Parks and Recreation Department received a programming award from the California Parks and Recreation Society, for their innovative Signing Santa event. This event was the first of its kind in the Bay Area and provided an opportunity for deaf and hard of hearing children to talk to Santa and his elves using American Sign Language. More than 70 people attended the event that included crafts, cookies, hot cocoa, and quality time with Santa. Blacksmith Shop at McClellan Ranch In the Fall of 2019, the restored Baer Blacksmith Shop at McClellan Ranch Preserve became fully operational. Free drop -in hours are offered one Sunday a month, and volunteers are learning blacksmithing techniques. Demonstrations can also be scheduled for schools and groups. The blacksmith shop does not operate if Spare -the -Air or Red Flag warnings have been issued. Golf Course Improvements In the Spring of 2020, much needed improvements were made to the tee boxes on holes #1 and #9. Both tee boxes were leveled and had new turf installed. In addition to these tees, the green on hole #6 was made level and enlarged. McClellan Ranch Preserve Meadow Habitat Restoration The City's partnership with Grassroots Ecology continues to yield positive results for the restoration of the meadow at McClellan Ranch Preserve. In FY 19-20, over 350 volunteers planted over 300 native plants, removed invasive plants, and monitored the water quality in this open space. Athletic Fields Use Study In FY19-20, the Parks and Recreation Department began a field use study to update the current Field Use Policy. The study encompasses review of the user group categories, the fees and how the City charges users, times, days for use, and rest periods for the fields. The new policy is expected to be adopted by the Fall of 2020 and implemented in the Spring season of 2021. 21 Table of Contents Accessory Dwelling Unit Ordinance The Accessory Dwelling Unit Ordinance (ADU) was adopted by City Council after the its second reading on March 3, 2020. This was in a response to the State adopting six (6) separate Assembly and Senate Bills that seek to streamline and encourage the development of ADUs in an effort to relieve the State's housing crisis. Such revisions allow a shorter, more affordable review process which will also further flexibility on certain development standards. De Anza Hotel Project Approval The De Anza Hotel Project was part of a General Plan Amendment proposal to develop a 155 room, seven story boutique hotel on the site currently occupied by Goodyear Tires at 10931 N De Anza Blvd. The developer, John Vidovich of De Anza Properties, has agreed to a Development Agreement that would contribute a one-time payment $500,000 to the City to fund various projects, reduced price shuttle service for City residents to utilize for Airport transportation as well as connections to job centers, free use of hotel facilities for the City and local schools, and public access to a roof top bar & restaurant. California Department of Housing and Community Development (HCD) SB 2 Planning Grants Program The California Department of Housing and Community Development (HCD) announced that the City of Cupertino was awarded $310,000 in grant funds under the HCD's SB 2 Planning Grants Program. The City will use the funds to improve the Permit Center to offer community access to government services utilizing advancing technologies. As part of the Permit Center improvements, staff is redesigning the customer experience through projects ranging from physical on -site enhancements, availability of online resources and services, permit software and programs, and updates to distributional handouts on development regulations. The SB2 Planning Grants funds will be used specifically to offset the digital program improvements and online access solutions. Cupertino Village Hotel Project Approval The Cupertino Village Hotel Project was part of a General Plan Amendment proposal to develop a 185 room, 5-story hotel with event meeting rooms, restaurant, and rooftop bar. The developer, Kimco Realty, agreed to a Developer Agreement that would contribute $1.85 million ($10,000 per room) towards Community Amenity Funding, participation in a Transportation Management Association, shuttle service access, meeting room availability for official City business, reduced rates for people visiting Cupertino for official City business, and internship opportunities. When constructed, the project is anticipated to have a net fiscal impact of $1.78 million on the City's General Fund. 22 Table of Contents Homeless Encampments The Code Enforcement Office is currently working on creating a Standard Operating Procedure and contract to have public camping sites removed from the Public Right -of Way and public property. The City of Cupertino has seen a growth of illegal camping sites along Wolfe Road and 280. The goal of this project is the removal of unlawful encampments and the mitigation of health, safety and access issues while respecting the rights of the occupants and informing them of alternative resources within the community. Permit Tracking and Electronic Plan Review System Cupertino's initiative to replace its obsolete permit tracking system was realized on July 22, 2019, with the implementation of Accela and the successful integration to the electronic plan review system, ProjectDox. Cupertino's new system gives staff better tracking and management of permitting processes with a centralized database and GIS centric controls which allows information to be shared across Departments for improved communication. Plan Review, Permit and Inspection Services: Smooth transition after Shelter -In -Place order The Development Review process which includes Building, Planning, Public Works, Fire, Sanitary District, and Code Enforcement to review plans, issue permits and provide observation inspections successfully transitioned crucial City Service functions as a telecommuting operation on day one of the Shelter -in -Place order due to COVID-19. All services are electronically processed remotely with technology that each Department worked tirelessly over the past four years to implement. While other jurisdictions had no choice but to shut down their Departments, Cupertino was able to seamlessly continue operations remotely with minimal impacts. Reach Codes In January 2020, the City Council considered and adopted a local addition to the building codes in Cupertino that will lower greenhouse gas impacts from newly constructed buildings, known as the all -electric building reach code. Staff is pleased to report that the Cupertino reach code has been heard at a public meeting of the California Energy Commission on April 8, 2020. CEC staff found that the Cupertino reach code met all requirements in order to be adopted. CEC staff issued a resolution stating that, "CEC applauds the City of Cupertino for seeking to achieve additional energy demand reductions, energy savings, and other benefits exceeding those of the 2019 Energy Code." A copy of the CEC resolution can be viewed at (outside link): https://ww2.energy.ca.gov/business — meetings/2020—packets/2020-04- 08/ltem_04f—CUPERTINO—ADA.pdf 23 Table of Contents Real Estate Sign Pickups The Code Enforcement Office conducted the removal and storage of illegally placed real estate signs from the Public Right -of -Way. The project involved a code enforcement officer patrolling on the weekends for unlawfully placed real estate signs and promptly removing them for storage at the Cupertino Service Center. The investigating officer would notify the offending agent(s) and advise them of the number of sign(s) removed including instructions on how to retrieve the signs with a fee. No Administrative Citations were issued for this project. Recruitments and Onboarding Software Implementation Cupertino prides itself in the high level of services provided to the community, always striving to hire the best employees. Human Resources conducted 17 full-time recruitments resulting in 21 new hires or promotions. Additionally, phase two of NeoGov, an online system for onboarding, recruitment and applicant tracking, was implemented to streamline the new hire and onboarding process for all departments. Implementing the Onboarding module was comprised of staff training, converting all new hire payroll, policies, and benefit information into digital format, creating a Welcome Portal page, uploading content for new hires, and testing. The new onboarding module has been a great success with new hires. Human Resources has been able to complete new hire onboarding with telework in place. COVID-19 Leaves Implementation The Families First Coronavirus Response Act (FFCRA) is an emergency law passed by Congress and signed by the President on March 18, 2020, in response to the COVID-19 Pandemic. The law required the City of Cupertino to provide employees with Emergency Paid Sick Leave (EPSL), and/or Emergency Family and Medical Leave Expansion (EFMLEA), for reasons related to COVID-19. Human Resources quickly implemented these new paid leaves effective April 1, 2020. Staff outreach and training included webinars, development of webpage, infographics and individual meetings with all employees as needed. Citywide Employee Training - BEST "BEST" (Building Employee Skills through Training) program focused on professional development as part of Cupertino's succession planning and employee retention initiatives. Human Resources offered 7-8 workshops each quarter on subjects such as Public Speaking and Time Management. Human Resources also launched popular quarterly Employee Orientations and Refreshers for the departments to share the latest Citywide policies and programs available to employees. 24 Table of Contents Employee Engagement Initiative Human Resources implemented its first citywide Employee Engagement Initiative to support each other and work together towards the City's mission 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. City employees were assigned to a Work Group, participated in a citywide Employee Engagement survey, and created Action Plan Teams to brainstorm solutions for any issues identified in the survey. Employee Engagement is a mutual commitment between the organization and the employee, and this initiative was a successful first step towards the goal of having engaged employees who feel valued, are listened to, and are enthused about their work. Social Media Takeover and Community Budget Workshop Per City Council direction, the City hosted its first Community Budget Workshop on April 18, 2019. To promote the workshop and make the City's budget fun and relatable to our residents, Administrative Services staff created a social media campaign #BudgetBites. With the assistance of the City Manager's Office of Communications, staff completed a social media takeover of the City's Facebook and Instagram accounts. Due to the overwhelming success of the social media campaign and the community budget workshop, Administrative Services staff applied for a California Association of Public Information Officials (CAPIO) Excellence in Public Information and Communications (EPIC) Award in the category of Community Relations/Participation. There were a record -breaking 275 entries for the 2020 CAPIO EPIC Awards. Out of four finalists in the City's category, the City of Cupertino won first place. City staff would like to thank the City Council for their direction and support in bringing this event to Cupertino residents. City staff would also like to thank the City's Teen Commission, Youth Activity Board (YAB), residents and various other City staff for helping make this campaign and workshop a success. Congratulations all around. Investment Management Through a formal Request for Proposal (RFP) process, the Finance Division engaged Chandler Asset Management for investment management services in FY 2018-19. Managing the City's investment portfolio with three key principles in mind: safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program. Since inception in January 2019, the City's portfolio has yielded a total rate of return of 4.96%, significantly higher than U.S. Treasury and Local Agency Investment Fund rates during that time period. As a result, the City's investment portfolio is well -positioned to move forward as the COVID-19 pandemic continues to evolve. Internal Audit Function Through a formal Request for Proposal (RFP) process, the Finance Division engaged Moss Adams LLP for internal audit services in FY 2019-20. This function will be assisting the City in 25 Table of Contents accomplishing its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. While the timing of the onboarding and initial risk assessment have been delayed due to COVID-19, the City is eager to resume its internal audit function. Innovation Technology Strategic Plan The Innovation Technology Department concluded the final phase of a three-year strategic plan, published in October 2017. The plan revolved around the implementation/execution of 54 technical infrastructure or enterprise application projects. As of July 2020, all 54 projects are complete. Highlights of this year's efforts include: Applications • Going live with Accela Land Management System; a cloud -based application that includes urban planning, permitting and building inspections. Accela's web -based customer portal provides easy access and use to customers applying, reviewing status or paying for a permit. • Implementation of the NeoGov Onboarding application; a cloud -based application utilized by Human Resources to onboard new staff • Development of an Electronic Content Management three-year roadmap that guides the expansion and best practices for the City's record management system. • Expansion of the City's cloud -based asset management system, Cityworks to include storeroom. Update asset inventory for street legends and striping as well as streetlight cabinets. • Implementation of Chyron utilized by the Video Division for television graphics • Upgraded BuildingEye to Civic Central. Integrated Civic Central with Accela Land Management • Implemented NextRequest, cloud -based application that streamlines the public records act request process. • Microsoft 0365 and Exchange citywide implementation • Implement Zoom as City's teleconferencing solution. • Cobblestone, cloud -based contract management workflow application was implemented. Technical Infrastructure • Build/test of disaster recovery environment outside of California • Updated Emergency Operations Center to include state-of-the-art AV and teleconferencing equipment • Windows 10 and Server 2019 upgrades citywide. 26 Table of Contents Projects Completed outside of Strategic Plan • Transitioned 10 conference rooms to "Zoom Rooms" providing the ability to teleconference. • Installed 300 terabyte video storage system • Developed Bid Management application for publishing City RFPs and providing capability of vendors to submit bids electronically. • Upgraded the City's record retention schedule to align with best practices • Upgraded Permit Parking application which allows residents to renew parking applications online. • Upgraded Community Hall projector system • Implemented a Queue Management system to provide a more streamlined and friendly experience for permit center customers. Innovation Technology Data Visualization and Analytics Data visualization is the presentation of data in a pictorial or graphical format providing tools to better understand the data and/or identify patterns. Cupertino prides itself on making transparent data -driven decisions - this is one more tool to assist in that process. The following dashboards and storymaps were added this year. • Capital Improvement Plan Storymap. Define project, status and location of CIP projects. • 311 Dashboard. Provides graphical representation of 311 (work request) tickets. How many, status, location and time to respond. • Pavement Condition Index Storymap. Provides Citywide view of the PCI value for City streets. • Bike/Ped Storymap - Define project, status and location of bike and pedestrian projects throughout the City. • Civic Central - View permits geographically by street, neighborhood, or the entire City. Residents can be notified of new permits if desired. Innovation Technology Response to COVID-19 Business Continuity (BC) is a major and necessary goal for all organizations. The ability to continue business operation during and after a natural or person -made disruption is a true test of an organization's BC. COVID-19 provided such a test - and IT's response was exemplary. Within a day of the Shelter -in -Place order, 95% of all computer -based staff were able to telework as if they were in the office. Staff had the equipment (laptop & softphone), applications, collaboration tools, and necessary cybersecurity measures to seamlessly & securely continue their daily work. Cupertino lead the way in providing a secure, yet easy to use teleconferencing solution for Council, Commission and Committee meetings. Additionally, IT 27 Table of Contents provided a quick turnaround for COVID-19 related applications such as: COVID-19 update page, What Businesses are Open web page, HR Information Page, an electronic bid submission, and electronic signatures on citywide contracts to name a few. VERBS Grant Award The McClellan Road Separated Bikeway project was awarded the Vehicle Emissions Reductions Based at Schools (VERBS) Award for $1M from the Metropolitan Transportation Commission. McClellan Road Separated Bike Lane Phase I The Capital Improvement Program most notably completed the first phase of the McClellan Road Bike Corridor from Stelling Road to Imperial Avenue, which is part of the 2016 Bicycle Transportation Plan to enhance and promote safer bicycle transportation in the City. Sidewalk Improvements - Byrne Avenue The Capital Improvement Program also completed standard right-of-way improvements on Byrne Avenue from McClellan Road to Granada Avenue, including sidewalks, curb and gutter and relocated utility poles. Adding sidewalks will improve pedestrian safety in the Monta Vista Tri-school area. McClellan Ranch West Parking Lot Improvement This project formalized the existing use of the site located at 22241 McClellan Road. This new "green", meadow -style parking lot has a permeable concrete paving and appropriate landscaping. The parking lot and landscaping has been designed to be compatible with and sensitive to the creek environment in order to have minimal impact to the site. Senior Center ADA Sidewalk The Capital Improvement Program also completed construction of an ADA compliant sidewalk adjacent to the Senior Center parking lot. The new sidewalk provides a safe pedestrian path of travel connecting the permit parking areas to the Senior Center complex. Streetlight Installation - Randy Lane & Larry Way The Capital Improvement Program completed the installation of LED streetlights on Randy Lane between Merritt Drive and Lucille Avenue & Larry Way between Merritt Drive and Lucille Avenue Projects that have met significant progress milestones include • McClellan Road Bikeway Phase 2 (Stelling Rd to Torre Ave)- design Complete; • Regnart Creek Trail - Design and Environmental Clearance completed • Blackberry Farm Entrance Road Feasibility Study - Study Complete • Stevens Creek Blvd Cl IV Bikeway Phase 1- Design Complete 28 Table of Contents • Civic Center Parking Analysis - Study Complete Via Community Shuttle Launch Public Works Transportation staff was integral in launching Via, an on -demand micro transit system to all of Cupertino and beyond, connecting the City to regional rail service for the first time ever. The program includes discounted fares for low-income riders, seniors, and De Anza College students. Arbor Day Foundation Tree City USA designation and Growth Award The Arbor Day Foundation named the City of Cupertino "Tree City USA" for the eighth consecutive year and was awarded the "Growth Award" for the sixth time. Tree City USA distinction activities include two public planting events, 188 new trees planted, 3387 trees pruned and community outreach efforts about the importance of a healthy Urban Forest. Growth Award activities include enhancing the asset management system with tree Inventory and ongoing efforts of public education / public relations. Clean Water & Storm Protection Fee Public Works Environmental Program staff conducted extensive community outreach, education, and public hearings resulting in successfully passing the ballot initiative to update Cupertino's Clean Water and Storm Protection Fees for the first time since 1992. These fees will help protect stormwater infrastructure, local creeks, regional wetlands, the San Francisco Bay and ocean. 29 Table of Contents NEW INITIATIVES FOR FISCAL YEAR 2020-21 Blackberry Farm Golf Course Determine short-term and long-term improvements to the golf course and amenities. This project is continued from FY2019-20 and will be completed by the Spring of 2021. Dog Off Leash Areas Identify additional areas suitable for permitting dogs to be off leash and establish one such area, if the current trial period is successful. The Parks and Recreation Commission will evaluate the DOLA at Jollyman Park after the trial period concludes in July 2020 before considering additional sites in the community. This project is continued from FY2019-20 and will be completed by the Spring of 2021. Pilot — Sensor Technology based on IOT (Internet of Things) Six projects fall under this classification: Adaptive traffic signaling, multi -modal traffic count, noise measurement, pollution monitoring, and water scheduling. All projects are part of the City Council Work Program. The goal is to extend the City's network and database structure to include IOT based sensors to determine the cost/benefit and practicality of utilizing this technology to provide enhanced service and data that will drive future business decisions. ESRI IOT for Analytics is a cloud -based solution that will be implemented for the City to ingest, visualize, and analyze spatial big data real-time to gain insights that allow for analysis and data driven action. This application will allow the City to categorize and make sense of the data generated from the above mentioned IOT sensors. ProjectDox Expansion and Upgrade ProjectDox is an on -premise application that provides for electronic plan submission and review. ProjectDox is integrated with the City's land management system, Accela. These two applications have brought significant improvements (for both staff and customers) in the way permits are processed by the Building Division. The goal of this request is to extend these improvements to the Planning Division and Public Works Engineering. Additionally, ProjectDox will be migrated to a cloud -based application allowing for enhanced business continuity and disaster recovery. 30 Table of Contents AI Cybersecurity Tools This past year has seen multiple municipalities fall victim to Ransomware attacks. The remediation of these attacks has cost millions of dollars on top of the extended down time for crucial City services. This project will add artificial intelligence (AI) to the City's cybersecurity defenses. While Al will not stop an attack — it can quickly isolate the impacted files and mitigate the spread of Ransomware. As hackers continue to improve their attack profile — so must Cupertino improve its defenses. General Plan Authorization Process Evaluate the existing City Council authorization process for General Plan Amendment projects. Residential and Mixed -use Residential Design Standards Create objective design standards for residential and mixed -use residential projects, including ensuring adequate buffers from neighboring low -density residential development. Establish Preapproved ADU Plans Establish procedures and policies on streamlining the ADU review process. Affordable Housing Strategies Explore the development of strategies that provides a variety of products across the affordability levels including updates to the City's density bonus ordinance, housing for the developmentally disabled, as well as those with moderate, low, very low, and extremely low income. Engage with Philanthropic Organizations to find a way to build moderate -income and ELI housing units for Developmentally Disabled and Engage with Habitat for Humanity (or other nonprofit) to build ownership housing: 1) Identify ways to build ELI housing units for developmentally disabled. 2) Look at possibility of building 6-8 affordable ownership townhomes. Traffic Congestion Map and Identify Solutions Identify traffic congestion areas in a heat map. Identify, implement and measure effectiveness of data driven solutions to improve traffic flow in most congested areas. Single -Use Plastics Ordinance Single -use plastics, especially those used as foodware (plastic utensils, food packaging, straws, coffee stirrers, lids for coffee cups, spill -prevention plugs to go into those lids, etc.) are not recyclable and create significant amounts of waste that end up in landfills and as littered items that reach and harm the marine environment. Jurisdictions in the Bay Area are beginning to 31 Table of Contents consider and implement ordinances that aim to reduce single -use foodware where possible. This aligns with Cupertino's Zero Waste Policy (adopted in December 2017) which specifies a goal to "Reduce the proliferation of unnecessary plastic reusable food service ware and packaging in daily commerce, to the extent practicable." Environmental Programs staff participate on County and wider Bay Area work groups developing model ordinance language which includes enabling re -usable foodware business models that allow for use, sterilization, and re -use of to -go foodware. Climate Action and Adaptation Plan updates The Cupertino Climate Action Plan was created nearly ten years ago and has guided the City to a successful reduction of carbon emissions, even while the City has experienced stellar economic growth. Since adopting the CAP, the State of California has evolved the guidelines to address not only carbon emissions, but also adaptation to changing climate risks like wildfires and droughts. The Sustainability Commission and City Staff are planning an update of the CAP to align with new science -based targets for carbon emissions and resilient infrastructure. This budget includes funding to support this update to the Plan. An update to the CAP would include public outreach activities and technical analysis of the best options to support Cupertino's resilient and climate -friendly growth. The Earth Day volunteer network and all interested residents are encouraged to begin conversations about what Cupertino's sustainability strategy should be for the next 10 years. Reduce Secondhand Smoke Exposure Revise and develop policies to reduce exposure to secondhand smoke. Potential options include smoke -free multi -unit housing, smoke -free service areas, and smoke -free public events. 32 Table of Contents Adopted Budget Overview The Adopted Budget reflects a total City budget of $110.6 million, a decrease of $39.9 million or 26.5% when compared to the FY 2020 Adopted Budget. The City's General Fund is Adopted at $80.5 million, representing a $0.4 million, or 0.5%, increase over the FY 2020 Adopted Budget. The General Fund is funded through the use of General Fund revenue of $79.1 million, $1.5 million of unassigned fund balance, and is projected to end FY 2021 with approximately $16.0 million in unassigned fund balance. Once the anticipated vacancy savings of $800,000 is taken into consideration, the General Fund is estimated to end FY 2021 with approximately $16.8 million in unassigned fund balance. That ending balance may be transferred to the Capital Reserve per the Reserve and One Time Use Policy as part of the City's FY 2021 Mid -Year Financial Report The transfer is not reflected in the Adopted Budget. Special Revenue $ 7,778,561 $ 12,026,210 $ 4,247,649 ebt Service L $ 3,169,138 $ 3,1694138 $ Capital Projects $ 3,762,723 $ 1,430,000 $ (2,332,723) Wrprise $ 7,679,246 $ V 6,967,042 $ i (712,204) Internal Service $ 7,673,065 $ 5,051,334 $ (2,621,731) otal $ 110,591,225 $ 107,703,849 $ (2,887,376) As shown in the chart below, the Adopted Budget's largest fund is the General fund at 73%. 33 Table of Contents FY 2020-21 Adopted Budget by Fund Enterprise Internal Service Capital Projects $7,679,246 $7,673,065 S3.762.723 �� Debt $3,1 5pecu $7 eneral ),528,492 73% The graph below summarizes the changes in the City's General Fund for a five-year period: General Fund Revenues Expenditures and Transfers Out $100.0 $100.0 $90.0 rr $90.0 $80.0 I✓ $80.0 $70.0 $70.0 $60.0 $60.0 o $50.0 $50.0 c $40.0 $40.0 $30.0 $30.0 $ 20.0 $20.0 $10.0 $10.0 $ $ FY20 FY21 FY16 Actuals FY17 Act uals FY18 Actuals FY19 Actuals Adopted Adopted Budget Budget One -Time Special Projects $9.7 $8.9 $9.8 $4.2 $1.9 $1.4 o General Fund Transfers Out $13.2 $29.0 $24.1 $19.4 $10.2 $10.0 � General Fund Expenditures $42.2 $56.2 $55.4 $58.8 $65.6 $69.1 *OwGeneral Fund Revenue $77.9 $95.2 $88.2 $88.8 $87.1 $79.1 34 Table of Contents A total of 203.75 positions are authorized in FY 2020-21. Prior to COVID-19, the City was anticipating bringing a number of new position requests to City Council over a three-year period; however, given the level of fiscal uncertainty surrounding COVID-19, the City has removed all position requests in FY 2020-21. As the COVID-19 situation evolves, City staff will bring forward requests for City Council approval as more information becomes available for purposes of making informed decisions. FY 1 1 Adopted Budget 1 Maintenance Worker I/II 1 1.00 i FY 2020-21 Proposed Budget None 0.00 FY 2020-21 Benefitted Positions 203.75 In the past, staff recommended adding positions only on a limited term basis unless staff was confident that the needed level of service would be permanent, or ongoing revenues could support the position long term, or staff could not recruit and/or retain the staff resource on a limited term basis. The City currently has five (5) limited -term positions and staff are requesting that the Senior Management Analyst in the Administrative Services Department be converted to a permanent basis. Changes to the Budget and Policies City staff performed a zero -base budget for the FY 2020 budget document in which all expenses were justified and every function within the City was analyzed for its needs and costs. The City had planned to convert to a biennial budget process; however, given the timing and constraints of COVID-19, the City will be deferring the conversion until next fiscal year. Below are a few highlights from the budget and process: Revised Fees and Cost Allocation Plan (CAP) While the Cost Allocation Plan remained relatively consistent over the previous fiscal year, a change in methodology was implemented in the FY 2020-21 model. Costs attributable to grounds and facilities, specifically and only related to the City's Civic Center, are being charged out for more equitable and reasonable cost sharing among service providers in the City. Additionally, City Council approved the fee schedules effective for FY 2020-21 on April 21, 2020. Due to impacts related to COVID-19, and the City's intent to provide financial relief during this time of great uncertainty, the increases to the City's fees were delayed and will not become effective until October 1, 2020. The increases to the various fee schedules are estimated to result in increased revenues of approximately $900,000 over the previous fiscal year; however, the timing of services to be provided and revenues to be collected may be impacted by COVID-19 throughout fiscal year 2020-21. 35 Table of Contents Investment Policy The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. By policy, the Audit Committee reviews the policy and acts as an oversight committee on investments. The policy directs that an external auditor perform agreed -upon procedures to review City compliance with the policy. The full policy will be available on the City website as part of the May 19, 2020 City Council agenda packet. GANN Appropriations Limit The City's appropriations limit for FY 2020-21 is $109,062,934, $4,309,354, or 4.1% higher than the FY 2019-20 limit of $104,753,580. If a city exceeds the legal limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be determined at that time. For FY 2020-21, the City's estimated appropriations of proceeds from taxes, less statutory exclusions, do not appear to exceed the limit and are not expected to present a constraint on current or future budget deliberations. Community Funding Policy The first Community Funding policy was adopted by City Council in FY 2012-13, and the most recent policy was adopted as part of the FY 2015-16 Adopted Budget. At the Budget Adoption hearing in June 2018, City Council requested that the Community Funding Program be updated in order to assure that all applications received due consideration and that City Council is provided with all information necessary to make final funding decisions. At that meeting, City Council requested that the Parks and Recreation Commission evaluate all grant applications and provide funding recommendations to Council for consideration. An updated policy with minimal substantive changes was approved by City Council in 2020. Budget by Fund General Fund The General Fund pays for core services such as public safety, recreation and community services, planning and community development, streets and trees, and a host of other vital services. The revenue used to pay for these services comes primarily from local taxes such as property tax and sales tax, transient occupancy tax, charges for service, and a variety of other discretionary sources. General Fund revenue is estimated at $79.1 million in the FY 2020-21 Adopted Budget. This is an overall decrease of $8.0 million (9.2%) when compared to the FY 2019-20 Adopted Budget. In recent years, the City has experienced local economic boom that had driven strong gains in sales tax, property tax, and transient occupancy tax revenues, which were partially offset by decreases in development -related fees. FY 2020-21 will experience significant General Fund declines in sales tax ($4.7 million or 18%) and transient occupancy tax ($2.1 million or 22%) due to COVID-19 impacts. Property tax is not anticipated to be affected by COVID-19 in FY 2020-21 due to the timing of assessed market valuations; however, the City anticipates a flattening of the property tax revenues in FY 2021-22. 36 Table of Contents In an effort to mitigate the impacts to COVID-19, the City is taking steps to reduce expenditures by increasing vacancy levels through attrition (up to $3.2 million annually), reducing materials and contract services spending ($650,000 and $1 million, respectively), reducing contingency amounts by 50% or $850,000), and reducing the amount of special project and capital outlay spending on an annual basis. Although it is difficult to estimate the full -impacts of COVID-19 into the near and long-term, the City's fiscal foundation remains strong. With the General Fund's Economic Uncertainty Reserve intact and a healthy unassigned fund balance, the City is poised to withstand the impacts of COVID-19 into the future. The following chart shows four years of total revenue, expenditures and changes to fund balance for the General Fund: General Fund Revenues, Expenditures and Changes in Fund Balance $100, D $90.0 $80.0 $70.0 a $60.0 $50.0 c $40.0 $30.0 $20.0 $10.0 $(10.0) FY17 FY18 FY19 FY20 FY21 ACTUALS ACTUALS ACTUALS ADOPTED ADOPTED BUDGET BUDGET ■ Revenue $95.2 $88.2 $88.8 $87.1 $79.1 ■ Expenditures $94.0 $89.3 $82.4 $80.1 $90.5 ■ Net Rev-Exp $1.2 $(1.1) $6.4 $7.0 $(1.5) The General Fund unassigned fund balance is projected to decrease from the current year estimate of $17.5 million to $16.0 million in FY 2020-21 and $16.8 million when vacancy savings are considered. As shown in the chart below, the FY 2020-21 ending fund balance is estimated to be $52.0 million, or 2.7% lower than the FY 2019-20 year-end estimate. This is primarily 37 Table of Contents attributable to a notable decline in sales tax and transient occupancy tax revenues due to COVID-19. FY 17-18 FY 18-19 FY 19-20 FY 20-21 Percent Classification Actual Actual Estimated Adopted Change Unassigned $ 21,704,922 $ 27,896,128 $17,500,000 $ 16,040,633 All Other Classification 30,805,535 31,026,457 35,938,546 35,929,546 0% Total Fund Balanc $ 52,510,457 �iR AEI ;R�i $ 53,438,546 $ 5 As shown in the graph below, the majority of General Fund resources are used to support Public Works (29%), Non -Departmental expenditures (12%), Law Enforcement (18%), Parks and Recreation (9%), Administration (10%), and Community Development and Planning (12%). Public Works $23,025,616 Expenditures by Department - General Fund Parks and Recreation Non -Departmental $9,948,699 12% Administration $8,017,844 Law Enforcement $14,792,448 18% Special Revenue Funds Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds account for 7% of the citywide expenditure budget. The largest Special Revenue Fund accounts for streets, roads, and transportation. Other funds account for storm drain management, affordable housing programs, and park development. The Adopted Budget for Special Revenue Funds for FY 2020-21 is $7.8 million, which is a $2.1 million, or 20.9%, lower from FY 2019-20 Adopted Budget primarily due to annual pavement maintenance reductions. III Table of Contents Budgets within the Special Revenue Funds are funded by $8.2 million in restricted department revenue, and $3.8 million in transfers, bringing total funding sources for the fund to $12.0 million. This will result in a projected increase to fund balance of $2.1 million. The Special Revenue Funds are projected to end the year with fund balances of $27.6 million. Capital Projects Funds The Capital Improvement Project Fund, Stevens Creek Corridor Park Fund, and Capital Reserve Fund are currently in the Capital Projects Fund type category. This fund type is typically used to account for financial resources that are used for the acquisition or construction of major capital facilities or to provide facilities for City departments and are identified in the five-year Capital Improvement Program (CIP). The Adopted Budget for the Capital Projects Funds for FY 2020-21 is $3.8 million. The FY 2020- 21 Adopted Budget is $34.2 million lower than FY 2019-20 Adopted Budget appropriations. This is primarily due to a reduction in capital project spending resulting from the COVID-19 pandemic and its unprecedented uncertainty. Enterprise Funds Enterprise Funds are set up for specific services that are funded directly by fees charged for goods or services. Enterprise Funds consist of Resource Recovery for the solid waste collection franchise, Blackberry Farm for the City -owned golf course, the Cupertino Sports Center, and Recreation Programs for cultural, youth, teen, sports, and physical recreation programs. The Adopted Budget for Enterprise Funds for FY 2020-21 is $7.7 million, a decrease of $3.8 million from the FY 2019-20 Adopted Budget. Budgets within the Enterprise Funds are funded by $4.5 million in program revenue and $2.5 million in transfers from the General Fund. The Enterprise Funds also rely on $5.0 million of prior year fund balance, bringing total funding sources for the funds to $12.0 million. The Enterprise Funds are projected to begin the fiscal year with $5.0 million in retained earnings and are projected to end the year with retained earnings of $4.3 million. Impacts to Enterprise Fund revenues as a result of COVID-19 are significant, particularly while shelter -in -place orders remain in effect. FY 2019-20 experienced sharp declines in the fourth quarter and as such, staff are conservatively budgeting for anticipated reductions in overall revenue and expenditures. While it is difficult to estimate the extent of shelter -in -place orders for FY 2020-21, staff will continue to monitor the activities and report to City Council on a regular basis. Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other City departments or governments on a cost -reimbursement basis. Internal Service Funds include funds and programs for information technology, workers' compensation, equipment, compensated absence, long-term disability, and retiree medical insurance. 39 Table of Contents The Adopted Budget for the Internal Service Funds is $7.7 million, which is $0.3 million lower than the FY 2019-20 Adopted Budget. Budgets within Internal Service Funds are funded by $4.6 million in department revenue and $0.5 million in transfers from the General Fund. The Internal Service Funds are projected to begin the fiscal year with $6.8 million in retained earnings and are projected to end the year with retained earnings of $4.2 million. Special Projects The FY 2020-21 Adopted Budget includes funding for several one-time Special Projects. These projects are identified as part of the Special Project section within each program and are summarized in the table on the next page. This list excludes one-time capital outlays and ongoing pavement management costs. FY 2020-21 Special Projects ProgramWork .•Program 120 City Manager's Reduce Second Hand Smoke Office Exposure $ 27,592 General Fund Yes 122 Sustainability Climate Action Plan $ 100,000 General Fund Yes 122 Sustainability Green Procurement $ 2,000 General Fund Yes 300 I&T Pilot Adaptive Traffic Administration Signaling $ 65,000 Internal Service Fund Yes 300 I&T Pilot Multi -modal Traffic Administration Count $ 40,000 Internal Service Fund Yes 300 I&T Administration Pilot Noise Measurement $ 35,000 Internal Service Fund Yes 300 I&T Administration Pilot Pollution Monitoring $ 35,000 Internal Service Fund Yes 300 I&T Administration Pilot Water Conservation $ 10,000 Internal Service Fund Yes 701 Current Planning Mixed Use/Residential $ 200,000 General Fund Yes 800 PW Administration Municipal Water System $ 50,000 General Fund Yes 801 Resource Single Use Plastics Recovery Ordinance $ 30,000 Enterprise Fund Yes Alternatives to New City 804 Plan Review Hall $ 25,000 General Fund Yes 845 Traffic Signal Adaptive Traffic Signaling Maintenance and Battery Backup $ 180,000 General Fund Yes TOTAL CITY COUNCIL WORK PROGRAM $ 799,592 40 Table of Contents Sustainable Infrastructure 122 Sustainability Audit JL $ 10,000 General Fund Community Hall Podium 305 Video Replacement $ 15,000 General Fund Portable Signal 305 Video Generator/Analyz 9,000 General Fund Wireless Video Transmission 305 Video System $ 11,500 General Fund 308 Applications Vehicle Miles Traveled $ 25,000 General Fund Artificial Intelligence 310 Infrastructure Remediation $ 50,000 Internal Service Fund 310 Infrastructure Facility Battery $ 40,000 Internal Service Fund 701 Current Planning Marina Plaza $ 50,000 General Fund 801 Resource Recovery Trash Enclosure SWMP $ 2,500 Enterprise Fund 802 Non -Point Source Trash Enclosure SWMP $ 2,500 Special Revenue 807 Service Center Citywide Office Administration Reconfiguration $ 95,000 General Fund 812 School Site Irrigation Pump for Hyde Maintenance Middle School $ 85,000 General Fund 812 School Site Dedicated Water Service at Maintenance Collins School $ 60,000 General Fund 812 School Site Hyde Middle School Fence Maintenance Repairs $ 6,600 General Fund 813 Neighborhood Master Valve and Flow Parks Sensor at Hoover Park $ 12,000 General Fund 813 Neighborhood Parks Tot Lot Rubber Resurfacing $ 80,000 General Fund 813 Neighborhood Irrigation and Domestic Parks $ 70,000 General Fund 813 Neighborhood Environmental Consulting Parks Services $ 14,000 General Fund 820 Sidewalk Curb Annual Svld'ewaT< Curb and and Gutter Gutter $ 1,000,000 Transportation Fund 820 Sidewalk Curb Annual Sidewalk Grinding and Gutter Project $ 80,000 Transportation Fund 822 Street Sign Marking Stanley Cutoff & Chain Saws $ 5,600 Transportation Fund 825 Street Tree Maintenance Trees and Badges $ 15,000 General Fund 41 Table of Contents 829 Service Center Maintenance Storage Shed Replacement $ 7,000 General Fund 829 Service Center Mechanic Shop Asbestos Maintenance Removal $ 8,000 General Fund 830 Quinlan Community Center Restroom Partition Maintenance Replacement $ 10,000 General Fund 830 Quinlan Community Center Maintenance Security System Retrofit $ 25,000 General Fund 831 Senior Center Drinking Fountain Maintenance Replacement $ 6,000 General Fund 833 Monta Vista Community Center Monta Vista Partition and Maintenance Key Replacement $ 57,000 General Fund 846 Safe Routes 2 School Pedestrian Education $ 41,160 General Fund Street Light Pole 848 Street Lighting Replacement $ 145,000 General Fund Don Burnett Bridge Pathway & Linda Vista Park LED 848 Street Lighting Light Upgrade $ 7,000 General Fund 849 Equipment Maintenance Mechanic Shop Hose Reels $ 9,000 General Fund 855 Storm Drain Service Center IND Maintenance Inspection $ 2,600 General Fund 985 Fixed Asset Acquisition Vehicle Replacement $ 375,000 General Fund 986 GIS IoT for Analytics IF $ 20,000 Internal Service Fund TOTAL NON -CITY COUNCIL WORK PROGRAM $ 2,451,460 TOTAL CITY SPECIAL PROJECTS $ 3,251,052 Capital Improvement Program Each fiscal year, the Capital Improvement Program (CIP) is funded by the Capital Reserve and/or restricted grant and donation proceeds. The CIP is adopted at $2.2 million, or $23.5 million lower than the FY 2019-20 Adopted CIP. In addition to the unprecedented amount of uncertainty surrounding COVID-19, this reduction is also due to a minimal remaining fund balance in the Capital Reserve. While the City's policy to transfer excess fund balance in the General Fund to the Capital Reserve remains effective, the impacts from COVID-19 will create competing interests for use of those excesses. Below is a table of the FY 2020-21 Adopted CIP 42 Table of Contents projects. For more information on the Adopted Capital Improvement Program Budget, please refer to the City's website (httl2s://www.cupertino.org/our-city/departments/finance/budget- reports). Annual Playground Replacement 420-99-085 $ 300,000 Capital Reserve Park Amenity Improvements 420-99-086 $ 200,000 Capital Reserve Stevens Creek Boulevard Class IV Bikeway Phase 2 - Desig& 420-99-036 $ 350,000 Capital Reserve Regnart Creek Trail Fencing 420-99-036 $ 400,000 Capital Reserve Traffic Calmin 270-99-087 $ 200,000 Capital Reserve Retaining Wall Repair - Cordova Road 420-99-040 $ 25,000 Capital Reserve ADA Imvovements (multi-vear fundine) 420-99-007 $ 80,000 Capital Racarxra Street Light Infill (multi -year funding) 420-99-056 $ 75,000 Capital Reserve BF Golf Course Alternatives Analysis M 560-99-088 $ 50,000 Capital Reserve S orts Center Community Needs Analysis 570-99-089 $ 25,000 Capital Reserve ty Center/Multi-Dife 1W Capitaleserve u lic Safety Sustainable Infrastructure Upgrade 580-99-090 $ 502,000 Power Shutoff Grant ($217,551) Total $ 2,207,000 Current Economic Update National and State Economic Conditions Through the fourth quarter of 2019, the U.S. economy continued to show steady growth. U.S. Gross Domestic Product (GDP) increased by 2.1% in 2019 according to the Bureau of Economic Analysis, compared with an increase of 2.2% in 2018. The increase in real GDP in 2019 primarily reflected positive contributions from personal consumption, exports, residential fixed investment, federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment and nonresidential fixed investment. Through the first quarter of 2020, financial markets have experienced significant turbulence, driven by a high level of uncertainty about the impact of the COVID-19 pandemic on the global economy. US Treasury yields have declined, amid a global flight to quality. At the end of first quarter, the yield on 2-year Treasuries was down 132 basis points year-to-date, and the yield on 10-year Treasuries was down nearly 125 basis points. The S&P 500 index declined 20.0% in the first quarter as well. There are still many unknowns about the coronavirus including how widespread it will become, how long it will take to contain the virus, and the actual impact on economic activity. During this period of uncertainty, staff believe continued increases in unemployment and deep contractions in overall economic activity will be experienced. Financial markets will likely remain volatile over the near term, though large-scale global monetary and fiscal stimulus programs will assist in mitigating the longer -term impact of the pandemic. The Fed has taken a wide range of aggressive actions to help stabilize and provide liquidity to the financial markets including the lowering of the target rate to to range of 0.0%- 0.25%. Fed Chair Powell has indicated that the Fed will continue to act "forcefully, proactively, and aggressively" until the economy is solidly on a road to recovery. 43 Table of Contents COVID-19 is having significant impacts on the nation's US Unemployment Rate unemployment. The U.S. unemployment rate stood at 4.4% 6 in March 2020, up from 3.5% in the 5 previous month. The participation rate decline to 62.7% from 63.4%. A °C 4 broader measure of unemployment E 3 called the U-6, which includes b 2 those who are marginally attached CL v 1 to the labor force and employed D ° part-time for economic reasons, Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 increased to 8.7% from 7.0%. Although the unemployment rate has improved significantly from a high of 9.6% in 2010, economists believe that if we are not currently in a recession, the chances of entering one this year are certain, thus marking the end to the nation's longest -running expansionary period. Consumer confidence, as reflected by the Conference Board Consumer Confidence Index, decreased over the previous year and stands at 120.0 as of March 2020, including a 12.6 point decrease over the previous month. The year -over -year decrease is the result of a deterioration in the short-term outlook. The Present Situation Index remained relatively strong, reflective of an economy that was on solid footing, and prior to the recent surge in unemployment claims. However, the intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economic and jobs. March's decline in confidence is more in line with a severe contraction — rather than a temporary shock — and further declines are sure to follow. Monthly Employment - San California's unemployment rate T Jose/Santa Clara MSA rose to 5.3% in March 2020, an 0 1,200,000 improvement compared to last N year's unemployment rate of 4.2%. o 1,000,000 Per capita personal income N 800,000 increased 4.5% in 2019 over 2018, o 600,000 mostly due to faster growth in 0 400,000 wages; however, it is reasonable to v anticipate declines in income in 2020 z 200,000 as a result of COVID-19. Growth in ° the housing market slowed over the Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 prior year with the prices of single- family homes up 8.3% and sales down 6.1% compared to March of last year according to the 44 Table of Contents California Association of Realtors (CAR). Growth in Santa Clara County slowed over the prior year with the prices of single-family homes up 7.7% and sales down 19.0%. Recognizing that the State has a chronic housing shortage and understanding that inadequate housing has the potential to impede economic growth, state legislators have succeeded in passing a legislative housing package that has the potential to make a difference. Cupertino Economic Conditions Despite strong economic performance continuing in Silicon Valley and Cupertino pre-COVID, data from the State of California Employment Development Department indicates significant impacts as a result of the virus. Employment in the San Jose/Sunnyvale/Santa Clara Metropolitan Statistical Area (MSA) continues to increase. The preliminary estimate of the March 2020 employment level in the MSA was 1.03 million, representing an approximately 300,000 drop from the March 2019 level. The March 2020 preliminary unemployment rate of 3.4% has increased from the 2.8% rate experienced a year ago. Our local unemployment rate is lower than the national unemployment rate of 4.4%. Housing prices remain strong compared to the same period in 2019. As of February 2020, single family homes sold for a median home price of $2.08 million, a notable increase over the past year. The increase in the median home prices correlates with property tax revenue being expected to increase slightly compared to last year due to reassessments of development projects, and additional TEA property tax share. Due to the timing of property appraisals entering the assessor's role, the City does not anticipate significant impacts to property tax revenues in FY 20-21. When property values are appraised again in January 2021 and are included in the FY 21-22 roll, only then will the City expect to see adverse impacts resulting from COVID-19. Construction activity, although strong in previous years, will continue to flatten out as development projects, particularly Apple Park, are completed. Given the level of volatility surrounding COVID-19 and the uncertainty of recovery time, it is difficult to estimate the timing of significant projects that could have a positive impact on the City's general revenue bases. Key Budget Assumptions Revenue Assumptions Because of COVID-19, the FY 2021 Adopted Budget assumes significant declines in the sales tax and transient occupancy tax categories. Other categories consider assumptions ranging from no growth to conservative growth. As has been done in the past, revenue projections for each category were based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. With that, potential COVID-19 impacts were also heavily weighed in determining the most reasonable estimated figures. Given the extreme volatility and high level of uncertainty, staff are prepared to bring forward information and budget adjustments to the City Council throughout the fiscal year and as the COVID-19 situation evolves. Revenue assumptions are discussed in detail in the Fund Summary section under Financial Policies and Schedules. 45 Table of Contents Personnel Assumptions The City is entering the second year of its currently effective labor agreements which assume 3.5% cost of living adjustment increases. Equity adjustments and increases for retirement and health were also included in the increase for compensation and benefits. In addition, budgeted personnel expenditures factor in salary step increases for approximately 54% of employees who have yet to reach the top step in their classification's salary range. Typically, a step increase is equivalent to a five percent increase in salary with a range of five salary steps. Non -Personnel Assumptions Non -Personnel budgets were developed based on actual expenditures in prior years, and then adjusted for FY 2021 funding needs. In addition, one-time projects have been separated out in FY 2021 to ensure that expenditure trends reflect ongoing expenditure needs. Contingency budgets are assumed to be reduced by 50% over the prior year, representing an approximate $850,000 in savings. Contingencies are calculated at 5% of the total General Fund budget for contractual services and supplies and materials for operating programs. Consistent with past budgets, an additional 5% is allocated to the City Manager's discretionary budget to cover unanticipated program expenses. Ongoing Challenges Retirement Benefits Cupertino provides retirement benefits for its employees through the California Public Employee's Retirement System (Ca1PERS). Poor investment returns during the Great Recession and actuarial assumption changes have increased the gap between the pension system's assets and liabilities, resulting in the overall funded status of the system falling significantly. The funded status as of June 30, 2019 is estimated at 69%, down from 71% over the prior year due to lower than expected investment returns. In the last several years, Ca1PERS has taken steps to improve its long-term financial sustainability. In December 2016, the Ca1PERS board voted to reduce the discount rate, also known as the assumed rate of return for investments, from 7.5% to 7.0% over three years from FY 2018-19 to FY 2020-21. In February 2018, the CAPERS board voted to decrease the amortization period for new pension liabilities from 30 years to 20 years effective July 1, 2019. While these changes will provide long-term benefits to the pension plan, they will also considerably increase the City's pension contributions. The following table shows the City's projected pension contributions from FY 2020-21 to FY 2025-26. ected Emplover Contributions Projected Payroll $ 19,490,834 $ 20,026,831 $ 20,577,569 $ 21,143,452 $ 21,724,897 $ 22,322,332 Formal Cos 1.31�1.3% qW 11.3�/° . ° 11.3% Normal Cost $ 2,203,634 $ 2,264,234 $ 2,326,500 $ 2,390,479 $ 2,456,217 $ 2,523,763 §LL Payment $ 3,607,122 $ 4,056,000 $ 4,448,000 $ 4,724,000 $ 5,001,000 $ 4,775,000 Total Contribution $ 5,810,756 $ 6,320,234 $ 6,774,500 $ 7,114,479 $ 7,457,217 $ 7,298,763 Total Contribution (%) 29.8% 31.6% 32.9% 33.6% 34.3% 32.7% 46 Table of Contents As part of the FY 2019 Adopted Budget, City Council approved the creation of a Pension Rate Stabilization Program (PRSP), a Section 115 Trust that will act to stabilize pension rate volatility and minimize the impact on the General Fund's operating budget from year to year. During FY 2019, the City contributed an initial investment of $8.0 million to the trust. The FY 2021 Proposed Budget includes this $8.0 million as well as an additional $4M contributed during FY 2020 as restricted fund balance to provide stabilization. Revenue Volatility The City's revenue mix is heavily reliant on volatile business -to -business sales tax, which makes up a large portion of the City's annual General Fund revenues. Business -to -business sales taxes are very sensitive to economic fluctuations as evidenced by Cupertino's experience during the dotcom bust from 2000-2004. Our heavy reliance on the volatile high tech industry also makes us vulnerable. The loss of one of our top three sales tax producers in FY 2013-14 only made the City more reliant on a single tax producer, making us more vulnerable to its business volatility. COVID-19 in expected to significantly increase the volatility of the City's revenues in FY 2020- 21; particularly its sales and transient occupancy taxes. While the overall reductions in these two categories ($6.9 million) is sure to have a profound impact, the General Fund is well - positioned to absorb the temporary decline and withstand the economic recovery period into the future. Health Benefits There is uncertainty around potential repeal and replacement of the Affordable Care Act (ACA) and how it would affect health care costs. Rate increases have stabilized with the implementation of the ACA. 47 Table of Contents This page intentionally left blank. Table of Contents 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. 49 Table of Contents 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. In addition, 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: 1. Budget Message: This section includes the City Manager's transmittal letter submitting the budget to the City Council. The Budget Message also summarizes the City's current and long-term financial position, highlights new programs and organizational changes addressed in the budget and outlines both short and long-term goals of our city government. 2. Fiscal Strategic Plan: The Fiscal Strategic Plan Committee was formed to analyze current funding gaps and present a more accurate financial picture. The committee identifies one- time, non -recurring revenue. 3. Budget Guide: This section includes the City's Mission and other tools to assist the reader in identifying key terminology in the budget document. 4. 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. 5. Financial Policies and Schedules: This section provides financial information on projected revenues, expenditures, fund balances and reserves. It includes the Budget Summary of Funds as well as detailed fund descriptions and information on all revenue sources and expenditure projections. This section also includes fund balance trends and detailed revenue and expenditure projections for the next five years. Additionally, this section includes an analysis of all City revenues by category. Our major revenue projections are based on trends, current economic indicators and other agency input. Sales tax projections are based on input from our sales tax consultants, industry trends and major company forecasts. Property tax revenues are projected by the county and adjusted by staff based on known trends. Park dedication fees are estimated based on current development projects and other taxes are reviewed quarterly and budgets are based on this trend analysis. 50 Table of Contents 6. Departmental Operating Budgets: This section details historical and adopted expenditures by operating department. The City is organized into seven key operating functions, including Administration, Law Enforcement, Innovation Technology, Administrative Services, Parks and Recreation, Community Development, and Public Works. Each department budget includes a summary narrative, financial information regarding the department and each of its major divisions, and personnel information. Expenditures for employee compensation and benefits are based on negotiated contracts. The materials categories of expenditures are based on trends. Contract services and capital outlay are justified each year by the departments. Special Projects include any one-time projects or costs. Departmental expenditures are divided into the following categories: Employee Compensation represents permanent full-time and part-time salary costs and overtime. Employee Benefits represents PERS retirement, health insurance costs, and other benefits. Materials represents items purchased for repair and maintenance, operational activities such as books, uniforms and recreation supplies, and office supplies. Contract Services represents legal, consulting and other professional services, contract repair and maintenance, utility charges, training and memberships, equipment rentals, insurance and employment services. Cost Allocation represents Cost Allocation and Internal Service charges to user departments Contingencies represent 2.5% of total budgeted materials and contract costs and is designed for unexpected expenditures and/or emergencies. Capital Outlay represents expenditures for tangible fixed assets including land, buildings, furniture, equipment and City vehicles. Special Projects represent any one-time projects or costs. Debt Service/Other represents principal and interest payments on outstanding debt and interfund transfers. 7. Non -Departmental Operating Budgets: This section details historical and adopted expenditures for the functions of interfund transfers and debt service. 51 Table of Contents 8. Capital Improvements: The Capital Improvements section is in a separate document called Capital Improvement Program that details the proposed capital projects for the next five fiscal years. These projects are organized into five categories: Parks, Buildings, Streets, Traffic Facilities, and Storm Drainage. The five-year budget denotes funding sources and a description of each project. The City Council approves funding of Capital Improvements on a total project basis. The project may expend the funds over multiple years. 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. 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 the amount of budgeted expenditures be equal to or less than the amount of 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 utilized by the City Manager to revise a budget appropriation. Adjustments to expenditures within or between departmental budgets may be accomplished administratively. City Council approval is required for additional appropriations from fund balances or from new revenue sources. Capital Improvement Program - A plan for capital expenditures to provide for the acquisition, expansion or rehabilitation of an element of the City's physical plant to be incurred over a fixed period of several future years. Capital Outlay - Expenditures relating to the purchase of equipment, land and other fixed assets. 52 Table of Contents Cost Allocation Plan - A plan that details how indirect costs are calculated and allocated to user departments. Cost Recovery - The establishment of user fees that is equal to the full cost of providing services. Department - A major administrative segment of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area. Division - A unit of organization that reports to a department. Enterprise Fund - A fund established to account for activities that are financed and operated in a manner similar to private business enterprises, in which costs of providing services are primarily recovered through user fees. Estimated 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. 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 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. 53 Table of Contents 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. Reserve - An account used to designate a portion of the fund balance for a 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. Section - A unit or organization that reports to a division. Self -Supporting Activity - An enterprise activity where all service costs (including principal and interest debt payments) are primarily covered solely from the earnings of the enterprise. Subsidy - Supplemental resources provided to ensure adequate funding when anticipated expenditures exceed revenues. 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. 54 Table of Contents Commonly Used Acronyms ABAG Association of Bay Area Governments AYSO American Youth Soccer Organization B/PAC Bicycle/Pedestrian Advisory Committee BAAQMD Bay Area Air Quality Management District BMR Below Market Rate CAFR Comprehensive Annual Financial Report CAP Cost Allocation Plan CMTA California Municipal Treasures Association CPI Consumer Price Index CPUC California Public Utilities Commission CSMFO California Society of Municipal Finance CYSA California Youth Soccer Association 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 GASB Governmental Accounting Standards Board GFOA Governmental Finance Officers Association HVAC Heating Ventilation and Air Conditioning IPM Integrated Pest Management JPA Joint Powers Authority LTD Long Term Disability MOU Memorandum of Understanding MTC Metropolitan Transportation Commission OES Office of Emergency Services OPEB Other -Post Employment Benefits PC Planning Commission PEMHCA Public Employees' Medical and Hospital Care Act PERS (aka Ca1PERS) Public Employees' Retirement Systems PIO Public Information Officer PTA Parent Teacher Association RDA Redevelopment Agency RFP Request for Proposals RFQ Requests for Qualifications RHNA Regional Housing Needs Allocation RMS Records Management System 55 Table of Contents RWQCB Regional Water Quality Control Board UBC Uniform Building Code YAC Youth Advisory Commission VSP Vision Service Plan 56 Table of Contents Revenues, Expenditures, and Fund Balance Table Example 2018 2019 2020 Adopted 2021 Adopted Actual Actual Budget Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - Contingencies - - - - Total Expenditures - - - - Fund Balance (Usage) - - - - General Fund Costs - - - - Glossary Taxes — Money received from tax revenue Licenses and Permits — Money received from license and permit fees Use of Money and Property — Interest earnings, facility and concession rents Intergovernmental Revenue — Funds received from Federal, State or Local government such as grants Charges for Services — Fees collected for services provided by the department 57 Table of Contents Fines and Forfeitures - Money received from fines and penalties Miscellaneous Revenue - Money received from various sources such as donations, salvage and legal settlement Interdepartmental Revenue - Interdepartmental service charges and transfers Total Revenues - Total of all revenue categories Employee Compensation - Full-time and part-time salaries Employee Benefits - Employee benefits including health insurance and retirement Materials - All material, conference and training costs Contract Services - All contracted goods and services Cost Allocation - Cost of services from other City departments and depreciation expenses Capital Outlay - Land, buildings, vehicles, infrastructure and assets used in operation beyond one year Special Projects -One-time projects or costs Contingencies - Funds for unexpected expenses and emergencies Total Expenditures - Total of all expenditure categories Fund Balance - The net effect of assets less liabilities at any given point in time General Fund Contribution - Total Expenditures minus Total Revenues minus Fund Balance 58 Table of Contents History "This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a settlement because it is among the hills very near to the range of cedars which I mentioned yesterday, and lacks level lands." When Spanish explorer San Juan Bautista De Anza traveled through California in 1776, he and his party documented these words about the land surrounding Stevens Creek, named back then as Arroyo San Joseph Cupertino. However, first impressions can often be misleading. Underneath the spiny, overgrown bush was a completely different land waiting to be uncovered. During this time, the area was populated by Native Americans who hunted and gathered, prospering from the abundant resources the land had to offer. It wasn't until 1848 when the first American settler, Elijah Stephens, a blacksmith from South Carolina, moved to the area —at this time, named simply 'West Side' and primarily owned by the government. After crossing over the Sierra Nevada in wagons, he discovered the true value of the land underneath the bush, and proceeded to purchase over 300 acres of farmland to grow grapes and blackberries. Stephens pioneered the way for farmers, which established West Side as an agricultural hot spot. The land Stephens owned eventually became Blackberry Farm, and the road, creek, and reservoir were all named after him, although misspelled. In early West Side, many of the newest advances in agriculture were being developed. Settlers were drawn to the land because of its rich earth, where they were able to grow products that competed on the world market. Once the bush had been cleared, they grew grapes, which covered the West Valley area with vineyards by the late 1800s. By the 1900s, a plant louse called Phylloxera spread throughout the vineyards, attacking the roots of the grape vines, killing the grapes and putting a halt to wine production. As a solution, nearly everything was replanted with fruit orchards. When the fruit trees blossomed, visitors would come to the orchards for "The Valley of Heart's Delight" festivals, which celebrated the prosperous agriculture of the West Valley area. Apart from the farmland, West Side was primarily known as a crossroads, an intersection between Saratoga -Sunnyvale Road and Stevens Creek. This served as a way station for travelers to pass through while going from town to town. As more people came to West Side to take advantage of the rich farm land, more family holdings gathered around the cross-roads. Starting off as just a post office and home union store, West Side's humble cross-roads brought many diverse communities, all attracted by the preferable climate and profitable market for crops. As more people were drawn to the area around the cross-roads, the orchards were gradually replaced with modern houses for workers. The population steadily grew, and the face of West Side changed, progressing to a more modern town. The community wanted to rename the city, as to not confuse it with other cities, as well as establish a unique identity. John T. Doyle, a 59 Table of Contents lawyer from San Francisco, and writer of historical anthologies on the area, chose the name "Cupertino" after the original name of the creek. After the post -World War II population boom, the growing community petitioned for Cupertino to become an incorporated town. Members of the community were worried that the alternative to incorporation was to have parts of Cupertino annexed by surrounding cities, splitting up the community and erasing the local culture. To preserve the rural atmosphere, lower taxes for farmers, start a local government, and prepare for growth, Cupertino voted for incorporation. In 1955, Cupertino officially became the 13th city in Santa Clara County. By the 1970s, Cupertino once again began to undergo dramatic changes. The growing community attracted several large technology corporations. Lockheed Martin, HP, Intel, and many other big names established themselves in the Silicon Valley. Apple Inc. was founded in Cupertino in 1976 and quickly grew into the tech giant it's known for today. In the late 20th century, Cupertino and the surrounding areas experienced another surge in population growth, this time due to the immigration of people from Asian countries. Immigration laws at the time were in the favor of families looking to move to the Silicon Valley. People immigrated here for a variety of reasons —whether they were aspiring for career prospects with major tech companies, or striving for a 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. 2020 Community Economic Profile Cupertino, with a population of 66,762 and City limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the Bay Area. Economic health is an essential component to maintaining a balanced city, which provides high- level opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that success as a partnership is a direct reflection of success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters residential and business prosperity and strengthens working relationships among all sectors of the community. Because Cupertino is a mature, 93% built -out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world renowned as the home of high-tech giants, such as Apple, Inc. and Seagate Technologies, and as a community with stellar public schools. De Anza College, one of the largest single -campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City's proactive economic development efforts have resulted in an innovative environment for start- ups and growing companies to thrive. The City strives to retain and attract local companies through active outreach and a responsive and customer -oriented entitlement process. :e Table of Contents Cupertino is excited to have a number of new mixed -use development projects offering more retail and dining options, as well as provide additional housing opportunities to meet the needs of the growing community. The Main Street and Nineteen800 mixed -use developments have created a vibrant downtown area for Cupertino, offering a large selection of restaurants and retailers, including Alexander's Steakhouse, Eureka!, Rootstock Wine Bar, Oreri s Hummus, Lazy Dog, Ippudo, HaiDiLao Hot Pot Restaurant, Pressed Juicery, Orangetheory, 85 Degree Bakery, Somi Somi, Sul &Beans, Target Express, Kura Sushi, Vitality Bowls, Doppio Zero, Boiling Point and Jin Tea, Koja Kitchen, Bishops Cuts & Colors, Capezio, Howard's Shoes, Tan Cha, and Meet Fresh. Housing, office, and a new Residence Inn by Marriott are available to support the thriving area. Benihana, Bowlmor, and Ice Center Cupertino also serve as long-time anchors. The construction of new retail and commercial development strengthens existing popular venues in Cupertino, including The Marketplace. The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals. They include Galpao Gaucho, Daiso, Marukai Groceries, Harumi Sushi, La Patisserie Bakery, Beard Papa's, Legend's Pizza, Merlion Restaurant, Icicles, Kong's Tofu & BBQ, Rori Rice, One Pot Shabu Shabu, Olarn Thai, and Erik's DeliCafe to name a few. Cupertino Village is undergoing renovations to upgrade existing buildings, construct new buildings, parking, and open -courtyard space. The shopping center is home to 99 Ranch Market, Duke of Edinburgh Pub & Restaurant, JSJ Street Kitchen, Kira Kira Beauty, MOD Pizza, Ten Ren Tea, Fantasia Coffee & Tea, Yoga Wave, Happy Lemon, Joy Luck Palace, Kee Wah Bakery, and many other Asian restaurants, bakeries, and shops. Cupertino features many other retail opportunities, including TJ Maxx and Home Goods, Whole Foods, Target, Party City, and over 180 restaurants to serve residents and the local workforce. There are now seven hotels providing over 1,000 rooms, to serve the area: The Aloft Cupertino, Cupertino Hotel, Hilton Garden Inn, Juniper Hotel operated by Curio, Marriott Courtyard, the Residence Inn by Marriott, and the newest addition is the Hyatt House. The redevelopment of the Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard, includes a 24-hour Safeway, Ulta Beauty, Ross Stores, Stein Mart, Pet Club, Michael's, Rite Aid, FedEx, and numerous restaurants, such as Fish's Wild, Pho Hoa Noodle Soup, Yayoi Teishoku Japanese Restaurant, Starbucks, and Chipotle. Apple completed construction of its new corporate campus, Apple Park, which includes 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 M. Table of Contents Deck, flagship retail store and cafe are open to the public seven days a week. 2020 City Profile The City of Cupertino operates as a general law city with a City Council -City Manager form of government. Five council members serve four year, overlapping terms, with elections held every two years. The Council meets twice a month on the first and third Tuesday at 6:45 p.m. in Cupertino Community Hall. The meetings can be viewed on the City website. The City has 197.75 authorized full-time benefited employee positions. Departments include: • City Council & Commissions • Administration (City Manager, City Clerk, City Attorney) • Innovation Technology (GIS, Infrastructure, Applications) • Administrative Services (Finance, Human Resources) • Parks and Recreation (Business and Community Services, Recreation and Education, Sports, Safety, and Outdoor Recreation) • Community Development (Planning, Building, Housing Services, Code Enforcement) • Public Works (Environmental Programs, Developmental Services, Service Center, Grounds, Streets, Trees and Right of Way, Facilities and Fleet, Transportation, Storm Drain Management) • Public Safety services are provided by the Santa Clara County Sheriff's Department and the Santa Clara County Fire District. Assisting the City Council are several citizen advisory commissions and one committee including: • Audit Committee • Planning Commission • Fine Arts Commission • Public Safety Commission • Housing Commission • Sustainability Commission • Library Commission • Teen Commission • Parks and Recreation Commission • Technology, Information and Communication Commission The Commissioners are appointed by Council and vacancies are announced so that interested residents can apply for the positions. For more information, visit cupertino.org/commissions. Housing Based on data from Corelogic the median sales price for an existing single-family home was $2,080,000 in February 2020. For housing programs in Cupertino, please see "Programs & Applications." Community Health Care Facilities Cupertino is served by the Cupertino Medical Clinic, NovaCare Occupational Health Services. Nearby hospitals include Kaiser Permanente Medical Center in Santa Clara, El Camino Hospital in Mountain View, O'Connor Hospital in San Jose, Community Hospital of Los Gatos, Stanford Hospital in Palo Alto, and the Saratoga Walk-in Clinic in Saratoga. M Table of Contents Utilities Gas & Electric Pacific Gas and Electric, 800-743-5000 Phone AT&T residential service, 800-894-2355 AT&T business service, 800-750-2355 Cable Comcast, 800- 945-2288 Solid Waste & Recycling Recology, 408-588-7200 Water San Jose Water Company, 408-279-7900 California Water Service, 650-917-0152 Sewer Service Cupertino Sanitary District, 408-253-7071 Tax Rates and Government Services Residential, commercial, and industrial property is appraised at full market value as it existed on March 1, 1975, with increases limited to a maximum of 2% annually. Property created or sold since March 1, 1975 bears full cash value as of the time created or sold, plus the 2% annual increase. The basic tax rate is $1.00 per $100 (full cash value) plus any tax levied to cover bonded indebtedness for county, city, school, and other taxing agencies. Assessed valuations and tax rates are published annually after July 1. Assessed Valuation (Secured and Unsecured) Cupertino: $26,013,180,424 (7/19) County: $516,068,803,614 (7/19) Retail Sales Tax Distribution Agency Sales Tax Distribution • State 6.000% • VTA 1.125% • City of Cupertino 1.000% • County General Purpose 0.625% • County Transportation 0.250% Total: 9.000% Transportation Rail: The CalTrain station is four miles north of Cupertino. The Amtrak station is 10 miles south. Air: The San Francisco International Airport is located roughly 30 miles north, and the Mineta San Jose International Airport is located approximately 11 miles south. Bus: Cupertino is served by the Santa Clara Valley Transportation Authority. The routes listed below pass through the City. For Cupertino -specific schedules and maps visit their online website: Route 23 San Jose — Mountain View/Palo Alto Route 25 San Jose — De Anza College Route 26 Eastridge — Lockheed X Table of Contents Route 36 East San Jose — Vallco Route 51 Vallco — Moffett/Ames Route 53 Westgate — Sunnyvale Route 55 De Anza — Great America Route 81 East San Jose — Vallco Express 101 Camden/Branham — Palo Alto Express 501 Palo Alto — I.B.M Bailey Car: The City of Cupertino is in the heart of the world-renowned Silicon Valley. The major highway transportation facilities are Interstate Route 280 and State Route 85 freeways. The City is linked internally by several principal arterials and Santa Clara County expressways. Principal arterials are De Anza Boulevard, Stevens Creek Boulevard, and Wolfe Road. Nearby expressways are Lawrence Expressway and Foothill Expressway. Sister Cities City of Cupertino recognizes the value of developing people -to -people contacts by strengthening the partnerships between the city and its four sister cities of Copertino, Italy; Hsinchu, Taiwan; Toyokawa, Japan, and Bhubaneswar, India. Cupertino's Sister City partnerships have proven successful in fostering educational, technical, economic, and cultural exchanges. Over the years, there have been many delegations visiting both the cities as well as many local students participating in annual student exchange programs. Education Winners of numerous state and national awards for excellence, Cuperti acknowledged as models of quality instruction. Cupertino Union School District serves over 18,000 students in a 26 square mile area that includes Cupertino and portions of five other cities. The district has 20 elementary schools and five middle schools, including several choice programs. Eighteen schools have received state and/or national awards for educational excellence. Student achievement is exceptionally high. Historically, district test scores place Cupertino among the premier public school districts in California. The district is a leader in the development of standards -based system of education and is nationally recognized for leadership in the use of technology as an effective tool for learning. Quality teaching and parent involvement are the keys to the district's success. The Fremont Union High School District serves 10,000 students in a 42 square mile area covering all of Cupertino, most of Sunnyvale, and portions of San Jose, Los Altos, Saratoga, and Santa Clara. The five high schools of the district have garnered many awards and recognition based on both the achievement of students and the programs designed to support student ;,1 Table of Contents achievements. Many high schools in the district exceed their established achievement targets for the State Academic Performance Index. District students are encouraged to volunteer and provide service to organizations within the community. During their senior year, if students complete 80 hours of service to a non-profit community organization, they are recognized with a "Community Service Award" medal that may be worn at their graduation ceremonies. Building on its tradition of excellence and innovation, De Anza College challenges students of every background to develop their intellect, character, and abilities; to achieve their educational goals; and to serve their community in a diverse and changing world. De Anza College offers a wide range of quality programs and services to meet the work force development needs of our region. The college prepares current and future employees of Silicon Valley in traditional classroom settings and customized training arranged by employers. Several De Anza programs encourage economic development through college credit courses, short-term programs, services for manufacturers, technical assistance, and/or recruitment and retention services. Programs & Applications Community Outreach Programs Leadership 95014 Leadership 95014 is a program designed by the City of Cupertino, Wilfred Jarvis Institute, and other local sponsors to offer an exciting adult program that is guaranteed to enhance the participants' leadership skills. The ten full -day sessions feature inside looks at local governments, the social sector, local non-profit organizations, and educational institutions. This 9-month program is offered annually, September to May, and applications can be found online. Neighborhood Block Leader Program Good neighborhoods are those where neighbors work together on common issues and look out for each other. Block leaders take extra steps to connect neighbors and build community, making our neighborhoods safer and more harmonious. The Block Leader Program teaches residents how to get to know their neighbors and how to organize activities so neighbors can more easily communicate with each other. Block leaders are vital links between City Hall and the neighborhoods, and leaders gain the inside track on neighborhood development activities. Neighborhood Watch Neighborhood Watch is a crime prevention program that enlists the active participation of citizens in cooperation with law enforcement to reduce crime in our communities. The program involves: neighbors getting to know each other and working together in a program of mutual assistance; citizens being trained to recognize and report suspicious activities in their R Table of Contents neighborhoods; and implementation of crime prevention techniques such as home security and operation identification. To organize a Neighborhood Watch program in your neighborhood, please contact the Neighborhood Watch Coordinator at 408-777-3177. eCAP Email Community Alert Program (eCAP) was created by the Santa Clara County Sheriff's Office to prevent and reduce crime by raising community awareness, minimizing opportunities for crime, and increasing the possibility of solving crimes with the public's help. Cupertino residents may voluntarily register their email addresses with the Sheriff's Office for community alert messages. Citizens can sign-up at a Neighborhood Watch meeting or log -on to the City of Cupertino's eCAP online registration. Affordable Housing: BMR (Below Market Rate) Program The City of Cupertino requires 15% of all new construction be affordable to households below 120% of the County median income. Rental units are affordable to very low and low-income households while ownership units are affordable to median and moderate -income households. The City of Cupertino contracts with West Valley Community Services (WVCS) to screen and place qualified households in most of the city's BMR units. WVCS maintains a waiting list of interested persons for these BMR units. If interested, please call 408-255-8033. More information can be found online. Smart Phone Applications Mobile 95014 City of Cupertino's Mobile 95014 app offers latest listing of Cupertino news and events iiiiimm as well as local parks, schools, and recreation offerings in the city. This app showcases environmental services and community services such as Block Leaders and Neighborhood Watch programs. Users can learn about public safety and contact City Council members and City officials. The app also offers links to Cupertino's social media sites. Trees 95014 Trees 95014 is an iPhone/iPad and Android app which provides details about the city -planted trees in Cupertino. Users can search for trees by street name or by current location. The search results show the picture of the tree and details such as location, height, diameter, and species. Cupertino residents can also sign up their tree, name their tree, and request tree service through this app. Eats 95014 Eats 95014 is the local restaurant app that showcases Cupertino's dining options such as restaurants, grocery stores, farmers' markets, and vineyards. The app provides information on the services offered at such eating places including store hours, parking information, noise level, directions, and website link. :. Table of Contents Ready 95014 • �� Ready 95014 is an app that puts safety information into the hands of Cupertino residents. Steps to prepare and respond to emergencies including earthquakes, floods, fires, and pandemics are outlined in an easy -to -understand format. The app also streams Cupertino's own AM radio station (1670 AM) and has a map of the City's Area Resource Centers, satellite locations opened after disasters to provide public assistance. Website Applications Cupertino. orglShopAndDine This interactive website app offers users mapping features of current Cupertino businesses and restaurants. Community Statistics Facts and Fijzuresl Population in City Limits 66,762 Average Household Income $242,777 Average Age 40.4 Registered Voters 28,539 Democrats 11,113 4,648 —Republicans American Independent 402 Other 218 No Political Party Designated 12,158 ' Claritas 2020 Estimates and California Statewide Direct Primary Election June 5, 2018 M. Table of Contents BJ's Restaurant & Lazy Dog Cafe TJ Maxx jK!1Brewhouse IL Mj 99 Ranch Market California Dental Arts Rotten Robbie Ulta Beauty Alexander's Steak House Chevron Safeway Alliance Estel Group Seagate Technology Whole Foods Market Apple Galpao Gaucho Shane Company Argonaut Window & Door Haidilao Hot Pot Shell Benihana Insight Direct Target Source:Cfaretas2020 Estimates Ification Race ■ Asia n Al o ne 69.36% ■ White Alone 24.61% Two or More Races 3.77% Some Other Race Alone 1.35% ■ Black or African American Alone 0.61% ■Amer. Indian and Alaska Native Alone 0.21% ■ Native Hawaiian and Other Pac. Isl. Alone 0.101/. Me Table of Contents Community and Recreation Services Blackberry Farm Blackberry Farm has been upgraded and restored to improve the natural habitat for native trees, animals, and fish. Improvements to the park include construction of a new ticket kiosk, re - plastered pools, a new water slide, bocce ball, horseshoe courts, and numerous upgrades to the west bank picnic area. The park is located at 21979 San Fernando Avenue. Telephone: 408-777- 3140. The Blackberry Farm Golf Course is located at 22100 Stevens Creek Boulevard. Telephone: 408- 253-9200. The Quinlan Community Center The City of Cupertino's Quinlan Community Center is a 27,000 square foot facility that provides a variety of recreational opportunities. Most prominent is the Cupertino Room - a multi -purpose room that can accommodate 300 people in a banquet format. Telephone: 408-777-3120. Cupertino Sports Center The Sports Center is a great place to meet friends. The facility features 17 tennis courts, complete locker room facilities, and a fully -equipped fitness center featuring free weights, Cybex, and cardio equipment. A teen center and a child -watch center are also included. The center is located at the corner of Stevens Creek Boulevard and Stelling Road. Telephone: 408- 777-3160. Cupertino Senior Center The Senior Center provides a welcome and friendly environment for adults over age 50. There is a full calendar of opportunities for learning, volunteering, and enjoying life. There are exercise classes, computer lab classes, and English as a second language classes, and cultural and special interest classes. The center also coordinates trips and socials. The Senior Center is located at 21251 Stevens Creek Boulevard and is open Monday through Friday, 8 a.m. to 5 p.m. Telephone: 408-777-3150. Civic Center and Library The complex has a 6,000 square foot Community Hall, plaza with fountain, trees, and seating areas. City Council meetings, Planning Commission sessions, and Parks and Recreation Commission sessions are held in the Community Hall. The 54,000 square foot library continues to be one of the busiest libraries in the Santa Clara County Library system. For more information, call 408-446-1677. M. Table of Contents McClellan Ranch Park A horse ranch during the 1930's and 40's, this 18-acre park has the appearance of a working ranch. Preserved on the property are the original ranch house, milk barn, livestock barn, and two historic buildings: Baer's Blacksmith Shop, originally located at DeAnza and Stevens Creek, and the old water tower from the Parish Ranch, now the site of Memorial Park. Rolling Hills 4- H Club members raise rabbits, chickens, sheep, swine, and cattle. The Junior Nature Museum, which features small live animal exhibits and dispenses information about bird, animal, and plant species of the area, is also located at the ranch. The newly opened Environmental Education Center has Open House hours on Friday, Saturday, and Sunday. McClellan Ranch is located at 22221 McClellan Road. Telephone: 408-777-3120. Things to Do and See Euphrat Museum of Art The highly regarded Euphrat Museum of Art, at its new location next to the new Visual Arts and Performance Center at De Anza College, presents one -of -a -kind exhibitions, publications, and events reflecting the rich diverse heritage of our area. The Museum prides itself on its changing exhibitions of national and international stature emphasizing Bay Area artists. Museum hours are 10 a.m. - 3 p.m. Monday through Thursday. Telephone: 408-864-5464 Apple Park Visitor Center, Store & Cafe A state-of-the-art Visitors Center, Observation Deck, flagship retail store and cafe are open to the public seven days a week. The Visitor Center is located at 10600 N Tantau Avenue. Free parking is available. For more information, visit the website at www.apple.com/retail/appleparkvisitorcenter or call 408-961-1560. Fujitsu Planetarium The Fujitsu Planetarium on the De Anza College campus is a must -visit Cupertino facility for stargazers. It hosts a variety of planetarium shows and events, including educational programs for school groups and family astronomy evenings. For more information, visit the website at http://planetarium.deanza.edu or call 408-864-8814. Cupertino Historical Society The Cupertino Historical Society was founded in 1966 by a group of 177 longtime residents and is dedicated to the preservation and exhibition of the city's history. Their museum, located at the Quinlan Community Center, develops and expands the learning opportunities that it offers to the ethnically diverse community of the City of Cupertino. Telephone: 408-973-1495. Farmers' Markets There are two farmers' markets located in the City of Cupertino. One is held on Fridays from 8:30 a.m. to 1:00 p.m. at Creekside Park located at 10455 Miller Avenue, and the other is held 70 Table of Contents every Sunday from 9:00 a.m. to 1:00 p.m. at The Oaks Shopping Center, 21275 Stevens Creek Blvd. California History Center The California History Center and Foundation is located on the De Anza College campus. The center has published 37 volumes on California history and has a changing exhibit program. The center's Stocklmeir Library Archives boast a large collection of books, pamphlet files, oral history tapes, videotapes, and a couple thousand student research papers. The library's collection is for reference only. Heritage events focusing on California's cultural and/or natural history are offered by the center each quarter. For more information, call 408-864-8987. The center is open September through June, Tuesday through Thursday, from 9:30 a.m. to noon and 1:00 p.m. to 4:00 p.m. Local Wineries The Santa Cruz Mountains has played a pivotal role in the history of winemaking in California, with roots going back over 100 years, and including legendary winemakers such as Paul Masson, Martin Ray, David Bennion (Ridge), and David Bruce. The Santa Clara Valley Wine Trail features wineries in the southern portion of Santa Clara County, including Cupertino. Take some time to enjoy Cupertino -based wineries: Fellom Ranch Vineyards, Naumann Vineyards, Picchetti Winery, R&W Vineyards, Ridge Vineyards, and Vidovich Vineyards, as well as the breathtaking scenery of the surrounding foothills. Photo courtesy of Ridge Vineyards 71 Table of Contents This page intentionally left blank. 72 Table of Contents The Annual Budget Process The City's annual budget is prepared on a July 1 to June 30 fiscal year basis. However, the budget process is an ongoing process that occurs throughout the year and includes the phases of development, proposal, adoption, monitoring, and amendment. The budget development phase begins in December with the preparation of budget instructions and work program development by the City Council and City Manager. During March, departments prepare the budgets for which they are responsible. These proposed department budgets are reviewed by the Finance Division using current and prior year trends data. The City Manager then reviews the proposals with the Director of Administrative Services and departmental staff and makes final decisions which form the basis of the City Manager's Proposed Budget. The proposed budget is then submitted to the City Council in May. During the months of May and June, the City Council considers the budget proposals at a study session and public hearing. At these times, the Council hears from Boards, Commissions, community groups, and the public regarding budget requests and recommendations. The adopted budget is adopted by resolution in June and takes effect on July 1. The following chart illustrates the City's budget reporting cycle. Staff reports to Council on a quarterly basis in addition to the annual proposed and adopted budget. Should amendments to the budget be required outside of this cycle, staff will bring budget amendments as separate Council staff reports. 73 Table of Contents Proposed Budget May Third Quarter May Mid -Year February/March Final Budget June/July First Quarter November Budget Amendment Process After the budget is adopted, the City enters the budget monitoring phase. Throughout the year, expenditures are monitored by the Finance Division staff and department managers to ensure that funds are used in an approved manner. Adjustments to expenditures within or between departmental budgets are accomplished on an as -needed basis administratively throughout the year. The City Manager and Department Heads can transfer funds between their line items and/or divisions as needed. City Council approval is required for additional appropriations from fund balances or from new revenue sources. 74 Table of Contents Structure of City Finances Cost Accounting The City of Cupertino has five internal service funds that account for innovation & technology, equipment replacement, workers' compensation, long-term disability and compensated absence, and retiree health costs experienced by City departments. Fund costs are allocated to user departments or operating funds based on salaries, equipment and software purchase price, actuarial studies and actual and projected service level. Please view the Cost Allocation Plan and Changes to the Internal Service Fund section of this document for details. Other employee fringe benefits such as medical, dental, life insurance, and pensions are directly added to department costs as a percentage of salaries. Staff salary and benefit costs are split among departments and related funds based on the anticipated percentage of time spent working in various departments. Overhead Cost Allocation All overhead costs are allocated to the appropriate program within the limits of local, State and federal laws. The City utilizes a two-step method (double step down method) where costs are first allocated among the central service department support programs to arrive at the total costs of central service programs. Beginning in FY 2014, overhead/indirect costs associated with service departments in the General Fund were allocated based on a Cost Allocation Plan (CAP). These total costs are then allocated to the departments and funds that are benefiting from these expenses. The corresponding revenue is collected by the General Fund for indirect/overhead costs associated with the Cost Allocation Plan (CAP) and Internal Service Funds and allocated directly to the department providing the service. Basis of Budgeting Basis of Budgeting refers to the method used to recognize revenues and expenditures in the budget. For the City of Cupertino, the basis of budgeting is the same basis used for accounting. The modified accrual basis is followed in the Governmental Funds, including the General, Capital, Debt Service, and Special Revenue funds. Under this basis, revenues are recognized when they become "susceptible to accrual", which means they are both measureable and available. Measurable means the transaction can be determined. The budget is split into nine Departments: City Council and Commissions, Administration, Law Enforcement, Innovation and Technology, Administrative Services, Parks and Recreation, 75 Table of Contents Planning and Community Development, Public Works, Non Departmental (includes budget that are not attributable to any specific division) and Capital Projects. These departments are further split into divisions then programs. The programs within the divisions are balanced at the department level within a given fund. Comprehensive Annual Financial Report (CAFR) The Comprehensive Annual Financial Report (CAFR) is prepared by Crowe and Horwath, the City's Auditors and according to "Generally Accepted Accounting Principles' (GAAP). Citizen Participation Every two years the City of Cupertino has a Community Survey completed by Godbe Research to measure resident's satisfaction with living in the City, City Services and to identify issues facing the City. In addition, the budget study session and budget hearings are public meetings where citizens are given the opportunity to comment on the budget. The public can also provide feedback to two Council sub -committees, the Fiscal Strategic Planning and Audit Committees. 76 Table of Contents Fund Structure For accounting purposes, a state or local government is not treated as a single, integrated entity. Rather, a government is viewed as a collection of smaller separate businesses known as 'funds'. Fund accounting is an accounting system emphasizing accountability rather than profitability. In this system, a fund is a self -balancing set of accounts, segregated for specific purposes in accordance with laws and regulations or special restrictions and limitations. The City's finances are structured in a variety of funds that are the basic accounting and reporting entities in governmental accounting. The funds that comprise the FY 2020-21 budget are grouped into two major categories, Governmental Funds and Proprietary Funds. The purpose of each of the various funds within these two categories is described below: Governmental Funds Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (except those accounted for in the proprietary funds) are accounted for through governmental funds. Governmental funds include Tax Supported Funds, Special Revenue Funds and Federal Grant Funds. They are accounted for under the modified accrual basis of accounting. • Tax Supported Funds Tax Supported Funds include the General and Capital Improvement Funds. The General Fund is the primary operating fund for governmental services. The Capital Improvement Fund is utilized for the acquisition or construction of major capital facilities. 77 Table of Contents Tax Supported Funds Purpose General The General Fund is used to pay for core services such as public safety, parks and recreation, planning and community development, public works, and a host of other vital services. The revenue used to pay for these services comes primarily from local taxes such as property tax and sales tax, franchise fees, charges for services, and a variety of other discretionary sources. Capital Improvement Capital Improvement This fund pays for the acquisition and/or construction of major Projects capital facilities. Stevens Creek This fund pays for the design and construction of the Stevens Corridor Park Capital Creek Corridor Park projects. Projects 0 Special Revenue Funds Special Revenue Funds are a fund type used to 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, Environmental Management/ Clean Creeks funds and Housing and Community Development. Special Revenue Funds Purpose Storm Drain This fund pays for the construction and maintenance of storm Improvement drain facilities, including drainage and sanitary sewer facilities. Park Dedication 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. Environmental This fund pays for all activities related to operating the Non- Management/Clean Point Source pollution program. Creek/Storm Drain Transportation This fund pays for expenditures related to the maintenance and construction of City streets. Housing & This fund pays for the Federal Housing and Community Community Development Grant Program activities administered by the Development City. This fund also pays for activities related to the Below Market Rate Housing Program. 78 Table of Contents • Federal Grant Funds Federal Grant Funds include the Community Development Block Grant program. The Community Development Block Grant is a federally funded program for housing assistance and public improvements. Federal Grant Funds Purpose Community Development Block This fund pays for activities related to the Community Grant Development Block Grant (CDBG). Proprietary Funds Proprietary Funds are used to account for "business -type" activities. Proprietary Funds include Enterprise Funds and Internal Service funds. They are accounted for under the full accrual basis of accounting. • Enterprise Funds Enterprise Funds are set up for specific services that are funded directly by fees charged for goods or services. Enterprise Funds include the Resource Recovery, Sports Center, Blackberry Farm Golf Course and Recreation funds. Enterprise Fund Purpose Resource Recovery This fund pays for operating costs related to the collection, disposal, and recycling of solid waste performed under a franchise agreement with Recolo Blackberry Farm Golf This fund pays for operating costs related to the Blackberry Course Farm Golf Course. Sports Center This fund pays for operating costs related to the Sports Center. Recreation Programs This fund pays for operating costs related to the City's community centers and park facilities. 79 Table of Contents • Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost -reimbursement basis. Internal Service Funds include the Innovation & Technology, Equipment, Workers' Compensation, Long -Term Disability/Compensated Absence, and Retiree Medical funds. Internal Service Funds Purpose Innovation & This fund pays for all technology related expenses for the Technology citywide management of information services. This fund pays for the replacement of existing hardware and software and the funding of new hardware and software needs city-wide. Equipment is depreciated based on the acquisition or historical costs for the useful life of the asset using the straight line method. Workers' This fund pays for claims and insurance premiums related to Compensation workers' compensation. Vehicle/Equipment This fund pays for the purchase and maintenance of fleet and Replacement general equipment having a value greater than $5,000 and expected life of more than one year. Assets are depreciated based on the acquisition or historical costs for the useful life of the asset and using the straight line method. Compensated This fund pays for liabilities associated with employees Absences & Long retiring or leaving service and claims and premiums Term Disability associated with long term disability. Retiree Medical This fund pays for Retiree Medical costs. 80 Table of Contents Fiscal Policies - Revenue Policies PURPOSE To establish revenue polices that assist the City in striving for and maintaining a diversified and stable revenue system to prevent undue or unbalanced reliance on any one source of funds. This revenue diversity will shelter the City from short -run fluctuations in any one revenue source. SCOPE All revenue sources across all funds. POLICY To the extent possible, maximize investment yield while maintaining a high level of liquidity for the City's anticipated capital costs. Identify and recommend sources of revenue necessary to maintain the services desired by the community and to maintain the City's quality of life. Perform ongoing evaluations of existing sources of revenue to maximize the City's revenue base. Recover costs of special services through user fees. Pursue full cost recovery and reduce the General Fund fee subsidy to the degree feasible. Allocate all internal service and Cost Allocation Plan charges to appropriate user departments and Monitor Enterprise activities remain self-supporting in the long term. 81 Table of Contents Fiscal Policies - Expenditure Policies PURPOSE To establish expenditure control polices through the appropriate internal controls and procedures. Management must ensure expenditures comply with the legally adopted or amended budget. SCOPE All expenditure categories across all funds. POLICY Each Department or Division Manager will be responsible for the administration of their department/division budget. This includes accomplishing the goals and objectives incorporated into the budget and monitoring each department/division budget for compliance with spending limits. Accurately charge expenditures to the appropriate chart of accounts; Maintain operating activities at levels which are offset by revenues; The City will make every effort to control expenditures to ensure City services and programs provided to its citizens and tax payers are cost effective and efficient; Evaluate expenditures at the department and project levels to ensure control; Before the City purchases any major asset or undertakes any operating or capital arrangements that create fixed assets or ongoing operational expenses, the implications of such purchases or arrangements will be fully determined for current and future years; All compensation planning and collective bargaining will include analysis of total cost of compensation which includes analysis of salary increases, health benefits, pension contributions, fringe benefits and other personnel costs. The City will only propose operating personnel costs which can be sustained by on -going operating revenues; Reduce costs and improve productivity through the use of efficiency and effective measures. - Structure debt financing to provide the necessary capital while minimizing future debt service costs. Table of Contents Fiscal Policies - Capital Improvement Policy PURPOSE To establish a Capital Improvement Policy to assist in future planning. SCOPE All anticipated Capital Improvement Projects for the current fiscal year plus four additional fiscal years. POLICY The City will prepare and update a five year Capital Improvement Plan (CIP) encompassing all City facilities. Projects included in the CIP will have complete information on the need for the project (project justification), description and scope of work, total cost estimates, future cost estimates, future operating and maintenance costs and how the project will be funded. An objective process for evaluating CIP projects with respect to the overall needs of the City will be established through a priority ranking of CIP projects. The ranking of projects will be used to allocate resources to ensure priority projects are completed effectively and efficiently. Changes to the CIP such as addition of new projects, changes in scope and costs of a project or reprioritization of projects will require City Manager and City Council approval. The City will maintain its physical assets at a level adequate to protect the City's capital investment and to minimize future operating maintenance and replacement costs. The City recognizes that deferred maintenance increases future capital costs, thus placing a burden on future residents. Therefore, the budget will provide for adequate maintenance and the orderly replacement of capital plant and equipment from current revenues when possible. The City will determine the least costly funding method for its capital projects and will obtain grants, contributions and low cost state or federal loans whenever possible. The City will utilize "pay-as-you-go" funding for capital improvement expenditures considered recurring, operating or maintenance in nature. The City may also utilize "pay-as-you-go" funding for capital improvements when current revenues and adequate fund balances are available or when issuing debt would adversely affect the City's credit rating. Table of Contents 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. ;,I Table of Contents Fiscal Policies - Information Technology Replacement and Capitalization Policy PURPOSE The purpose of this policy is to establish guidelines for replacing and capitalizing technology equipment and systems. Replacement is indicated when a product has run its useful life and updating/upgrading is no longer an option. Capitalization of equipment requires the set aside of funding for future replacement. Generally, technology equipment with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. Software with an expected life of at least 7 years or a cost of over $10,000 shall also be capitalized. Software -as -a -Service (SaaS) contracts are not capitalizable and are expensed as incurred. Technology upgrades are determined by the Innovation Technology Department and user departments based on functionality, vendor support, and industry standards. SCOPE This policy covers the City of Cupertino: network infrastructure (routers, switches, firewalls, security appliances); server infrastructure (files servers, database servers, mail servers, web servers, etc); user laptops and workstations; mission -critical systems, telephone system (telephone equipment not already listed previously); desktop software; enterprise software; workgroup software; and broadcast video and audiovisual equipment. Cell phones, printers, and tablet devices are not covered by this policy as these items do not meet the minimum criteria for capitalization. Replacement of these items are at the discretion of the Innovation Technology Department in concert with the user Department. POLICY All technology shall be replaced according to the following: Network infrastructure (routers, switches, firewalls) shall be replaced when no longer functional, as determined by the Innovation Technology Department Division (IT), or when parts or support are no longer available from the manufacturer. Replacement needs will be determined by IT annually as part of the operating budget process. Network infrastructure with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. Table of Contents Server infrastructure shall be replaced when it is no longer functional (defined as not being able to meet its intended purpose), or when parts or support are no longer available from the manufacturer. These needs are evaluated annually by IT and user departments as part of the operating budget process. Servers are evaluated as they approach 3 years in service, and placed on the schedule accordingly. Server lifetime may be extended by the purchase of additional memory or disk. Server infrastructure with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. User workstations shall be replaced, on average, after 4 years as is industry standard. Zero Client work stations shall be replaced, on average, every 8 years. IT will determine the need for specific replacements. User workstations shall not be capitalized as they do not meet the minimum criteria for capitalization. Interoperable systems are defined as a group of interdependent and/or interoperable components that together form a single functional unit. These components may be interconnected by their structural relationships, their common functional behavior, or by both. Generally, for a system to be eligible for capitalization, the cumulative value of its components should be at least $5,000 and have a life expectancy of five years or more. A common example of such system would be a telephone system or network. Individual component or replacement costs are not capitalizable unless they are greater than $5,000 and increase the value of the asset. Enterprise Software replacement shall be determined individually by IT and the end users. Only those large enterprise systems (on -site or on premise) with an expected life of at least 7 years or a cost of over $10,000 shall be capitalized. SaaS contracts are not capitalizable and are to be expenses as incurred. Desktop Software is replaced/updated according to Microsoft's releases of Windows and Office. Software shall not be more than one version out of date to ensure functionality and vendor support. IT will generally wait at least 90 days after a new release to roll out new versions. Only software with an expected life of at least 7 years or a cost of over $10,000 shall be capitalized. Desktop software generally does not meet this criterion. Broadcast Video and Audiovisual Equipment/Systems shall be repaired or replaced when determined no longer functional. Replacement will occur on average after 10 years. Broadcast video and audiovisual equipment/systems with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. Equipment that does not meet these criteria may still be capitalized if the item is a component of interoperable systems. Table of Contents Fiscal Policies - Pension and Retirement Funding Policy PURPOSE To establish a policy for the funding of Retirement and Retiree health. SCOPE Retirement and Retiree Health costs citywide, across all funds. POLICY Fund all current pension liabilities on an annual basis. Monitor certain health and dental care benefits for retired employees. Funding the liability for future retiree benefits will be determined by City Council action. Table of Contents Fiscal Policies - Long Term Financial Stability Policies PURPOSE To establish a policy for Long Term Financial Stability SCOPE All programs across all funds POLICY Ensure ongoing productivity through employee training and retention programs. Pursue consolidation of resources and activities with other agencies and jurisdictions where beneficial. Ensure financial planning flexibility by maintaining adequate fund balances and reserves. Provide for major maintenance and repair of City buildings and facilities on a timely basis. Provide for infrastructure asset preservation that maximizes the performance of these assets at minimum life -cycle costs. Continually evaluate and implement long-term financial planning including technology automation, multiple year capital improvement programs, revenue and expenditure forecasting, automating and streamlining service delivery, stabilizing and repositioning revenue sources, and decreasing expenditures and risk exposure. :: Table of Contents Fiscal Policies - 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 following economic uncertainties: Economic Uncertainty - $19,000,000 and represents two months of General Fund (GF) expenditures excluding transfers out plus a two year drop in total general fund revenue of 13% or approximately 1.5 months, excluding the use of reserves. Transfers out are primarily used to fund Capital Projects and do not represent on -going expenditures. This assignment will change from year to year based on budgeted general fund expenditures and revenues. ■ Mitigate short-term economic downturns and volatility in revenues (2 years or less) ■ Sustain city services in the event of an emergency ■ Meet requirements for debt reserves ■ Meet operating cash flow requirements as a result of delay in the receipt of taxes, grant proceeds and other operating revenues PERS - $12,000,000 and represents the initial investment into the City's Pension Rate Stabilization Program (PRSP). As a result of the significant increase in retirement costs based on the most recent actuarial forecast, the City elects to establish and fund a secondary pension trust to assist in stabilizing the potential impact of pension cost volatility on the City's operating budget. Annual contributions subsequent to the initial funding are determined by calculating the difference between CAPERS' current discount rate and a more conservative rate determined by the City. This difference is to be transferred to the pension trust and to be used solely for the benefit of members in the plan. Table of Contents 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: Funding Reserve Priority Reserve Level Escalator' Description GENERAL FUND 1 Economic $19,000,000 GF Budgeted For economic Uncertainty Operating downturns and Expenditures2 major revenue GF Budget changes. Revenue3 2 PERS $12,000,000 Budgeted For pension cost Citywide increases. Retirement Costs 3 Sustainability $123,397 GF Budget For future Reserve Revenue3 sustainability projects/programs. 90 Table of Contents 4 Unassigned $500,000 Budgeted GF For mid -year Operating budget Expenditures2 adjustments and redeployment into the five year budget. CAPITAL PROJECTS FUNDS 5 Capital $5,000,000 None Reserves set Improvement aside for future capital projects. 1 Rounded to the nearest hundred thousand 2 Excludes Transfers Out 3 Excludes the use of reserves Changes to Committed Fund Balance - All reserves listed in this policy are classified as Committed Fund Balance under Government Accounting Standards Board (GASB) Statement 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, recommendation will be brought to City Council for approval and a plan to replenish the committed balance will be developed in conjunction with its use. Excess - Funding of these reserves will come generally from one-time revenues, annual net income, and transfers from other reserves that exceed policy levels. They will be funded in the following priority order with any remaining funds to be placed in the Capital Reserve: 1) Economic Uncertainty 2) PERS 3) Sustainability Reserve 4) Unassigned 91 Table of Contents Fiscal Policies - Investment Policy The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. By policy, the Audit Committee reviews the policy and acts as an oversight committee on investments. The policy directs that an external auditor perform agreed -upon procedures to review City compliance with the policy. The full policy is available on the City website as part of the May 19, 2020 City Council agenda packet. 92 Table of Contents Fiscal Policies - Community Funding Policy PURPOSE The City of Cupertino currently provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. This policy establishes a standard application process whereby funding decisions of non-profit requests can be addressed on a fair and consistent basis by establishing a set of criteria for evaluating requests, ensuring that all entities follow a formal application process and pre -approving a dollar limit for those requests. SCOPE All requests for funding must comply with this policy. POLICY The applicant should identify the services provided, purpose for the funds, how the expenditure aligns to City priorities and how the funds will be used to benefit the Cupertino community. A recurring organization should state how prior year funds, if any, were used. The applicant should include information about the organization, its budget and its purpose. Non-profit organizations which serve multi -jurisdictions should state what they have requested from other cities/organizations they service in regard to this program request. Cupertino does not fund ongoing operational costs. Requests should be for one-time, project specific needs. The organization must show that their staff has the experience to implement and manage the project. More than 75% of the budget must go to direct service costs versus administrative costs. Staff should include all requests and funding recommendations for Council consideration. Non -profits will be notified of our process in advance and no proposals will be entertained after March 1 of each year. City Council will make the final decision as part of the budget process. 93 Table of Contents Appropriations & Legal Debt Limit Margin Gann Appropriations Limit Fiscal Year 2020-21 Article XIIIB of the California State Constitution as enacted by Proposition 4, the Gann initiative of 1979, mandates a limit on the amount of proceeds of taxes that state and local governments can receive and appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. The original Article XIIIB was further modified by Proposition 111 and SB 88 approved by California voters in June of 1990. Proposition 111 allows cities more flexibility in choosing certain inflation and population factors to calculate the limit. Appropriations Subject to Limit Appropriations (Gann Limit) 120,000,000 100,000,000 80,000,000 — 60,000,000 40,000,000 20,000,000 0 F'�tiyy� F,�,��,\N F�,yy F�tihy� F�ti�,�� F,� F�F,ti1- � ��ryo�titi Appropriations Limit Appropriation Subject to Limit The limit is different for each agency and the limit changes each year. Each year's limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. Proposition 111 has modified those factors to allow cities to choose either the growth in California Per Capita Income or the growth in non-residential assessed valuation due to new construction in the city. Alternatively, the city could select a population growth factor represented by the population growth in Santa Clara County. Each year the city establishes its appropriations limit for the following fiscal year. 94 Table of Contents The City's appropriations limit for FY 2020-21 was $109,062,934, $4,309,354 or 4.1% higher than the FY 2019-20 limit of $104,753,580. Legal Debt Margin Fiscal Year 2020-21 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 assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, 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 fiscal year 2019-20 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 Secured Property Assessed Value, Net of Exempt Real Property (1) $22,531,311,774 Adjusted Valuation - 25% of Assessed Valuation (2) $ 5,632,827,944 (1) * 25% Debt Limit - 15% of Adjusted Valuation $ 844,924,192 (2) * 15% Total City Bonded Debt (3) $ 27,010,000 Less: Certificates of Participation Not Subject to Debt Limit (4) $ (27,010,000) Amount of Debt Subject to Limit - (3) - (4) Legal Debt Margin $ 844,924,192 95 Fiscal Year 2020-21 Adopted Budget Financial Overview by Fund Table of Contents Sales Tax $ 20,910,889 $ - $ - $ - $ - $ - $ 20,910,889 Property Tax $ 25,353,783 $ - $ - $ - $ - $ - $ 25,353,783 Transient Occupancy $ 7,546,884 $ - $ - $ - $ - $ - $ 7,546,884 Utility Tax $ 3,223,712 $ - $ - $ - $ - $ - $ 3,223,712 Franchise Fees $ 3,280,447 $ - $ - $ - $ - $ - $ 3,280,447 Other Taxes $ 1,212,939 $ 3,102,882 $ - $ - $ - $ - $ 4,315,821 Licenses & Permits $ 3,139,473 $ - $ - $ - $ - $ - $ 3,139,473 Use of Money & Property $ 1,246,510 $ 4,205 $ - $ - $ 290,000 $ - $ 1,540,715 Intergovernmental $ 335,567 $ 3,295,595 $ - $ - $ 15,000 $ - $ 3,646,162 Charges for Services $ 11,091,064 $ 1,526,471 $ - $ - $ 3,813,042 $ 4,314,949 $ 20,745,526 Fines & Forfeitures $ 425,000 $ 10,000 $ - $ - $ - $ - $ 435,000 Miscellaneous $ 1,003,857 $ 87,057 $ - $ - $ - $ - $ 1,090,914 Transfers In/Other Financing Sources $ 290,000 $ 4,000,000 $ 3,169,138 $ 1,430,000 $ 2,849,000 $ 736,385 $ 12,474,523 TOTAL REVENUE $ 79,060,125 $ 12,026,210 $ 3,169,138 $ 1,430,000 $ 6,967,042 $ 5,051,334 $ 107,703,849 Employee Compensation $ 20,295,000 $ 1,576,185 $ - $ - $ 1,601,475 $ 1,615,524 $ 25,088,184 Employee Benefits $ 8,903,632 $ 780,434 $ - $ - $ 531,530 $ 1,896,696 $ 12,112,292 Materials $ 6,058,121 $ 861,666 $ - $ - $ 371,297 $ 1,044,242 $ 8,335,326 Contract Services $ 22,051,314 $ 1,373,698 $ - $ 175,000 $ 3,247,769 $ 1,427,629 $ 28,275,410 Cost Allocation $ 10,473,534 $ 1,046,834 $ - $ 168,274 $ 923,089 $ 52,343 $ 12,664,074 Capital Outlays $ - $ 1,000,000 $ - $ 1,430,000 $ 552,000 $ - $ 2,982,000 Special Projects $ 1,448,852 $ 1,090,700 $ - $ - $ 32,500 $ 679,000 $ 3,251,052 Contingencies $ 824,350 $ 34,044 $ - $ - $ 128,141 $ 59,947 $ 1,046,482 Transfers Out $ 9,948,689 $ 15,000 $ - $ 1,989,449 $ - $ - $ 11,953,138 Debt Service/Other Financing Uses $ 525,000 $ - $ 3,169,138 $ - $ 291,445 $ 897,684 $ 4,883,267 TOTAL EXPENDITURES $ 80,528,492 $ 7,778,561 $ 3,169,138 $ 3,762,723 $ 7,679,246 $ 7,673,065 $ 110,591,225 Net Increase (Decrease) in Fund $ (1,468,367) $ 4,247,649 $ - $ (2,332,723) $ (712,204) $ (2,621,731) $ (2,887,376) Balance/Retained Earnings 96 Table of Contents Fiscal Year 2020-21 Adopted Budget SOURCE OF FUNDS Flow of Funds Chart USE OF FUNDS Revenue Revenues by Appropriations by Object Fund by Department a i s Taxes: $64,631,536 ■ Licenses & Permits: $3,139,473 Use of Money & Property: $1,540,715 Intergovernmental: $3,646,162 Charges for Services: $20,745,526 Fines & Forfeitures: $435,000 Miscellaneous: $1,090,914 ' Transfers In: $11,953,138 Other Financing Sources: $521,385 General Fund: $80,528,492 Special Revenue: $12,026,210 Debt Service: $3,169,138 ■ Capital Project Funds: $3,762,723 Enterprise Funds: $7,679,246 Internal Service: $7,673,065 City Council and Commissions: $1,200,811 Administration: $8,017,844' Law Enforcement: $14,792,448 Innovation Technology: $5,495,778 Administrative Services: $7,235,016 Parks and Recreation: $11,717,347 inity Development: $10,884,715 Public Works: $33,498,783 Non Departmental: $15,122,276 Capital Projects: $2,626,207 W Fiscal Year 2020-21 Adopted Budget Table of Contents General Fund Contribution Schedule Fund Type General Fund Adopted .,.Adopted Budget Expenditures Revenues Adopted Retained Earnings Fund Contribution 10 City Council 100 City Council 451,751 954,826 (503,075) 101 Community Funding 111,240 - 111,240 110 Sister Cities 81,595 81,595 11 Commissions 131 Telecommunication Commission 24,064 24,064 140 Library Commission 31,709 31,709 142 Fine Arts Commission 53,510 53,510 150 Public Safety Commission 30,817 30,817 155 Bike/Ped Safety Commission 35,238 35,238 160 Recreation Commission 50,896 50,896 165 Teen Commission 81,300 81,300 170 Planning Commission 119,563 119,563 175 Housing Commission 56,102 56,102 180 Sustainability Commission 52,782 52,782 190 Audit Committee 20,244 - 20,244 12 City Manager 120 City Manager 1,328,854 480,014 848,840 122 Sustainability Division 801,351 - 801,351 126 Office of Communications 685,842 - 685,842 305 Video 765,456 293,110 472,346 307 Public Access Support 80,020 - 80,020 632 Comm Outreach & Neigh Watch 191,823 191,823 633 Disaster Preparedness 395,603 395,603 705 Economic Development 430,494 - 430,494 13 City Clerk 130 City Clerk 513,767 91,584 422,183 132 Duplicating/Mail Services 75,812 - 75,812 133 Elections 160,591 160,591 14 City Manager Discretion 123 City Manager Contingency 551,827 - 551,827 15 City Attorney - 141 City Attorney 2,036,404 551,138 1,485,266 20 Law Enforcement - 200 Law Enforcement SC Sherif 14,743,181 1,137,328 13,605,853 201 Interoperability Project 49,267 - 49,267 31 I&T Video - - 308 Applications 1,981,299 1,307,803 673,496 40 Administrative Services - 400 Admin Services Administration 887,383 185,799 701,584 41 Finance 405 Accounting 1,601,238 2,114,792 (513,554) 406 Business Licenses 408,098 - 408,098 44 Human Resources 412 Human Resources 1,134,896 1,609,812 (474,916) 417 Insurance Administration 923,953 - 923,953 60 Recreation & Community Service 601 Rec & Comm Svcs Administration 1,216,848 1,216,848 634 Park Planning and Restoration - - 636 Library Services 318,340 318,340 61 Business and Community Services - 602 Administration 762,614 - 762,614 605 Cultural Events 359,263 31,000 328,263 630 Facilities 466,976 206,455 260,521 62 Recreation and Education 608 Administration 784,511 25,000 759,511 623 Youth, Teen and Senior Adult Rec 1,164,038 167,000 997,038 639 Youth and Teen Programs 272,913 5,020 267,893 M Fiscal Year 2020-21 Adopted Budget Table of Contents General Fund Contribution Schedule Fund Type 640 Neighborhood Events Adopted .,.Adopted Budget Expenditures Revenues 165,180 Adopted Retained - Earnings Fund Contribution 165,180 63 Sports, Safety & Outdoor Rec 612 Park Facilities 1,183,885 124,000 1,059,885 615 Administration 110,200 - 110,200 70 Planning & Community Development 700 Community Development Admin 730,583 - 730,583 71 Planning 701 Current Planning 2,747,295 1,045,000 1,702,295 702 Mid Long Term Planning 1,014,383 138,750 875,633 704 Annexations 727 - 727 72 Housing Services 712 Gen Fund Human Services Grants 106,930 - 106,930 73 Building 713 General Building 899,738 315,000 584,738 714 Construction Plan Check 1,658,248 1,300,000 358,248 715 Building Inspection 1,402,918 1,500,000 (97,082) 718 Muni -Bldg Code Enforcement 83,027 - 83,027 74 Code Enforcement 202 Code Enforcement 1,157,600 225,000 932,600 80 PW Admin 800 Public Works Admin 883,679 120,000 763,679 82 Developmental Services 804 Plan Review 1,662,433 731,489 930,944 806 CIP Administration 1,461,525 - 1,461,525 83 Service Center 807 Service Center Administration 1,243,775 98,674 1,145,101 84 Grounds 808 McClellan Ranch Park 145,814 - 145,814 809 Memorial Park 796,482 796,482 811 BBF Ground Maintenance 173,471 - 173,471 812 School Site Maintenance 1,563,973 143,700 1,420,273 813 Neighborhood Parks 2,359,344 - 2,359,344 814 Sport Fields Jollyman CRK 805,416 - 805,416 815 Civic Center Ground Maint 521,108 253,880 267,228 85 Streets 848 Street Lighting 823,526 - 823,526 850 Environmental Materials 194,890 - 194,890 86 Trees and Right of Way 824 Overpasses and Medians 1,478,657 10,761 1,467,896 825 Street Tree Maintenance 1,686,834 25,761 1,661,073 826 Weekend Work Program 565,383 - 565,383 87 Facilities and Fleet 827 Bldg Maint City Hall 471,489 500,394 (28,905) 828 Bldg Maint Library 587,995 287,754 300,241 829 Bldg Maint Service Center 289,230 - 289,230 830 Bldg Maint Quinlan Center 560,338 560,338 831 Bldg Maint Senior Center 379,647 - 379,647 832 Bldg Maint McClellan Ranch 204,573 840 203,733 833 Bldg Maint Monta Vista Ct 241,333 - 241,333 834 Bldg Maint Wilson 68,527 68,527 835 Bldg Maint Portal 84,490 84,490 837 Bldg Maint Creekside 103,161 103,161 838 Comm Hall Bldg Maint 230,943 230,943 839 Teen Center Bldg Maint 47,874 47,874 840 Park Bathrooms 120,681 120,681 841 BBF Facilities Maintenance 529,132 529,132 852 Franco Traffic Operations Center 7,580 7,580 Fiscal Year 2020-21 Adopted Budget Table of Contents General Fund Contribution Schedule Fund Type 88 Transportation Adopted Budget Expenditures .,.Adopted Revenues Adopted Retained Earnings Fund Contribution 844 Traffic Engineering 1,229,029 681,899 547,130 845 Traffic Signal Maintenance 898,614 - 898,614 846 Safe Routes 2 School 604,670 604,670 90 Citywide -Non Departmental 001 No Department 9,948,689 9,948,689 502 EE Housing Loan - - - GENERAL FUND SUBTOTAL I $ 80,528,492 $ 16,663,583 $ $ 63,864,909 General Fund Revenue/Fund Balance General Fund Revenue - 62,396,542 (62,396,542) Unassigned Fund Balance - $ (1,468,367) (1,468,367) GENERAL FUND SUBTOTAL II $ - $ 62,396,542 $ (1,468,367) $ (63,864,909) TOTAL GENERAL FUND $ 80,528,492 $ 79,060,125 $ (1,468,367) $ Special Revenue Fund Non Point Source 1,041,170 1,532,493 491,323 Storm Drain Maintenance 752,984 - (752,984) HCD General Administration 97,195 79,450 (17,745) CDBG- Capital Grants 260,000 261,532 1,532 Public Service Grants 65,000 59,588 (5,412) Below Market Rate Housing 661,071 3,025,898 2,364,827 Sidewalk, Curb and Gutter Maint 1,511,071 - (1,511,071) Street Pavement Maintenance 2,247,004 1,571,161 (675,843) Street Signs/Markings 854,135 - (854,135) Tree Fund 15,000 (15,000) CIP - Lawrence-Mitty Park 90 (90) CIP - Strm Drn Improv-Fthill & Cup Rd 248 (248) CIP - MRP Community Grdn Improv-Const 8,158 (8,158) CIP - MRP EEC Aquatic Habitat 1,293 (1,293) CIP - Storm Drain MP Implementation 45 - (45) CIP - Traffic Calming 200,000 200,000 - - Non -Departmental 64,097 1,496,088 5,231,991 3,800,000 TOTAL SPECIAL REVENUE FUNDS $ 7,778,561 $ 8,226,210 $ 4,247,649 $ 3,800,000 Debt Service Public Facilities Corporation 3,169,138 - - 3,169,138 TOTAL DEBT SERVICE $ 3,169,138 $ - $ - $ 3,169,138 Capital Projects Funds CIP - SC Corridor Park Ph 1 626 (626) CIP - Env Education Facility 185 (185) CIP - Phs II SC Corridor Park 2,025 (2,025) CIP - SCCP Chain MP-MCLN TO SCB 405 (405) CIP - Spt Ctr Resurf Tennis Cts 45 (45) CIP - Pub Bldg Solar Service Center 180 (180) CIP - DeAnza/McClellan Signal Maint 90 (90) CIP - STLG/280 Ped Bridge Lighting 252 (252) CIP - Green Bike Lanes 90 (90) CIP - MR Construct Trash Enclosure 1,601 (1,601) CIP - MR Community Garden Improvements 6,622 (6,622) CIP - ADA Improvements 84,984 80,000 (4,984) CIP - Stevens Crk Bank Repair Concept 90 - (90) CIP - Sports Center Exterior Upgrades 21,201 (21,201) CIP - Sports Center Interior Upgrades 358 (358) CIP - QCC Fire Alarm Control Panel Upg 5,626 (5,626) CIP - MCClellan West -Parking Lot Impry 17,406 (17,406) CIP - Rec Facilities Monument Signs 3,609 (3,609) 100 Fiscal Year 2020-21 Adopted Budget Table of Contents General Fund Contribution Schedule Fund Type CIP - City Hall - Turf Reduction Adopted Budget Expenditures 1,838 .,.Adopted Revenues Adopted Retained Earnings Fund Contribution (1,838) CIP - Svc Ctr - Shed No. 3 Improvement 10,921 - (10,921) CIP - 2016 Bike Plan Implementation 785,782 750,000 (35,782) CIP - Retaining Wall Repair -Cordova Rd 27,837 25,000 (2,837) CIP - Retaining Wall Repl - Regnart Rd 180 - (180) CIP - Citywide Park & Recreation MP 3,321 (3,321) CIP - CIP Prelim Planning & Design 128,039 (128,039) CIP - Capital Project Support 50,145 (50,145) CIP - Inclusive Play Area - Planning 652 (652) CIP - Senior Ctr Walkway Replacement 270 - (270) CIP - St Light Install - Annual Infill 75,536 75,000 (536) CIP - McClellan Sdwlk-RB to Hwy85 Over 45 - (45) CIP - St Light Install -Randy & Larry 3,896 (3,896) CIP - Senior Center Repairs 10,297 (10,297) CIP - CW Bldg Condition Assess Impl 6,470 (6,470) CIP - Creek Infall/Outfall Restoration 1,605 (1,605) CIP - DeAnza Med Islnd Landscaping Ph? 14,867 (14,867) CIP - Regnart Road Improvements 3,646 (3,646) CIP - School Walk Audit Implementation 654 (654) CIP - SCB/Bandley Signal & Median Imps 90 (90) CIP - St Light Replacement CW (labor) 90 (90) CIP - BBF Park Pool Improvements 446 (446) CIP - Interim City Hall 1,162 (1,162) CIP - New City Hall 90 - (90) CIP - Park Amenities 200,000 200,000 - CIP - Playground Evaluation 300,000 300,000 No Department 1,989,449 - (1,989,449) TOTAL CAPITAL PROJECTS FUNDS $ 3,762,723 $ 1,430,000 $ (2,332,723) $ Enterprise Funds Resources Recovery 1,700,225 1,435,188 (265,037) - Golf Course 684,232 210,000 (24,232) 450,000 Sports Center 1,356,862 881,112 184,250 660,000 Sports Center Maintenance 487,440 - (487,440) Youth Teen Recreation 1,963,790 1,108,517 (855,273) - Outdoor Recreation 907,695 483,225 737,530 1,162,000 CIP - BBF Entrance Road Improvement Feasibility 2,002 - (2,002) - CIP - BBF Golf Renovation/Alt Use 50,000 50,000 CIP - Sport Center Community Needs Analysis 25,000 25,000 - CIP - QCC Sustainable Infrastructure 502,000 284,449 217,551 TOTAL ENTERPRISE FUNDS $ 7,679,246 $ 4,477,491 $ (712,204) $ 2,489,551 Internal Service Funds Innovation and Technology Admin 356,506 - (356,506) - Innovation and Technology 2,076,714 1,767,098 (64,616) 245,000 GIS 1,081,259 914,333 (166,926) - Equipment Maintenance 1,495,116 1,633,518 144,402 6,000 Equipment Fixed Asset Acquisition 384,022 - (384,022) - Workers' Compensation Claims 276,223 246,385 (29,838) Disability Claims 171,837 - (171,837) - Leave Payouts 620,055 (427,055) 193,000 Retiree Medical Insurance 1,211,333 (1,165,333) 46,000 TOTAL INTERNAL SERVICE FUNDS $ 7,673,065 $ 4,561,334 $ (2,621,731) $ 490,000 TOTAL ALL FUNDS $ 110,591,225 $ 97,755,160 $ (2,887,376) $ 9,948,689 101 Fiscal Year 2020-21 Adopted Budget Table of Contents Fund Balance Report 100 GENERAL FUND $ 58,922,584 $ 53,438,546 $ 79,060,125 $ 80,528,492 $ 51,970,179 SPECIAL REVENUE FUNDS 210, Storm Drain Imp3,321,291 $ 3,767,067 $ 76,984 $A 00 $ 3,843,051 �5 rovemeMW 230 Environmental Management/ Clean Creek 418,837 944,290 1,533,398 1,794,154 683,534 260, 8,635,265 7,703,956 3,426,468 1,083,266 10,047,158 261 Housing & Community Development A 265 270, Transportation 10,211,510 7,172,403 6,989,360 4,875,600 9,286,163 271 280, Park Dedication 11,688,177 1W 3,810,211 3,785,670 281 TOTAL SPECIAL REVENUE FUNDS $ 34,275,080 $ 23,397,927 $ 12,026,210 $ 7,778,561 $ 27,645,576 DEBT SERVICE FUND 365 Public Facilities Corporation $ 1,660,760 $ 1,660,760 $ 3,169,138 $ 3,169,138 $ 1,660,760 TOTAL DEBT SERVICE FUND $ 1,660,760 $ 1,660,760 $ 3,169,138 $ 3,169,138 $ 1,660,760 CAPITAL PROJECTS FUNDS 420 Capital Improvement Fu 30,496, 623 301 427 Stevens Creek Corridor Park 202,185 120,199 2,651 117,548 429 Capital Reserve 13,626,475 17,921,475 - 1,989,449 15,932,026 TOTAL CAPITAL PROJECTS FUNDS $ 33,211,944 $ 48,538,113 $ 1,430,000 $ 3,762,723 $ 46,205,390 ENTERPRISE FUNDS 520 Resource $ 5,485,695 $ 3,837,205 $ 1,435,188 $ 1,700,225 $ 3,572,168 560 Blackberry Farm (16,291) 67,623 710,000 736,234 41,389 570 Sports Center 748,347 810,266 1,566,112 1,869,302 507,076 580 Recreation Programs 1,838,753 286,581 3,255,742 3,373,485 168,838 TOTAL ENTERPRISE FUNDS $ 8,056,505 $ 5=76 $ 6,967,042 $ 7,679,246 $ 4,289,472 INTERNAL SERVICE FUNDS ja 610 Information Technology $ 2,492,909 $ 1,115,150 $ 2,926,431 $ 3,514,479 $ 527,102 620 Wnrkarc' Cmm—ncation 2222.9^' 246,385 1 An.571n 630 Equipment 1,701,126 1,021,135 1,639,518 1,879,138 781,515 641 Compensated Absence & LTD or 400,532W 880,202 193,000 791,892 281,310 642 Retiree Medical 32,670 1,373,137 46,000 1,211,333 207,804 TOTAL INTERNAL SERVICE FUNDS $ 6,850,179 $ 6,825,172 $ 5,051,334 $ 7,673,065 $ 4,203,441 TOTAL ALL FUNDS $ 142,977,052 $ 138,862,194 $ 107,703,849 $ 110,591,225 $ 135,974,818 102 Table of Contents General Fund Summary The General Fund is the City's primary operating fund. It accounts for basic services such as public safety, public works, planning and development, park maintenance, code enforcement, and the administrative services required to support them. The fund generates revenue from the City's discretionary funding sources (e.g., property tax, sales tax, transient occupancy tax and utility tax). As a rule, general fund resources are used only to fund operations that do not have other dedicated (restricted) funding sources. Operations that rely heavily upon non -general fund resources, such as street maintenance, solid waste collection, and recreation are accounted for in other funds. Information on these funds may be found in the Other Funds section of this document. For FY 2020-21, General Fund revenue estimates (excluding fund balance) total $79.1 million, representing an $8.0 million, or 9.9%, decrease from the FY 2019-20 Adopted Budget, mostly due to decreases in sales tax, transient occupancy tax, and charges for services. When fund balance carryover is included, General Fund resources total $52.0 million. Staff are anticipating approximately $800,000 in vacancy savings during FY 2020-21 which would result in additional fund balance savings and an ending funding of approximately $52.8 million. General Fund expenditure estimates total $80.5 million, which is slightly higher than the FY 2019- 20 Adopted Budget. The General Fund's ending fund balance is projected to decrease by 3% from FY 2019-20 estimated ending fund balance. This is due to a significant reduction to projected sales tax and transient occupancy tax revenues from prior years as a result of the COVID-19 pandemic. Beginning Fund Balance Operating Revenue Operating Expenditures et Revenue/Expenditures Committed/Other FY 17-18 FY 18-19 Actual Actual $ 53,589,690 $ 52,510,457 88,226,833 88,829,941 (89,309,589) (82,390,187) Unassigned _ Total Ending Fund Balance & (1,082,756) 6,439,754 30,805,535 21,704,922 31,026,457 27,896,128 52,510,457 58,922,585 FY 19-20 FY 20-21 Percent Estimate Adopted Change $ 58,922,585 $53,438,546 -9% 92,100,000 79,060,125 -14% (97,584,039) (80,528,492) -17% (5,484,039) (1,468,367) -73% 35,938,546 35,929,546 0% 17,500,000 16,040,633 -8% 53,438,546 51,970,179 -3% This section provides information on the FY 2020-21 General Fund budget including expenditure and revenue highlights, transfers to other funds, reserve funds and the financial forecast. 103 Table of Contents General Fund Revenue Estimates for the FY 2020-21 beginning fund balance and General Fund revenue sources are based upon a careful examination of collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. FY 2020-21 revenue estimates are based on the anticipated increase or decrease in activity and receipts over the current year. Each source of revenue can be influenced by external (outside of the City's control) and/or internal factors. The FY 2020-21 revenue estimates are built on the assumption of conservative economic decline due to the impact of the COVID-19 pandemic. As shown in the chart below, FY 2020-21 revenues are estimated at $79.1 million, a 9.9% decrease over the FY 2019-20 Adopted Budget. FY 17-18 FY 18-19 FY 19-20 FY 20-21 Percent REVENUES Actuals Actuals Adopted Adopted Change Sales T 26,164,531 24,901,779 25,637,093 20,910,889 -18.4% Property Tax 22,433,806 25,301,094 24,703,218 25,353,783 2.6% Transient Occupancy 901,337 9,666,056 7,546,884 -21.9 Utility Tax Franchise Fees Other Taxes Lcenses & Permit 3,146,398 3,563,820 1,339,860 2,757,929 3,089,921 3,445,253 1,659,916 4,102,665 3,198,644 3,162,457 1,181,050 2,524,000 3,223,712 3,�80,447 1,212,939 3,139,473 0.8% 3.7°7. 2.7% 24.4% Use of Money & Property 1,342,626 2,680,997 1,330,579 1,246,510 -6.3% Intergovernmenta 000,777AL473,942W354,547 335,567 -5.4% Charges for Services 10,548,179 10,977,805 13,233,225 11,091,064 -16.2% es & Forfeitures 14 .032M 511,472 0.9% Miscellaneous 8,559,972 2,783,761 1,494,283 1,003,857 -32.8% ther Financing Sources 5,296,699 1,671,445 JL0,000 275,000 -54.2% Transfers In 2,254,183 10,000 12,000 15,000 25.0% TOTAL REVENUES 95,794,528 90,511,386 87,712,152 79,060,125 -9.9% The majority of Cupertino's General Fund operating revenues are generated by property taxes (32%) and sales taxes (26%), followed by charges for services (14%) and the transient occupancy tax (10%). The chart on the next page illustrates the sources of General Fund revenue by category. 104 Table of Contents Intergovernmental 0.4% Use of Money & 1.6% Licenses & Permits 4.0% Other Taxes 1.5% Franchise 4.1% Utility Tax 4.1% Transient Occupancy 9.5% Miscellaneous 1.3%Transfers In Other Financing Sources 0.3% Property Tax 32.1% The FY 2020-21 General Fund revenue estimates are discussed by category in the material that follows. SALES & USE TAX FY 18-19 Actual 24,901,779 FY 19-20 Adopted 25,637,093 FY 19-20 Estmlate 26,400,000 FY 20-21Adopted 20,910,889 % of General Flmd 26.32% % Change from FY 19-20 Adopted-18.44% Sales and Use Tax commonly referred to as just the "sales tax" has two components: (1) an excise tax imposed on retailers for the privilege of selling tangible personal property, and (2) an excise tax imposed on a person and applies to purchases from out-of-state vendors that are not required to collect tax on their sales. The proceeds of sales and use taxes imposed within the boundaries of Cupertino are distributed by the State to various agencies, with the City of Cupertino receiving one Agency State Sales Tax Distribution 6.000% VTA 1.125% City of Cupertino 1.000% County General Purpose 0.625% County Transportation 0.250% Total: 9.000% percent, as shown in the chart to the right. Staff will continue to monitor competing interest for the City's 1/4 cent sales tax imposed on local 105 Table of Contents governments as a potential new source of revenue for affordable housing and transportation. Should the City decide to include a similar measure on the ballot in November 2020, and subject to voter approval, the City has an opportunity to retain local control over the additional sales tax proceeds. The City's sales tax revenues are generated from five principal economic categories: business -to - business 65.0% (includes electronic equipment and software manufacturers and distributors), state and county pools 20%, restaurants and hotels 6%, general retail 4%, and fuel and service stations and other 6%. Our two largest sales tax payers in the business -to -business category represent a large part of that sector and therefore can significantly affect sales tax trends. The top tax payer's corporate and business technology spending has driven growth in this sector. Sales tax activity has decreased across most sectors. This decrease is attributed to the COVID-19 pandemic that has impacted spending overall. Given these trends, the City's FY 2020-21 sales tax revenue is projected to show an immediate, significant decline with conservative increases throughout the pandemic and recessionary period to follow. Sales tax receipts increased by 26.1% in FY 2016-17 due to a onetime $3.5 million payment related to the close out of the triple flip and took a slight dip of 2.8% in FY 17-18. Sales tax revenue was expected to increase 3% in FY 2019-20 but a decrease is now expected due to the impact of the COVID-19 pandemic. Sales tax revenues are estimated to generate $20.9 million in FY 2020-21, which is down 18.4% from the FY 2019-20 Adopted Budget. Of the $20.9 million, it is estimated that potentially a maximum of $1.7 million will be received in the second half of FY 20-21 versus the first half due to the 90-Day Sales Tax Payment Extension Executive Order of Governor Gavin Newson and the CDTFA Small Business Relief Payment Plans. The swift reaction by consumers and businesses to the outbreak of COVID- 19 in the U.S. has caused a huge decrease in spending on certain goods and services. The national and state response, combined with the uncertainty of how long the presence of the virus will disrupt the U.S. economy has made revenue forecasting particularly challenging. This estimate assumes the virus will have run its course by the end of September and also assumes that the majority of supply chain disruptions impacting manufacturers will have been resolved by mid- summer 2020 and that proposed federal actions will be successful in avoiding a deep recession. Under these assumptions, sales tax revenues are expected to "bottom out" by the fourth quarter of 2020 with subsequent gains expected to be conservative to moderate for several quarter 106 Table of Contents thereafter. As the City moves forward through the COVID-19 pandemic and as more data becomes available, staff will bring forth updates and adjustments on a regular basis as necessary. OF PROPERTY TAX FY 18-19 Actual 25,301,094 FY 19-20 Adopted 24,703,218 FY 19-20 Estimate 25,000,000 FY 20-21 Adopted 25,353,783 % of General Fund 31.91 % % Change from FY 19-20 Adopted 2.63% 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 which changes ownership, property which 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. Property Tax Allocation FY 20-21 Mid -Peninsula Santa Clara City of Regonal Open Valley Water Cupertino Space 1.7% 7.0% 1.5% Fremont Union 7.2 High Santa Clara 16.7% - County 2n tiof Foothill DeAnza F,�" Cupertino L Community Flement� College 24.8% 6.4% Bay Area Air Quality Management 0.0% 107 Table of Contents 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%. Cupertino, in conjunction with three other West Valley cities, 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. As shown in the graph above, TEA will be fully restored and Cupertino will keep 7.0% of property tax revenues in FY 2019-20 compared to 6.72% in FY 2018-19. Additionally, Educational Revenue Augmentation Fund (ERAF), a mechanism, enacted in July of 1992 by the State Legislature to shift local tax revenues from cities, counties, and special districts to a State control ERAF, absorbs the shift -back of the TEA as illustrated in the chart below. Changes in Property Tax Rate (TEA Phase -In) FY 19-20 FY 18-19 FY 17-18 FY 16-17 FY 15-16 FY 14-15 ■ ERAF ■ City of Cupertino 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% S.00% 9.00% 10.00% FY 14-15 FY 15-16 FY 16-17, FY 17-18 FY 18-19 FY 19-20 ■ ERAF 8.60% 8.32% 8.04% 7.76% 7.48% 7.20% ■ City of Cupertino 5.60% i 5.88% 6.16% 6.44% 6.72% 7.00% 108 Table of Contents y $30 c $25 $20 $15 $10 $5 $0 Property Tax Historical Trend ,y0 ,yti ,y`1 ,y`3 ,yV ,yi tiV ,,Y ,y4i 'y°� `LO �J �J -J -J -J -J taxable value. The City experienced a net taxable value increase of 3.3% for the 2019- 2020 tax roll. The bulk of the increase was due to increases in residential properties by $881 million, or 5.8%. This category makes up 61% of the net taxable value. Unsecured property tax decreased by $138 million, or 7.8%. This category makes up 6.3% of the net taxable value. Lastly increases in commercial property values increased by $20.9 million, or 0.3%. This category makes up 28.5% of net 11 TRANSIENT OCCUPANCY TAX FY 18-19 Actual 8,901,337 FY 19-20 Adopted 9,666,056 FY 19-20 Estimate 5,980,000 FY 20-21 Adopted 7,546,884 % of General Fund 9.50% % Change from FY 19-20 Adopted-21.92% Transient occupancy taxes (TOT) are levied on hotels and short-term room rentals located in the City at the rate of 12% of room revenues. In November 2011, 83% of voters approved increasing the rate from Transient Occupancy Tax Historical Trend 10% to 12%. This rate increase $6 contributed to the upward trend $4 shown in the TOT Historical Trend graph to the right. TOT is expected $2 to end FY 2019-20 lower than the $0 N Nadopted budget mainlydue to the ti° titi do by tip' ,�� tip` tih ,�� tip• ,�� shelter -in -place order Santa Clara �J �J �J FJ �J �J �J �� J County Public Health Department put into effect mid -March 2020 to control the COVID-19 pandemic. Until COVID-19 impacts are tempered and employees begin returning to their places of work, TOT will suffer greatly. TOT is projected to decrease 21.9% in FY 20-21. Assuming the summer 2020 period begins to show signs of acclimation and adaptation to a new "normal," this decline represents an effective loss of one full quarter of TOT revenue. As we move forward through the pandemic and more information 109 Table of Contents becomes available, staff will bring forward updates and adjustments to City Council on a regular basis as necessary. UTILITY TAX FY 18-19 Actual 3,089,921 FY 19-20 Adopted 3,198,644 FY 19-20 Estimate 3,000,000 FY 20-21 Adopted 3,223,712 % of General Fund 4.06% % Change from FY 19-20 Adopted 0.78% 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. Gas/Electric Cable Water Telecom Sunnyvale 2.0% - - 2.0% Cupertino 2.4% - - 2.4% Mountain View 3.0% - - 3.0% Los Altos 3.5% 3.2% 3.5% 3.2% Palo Alto 5.0% - 5.0% 5.0% Gilroy 5.0% 4.5% - 4.5% San Jose 5.0% - 5.0% 4.5% 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 currently received from telecom services, voters passed a measure in 2009 to update the ordinance to the changing technology in this area. Utility Tax Historical Trend H $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 �1 tiC, ``1 '1,' ,y0 titi ti� ti3 tip` ,y`' <k ti� �k tit <k ti,�J ti� < ,ti0 In FY 2018-19, UUT revenues decreased by 1.8% compared to FY 2017-18 and are estimated to increase 3.5% FY 19-20. Budgeted revenues are expected to remain at $3.2 million for FY 2020-21 and beyond. This revenue source will be monitored closely as the fiscal year progresses. 110 Table of Contents FRANCHISE FEES FY 18-19 Actual 3,445,253 FY 19-20 Adopted 3,162,457 FY 19-20 Estimate 3,162,457 FY 20-21 Adopted 3,280,447 % of General Fund 4.13% % Change from FY 19-20 Adopted 3.73% 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 particular agreement. As shown in the graph below, these revenues are relatively steady and not sensitive to economic fluctuations. Franchise fee revenues decreased by 3.3% in FY 2018-19 from the prior year. In FY 2019-20, franchise fee revenues are trending down 8.2% partially due to the winding down of development resulting in lower solid waste revenues. Budgeted revenues are expected to remain at approximately $3 million for FY 2020-21. This revenue source will be monitored closely as the fiscal year progresses. Franchise Fee Collection Historical Trend h $4.0 a $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 y'y ,y �y y� ,yh tit ;�% 'y01 ,yo yN ,yI ,y3 y� ti`"' ,yo ti1 ti% ,ya' do <J << Fy FJ f< F� Fy <J << Fy FJ OTHER TAXES FY 18-19 Actual 1,659,916 FY 19-20 Adopted 1,181,050 FY 19-20 Estimate 1,181,050 FY 20-21 Adopted 1,212,939 % of General Fund 1.53% % Change from FY 19-20 Adopted 2.70% 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. 111 Table of Contents �* Other General Fund Taxes Historical Trend 6n $9 O $8 -CONSTRUCTION TAX 2 $7 $6 $3 BUSINESS LICENSE $4 TAX $3 PROPERTY TRANSFER $2 TAX $1 $0 titi tin ti' �°` ' ti ti� �� ° ,yfl ,yti ,yIVy').1' With the influx of several major construction projects beginning in 2012, revenues began increasing. The largest of the projects included the Apple Park and Main Street developments. These projects coupled with a strong housing recovery created a record year for revenues in FY 2013-14. These revenues have since returned to historic levels. In FY 2020-21, these revenues are expected to remain at $1.2 million. 11, CHARGES FOR SERVICES FY 18-19 Actual 10,977,805 FY 19-20 Adopted 13,233,225 FY 19-20 Estimate 11,100,000 FY 20-21 Adopted 11,091,064 % of General Fund 13.96% % Change from FY 19-20 Adopted-16.19% This category accounts for charges to users of City services funded by the General Fund as well as internal City-wide overhead. The City attempts to recover the cost of the services, including planning, zoning, and engineering permit processing for new property development as well as some recreation -related fees. As such, this revenue source is sensitive to economic fluctuations, as shown in the graph below. Apple Park and other large developments generated large one-time revenues in FY 2013-14 as well as FY 2015-16 and FY 2016-17. 112 Table of Contents In addition, beginning in FY 2013-14, Charges for Services Historical Trend enterprise funds, internal service h $20 funds, and special funds began e $18 charging for overhead services $16 $14 previously subsidized by the General $12 Fund. Some internal strategic support $10 services (HR, Finance, City Clerk, etc.) $8 $6 also began charging internal $4 departments for their services to $z accurately capture the true cost of $0 �ti titi y3 tio. tih ti� y� �� ,�a ,yo titi providing various programs and �tio �titi �tiN �ti�' ytit.' �ti�' �tiV �ti�ti�ti A � � ° ' services within City operations. After a �` �` e e < `` �` kJ comprehensive cost allocation plan (CAP) was approved by Council in April 2016, new CAP charges were included to capture internal strategic support services that were previously excluded (City Council, Facilities, Maintenance, etc.). In FY 2015-16, the City's administration changed its methodology for tracking developer deposits driven by increased developer activity and, as a result, both budgets for revenues and expenses were increased by anticipated deposit amounts leading to another large increase in revenue. Current year actuals will come in lower compared to budgeted levels due to the impact of the COVID-19 pandemic causing the City's recreation facilities to shut down by way of the shelter - in -place orders of the Santa Clara County Public Health Department. Although increases to City fees (effective October 1, 2020) represent additional revenues of approximately $900,000, charges for services are anticipated to decrease to $11.1 million while the uncertainty surround COVID- 19 remains. LICENCES AND PERMITS FY 18-19 Actual 4,102,665 FY 19-20 Adopted 2,524,000 FY 19-20 Estimate 2,524,000 FY 20-21 Adopted 3,139,473 % of General Fund 3.95% % Change from FY 19-20 Adopted 24.38% 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. 113 Table of Contents The Apple Park project and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permitting revenues in FY 2013-14. Since then, activity has slowed until FY 2018-19 revenues came in 48.8% higher and although another 686.6% increase is estimated as part of the FY 2019-20 Amended Budget due to the Vallco Town Center project, the City does not anticipate the project commencing prior to FY 20-21. Revenue estimates for FY 2020-21 are up 24.4%. Licenses & Permits Historical Trend y $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 o yy N L 1� lb y V,y4i hypo W,y'1 1\,y4� 1b,yoi .yd o.yy USE OF MONEY AND PROPERTY FY 18-19 Actual 2,680,997 FY 19-20 Adopted 1,330,579 FY 19-20 Estimate 1,190,000 FY 20-21 Adopted 1,246,510 % of General Fund 1.57% % Change from FY 19-20 Adopted -6.32% The use of money and property category is comprised of General Fund interest earnings as well as facility and concession H $3,000 rental income of City -owned property. The H $2,500 City's portfolio is approximately $154.9 0$2,000 million. Fluctuations in this revenue $1,500 category are a result of investment $1,000 earnings, as rental income is fairly steady. $500 Use of Money and Property Historical Trend so Investment earnings are a function of the o'� �.�' ti3'� amount of excess cash available for �� y� yti kti 0 kti investment, current interest rates, and composition of investments. The City's investment policy requires investments to be made in this order of priority: safety, liquidity, and yield. Financial markets have experienced significant turbulence, driven by a high level of uncertainty about the impact of the COVID-19 pandemic on the global economy. US Treasury yields have declined, amid a global flight to quality. At the end of the first quarter, the yield on 2-year Treasuries was down 132 basis points year-to-date, and the yield on 1-=year Treasuries was down nearly 125 basis points. The S&P 500 index declined 20.0% in the first quarter. There 114 Table of Contents are still many unknowns about the coronavirus including how widespread it will become, how long it will take to contain the virus, and the actual impact on the economic activity. We believe containment efforts and supply chain disruptions will cause a sharp increase in unemployment and a swift and deep contraction in economic activity. Financial markets will likely remain volatile over the near term but are optimistic that large-scale global monetary and fiscal stimulus programs will help mitigate the longer -term impact of the pandemic. The Fed has also taken a wide range of aggressive actions to help stabilize and provide liquidity to the financial markets. The Fed has lowered the fed funds target rate to a range of 0.0%-0.25% and said it will purchase Treasury and agency mortgage -backed securities in any amount needed to support smooth market functioning. City staff will continue to monitor interest rates as well as economic factors in both the local as well as the national economy. FINES AND FORFEITURES FY 18-19 Actual 511,472 FY 19-20 Adopted 615,000 FY 19-20 Estimate 400,000 FY 20-21 Adopted 425,000 % of General Fund 0.53% % Change from FY 19-20 Adopted-30.89% 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. Fines and forfeiture revenue is projected to remain relatively flat in FY 2019-20. In FY 2020-21 revenues are expected to decrease by 30% based on a trending decrease in city fines. 115 Table of Contents INTERGOVERNMENTAL id FY 18-19 Actual 473,942 FY 19-20 Adopted 354,547 FY 19-20 Estimate 400,000 FY 20-21 Adopted 335,567 % of General Fund 0.42% % Change from FY 19-20 Adopted -5.35% Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue. In FY 2020-21, revenues of $335,567 are anticipated. MISCELLANEOUS REVENUE FY 18-19 Actual 1,102,316 FY 19-20 Adopted 882,283 FY 19-20 Estimate 1,300,000 FY 20-21 Adopted 1,003,857 % of General Fund 1.26% % Change from FY 19-20 Adopted 13.78% Miscellaneous revenues account for the sale of land and other miscellaneous revenues such as administrative fees. FY 2019-20 miscellaneous revenue is estimated to come in higher than budgeted from the Apple donation for additional law enforcement services and the Power Safety Power Shutoff funding from the state. Miscellaneous revenue is expected to decline and is projected to be $1.0 million for FY 2020-21. OTHER FINANCING SOURCES FY 18-19 Actual 1,671,445 FY 19-20 Adopted 600,000 FY 19-20 Estimate 414,619 FY 20-21 Adopted 275,000 % of General Fund 0.35% % Change from FY 19-20 Adopted-54.17% 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 and anticipate an approximate 54% decline in FY 2020- 21. 116 Table of Contents TRANSFERS IN FY 18-19 Actual 10,000 FY 19-20 Adopted 12,000 FY 19-20 Estimate 10,012,000 FY 20-21 Adopted 15,000 % of General Fund 0.02% % Change from FY 19-20 Adopted 25.00% Transfers In represent the movement of funds from one City fund to another; the General Fund in this case. The City estimates between $10,000 to $15,000 in transfers in from the City's Tree Fund into the General Fund to support on -going tree maintenance operations. In FY 2019-20, and as part of the Mid -Year Financial Report, staff recommended and Council approved a $20 million transfer to the Capital Reserve to fund future capital projects. Immediately subsequent to this transfer, the COVID-19 pandemic sparked unprecedented uncertainty and as part of the FY 2019-20 3rd Quarter Financial Report, staff recommended and Council approved $10 million of the $20 million be transferred back to the General Fund. 117 Table of Contents General Fund Revenue Comparison with Other Jurisdictions The table below shows General Fund Revenue Comparisons with neighboring jurisdictions for FY 2016-17 through FY 2020-21. It shows general fund revenue total and population. General Fund -Rev $ 95,130,121 $ 88,226,833 $ 88,802,313 $ 87,100,152 $ 79,060,125 Population 60,668 60,572 64,127 ML 64,344 AN 66,762 Milpitas General Fund -Rev $ 104,870,647 $ 105,323,121 $ 112,751,530 $ 118,415,020 $ 112,142,729 Population 74,766 74,922 75,083 76,211 77,961 Campbell General Fund -Rev $ 49,410,774 $ 51,149,304 $ 54,364,113 $ 55,863,156 $ 53,939,394 Population 42,112 42,142 41,866 42,168JOW 42,288 Fremont General Fund -Rev $ 180,211,000 $ 197,187,000 $ 207,266,000 $ 214,305,000 $ 206,605,000 Population 230,243 232,010 232,685 233,404 234,220 General Fund -Rev $ 157,988,761 $ 158,401,000 $ 181,803,935 $ 172,438,889 $ 166,314,726 Population 157,790 159,623 159,603 160,197 160,311 Mountain View General Fund -Rev $ 126,688,867 $ 136,376,999 $ 146,010,075 $ 148,323,840 $ 144,162,250 Population 79,805 80,469 80,620 81,639 82,272 Palo Alto General Fund -Rev $ 177,254,720 $ 193,888,000 $ 205,600,846 $ 211,103,465 $ 175,112,437 Population 68,867 69,274 69,191 69,109 69,226 San Jose General Fund -Rev $1,107,663,425 $1,297,914,684 $1,394,877,114 $1,182,243,279 $ 1,154,798,152 Population 1,037,952 1,045,047 1,048,875 1,047,871 1,049,187 San Leandro General Fund -Rev $ 105,952,940 $ 111,589,270 $ 118,797,274 $ 116,866,845 $ 118,045,460 Population 88,485 88,594 88,276 88,296 d& 87,930 Santa Clara General Fund -Rev $ 213,394,696 $ 237,819,010 $ 284,451,230 $ 251,951,688 $ 247,940,776 Population 124,105 124,131 127,683 127,401 129,104 Sunnyvale General Fund -Rev $ 169,439,393 $ 207,403,434 $ 212,294,815 $ 205,940,607 $ 195,128,729 Population 148,948 150,599 153,944 155,766 156,503 118 Table of Contents The chart below shows FY 2020-21 Property Tax dollars per capita comparison with other jurisdictions. 800 600 400 U y 200 n 0 FY 20-21 Property Tax Per Capita 141ro�1 fir° �4`<1 oS� 0? �ym �`¢ya 9 Lo4e 'Iley � Quo G �o The chart below shows FY 2020-21 Sales Tax dollars per capita comparison with other jurisdictions. 600 500 400 "a. 300 U 200 a 100 TQn FY 20-21 Sales Tax Per Capita (}40, 119 Table of Contents The chart below shows FY 2020-21 Transient Occupancy Tax dollars per capita comparison with other jurisdictions. 250 200 150 u 100 50 0 FY 20-21 Transient 0ccuvancv Tax Per Capita .t�4� op The chart below shows FY 2020-21 Franchise Fees dollars per capita comparison with other jurisdictions. 100 80 60 40 U G, 20 0 FY 20-21 Franchise Fees Per Capita 120 Table of Contents The chart below shows FY 2020-21 Building Permit dollars per capita comparison with other jurisdictions. 100 80 60 G. 40 U 20 0 .a�a FY 20-21 Building Permits Per Capita 121 Table of Contents General Fund Expenditures Estimates for the FY 2020-21 General Fund expenditures are based upon anticipated personnel and non -personnel cost increases. This year, department budgets reflect a base budget with justified ongoing expenses, accounting for changes in personnel costs and any other anticipated/known increased costs in FY 2020-21. In addition, most budgets were given additional funds for any unexpected expenditures that are accounted for in the contingency account, which were reduced by 50% in FY 2020-21. Lastly, per the City's Reserve policy, an unassigned General Fund balance above the $500,000 maximum balance will be transferred to the Capital Fund for future capital and infrastructure projects, after year-end close and as part of the mid -year budget. Given the uncertainty of the economy due to COVID-19 and to avoid the need to eliminate critical programs and services, Contingency accounts were cut in half, Material costs are anticipated to be reduced by 10%, Contract Services may be reduced by one million dollars, and Salaries and Benefits savings of $800,000 would occur through attrition. Additionally, financial updates would be provided on a quarterly basis as necessary to effectively and proactively manage the City's finances as the results of the pandemic continue to unfold. As shown in the chart on the next page, FY 2020-21 expenditures are estimated at $80.5 million, which represents a 1% increase compared to the adopted budget from the prior year. This budget reflects an increase in Employee Compensation and Benefits due to negotiated salary and benefit changes. There is also an increase in Materials due to anticipated/known increased costs across all programs, primarily attributed to an increase in software expenses, fuel charges and water service charges in FY 2020-21. Additionally, there is an increase in Contract Services primarily attributed to an increase in General Service Agreement for annual increases to the City's Law Enforcement contract with Santa Clara County Sheriff as per the agreement. These increases are offset by a decrease in Capital Outlay and Special Projects due to completion of previously funded special projects and costs of project scope and costs differing from year to year. 122 Table of Contents 2017-2018 2018-2019 2019-2020 2020-2021 % EXPENDITURE Actuals Actuals Adopted Adopted Change Employee Compensation 16,974,470 17,232,957 19,030,922 20,295,000 7% 7,109,183 6,963,384 7,924,552 8,903,632 12% AM"IPersonnel Costs 24,083,653 24,196,341 26,955,474 29,198,632 8% Non -Personnel Costs Materials 4,985,037 4,494,677 5,666,631 6,058,121 7% Contract Services 17,853,413 20,361,957 21,603,686 22,051,314 2% Cost Allocation 8,101,838 9,368,223 9,786,477 10,473,534 7% Capital Outlay & Special Projects 9,847,615 4,211,639 3,699,385 1,448,852 -61% Contingencies 911 - 1,070,049 824,350 -23% Other Financing Uses 307,751 381,262 783,209 525,000 -33% otal Non -Personnel 41,096,565 38,817,758 42,609,437 41,381,171 -3% Transfers 24,129,372 19,376,087 10,539,557 9,948,689 -6% dk TOTAL EXPENDITURES 89,309,589 82,390,187 80,104,468 80,528,492 1% The largest General Fund operating expenditure categories include Employee Compensation and Benefits (36%), Contract Services (27%), Cost Allocation (13%), and Transfers Out (12%) as illustrated in the FY 2020-21 General Fund Expenditures by Category chart. General Fund Expenditures by Category Other Financing Uses S2S,000 Contingencies 1% 824,350 Transfers 1% 9,948,699 Capital Outlay & 12% Employee Special projects Compensation 1,448,852 Z0,295,000 2% ZS% Cast Allocation 10,473,534 13% Employee Benefits 8,903,632 119b Materials Contract Services 6,0S8,121 22,0S1,314 8% 27% 123 Table of Contents Personnel Costs Personnel costs total $29.2 million in FY 2020-21, comprising 36% of General Fund expenditures. These costs are made up of salaries and compensation for benefitted and part-time staff (70%), retirement benefits (18%), and other fringe benefits (12%), including health coverage. With the economic uncertainty due to COVID-19 and to avoid the need to eliminate critical programs and services, personnel savings through attrition is planned and staff anticipate approximately $800,000 in savings. Costs were calculated by taking an extract of payroll system information. This individual position -level information was then reviewed, corrected, and updated by each department to include current vacancies and filled positions, accurate salary step status, as well as any position reallocations. Also, all categories of benefit costs in the coming year were projected. The most recent retirement plan and health plan information for each position was also updated from the payroll system. Not included in personnel costs, is the ongoing contribution for retiree healthcare which is included in the transfers category. Costs in salary and benefits are up primarily due to equity adjustments and negotiated salary and benefit changes. Ca1PERS retirement rates are projected to increase 14.2%, as per the most recent actuarial valuation report from Ca1PERS. In addition, the Ca1PERS discount rate is projected to remain at 7% as the Ca1PERS board has not made any additional changes since December 2017. Future actuarial assumptions project changes to the discount rate and these projections are reflected in the General Fund forecast section of the budget. A total of 203.75 FTEs are budgeted in FY 2020-21, up from 202.75 in FY 2019-20. The increase of 1.0 FTEs represents a 0.5% increase in staffing. There are no additional positions requested for FY 2020-21. The change in positions is summarized below: Although no new positions are being requested in FY 2020-21, the City Council adopted the conversion of the Administrative Services Department's limited term Senior Management Analyst to permanent effective July 1, 2020. Non -Personnel Non -personnel costs total $41.4 million in FY 2020-21, comprising 51% of General Fund budgeted appropriations. These costs are primarily made up of Contract Services (27%), Cost Allocation charges (13%), Materials (8%), Capital Outlays and Special Projects (2%) and Contingencies (1%). Costs were developed from the base budget created in FY 2019-20 with justified ongoing expenses 124 Table of Contents and adjustments for any other anticipated/known increased costs in FY 2020-21. One-time projects were moved to a separate category in FY 2013-14 to ensure that expenditure trends reflect ongoing expenditure needs. In FY 2017-18, a concerted effort was made to differentiate costs related to special projects and capital outlays that are required to be depreciated. A special projects series was created in the contracts section of accounts for any new special projects going forward. With the economic uncertainty due to COVID-19 and to avoid the need to eliminate critical programs and services, Material costs are anticipated to be reduced by 10% and Contract Services are expected to be reduced by one million dollars. Additionally, in FY 2020-21, program contingencies were reduced from 5% of budgeted General Fund materials and contract services to 2.5%. Program contingencies have been allocated proportionately among operating programs based on each program's share of General Fund budget for materials and contract services. The City Manager Contingency is a second level of contingency established for unexpected expenditures that may occur over the program contingency. In FY 2020-21, City Manager contingencies were also reduced from 5% of budgeted General Fund materials and contract services to 2.5%. This brings total contingencies for the General Fund to 5% of budgeted materials and contract services. This percentage is consistent with best practices adopted by the Governmental Accounting Standards Board (GASB) which recommended 5-15% contingency. Program contingency budgets may be used to cover unanticipated program expenses at the department's discretion, while use of the City Manager Contingency will require City Manager approval. The Sheriff's and City Attorney services contracts are excluded from the contingency calculation. 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 project costs. As part of the annual budget process, each fund's beginning fund balance, estimated revenues, and appropriations are considered to estimate the ending fund balance for the respective fiscal year. The operating subsidies from the General Fund are calculated by assuming each respective fund will end the fiscal year with approximately 15% of current year appropriations. For FY 2020- 21, budgets have been established for the following transfers. 125 Table of Contents Transfer Out from General Fund Description Amount Storm Drain, Non -Point Source, Sidewalk, Curb and Gutter Special Revenue Funds Maintenance $3,800,000 Debt Service Funds Annual Debt Payment $3,169,138 Blackberry Farm Golf Course, Sports Center Operation, Outdoor Recreation, Public Safety Power Enterprise Funds Shutoff $2,489,551 IT Infrastructure, General Fund Subsidy of Compensated Absences Internal Service Funds and Retiree Medical $490,000 TOTAL $9,948,689 General Fund Fund Balance As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the following: Nonspendable Fund Balance — includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for example: prepaid items, property held for resale and long-term notes receivable. Restricted Fund Balance — includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. Committed Fund Balance — includes amounts that can only be used for the specific purposes determined by a formal action of the City's highest level of decision -making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that imposed the constraint originally. Assigned Fund Balance — comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. 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. 126 Table of Contents 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. 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. 127 Table of Contents Fiscal Year 2020-21 Adopted Budget General Fund Classification of Fund Balance Non Spendable ans Receivable 458,893 454,188 455,000 455,000 446,000 Prepaid Items 6,000 - - - - Total Non Spendable 454,188 455,000 455,0� 446,000 Restrict CASp Certification and Training - 13,982 - 13,982 13,982 5ectiqmmrus - 8,000,000 12,0wum 12,UUUuuu Public Access Television 1,254,578 1,346,167 1,237,403 1,346,167 1,346,167 Total Restricted 1,254,578 9,469,670 9,237,403 13,360,149 13,360,149 Committed _ Economic Uncertainty 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 Sustainability R� 122,754 123,397 123,30 PERS 4,793,000 - - - - Total Committed Assigned Reserve for Encumbrances 23,915,754 19,123,397 19,122,754 19,123,397 19,123,397 5,170,310 1,979,202 5,011,000 3,000,000 3,000,000 Total Assigned 5,170,310 1,979,202 5,011,000 3,000,000 3,000,000 Total Unassigned 21,704,922 27,896,128 12,801,317 17,500,000 16,040,633 TOTAL FUND BALAN� 52,510,457 58,922,585 46,627,474 53,438,546 51,970,179 128 Table of Contents All Funds Summary This section provides information on the FY 2020-21 Special Revenue, Debt Service, Capital Project, Enterprise and Internal Service Funds budgets including, expenditure and revenue highlights, transfers to other funds, reserve funds and the financial forecast. Revenue Estimates Estimates for FY 2020-21 fund balance and individual revenue accounts are based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. Each source of revenue can be influenced by external (outside of the City's control) and/or internal factors. The FY 2020-21 revenue estimates are built on the assumption that the economy will experience conservative growth. Depending on the extent of COVID-19's impacts on the Special Revenue Funds' restricted revenue sources, additional adjustment may be brought to City Council on a quarterly basis as necessary and appropriate. 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 for special revenue funds are summarized in the table below and discussed in greater detail following the table: Other Taxes se of Money & Property 1,639,671 453,404 864,750 Intergovernmental 3,144,614 7,554,533 Charges for Services 612,913 391,045 Miscellaneous Revenue 85,422 2,198,521 Fines and Forfeitures 22,541 Transfers In 8,094,735 1,318,000 3,102,882 3,295,595 1,526,471 87,057 10,000 4,000,000 Total Revenue Sources $14,464,645 $11,941,203 $12,026,210 Revenues are projected to remain relatively flat over the previous fiscal year. This is largely due to an increase in transfers into the Transportation Fund and housing mitigation taxes offset with declines in non -discretionary revenue sources. While COVID-19 will have an effect on these restricted revenue sources, the City does not anticipate significant declines beyond the fourth quarter of FY 19-20. As the City moves forward and the COVID-19 situation continues to 129 Table of Contents evolve, City staff will bring forward adjustments to City Council on a regular basis and as needed. Expenditures Expenditure uses for special revenue funds are summarized in the table below and discussed in greater detail following the table: Employee Compensation 1,005,530 1,117,149 1,576,185 Employee Ben" 'ts 7 780,434 Materials 701,171 819,311 861,666 Contract Services 1,335,340 1,373,698 Cost Allocation 425,454 486,532 1,046,834 Capital Outlays 1,729,945 10,262,138 1,000,000 Special Projects 4,502,111 8,209,113 1,090,700 Contingencies OW 34,044 Transfers Out 135,000 12,000 15,000 Total Expenditures Uses $9,421,192 $22,818,356 $7,778,561 Expenditures are projected to decrease by $15.0 million dollars primarily due to a reduction in annual pavement maintenance spending. FY 2019-20 appropriations for pavement will be carried over and spent in FY 2020-21. Additionally, $8.2 million in FY 2019-20 appropriations for Lawrence Mitty Park will be carried over into FY 2020-21. 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. Beginning Balance 29,231,626 34,275,080 23,397,927 Nets crease (Decrease) in Fund Balance 5,043,454 (10,877,153) �4,247,649 Ending Balance $34,275,080 $23,397,927 $27,645,576 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 130 Table of Contents interest on the City Hall/Community Hall/Library Certificates of Participation (COP) that will be paid off by July 1, 2030. Revenue Revenue sources for the Debt Service Funds are summarized in the table below and discussed in greater detail following the table: Use of Money & Property Total Revenue Sources 75,272 3,169,438 $3,244,710 Revenues are expected to remain relatively unchanged. 3,172,838 $3,172,838 3,169,138 $3,169,138 Expenditures Expenditure uses for Debt Service Funds are summarized in the table below and discussed in greater detail following the table: Expenditures are expected to remain relatively unchanged. This represents a repayment of debt and payments which are fixed for the life of the loan. 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. Beginning Balance Vet Increase (Decrease) in Fund Balance Ending Balance 1,586,987 73,773 $1,660,760 1,660,760 $1,660,760 1,660,760 $1,660,760 131 Table of Contents Capital Project Funds This fund pays for the acquisition of major capital facilities and/or construction of major capital projects. Revenue Revenue sources for Capital Project Funds are summarized in the table below and discussed in greater detail following the table: s of Money and Property 302 6� _ - Intergovernmental 50,000 - - Charge�ices 119,61W - Miscellaneous - 7,757,418 - Transfers 23,619,425 35,363,157.00 1,430,000 Total Revenue Sources $ 24,091,524 $ 43,120,575 $ 1,430,000 Revenue is projected to decrease by $41.7 million. This decrease is due to a reduction in new capital projects being added to the Capital Improvement Program. As a result, fewer dollars are required to be transferred from the Capital Reserve to fund these capital projects. Expenditures Expenditure uses for Capital Project Funds are summarized in the table below and discussed in greater detail following the table: Employee Compensation 86,503 - - Employee Benefits - - Materials 1,488 - - Contract Services 4,215,522 175,000 Capital Outlays 2,640,158 7,518,665 1,430,000 Cost AM� 168,274 Contingencies - 2,500 - Transfers Out 17,027,250 26,057,719 1,989,449 Total Expenditures Uses $ 20,009,196 $ 37,794,406 $ 3,762,723 Expenditures are projected to decrease by $34.0 million dollars due to a reduction in new capital projects being added to the Capital Improvement Program. With COVID-19 creating an unprecedented level of uncertainty and an approximate remaining unassigned fund balance in 132 Table of Contents the Capital Reserve of $3.7 million, additions to the Program have decreased significantly over previous fiscal years. 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. Beginning Balance 29,129,616 33,211,944 Net Increase (Decrease) in Fund Balance 1W 4,082,328 V,326,169 Ending Balance $33,211,944 $38,538,113 38,538,113 (2,332,723) $36,205,390 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 for Enterprise Funds are summarized in the table below and discussed in greater detail following the table: Use of Money & Property Intergovernmental Charges for Services Miscellaneous Revenue Total Revenue Sources 439,269 28,000 290,000 30,023 15,000 15,000 6,142,583 dft580& 3,813,042 61,643 66,000 - 75,000 3,523,000 2,849,000 $6,748,518 $9,398,580 $6,967,042 Revenue is projected to decrease by $2.4 million, primarily driven by anticipated decreases in charges for services due to COVID-19 impacts and a reduction in the amount of transfers in from the General Fund. As part of the budget process, each fund is evaluated to identify funds that are bringing in less revenue than they are expending and require the use of fund balance or a subsidy from the General Fund. The extent of the financial impacts related to COVID-19 are difficult to estimate for a full budgeted year. Although revenues are estimated to decrease, this is further mitigated by a reduction in spending as explained below. 133 Table of Contents Expenditures Expenditure uses for Enterprise Funds are summarized in the table below and discussed in greater detail following the table: Employee Compensation 1,790,764 2,019,502 1,601,475 Employee Benefits 605,99W 582,095 531,530 Materials 481,519 446,595 371,297 4,256,652� 5,197,915 3,247,769 Contingencies - 254,184 128,141 Cost Allocation 906,362 M�V923,089 Special Projects 7,985 2,020,845 584,500 Transfers Out 291,444 0,953 291,445 Total Expense Uses $8,340,720 $12,453,411 $7,679,246 Expenditures are projected to decrease by approximately $4.8 million, largely in part to a reduction in special project charges, a reduction in the City's Lifetime Tennis contract, as well as a significant reduction cost allocation charges for changes in methodology. Additionally, contingencies have been reduced by fifty percent (50%) in an effort to mitigate future impacts from COVID-19. Retained Earnings Enterprise funds carry retained earning instead of fund balance. Retained earnings are calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending retained earnings. 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. CHANGES TO i2020-21 BudgetActuals Projected Adopted Beginning Balance 9,648,709 8,056,507 5,001,676 crease) in Retained Earnings (1,592,202) (3,054,831) (712,204) Ending Balance $8,056,507 $5,001,676 $4,289,472 134 Table of Contents Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost -reimbursement basis. Internal Service Funds include the Information Technology, City Channel and Website, Equipment, Workers Compensation, Long - Term Disability/Compensated Absence, and Retiree Medical funds. Revenue Revenue sources for Internal Service Funds are summarized in the table below and discussed in greater detail following the table: Use of Money & Property W 200,469j& - - Charges for Services 4,973,953 4,083,901 4,314,949 Transfers In 1,578,474 3,573,000 W490,000 Other Financing Uses 498,286 472,652 246,385 Total Revenue Sources $7,251,183 $8,129,553 $5,051,334 Revenues are projected to decrease by $3.1 million due to decreased transfers from the General Fund for equipment replacement, compensated absence, and retiree medical payments for FY 2020-21. Expenditures Expenditure uses for Internal Service Funds are summarized in the table below and discussed in greater detail following the table: rxnpioyee tsenents Materials Contract Services Contingencies Cost f�i� Special Projects Transfers Out Total Expenditures Uses 1,323,249 1,426,361 1,615,524 1,670,148 918,573 1,615,767 925,229 1,896,696 1,044,242 - 164,925 59,947 �6C 52,343 33,964 475,471 679,000 843,772 897,684 $6,939,023 $8,154,560 $7,673,065 Total expenditures is projected to decrease approximately $0.5 million as a result of decreased vehicle and equipment replacements which are offset by negotiated labor increases and additional I&T-related City Council Work Program items slated for FY 20-21. 135 Table of Contents Retained Earnings Internal Service Funds carry retained earning instead of fund balance. Retained earnings are 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 retained earnings. 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. Beginning Balance Net hi(Decrease) in Retained Earnings Ending Balance 6,538,019 312,160 $6,850,179 6,850,179 (25,007) $6,825,172 6,825,172 (2,621,731) $4,203,441 136 Table of Contents 5-Year and 20-Year General Fund Forecast Overview The City has continued to develop medium -term (5-year) and long-term (20-year) forecasts as part of the budget process. While long-term projections are inherently less reliable than short- term projections, they can help detect structural budget issues that can be mitigated if identified early. As shown in the following chart, in the next 20 years, the City's projections show increasing operating deficits beginning in FY 2027-28 due to revenues growing at a slower rate than expenditures. 20-Year General Fund Financial Forecast $140,000,000 $120,000,000 $1o0,0o0,0o0 $80,000,000 $60,000,000 $40,000,000 $20,000,000 oti° oti~ oti oti oti° 1" oti6 oti oti oti o"'° o° 0"'11 e f' `1 011 011 e 01 ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti Revenues -Expenditures Revenue growth is primarily driven by sales, property, and transient occupancy taxes. Revenue growth will be slower than in the past due to the completion of large-scale development projects, such as Main Street and Apple Park, in the City. FY 2020-21 will experience significant declines in sales tax ($4.7 million or 18%) and transient occupancy tax ($2.1 million or 22%) due to COVID- 19 impacts. Property tax is not anticipated to be affected by COVID-19 in FY 2020-21 due to the timing of assessed market valuations; however, the City anticipates a flattening of the property tax revenues in FY 2021-22. 137 Table of Contents As the City moves forward through the COVID-19 pandemic and as more data becomes available, staff will bring forth updates and adjustments on a regular basis as necessary. Expenditure growth is primarily driven by increases in pension liability costs and the City's Law Enforcement contract with the Santa Clara County Sheriff's Office. To mitigate the impacts of COVID-19, the City is taking steps to reduce expenditures by: • phasing in an increase of vacant staff positions from five (5) to twenty (20) within a three-year period, which will result in up to $3.2 million in annual savings, • reducing contingencies by 50% ($850,000), • reducing materials by 10% ($670,000), • reducing contract services by $1 million, and • reducing special projects by $500,000. Since revenues are growing at a slower pace than expenditures, annual operating deficits are projected to increase, as shown in the following chart. s�aoona0 56,000,000 54,-0,— $2,900,000 $ $(2,000,000� $(4,000,000) $(6,0001000) $(810001000) $(10,000,000) Cf17 omn( ) ti° ti1 titi ti'' tib by ti� ryti ti° ,y�i' ,tiCf 11 ll 'Ll' .yDt .y�i 1 ,tit' & 1ti ,eCY ,�ti ,y'l% ,y^1 ,yd �1 ,yC4 P, .�41 .�� ti0 ,ti0 ,ti° ,ti° ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ti0 ti0 ,ti0 ,ti° ,ti0 ,ti0 ,ti0� ,ti0 ,ti0 ,ti0 10 20-Year General Fund Operating Surpluses/Deficits $5.3M $4.7M $3.IM $2 4M $2.1M SIAM $0.4M -$0, 7 M -$0.9M - 1.7M -$2.7M -$2.5M -$3.3M $4.4M -$6.5M -$8.5M $10.5M 138 Table of Contents Although it is difficult to estimate the full -impacts of COVID-19 into the near and long-term, the City's fiscal foundation remains strong. With the General Fund's Economic Uncertainty Reserve intact and a healthy unassigned fund balance, the City is poised to withstand the impacts of COVID-19 into the future. 139 Table of Contents Forecast Methodology The financial forecast is a planning tool that helps the City identify important trends and anticipate the long-term consequences of budget decisions. The forecast is instrumental in modeling the effects of retirement costs, employee compensation, and revenues on the City's budget. The forecast is not a plan, but a model based on cost and revenue assumptions that are updated regularly as new information becomes available. Of these components, cost projections, which are based on known costs, are relatively reliable. Revenue forecasts, on the other hand, are based on assumptions related to future economic conditions, which are fraught with uncertainty. Economic forecasts change frequently and demonstrate the difficulties of committing to a particular prediction of the future. For this reason, the forecast is updated regularly. While economic conditions are the primary drivers for economically sensitive revenues such as sales tax and property tax, performance is primarily driven by other factors for non -economically sensitive categories such as the utility user tax and franchise fees. These revenue categories are more heavily impacted by utility rate changes, energy prices, and consumption levels. Collections from local, state, and federal agencies are primarily driven by grant and reimbursement funding available from these agencies. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon a careful examination of the collection history and patterns as they relate to seasonality and the economic environment the City is most likely to encounter in the future. Potential COVID-19 impacts were also considered in determining the most reasonable estimated figures. A discussion of both the national and local economic outlooks used to develop the revenue estimates for the FY 2020-21 forecast is included below. To develop 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 economist Steven Levy of 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. In February 2019, the City began working 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; and • prepare analysis of city charter costs/benefits related to fiscal activities. This forecast includes the updates and enhancements that UFI has made to the City's baseline financial forecast. 140 Table of Contents National Economic Outlook Through the fourth quarter of 2019, the U.S. economy continued to show steady growth. U.S. Gross Domestic Product (GDP) increased by 2.1% in 2019 according to the Bureau of Economic Analysis, compared with an increase of 2.2% in 2018. The increase in real GDP in 2019 primarily reflected positive contributions from personal consumption, exports, residential fixed investment, federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment and nonresidential fixed investment. Through the first quarter of 2020, financial markets have experienced significant turbulence, driven by a high level of uncertainty about the impact of the COVID-19 pandemic on the global economy. There are still many unknowns about the coronavirus including how widespread it will become, how long it will take to contain the virus, and the actual impact on economic activity. During this period of uncertainty, staff believe continued increases in unemployment and deep contractions in overall economic activity will be experienced. Financial markets will likely remain volatile over the near term, though large-scale global monetary and fiscal stimulus programs will assist in mitigating the longer -term impact of the pandemic. As we move forward through the pandemic and more information becomes available, staff will bring forward updates and adjustments to City Council on a regular basis as necessary. Cupertino Economic Outlook Despite strong economic performance continuing in Silicon Valley and Cupertino pre-COVID, data from the State of California Employment Development Department indicates significant impacts as a result of the virus. Due to the timing of property appraisals entering the assessor's role, the City does not anticipate significant impacts to property tax revenues in FY 2020-21. When property values are appraised again in January 2021 and are included in the FY 2021-22 roll, the City will expect to see adverse impacts resulting from COVID-19. Construction activity, although strong in previous years, will continue to flatten out as development projects, particularly Apple Park, are completed. Given the level of volatility surrounding COVID-19 and the uncertainty of recovery time, it is difficult to estimate the timing of significant projects that could have a positive impact on the City's general revenue bases. 141 Table of Contents Revenues The City's top three revenue sources continue to be property tax, sales tax, and transient occupancy tax (TOT). While this will continue to be true, the City will not see the same level of revenue as in recent years. As shown in the chart below, General Fund revenues are expected to decrease from $92.1 million in FY 2019-20 to $79.1 million in FY 2020-21 and increase each year in the forecast. Sales tax and transient occupancy tax are projected to experience significant declines in FY 2020-21 due to COVID-19. Property tax is not anticipated to be affected by COVID-19 in FY 2020-21 due to the timing of assessed market valuations; however, the City anticipates a flattening of property tax revenues in FY 2021-22.Other revenue sources consider assumptions ranging from no growth to conservative growth. $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 20-Year General Fund Revenue Forecast by Category _ _pis g4117.6M �CC168.84110.5MS1= _ $99.9M$lOZ5Wf103.4MS 05,2 M _ Cos ann <os ann $97.7M M = i ■ i tiA ,ti0 ,L .y .y 1", ,Lc1 tit ti$ tiA .�° 1 ti 1ti 33 "�` `, 36 3� 00 3A do do ,yo ,yo ,yo ,yo ,yo 1610,yo ,yo ryo ,yo do ,yo ,yo ,yo .yo .yo ,yo do ,yo ■ Sales Tax ■ Property Tax ■ Transient Occupancy Tax ■ Utility Tax ■ Franchise Fees ■ Other Taxes ■ Licenses and Permits ■ Use of Money and Property ■ Intergovernmental Charges for Services ■ Fines and Forfeitures ■ Miscellaneous ■Transfers In Other Financing Sources 142 Table of Contents REVENUES Sales Tax 26,400,000 20,910,889 24,676,742 25,283,856 25,283,856 25,694,430 Property Tax 25,000,000 25,353,783 25,353,783 26,216,404 26,216,404 27,047,553 Transient Occupancy Tax 5,980,000 7,546,884 10,429,106 10,980,305 10,980,305 11,421,129 Utility Tax 3,000,000 3,223,712 3,248,905 3,274,223 3,274,223 3,299,593 Franchise Fees 3,200,000 3,280,447 3,398,437 3,516,427 3,516,427 3,630,586 Other Taxes 1,200,000 1,212,939 1,258,424 1,299,952 1,299,952 1,338,951 Licenses and Permits 2,500,000 3,139,473 3,155,170 3,170,946 3,170,946 3,186,801 Use of Money and Property 1,190,000 1,246,510 1,252,743 1,259,006 1,259,006 1,265,301 Intergovernmental 400,000 335,567 337,245 338,931 338,931 340,626 Charges for Services 11,100,000 11,091,064 11,706,449 12,008,698 12,008,698 12,320,895 Fines and Forfeitures 400,000 425,000 425,000 425,000 425,000 425,000 Miscellaneous 1,300,000 1,003,857 1,061,182 1,116,638 1,116,638 1,172,656 Transfers In 10,020,000 15,000 - - - - Other Financing Sources 400,000 275,000 - - - - TOTAL REVENUES 92,090,000 79,060,125 86,303,187 88,890,385 88,890,385 91,143,521 Sales Tax Sales Tax 26,400,000 20,910,889 24,676,742 25,283,856 25,283,856 25,694,430 Currently, sales tax is the City's largest revenue source. Sales taxes are collected at the point of sale and remitted to the California Department of Tax and Fee Administration (formerly the Board of Equalization), which allocates tax revenue owed to the City in monthly payments. 30,000,000 25.000.007 2o.00n,rr:: 2s,avo,000 s,aaa,aoo 5-Year Sales Tax Forecast 2019.20 2020-21 2022.22 2022.2a 2023.24 2024.25 In FY 2020-21, sales tax is projected to experience a significant decrease due to COVID-19. Sales tax revenue projections have been reduced by 18% ($4.7M) from original forecasts due to COVID-19. Sales tax is assumed to return to 90% of normal across industry groups in FY 2021-22. Sales tax is projected to grow by an average annual growth rate of 2.20% in the forecast. Conservative forecasts were used for business and industry, general consumer goods, restaurants and hotels, and state and county pools. Business -to -business (B2B) revenue is the largest portion of the City's sales tax base, so the City's sales tax revenue is sensitive to economic forces. In particular, the City's two largest sales tax sources —both technology companies —account for a large portion of the City's total sales tax 143 Table of Contents base. Sales tax revenue is reported two quarters in arrears thus providing the City with about six months to react if this revenue source starts to decline. Given the volatility of B2B revenue, which accounts for the majority of the City's sales tax revenue, a key goal of the City's long-term fiscal strategic plan is to diversify its sales tax base by promoting the general retail and food product sectors. Recently completed development projects such as Nineteen800 and Main Street are expected to boost retail sales and reduce the City's reliance on 13213 revenue. Property Tax Property Tax 25,000,000 25,353,783 25,353,783 26,216,404 26,216,404 27,047,553 Property tax is not anticipated to be significantly affected by COVID-19 in FY 2020-21 due to the timing of assessed market valuations; however, the City anticipates a flattening of the property 5-Year Property Tax Forecast tax revenues in FY 2021-22. Property tax 30,000,OW revenues have been reduced by $0.7M from original forecasts. Property tax 25,000,OW revenues are projected to increase by an average annual growth rate of 1.94% in 2o.oa3,nr:: our forecast. Moderate growth is 2s,aoa,00a projected in the out -years. The forecast is based on a combination of factors i0.0oo.0aa including historical trends for the City and forecasts for the region. Historically, S,Oan.c _ property tax has increased at an average annual growth rate of 11.6%. However, 2019-2D 2020.21 2021.22 2022.23 2023.24 2024-25 this moderate forecast projects a much lower growth rate to account for the fact that no major development projects are expected in the City. The reduction in development activity will reduce the City's property tax growth in the future. Major development projects, such as Main Street and Apple Park, were a significant contributor to the historical growth in property tax revenues. Transient Occupancy Tax 5,980,000 7,546,884 10,429,106 10,980,305 10,980,305 11,421,129 144 Table of Contents 1400a.000 10,000.E 9.WGIO a 6.000.000 a.W0,W0 5-Year Transient OccupancyTax Forecast 2019.20 2020-21 2022.22 2022.23 2023.24 2024-25 In FY 2019-20 and FY 2020-21, transient occupancy tax (TOT) revenues are expected to experience a significant decrease due to COVID-19. FY 2020-21 TOT revenue projections have been reduced by 25% ($2.5M) from original forecasts due to COVID-19-related hotel closures that began in mid -March 2020. This forecast assumes that the hotel closures continue through September 2020, an effective loss of one full quarter (July 1, 2020 to September 30, 2020) of TOT revenue. In the forecast, TOT is projected to increase at an average annual growth rate of 4.4%. The City used a moderate forecast based on historical tax collections. This moderate forecast assumes slower growth compared to historical trends given that no additional hotels are expected to open after 2020. The De Anza Hotel and Cupertino Village Hotel are not included in the forecast as they have not been permitted yet. TOT revenues are impacted by the tax rate charged on hotels in the City, the occupancy rate of the hotels, and the average daily room rates (ADR) of the hotels. TOT revenues are highly correlated with B2B revenue, as TOT revenues in Cupertino are primarily driven by business travel. While occupancy rates were previously at record levels, they have declined significantly due to COVID-19. Given the large amount of business travel in the City, a decline in the economy could continue to have a significant impact on this revenue source. Licenses and Permits Licenses and Permits 2,500,000 3,139,473 3,155,170 3,170,946 3,170,946 3,186,801 145 Table of Contents Licenses and permits are forecasted to decrease in FY 2020-21 due to reduced development s-Year Licenses &Permits Forecast activity but increase slightly in the out - years. Licenses and permits revenue is projected to grow at a rate of 0.5% each year in the out -years. The forecasts were based on forecasts of California residential building permits, non- residential building permits, and construction payrolls from the UCLA Anderson Forecasts for the Nation and California. Out of prudence, this forecast does not reflect any major development projects that are awaiting 2019-M 2020.21 2022.22 2022.23 2023.24 2014.25 approval. If new development projects are approved, this forecast will be updated accordingly. Charges for Services Charges for Services 11,100,000 11,091,064 11,706,449 12,008,698 12,008,698 12,320,895 Revenues from charges for services have decreased from their levels in FY 2016-17, primarily due to a decrease in development activity. In FY 2019-20 and FY 2020-21, revenues from charges for services will decrease due to COVID- 5 -Ye ar Charges for Services Forecast 19. During the COVID-19 pandemic, the 13"°0010W City's recreation facilities have been shut down as a result of the Stay -at -Home order issued by the Santa Clara County iz°oo•o Public Health Department in mid -March 2020. After FY 2020-21, revenue is projected to increase at an average annual growth rate of 1.98%. Other 11'°0010°° Service Fees, Cost Allocation Plan Charges for Services, General Service Fees, and Enterprise Service Fees are projected to increase by 2.5% based on 2019.20 2000-21 2021.22 2022-B 2023.24 2024'2S full-time salary growth. Planning Fees and Engineering Fees are based on construction and development factors including California residential building permits, non-residential building permits, and construction payrolls from the UCLA Anderson Forecasts for the Nation and California. This forecast does not assume any major development projects that are awaiting approval. 146 Table of Contents Other Revenue Utility Tax 3,000,000 3,223,712 3,248,905 3,274,223 3,274,223 3,299,593 Franchise Fees 3,200,000 3,280,447 3,398,437 3,516,427 3,516,427 3,630,586 Other Taxes 1,200,000 1,212,939 1,258,424 1,299,952 1,299,952 1,338,951 Use of Money and Property 1,190,000 1,246,510 1,252,743 1,259,006 1,259,006 1,265,301 Intergovernmental 400,000 335,567 337,245 338,931 338,931 340,626 Fines & Forfeitures 400,000 425,000 425,000 425,000 425,000 425,000 Miscellaneous 1,300,000 1,003,857 1,061,182 1,116,638 1,116,638 1,172,656 Transfers In 10,020,000 15,000 - - - - Other Financing Sources 400,000 275,000 - - - - 10,981,936 11,230,177 11,230,177 11,472,713 Utility taxes are forecasted to increase by 0.8% each year based on historical trends. In recent years, increases in rates have been offset by decreases in consumption. Franchise fees are projected to increase by an average annual growth rate of 2.2% based on a trend of historical data. Other taxes are made up of construction, property transfer, and business license tax revenue. Revenue is projected to increase by an average of State and County CPI. Use of money and property is expected to grow at a rate of 0.5% each year based on the City's current conservative investment strategy and low interest rates. Intergovernmental revenues are projected to grow at a rate of 0.5% each year. Fines and Forfeitures are forecasted to remain constant in the forecast. Miscellaneous revenues are forecasted to increase by CPI each year. Non -operational revenues (Transfers and Other Financing Sources) are not assumed in the forecast. 147 Table of Contents Expenditures For FY 2020-21, the City developed a zero -base budget in which all expenses were justified. The process started from a "zero base" and every function of the City was analyzed for its needs and costs. The budget was then built around what was needed for the upcoming period, regardless of the previous fiscal year's budget. This best practice resulted in base budget savings from the prior year. The forecast was developed based on actual expenditures in prior years, and then adjusted for FY 2020-21 funding needs. The forecast also included the following factors: State and County CPI, construction and development activity, and CAPERS Normal Cost and Unfunded Liability projections. The forecast is adjusted to account for one-time changes and budget adjustments throughout the year. To mitigate the impacts of COVID-19, the City is taking steps to reduce expenditures by increasing vacancy levels through attrition, reducing materials, reducing contract services, reducing contingencies, and reducing the amount of special project and capital outlay spending. $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 ti $(20,000,000) 20-Year General Fund Expenditure Forecast by Category $127.1N 5124.4M $121.7 $118.8M .. .. ... $113.2M 11O.4M $107.7 $Sa4.9M' laZ6M $laZ6R$1a2.1M 599.SM $91.3 M $88.7M $83.6M $86.8M $79.7M $81.6M LO yti yL y� tiP 1h ti0 tit 3A 311 0 1 O.y,'b 01 O•e$ 0 1 11 0,11 Oti0 1 O.yO O.y'y Oti3 0,64 O.yh Otis 030 0�' O� O�`1 0111 ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ■ Employee Compensation ■ Employee Benefits ■ Materials ■ Contract Services ■ Cost Allocation ■ Capital Outlays ■ Special Projects ® Contingencies ■ Transfers out Other Financing Uses ■ Salary Savings 148 Table of Contents EXPENDITURES Employee Compensation 18,600,000 20,295,000 21,277,287 21,862,605 22,463,932 23,081,752 Employee Benefits 7,840,000 8,903,632 9,523,109 9,834,182 10,357,214 10,773,667 Salary Savings - (800,000) (1,600,000) (2,400,000) (3,200,000) (3,200,000) Personnel Costs 26,440,000 28,398,632 29,200,395 29,296,78 29,621,146 30,655,419 Materials 4,540,000 6,058,121 6,285,301 6,492,715 6,693,990 6,894,809 Contract Services 23,050,000 22,051,314 23,220,527 24,342,246 25,488,522 26,666,385 Cost Allocation 9,790,000 10,473,534 11,091,473 11,396,488 11,709,891 12,031,913 Capital Outlay 710,000 - 100,000 110,067 113,480 116,884 Special Projects 5,930,000 1,448,852 532,756 550,337 567,398 584,420 Contingencies 980,000 824,350 878,355 907,341 935,469 963,533 Other Uses 250,000 525,000 - - - - Non -Personnel Costs 45,250,000 41,381,171 42,108,412 43,799,195 45,508,749 47,257,944 IF Transfers 30,890,000 9,948,689 10,332,631 10,488,579 10,666,703 10,828,047 TOTAL EXPENDITURES 102,580,000 79,728,492 81,641,438 83,584,561 85,796,598 88,741,410 As displayed in the chart above, General Fund expenditures are projected to decrease from $102.6 million in FY 2019-20 to $79.7 million in FY 2020-21. The main drivers of expenditure growth are employee benefits and contract services due to rising retirement rates and Law Enforcement costs. The following discussion focuses on the assumptions used for estimating each of the expenditure categories in the General Fund Forecast. Personnel Expenditures Salaries The forecast includes equity adjustments, cost of living increases, step increases, and known benefit increases in retirement and health insurance. During FY 2018-19, the City negotiated new labor agreements with its bargaining groups, CEA and OE3, as the previous labor agreements were scheduled to expire on June 30, 2019. On July 16, 2019, City Council approved new contracts for CEA, OE3, and Unrepresented employees. The contracts, which are effective from July 1, 2019 to June 30, 2022, include equity adjustments for positions that are below the median of the market and cost of living adjustments (COLAs) for all positions. Koff and Associates conducted a salary study to determine if equity adjustments were necessary. If the base salary of a position was below median of the market, the position will receive an adjustment, from 1% to 15%, until the base salary is aligned with the median of the market. The adjustments will be phased in over the three-year agreement at a maximum of 5% per year. The contracts also include cost of living adjustments according to the following schedule: • 4.0% - effective the first full pay period in July 2019 following Council adoption, • 3.5% - effective the first full pay period in July 2020, and 149 Table of Contents • 3.0% - effective the first full pay period in July 2021. Step increases are due to employees below Step 5 progressing to higher salary steps. Full-time salaries are projected to grow at a rate of 2.5% per year, which is based on historical trends in step increases. It is slightly lower than the presumed rate of growth by Ca1PERS. Part-time salaries are forecasted to grow at a rate of 1.5% as they generally grow at a slower pace than full-time salaries. To mitigate the effects of COVID-19, the City plans to increase vacancy levels through attrition. The City will not fill unessential positions when they become vacant. The City plans to hold 5 positions vacant in FY 2020-21 and gradually increase to 20 positions vacant in FY 2023-24. This strategy will save the City up to $800,000 in FY 2020-21 and up to $3.2 million per year starting in FY 2023-24. Health Benefits In FY 2020-21, health benefits account for about 8% of all personnel costs in the General Fund, mostly due to health insurance costs. The City pays employees a fixed amount for health and dental insurance costs, as opposed to covering a percentage of premiums. In October 2016, City Council approved labor contracts that resulted in significant increases to the City's health insurance contributions. For the duration of a contract, cost increases in health and dental premiums above the negotiated amounts are fully absorbed by employees. The City is currently in negotiations with its bargaining groups, CEA and OE3. While not factored into the forecast, there is uncertainty about the fate of the Affordable Care Act (ACA). Rate increases have stabilized with the implementation of the ACA. Still looming is the so-called "Cadillac Tax' which, beginning in 2022, will impose an excise tax for any employer - sponsored health coverage whose value exceeds $10,200 per year for individuals and $27,500 for families. A 40% excise tax will be imposed on the amount that exceeds the predetermined thresholds. Most of the City's current health plans would fall under the definition of a Cadillac plan, which could increase the City's cost of providing health benefits to employees. The City's health care administrator, CAPERS, has given assurances that coverage plans will fall below the Cadillac Tax threshold. Retirement Benefits Rising retirement costs are driving the increase in employee benefits. Cupertino provides retirement benefits for its employees through the California Public Employee's Retirement System (Ca1PERS). In December 2016, the Ca1PERS Board of Administration lowered the discount rate from 7.5% to 7.0% with a three-year phase -in beginning in FY 2018-19. This change will result in significant increases in retirement costs but was implemented to improve the financial stability of the pension system. As a result of the discount rate reduction, the City's Ca1PERS costs are projected to increase to $7.5 million in FY 2024-25 as shown in the table below.' 150 Table of Contents Projected Payroll $ 19,490,834 $ 20,026,831 $ 20,577,569 $ 21,143,452 $ 21,724,897 $ 22,322,332 Normal Cost (%) 11.3% 11.3% 11.3% 11.3% 11.3% 11.3% Normal Cost $ 2,203,634 $ 2,264,234 $ 2,326,500 $ 2,390,479 $ 2,456,217 $ 2,523,763 UAL Payment $ 3,607,122 $ 4,056,000 $ 4,448,000 $ 4,724,000 $ 5,001,000 $ 4,775,000 Total Contribution $ 5,810,756 $ 6,320,234 $ 6,774,500 $ 7,114,479 $ 7,457,217 $ 7,298,763 Total Contribution (%) 29.8% 31.6% 32.9% 33.6% 34.3% 32.7% The City's retirement rates are based on a blend of all three tiers (2.7% @ 55, 2% @ 60, and 2% @ 62). Although employees pay a different rate depending on their tier, the City's costs are the same for all 3 tiers. The table below shows the current breakdown of City employees amongst the three retirement tiers. The majority of employees in the City are currently covered under Tier 3. Savings from the lower -cost Tier 2 and Tier 3 plans are not expected to be substantial for several years. I 81 2.7% @ 55 Highest Year 29.81% 8.00% 37.81% II 14 2% @ 60 Highest 3 Year Average 29.81% 7.00% 36.81% III 105 2% @ 62 Highest 3 Year Average 29.81% 6.25% 36.06% Other Benefits The forecast assumes health insurance, dental insurance, and vision insurance increase at 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 actual expenditures in prior years, and then adjusted for FY 2020-21 funding needs. In addition, one-time projects have been excluded to ensure that expenditure trends reflect ongoing expenditure needs. Contingency budgets are assumed to be reduced by 50% over the prior year, as a cost -saving measure. For the out -years of the forecast, a growth rate based on an average of State and County CPI is assumed from the baseline. The average growth rate for State and County CPI is 3.00%. The CPI estimates are based on the following forecasts: • UCLA Anderson Forecast for the Nation and California and • California Department of Transportation's California County -Level Economic Forecast. Materials costs are forecasted to increase by CPI in the out -years of the forecast. Contract Services costs are projected to grow by CPI in the out -years of the forecast with the exception of the Law Enforcement contract with the Santa Clara County Sheriff's Office. Increases to the City's Law Enforcement costs are a primary driver in the City's expenditure growth. Law 151 Table of Contents Enforcement costs are projected to grow by CPI plus 2%. The major increase in contracts is driven by increases in Ca1PERS costs at the Santa Clara County Sheriff's Office that will be passed on to the City per the contract's terms. Cost Allocation is projected to grow by 2.5% in the out -years. This estimate is conservative as savings may materialize in department budgets that may drive these costs down. Capital Outlays and Special Projects are projected to increase by CPI in the forecast. In the last five years, the City has spent about $2 million per year in capital outlay and special project costs excluding development projects that include pass through revenue. Contingencies are projected to increase by CPI in the forecast. Contingencies for each program have been cut in half to 2.5% whereas in prior years, contingency totals were 5% of the total General Fund and 5% of Material and Contract budgets. The City has historically underspent in this category and use of these funds would require pre -approval by the City Manager or his/her designee. Transfers represent the General Fund's contributions to other City funds to support debt payments, pay retiree health costs, finance capital projects, replenish capital project reserves, acquire new equipment, and subsidize enterprises and operations. With the implementation of the full cost allocation plan in FY 2015-16, General Fund expenses have been shifted to other City funds causing some of those funds' revenues to fall short of expenses and necessitating the use of fund balances to cover expenses. The General Fund benefits in the near term with the cost shift, however, after fund balances in those other funds are drawn down to minimum levels, and absent aggressive revenue or cost actions in those other funds, General Fund subsidies are necessary to maintain those fund balance minimums. Projected General Fund subsidies to each fund are based on the following assumptions: • Special Revenue Funds: increases at a rate of 2.12% per year; • Debt Service Funds: 2012 COPS debt service schedule; • Retiree Medical Fund: projected OPEB contribution schedule; • Compensated Absences Fund: increases at a rate of 2.5% per year; • Innovation and Technology Fund: increases at CPI per year; • Vehicle and Equipment Replacement Fund: increases at CPI per year; and • Enterprise Funds: increases at CPI per year. In FY 2029-30, the City will finish paying off its debt for city facilities. Until FY 2029-30, the City is scheduled to pay approximately $3.17 million per year in principal and interest on the City Hall/Library, Wilson/Memorial Open Space and Library Certificates of Participation. These funds are transferred from the City's General Fund to the City's Debt Service Funds. 152 Table of Contents Pension CAPERS The City provides a defined benefit pension to its employees through the California Public Employees' Retirement System (Ca1PERS). Retirement benefits are calculated using a formula based on an employee's age, earnings, and years of service. These are funded by a combination of investment earnings (58%), employer contributions (29%), and employee contributions (13%). Investment Earnings IE Each year, Ca1PERS determines an employer' contributions based on actual investment returns and actuarial assumptions including expected investment returns (discount rates), inflation rates, salaries, retirement ages, and life expectancies. Ca1PERS Discount Rate The City's pension plan is sensitive to the discount rate assumption set by Ca1PERS. The discount rate is the expected rate of return of the plan's assets over the long term. The discount rate will depend on the plan's size, asset allocation, time horizon, and other considerations. From the City's perspective, the discount rate is important as it is used to determine the City's annual contributions to the plan, the plan's unfunded liability, and the plan's funded status. The discount rate is important in assessing whether a plan has enough assets to meet its future obligations. The discount rate must be realistic to allow the City to foresee funding issues that may impact future operating budgets and future generations of retirees and plan members. If the discount rate assumption is too high and investments earn less than expected, a funding shortfall may result, requiring the City or Ca1PERS members to make greater contributions than expected. Ca1PERS Investment Earnings Since nearly 60% of retirement benefits are funded by investment earnings, the City's pension plan is sensitive to the investment returns of the CAPERS fund. Investment returns affect how much of the retirement benefits can be funded by investment earnings rather than by contributions. If investment returns are lower than the discount rate, contributions must increase to make up the difference. As a result, pension plans need accurate return assumptions to ensure fiscal sustainability. 153 Table of Contents IE estment arnings Contributiorjs Currently, CAPERS assumes it will earn investment returns of 7% each year. As illustrated in the following chart, over the last 20 years, Ca1PERS has earned investment returns below the 7% assumption approximately half of the time, and individual fiscal year investment returns have ranged between -24.0% and +21.7%. In particular, Ca1PERS earned negative investment returns in 2001 and 2002 due to the dot-com crash and in 2008 and 2009 due to the Great Recession. 30.00% 20.00% 10.00% 0.00% M00% -20.00% CaIPERS Historical Annual Investment Returns 10.' 09:i 16.60% 12.30% 11.80% 1 1 1 1 1 1 -24.00% 2' .-01, _a,405.; '_3.30% '_3.209'£ I ' 11.20% a.w% a.70% z.ao% co. -30.00 % 1 01 oti o� o° oh o`° oA oe 10 11 1ti 13 1a r1 �ry e �a ce e 0 le e 1'r 011 o1, o11 o111 o11"t o11s oti^ olar o111s ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti IIIIIIIIIIIIIIAnnual Investment Return -Current Discount Rate Note: Beginning in 2002, investment returns are reported as gross of fees. For FY 2018-19, CAPERS earned an investment return of 6.7%. For FY 2019-20, CAPERS reported a preliminary investment return of 4.7%, bringing the average investment return to 6.3% for a 5- 154 Table of Contents year period, 8.5% for a 10-year period, 5.5% for a 20-year period, and 8.0% for a 30-year period. Given that returns in a given year are volatile, it can be more instructive to look at returns over longer time horizons. 1 Year 4.7% 5 Year 6.3% 10 Year 8.5% 20 Year 5.5% 30 Year 8.0% While the 10-year and 30-year investment return are above the 7% discount rate, the 5-year and 20-year investment return are below the 7% discount rate. Ca1PERS Plan Status As of the most recent actuarial valuation on June 30, 2018, the City's pension plan had assets of $93.6 million and liabilities of $141.0 million, resulting in an unfunded liability of $47.5 million and a funded ratio of 66.3%. The unfunded liability is the difference between assets and liabilities while the funded ratio is the ratio of assets to liabilities. Present Value of Projected Benefits Entry Age Normal Accrued Liability Market Value of Assets Unfunded Accrued Liability Funded Ratio 150,083,854 $ 167,128,950 127,138,300 $ 141,033,621 86,617,172 $ 93,550,299 40,521,128 $ 47,483,322 68.1% 66.3% A defined -benefit plan is considered adequately funded if its assets equal or exceed the value of its future liabilities. When the funded ratio is lower than 100%, the plan has insufficient assets to pay all future liabilities. Poor investment returns during the Great Recession significantly decreased the plan's assets. In addition, enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities. These two factors increased the gap between the plan's assets and liabilities, resulting in the overall funded status of the system falling significantly. After a thorough analysis, Ca1PERS actuaries determined that the retirement system was at significant risk of falling to dangerously low funded status levels under existing actuarial policies. Over the past few years, Ca1PERS has taken steps to improve the long-term financial sustainability of the system. In December 2016, the Ca1PERS board voted to reduce the discount rate, also known as the assumed rate of return for investments, from 7.5% to 7.0% over three years from FY 2018-19 to FY 2020-21. In February 2018, the Ca1PERS board also voted to decrease the amortization period for new pension liabilities from 30 years to 20 years effective July 1, 2019. 155 Table of Contents While these changes will provide long-term benefits to the pension plan, they will also increase the City's pension contributions. Impacts of CAPERS Investment Returns The current volatility in the financial markets is projected to have significant impacts on the City's pension costs. Since FY 2019-20 investment returns are reported as of June 30, 2020, they reflect both the bull market in the first half of the fiscal year and the COVID-19-related volatility in the second half. Ca1PERS assumes it will earn investment returns of 7% each year. If the investment return for FY 2019-20 is below the 7% discount rate, the City's required pension contributions will increase to make up for the difference. Due to the timing of actuarial valuations, the annual investment return for FY 2019-20 will affect the City's pension contributions starting in FY 2022-23. The contribution increase will be amortized over 20 years and phased in over 5 years. If the FY 2019-20 investment return is lower than the 7% discount rate by 1 percentage point, the City's pension contributions increase by up to $0.13 million per year. Since the FY 2019-20 investment return is 4.7%, the City's pension plan experiences a 2.3% (7% - 4.7%) investment loss. As a result, the City's pension contributions are estimated to increase according to the following schedule: FY 2022-23 $0.06 million FY 2023-24 $0.12 million FY 2024-25 $0.18 million FY 2025-26 $0.24 million FY 2026-27 to FY 2041-42 $0.30 million The impact will be $0.06 million in FY 2022-23 and will ramp up to $0.30 million in FY 2026-27, continuing until FY 2041-42. Impacts of CAPERS Discount Rate Changes While CAPERS currently uses a discount rate of 7%, market experts project lower returns for the next several decades due to lower -than -historical interest rates and economic growth. The Pew Research Center forecasts a long-term investment return of 6.4% while J.P. Morgan, and Wilshire Associates forecast a long-term investment return of 6.5% for typical pension fund portfolios. If the discount rate is less than 7%, the City's Ca1PERS contributions will increase. If Ca1PERS lowers the discount rate by 0.5 percentage points, the City's contributions will increase by up to $1.2 million per year in the City's forecast. This analysis shows the potential contribution impacts if Ca1PERS were to lower the discount rate based on lower expected investment returns. 156 Table of Contents Section 115 Trust A Section 115 Trust is a tax-exempt investment tool that allows local governments to pre -fund pension and retiree health costs. Once contributions are placed into the trust, assets from the trust can only be used for retirement plan purposes. Withdrawals may be made to either reimburse the City for retirement system contributions or to directly pay Ca1PERS. The benefits of a Section 115 Trust include the following: • Local control over assets: The City controls the contributions, withdrawals, investment strategy, and risk level of assets in the Trust. • Pension rate stabilization: Assets can be transferred to Ca1PERS at the City's discretion to pay for Normal Cost or UAL contributions, and can be used to reduce or eliminate large fluctuations in the City's pension costs. • Potential for higher investment returns than General Fund: Investment requirements that apply to the City's General Fund assets under Government Code 53601 are not applicable to Trust assets. • Diversification: Trust assets will be diversified from Ca1PERS investments. City Strategies Given that pension obligations are one of the City's largest financial obligations, the City has taken proactive steps to reduce the impacts of pension cost volatility. In March 2018, the City provided options to Council on address rising pension costs. In April 2018, the City presented a long-term pension funding strategy to the Fiscal Strategic Plan Committee. In May 2018, the City implemented a Pension Rate Stabilization Program (PRSP), also known as a Section 115 Trust, to reduce the effect of pension rate volatility on the City's budget. The City contributed $8.0 million in FY 2018-19 and $4.0 million in FY 2019-20, bringing total contributions to $12.0 million. As a fiscal sustainability measure, the City funds the Section 115 Trust using a more conservative discount rate of 6.5%. The City plans to accumulate sufficient funds in the Section 115 Trust to fund the difference between a 6.5% and a 7% discount rate. To achieve this goal, the funding strategy proposed $8.0 million in initial funding, along with additional funding of $10.0 million over the first five years. By using a more conservative discount rate than Ca1PERS, the City is able to allocate more towards pension funding each year than required by Ca1PERS. Given this strategy and the $12 million currently set aside for pension funding, the City is in a strong position to withstand the effects of pension cost increases. If CaIPERS investment returns fall short of assumptions, the City will be better prepared for future pension cost increases. If the discount rate is lowered in the future, which is a distinct possibility, the City will be better prepared to absorb these costs. 157 Table of Contents Fund Balance The General Fund's fund balance is projected to be $50.6 million in FY 2020-21. It is projected to initially increase to $69.6 million in FY 2026-27 and then decrease due to increasing operating deficits. $80, 000,000 $70, 000,000 $60, 000,000 $50, 000,000 $40, 000,000 $30, 000,000 $20, 000,000 $10, 000,000 20-Year General Fund Fund Balance Forecast $69.6M $683M $66.1M 66.9M 6M $63.7M $64'3M $64.$63.2M $60.6 $69.7M $55.3 $53.4M 53.0M $50.6 0.9M 3.SM .OM .SM yo y0 by titi ti� yA `1 ti� 111 1 6 1ti9 n0 yti 1^11 �y^� n11 `1 n,d yI 1 � 1 .�0 .10 .10 .10 .10 .10 .10 .10 .�0 .�0 .�O .�O .y0 .y0 .y0 .y0 .y0 Beginning Fund Balance 58,922,585 53,438,546 50,602,143 55,263,892 60,569,715 63,663,503 Operating Revenue 92,090,000 79,060,125 86,303,187 88,890,385 88,890,385 91,143,521 Operating Expenditures 102,580,000 79,728,492 81,641,438 83,584,561 85,796,598 88,741,410 Net Revenues - Expenditures (10,490,000) (668,367) 4,661,749 05,305,824 3,093,787 2,402,110 Unassigned 17,500,000 14,672,597 19,334,346 24,640,169 27,733,957 30,136,067 All Other Classifications 35,938,546 35,929,546 35,929,546 35,929,546 35,929,546 35,929,546 TOTAL FUND BALANCE 53,438,546 50,602,143 55,263,892 60,569,715 63,663,503 66,065,613 158 Table of Contents Non -Spendable Loans Receivable 455,000 446,000 446,000 446,000 446,000 446,000 Prepaid Items ` Total Non -Spendable 455,000 446,000 446,000 446,000 446,000 446,000 Restricted Debt Service 13,982 13,982 13,982 13,982 13,982 13,982 Section 115 Trust 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 Public Access Television 1,346,167 1,346,167 1,346,167 1,346,167 1,346,167 1,346,167 Total Restricted 13,360,14W 13,360,149 13,360,149 13,360,149 13,360,149 13,360,149 Committed Economic Uncertainty 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 Sustainability Reserve 123,397 123,397 123,397 123,397 123,397 123,397 PERS 12,000,000 - - - - - 111111111"otal Committed 19,123,397 19,123,397 19,12 , 19,123,397 19,123,397 Assigned Reserve for Encumbrances 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Total Assigned 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Total Unassigned 17,500,000 14,672,597 19,334,346 24,640,169 27,733,957 30,136,067 ` TOTAL FUND BALANCE 53,438,546 50,602,143 55,263,892 60,569,715 63,663,503 66,065,613 It is anticipated that any unassigned fund balance over the $500,000 threshold will be transferred to the Capital Reserve, the Ca1PERS Reserve, or the Section 115 Trust. In FY 2018-19, the City adopted a Section 115 as part of a long-term strategy to improve the financial sustainability of the City's pension system and reduce the effect of pension rate volatility on the City's operating budget. The City will be able to use funds from the Section 115 Trust to offset unexpected increases in retirement contributions. Funds in the Section 115 Trust are restricted and can only be used to pay Ca1PERS or reimburse the City for pension contributions. 159 Table of Contents Budget -Balancing Strategies Historically, the City's budget has been structurally sound with revenues exceeding expenditures in most years. When revenues have exceeded expenditures, excess fund balance was transferred to the Capital Reserve per the City's One Time Use and Reserve Policy. The current 5-year and 20-year forecasts anticipate operating deficits beginning in FY 2027-28. The operating deficits are projected to increase as revenues grow at a slower pace than expenditures. As a result, the following strategies may be used to assist in balancing the budget over the next 20 years. Strategy Description Potential Impact Expenditures Smoothing mechanism for years when Ca1PERS does not meet discount rate Fund is Section 115 Trust projections or assumption changes. currently at $12 Can also be used to offset pension costs in any million given year. Economic Uncertainty The City has $19 million in its Economic Fund is currently at $19 Reserve Uncertainty Reserve (General Fund). million Salary and benefit $160,000 per savings through Keep non -essential positions unfilled as they position on attrition become vacant. average per vacancy Reduction in capital . to $15 outlays and special Cost containment strategy million mllion projects Reduction in Cost containment strategy Up to $850,000 contingencies Additional Potential Strategies The following potential strategies, although not recommended at this time, may be considered in future years if sharp declines in revenues or increases in expenditures cause a large structural deficit. Strategy Description ImpactPotential Potential Revenues Part of Council work program to tax Employer -based businesses based on number of employees, $10 million business license tax voter approval needed. Voter approval required, would bring sales 1/4 cent Sales Tax $34 million tax from 9% to 9.25% for the City. Transient Occupancy Voter Approval required, could bring rate $2 million Tax Measure from 12% to 14% 160 Table of Contents Expenditures $250,000 Employee cost -sharing Negotiate to share costs of increases to approximate of increases to Ca1PERS Ca1PERS employer rates with employees. based on 5% rate increase No new positions Cost containment strategy $0 $300,000 Employees would take up to 20 hours or the Furloughs equivalent of a 1% decrease in pay in approximate exchange for 2.5 unpaid furlough days based on 1% decrease The City has negotiated a 3.5% increase $300,000 Deferring or effective the first pay period in July 2020 and a Eliminating negotiated 3% increase effective the first pay period in approximate increases July 2021. This would require agreement from based on 1% the bargaining units. decrease The City would identify what positions could Varies but be reduced (laid off) based on provisions in approximately Reduction in force the MOUs where applicable and service level $160,000 on needs in the City. average per position 161 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - General Fund Revenues Sales Tax 24,901,779 25,637,093 26,400,000 20,910,889 24,676,742 25,283,856 25,283,856 25,694,430 Property Tax 25,301,094 24,703,218 25,000,000 25,353,783 25,353,783 26,216,404 26,216,404 27,047,553 Transient Occupancy Tax 8,901,337 9,666,056 5,980,000 7,546,884 10,429,106 10,980,305 10,980,305 11,421,129 Utility Tax 3,089,921 3,198,644 3,000,000 3,223,712 3,248,905 3,274,223 3,274,223 3,299,593 Franchise Fees 3,445,253 3,162,457 3,200,000 3,280,447 3,398,437 3,516,427 3,516,427 3,630,586 Other Taxes 1,659,916 1,181,050 1,200,000 1,212,939 1,258,424 1,299,952 1,299,952 1,338,951 Licenses and Permits 4,102,665 2,524,000 2,500,000 3,139,473 3,155,170 3,170,946 3,170,946 3,186,801 Use of Money and Property 2,680,997 1,330,579 1,190,000 1,246,510 1,252,743 1,259,006 1,259,006 1,265,301 Intergovernmental 473,942 354,547 400,000 335,567 337,245 338,931 338,931 340,626 Charges for Services 10,977,805 13,233,225 11,100,000 11,091,064 11,706,449 12,008,698 12,008,698 12,320,895 Fines and Forfeitures 511,472 615,000 400,000 425,000 425,000 425,000 425,000 425,000 Miscellaneous 1,102,316 882,283 1,300,000 1,003,857 1,061,182 1,116,638 1,116,638 1,172,656 Transfers In 10,000 12,000 10,020,000 15,000 - - - - Other Financing Sources 1,671,445 600,000 400,000 275,000 - - - - TOTAL REVENUES 88,829,941 87,100,152 92,090,000 79,060,125 86,303,187 88,890,385 88,890,385 91,143,521 162 Table of Contents Fiscal Year 2020-21 Adopted Five -Year Forecast - General Fund Budget Expenditures Employee Compensation 17,232,957 19,030,922 18,600,000 20,295,000 21,277,287 21,862,605 22,463,932 23,081,752 Employee Benefits 6,963,384 7,924,552 7,840,000 8,903,632 9,523,109 9,834,182 10,357,214 10,773,667 Salary Savings - - - (800,000) (1,600,000) (2,400,000) (3,200,000) (3,200,000) Personnel Costs 24,196,341 26,955,474 26,440,000 28,398,632 29,200,395 29, 29,621,146 30,655,419 Materials 4,494,677 5,666,631 4,540,000 6,058,121 6,285,301 6,492,715 6,693,990 6,894,809 Contract Services 20,361,957 21,603,686 23,050,000 22,051,314 23,220,527 24,342,246 25,488,522 26,666,385 Cost Allocation 9,368,223 9,786,477 9,790,000 10,473,534 11,091,473 11,396,488 11,709,891 12,031,913 Capital Outlays - - 710,000 - 100,000 110,067 113,480 116,884 Special Projects 4,211,639 3,699,385 5,930,000 1,448,852 532,756 550,337 567,398 584,420 Contingencies - 1,070,049 980,000 824,350 878,355 907,341 935,469 963,533 Other Financing Uses 381,262 783,209 250,000 525,000 - - - - Non -Personnel Costs 38,817,758 42,609,437 45,250,000 41,381,171 42,108,412 43,799,195 45,508,749 47,257,944 Transfers 19,376,087 10,539,557 30,890,000 9,948,689 10,332,631 10,488,579 10,666,703 10,828,047 TOTAL EXPENDITURES 82,390,187 80,104,468 102,580,000 79,728,492 81,641,438 83,584,561 85,796,598 88,741,410 163 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - General Fund Fund Balance Beginning Balance 53,589,690 58,922,585 58,922,585 53,438,546 50,602,143 55,263,892 60,569,715 63,663,503 Unassigned 27,896,128 12,801,317 17,500,000 14,672,597 19,334,346 24,640,169 27,733,957 30,136,067 All Other Classifications 31,026,457 33,826,157 35,938,546 35,929,546 35,929,546 35,929,546 35,929,546 35,929,546 Ending Balance 58,922,585 46,627,474 53,438,546 50,602,143 55,263,892 60,569,715 63,663,503 66,065,613 164 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Special Revenue Fund Revenues AdoptedActual .o. STORM DRAIN IMPROVEMENT (FUNDS 210, 215) 406-Taxes 371,992 74,741 74,741 76,984 76,984 76,984 76,984 76,984 420-Use of Money 81,040 - - - - - - - 421-Transfer In 1,100,000 437,000 437,000 - - - - - TOTAL 1,553,032 511,741 511,741 76,984 76,984 76,984 76,984 76,984 tNVIRON. MGMT./CLEAN CREEKS/STORM DRAIN (FUND 230) 420-Use of Money 10,600 900 900 905 - - - - 421-Transfer In 436,000 660,000 660,000 - - - - - 430-Fines and Forfeitures 22,541 10,000 10,000 10,000 10,000 10,000 10,000 10,000 450-Charges for Services 369,014 370,000 370,000 1,522,493 1,522,493 1,522,493 1,522,493 1,522,493 TOTAL 838,155 1,040,900 1,040,900 1,533,398 1,532,493 1,532,493 1,532,493 1,532,493 11OUSING & COMMUNITY DEVELOPMENT (FUNDS 260, 261, 265) 406-Taxes 159,179 3,000 3,000 3,025,898 3,025,898 3,025,898 3,025,898 3,025,898 420-Use of Money 212,728 14,800 14,800 3,300 3,300 3,300 3,300 3,300 421-Transfer In 175,000 - - - - - - - 440-Intergovernmental 344,323 361,597 361,597 397,270 397,270 397,270 397,270 397,270 450-Charges for Services 20,410 - - - - - - - 460-Refundable Deposit Revenue 8,735 - - - - - - - 480-Miscellaneous Revenue 901 - - - - - - TRANSPORTATION (FUND 270) 420-Use of Money 421-Transfer In 440-Intergovernmental 450-Charges for Services 480-Miscellaneous Revenue NkRK DEDIWION (FUND 280) 406-Taxes 420-Use of Money TOTAL 921,276 379,397 379,397 3,426,468 3,426,468 3,426,468 3,426,468 3,426,468 271,320 - - - - - - - 5,800,000 221,000 221,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 2,800,291 7,192,936 7,192,936 2,898,325 3,165,000 3,165,000 3,165,000 3,165,000 17,192 - - 3,978 - - - - 84,521 2,198,521 2,198,521 87,057 - - - - TOTAL 8,973,324 9,612,457 9,612,457 6,989,360 7,165,000 7,165,000 7,165,000 7,165,000 1,108,500 375,663 375,663 - - - 283,371 - - - - - - 165 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Special Revenue Fund Revenues Actual Adopted t:stlmate Adopted Vorecast rorecast rorecast rorecast 000 TOTAL 1,966,871 375,663 375,663 - - - - - ILREE (FUND 281) 420-Use of Money 4,317 - - - - - 450-Chargesfor Services 10,087 21,045 21,045 - - - TOTAL 14,404 21,045 21,045 - - - - - TOTAL SPECIAL REVENUE FUNDS 14,267,062 11,941,203 11,941,203 12,026,210 12,200,945 12,200,945 12,200,945 12,200,945 166 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Debt Service Fund Revenues Actual Adopted Estimate Adopted Forecast Forecast PUBLIC FACILITIES CORPORATION (FUND 365) + 420-Use of Money 75,272 - - - - - 421-Transfer In 3,169,438 3,172,838 3,172,838 3,169,138 3,168,488 3,170,738 i 3,170,738 3,173,488 TOTAL 3,244,710 3,172,838 3,172,838 3,169,138 3,168,488 3,170,738 3,170,738 3,173,488 TOTAL DEBT SERVICE FUNDS 3,244,710 3,172,838 3,172,838 3,169,138 3,168,488 3,170,738 3,170,738 3,173,488 167 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Capital Project Fund Revenues AdoptedActual , CAPITAL IMPROVEMENT PROJECTS (FUND 420) 420-Use of Money 178,525 - - - - - - 421-Transfer In 11,268,675 14,305,000 15,010,438 1,430,000 - - 440-Intergovernmental 50,000 - - - - 450-Charges for Services 119,638 - - - 480-Miscellaneous Revenue - 7,757,418 7,757,418 - TOTAL 11,616,838 22,062,418 22,767,856 1,430,000 - - - - CAPITAL RESERVE (FUND 429) 420-Use of Money 122,116 - - - - 421-Transfer In 12,350,750 352,719 20,352,719 - - - TOTAL 12,350,750 352,719 20,352,719 - - - - - TOTAL CAPITAL PROJECT FUNDS 23,967,588 22,415,137 43,120,575 1,430,000 - - - - 168 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Enterprise Fund Revenues RESOURCE RECOVERY (FUND 520) 420-Use of Money 156,670 440-Intergovernmental 30,023 450-Charges for Services 1,658,612 480-Miscellaneous Revenue 61,643 TOTAL 1,906,948 ILACKBERRY FARM GOLF CO f 3 i 15,000 15,000 15,000 - - 1,270,000 1,270,000 1,420,188 1,420,188 1,420,188 66,000 66,000 - - - 1,351,000 1,351,000 11435,188 1,420,188 1,420,188 1,420,188 1,420,188 1,420,188 1,420,188 420-Use of Money 36,364 27,000 27,000 30,000 30,000 30,000 30,000 30,000 421-Transfer In 75,000 610,000 610,000 500,000 500,000 500,000 500,000 500,000 450-Charges for Services 288,128 300,000 300,000 180,000 180,000 180,000 180,000 180,000 TOTAL 399,492 937,000 937,000 710,000 710,000 710,000 710,000 710,000 NDRTS CENTER (FUND 570) 420-Use of Money 39,026 1,000 1,000 120,000 120,000 120,000 120,000 120,000 421-Transfer In - 2,223,000 2,223,000 685,000 685,000 685,000 685,000 685,000 450-Charges for Services 2,348,651 2,050,500 2,050,500 761,112 761,112 761,112 761,112 761,112 TOTAL 2,387,677 4,274,500 4,274,500 1,566,112 1,566,112 1,566,112 1,566,112 1,566,112 RECREATION PROGRAMS (FUND 420-Use of Money 207,208 - 287,000 140,000 140,000 140,000 140,000 140,000 421-Transfer In - 690,000 690,000 1,664,000 1,664,000 1,664,000 1,664,000 1,664,000 450-Charges for Services 1,847,192 2,239,327 1,952,327 1,451,742 1,451,742 1,451,742 1,451,742 1,451,742 TOTAL 2,054,400 2,929,327 2,929,327 3,255,742 3,255,742 3,255,742 3,255,742 3,255,742 TOTAL ENTERPRISE FUNDS 6,748,517 9,491,827 9,491,827 6,967,042 6,952,0411 6,952,042 6,952,042 6,952,042 169 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Internal Service Fund Revenues ANFORMATION TECHNOLOGY (FUND 610) 3 AU + 420-Use of Money 84,019 - - - - - - - 421-Transfer In - 72,000 72,000 245,000 245,000 245,000 245,000 245,000 450-Charges for Services 3,753,928 2,731,701 2,731,701 2,681,431 2,681,431 2,681,431 2,681,431 2,681,431 TOTAL 3,837,947 2,803,701 2,803,701 2,926,431 2,926,431 2,926,431 2,926,431 2,926,431 WORKERS' COMPENSATION (FUND 620) 420-Use of Money 94,436 - - - - - - - 490-Other Sources 498,286 472,652 472,652 246,385 246,385 246,385 246,385 246,385 TOTAL 592,722 472,652 472,652 246,385 246,385 246,385 246,385 246,385 VEHICLE/EQUIPMENT REPLACEMENT (FUND 630) 420-Use of Money 113 - - - - - - - 421-Transfer In - - - 6,000 6,000 6,000 6,000 6,000 450-Charges for Services 1,056,968 1,352,200 1,352,200 1,633,518 1,633,518 1,633,518 1,633,518 1,633,518 TOTAL 1,057,081 1,352,200 1,352,200 1,639,518 1,639,518 1,639,518 1,639,518 1,639,518 COMPENSATED ABSENCE & LONG-TERM DISABILITY (FUND 641) 420-Use of Money 13,772 - - - - - - - 421-Transfer In 447,000 1,109,000 1,109,000 193,000 473,373 486,391 499,767 513,510 450-Charges for Services 163,057 - - - - - - - TOTAL 623,829 1,109,000 1,109,000 193,000 473,373 486,391 499,767 513,510 kETIREE MEDICAL (FUND 642) 16 420-Use of Money 8,129 - - - - - - - 421-Transfer In 1,131,474 2,392,000 2,392,000 46,000 1,402,222 1,453,495 1,504,193 1,554,163 TOTAL 1,139,603 2,392,000 2,392,000 46,000 1,402,222 1,453,495 1,504,193 1,554,163 TOTAL INTERNAL SERVICE FUNDS 7,251,182 8,129,553 8,129,553 5,051,334 6,687,929 6,752,220 6,816,294 6,880,007 170 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Special Revenue Fund Expenditures STORM DRAIN IMPROVEMENT (FUND 210, 215) + 210-90-978 Minor Storm Drain Impv 4,000 - 88,828 - - - - 210-90-980 SD Master Plan Update 33,985 - - 707 - 210-99-042 Strm Drn Improv-Fthill & Cup Rd 2,578 - - 248 - - 210-99-071 Storm Drain MP Implementation - - - 45 - TOTAL 40,563 - 88,828 1,000 - - - - &NVIRON. MGMT./CLEA RAIN (FUND 230) 230-81-802 Non Point Source 658,846 230-81-853 Storm Drain Fee - 230-81-854 General Fund Subsidy - 230-81-855 Storm Drain Maintenance - TOTAL 658,846 743,278 937,395 1,041,170 1,041,170 1,041,170 1,041,170 1,041,170 - 25,000 - - - - - 22,706 - - - - - - - 752,984 752,984 752,984 752,984 752,984 743,278 985,101 1,794,154 1,794,154 1,794,154 1,794,154 1,794,154 HOUSING & COMMUNITY DEVELOPMENT (FUND 260, 261 265 260-72-707 CDBG General Admin 56,635 69,277 74,980 97,195 97,195 97,195 97,195 97,195 260-72-709 CDBG Capital/Housing Projects 240,201 240,202 245,185 260,000 260,000 260,000 260,000 260,000 260-72-710 CDBG Public Service Grants 55,431 50,000 56,582 65,000 65,000 65,000 65,000 65,000 265-72-711 BMR Affordable Housing Fund 453,512 684,737 933,959 661,071 475,000 475,000 475,000 475,000 TOTAL 805,779 1,044,216 1,310,706 1,083,266 897,195 897,195 897,195 897,195 TRANSPORTATION (FUND 270) 270-85-820 Sidewalk Curb and Gutter 1,150,933 1,377,406 1,448,492 1,511,071 1,511,071 1,511,071 1,511,071 1,511,071 270-85-821 Street Pavement Maintenance 4,229,811 3,906,202 9,989,985 2,247,004 2,247,004 2,247,004 2,247,004 2,247,004 270-85-822 Street Sign Marking 630,438 719,275 788,313 854,135 854,135 854,135 854,135 854,135 270-90-954 Monument Gateway Sign - - 25,859 90 - - - - 270-90-958 Orange and Byrne Sidewalk Impv 165,310 - 4,692,983 12,725 - - - - 270-90-960 Bridge Rehab Minor 120,091 - 561,654 10,068 - - - - 270-90-961 St Median Irrg Plant Repl 687,150 - 327,289 20,501 - - - - 270-90-962 Bicycle Ped Facility Impr - - - 135 - - - 270-90-976 Ph 2 Mcl Sidewalk Improv 779,390 2,035,000 2,754,875 19,871 - - - 270-99-087 Traffic Calming - - - 200,000 - - - - TOTAL 7,763,123 8,037,883 20,589,450 4,875,600 4,612,210 4,612,210 4,612,210 4,612,210 171 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Special Revenue Fund Expenditures PARK DEDICATION (FUND 280) a A 280-99-009 Lawrence-Mitty Park - - 8,227,099 90 - - - 280-99-066 MRP Community Grdn Improv-Const 17,881 - 35,575 8,158 - - - - 280-99-067 MRP EEC Aquatic Habitat 125,000 - - 1,293 - - - - TOTAL 142,881 - 8,262,674 9,541 - - - - TREE FUND (FUND 281) 281-90-001 No Department 10,000 12,000 12,000 15,000 15,000 15,000 15,000 15,000 TOTAL 10,000 12,000 12,000 15,000 15,000 15,000 15,000 15,000 TOTAL SPECIAL REVENUE FUNDS 9,421,192 9,837,377 31,248,759 7,778,561 7,318,559 7,318,559 7,318,559 7,318,559 172 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Debt Service Fund Expenditures PUBLIC FACILITIES CORPORATION (FUND 365) 365-90-500 Facility Lease 3,170,938 3,172,838 3,172,838 3,169,138 3,168,488 3,170,738 3,170,738 3,173,488 TOTAL 3,170,938 3,172,838 3,172,838 3,169,138 3,168,488 3,170,738 3,170,738 3,173,488 TOTAL DEBT SERVICE FUNDS 3,170,938 3,172,838 3,172,838 3,169,138 3,168,488 3,170,738 3,170,738 3,173,488 173 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Capital Project Fund Expenditures CAPITAL IMPROVEMENT PROJECTS (FUND 420) 3 420-90-880 Env Edu Facility 600 - - 185 420-90-898 SCCP Chain MP-MCLN TO SCB - - 203,727 405 420-90-904 Spt Ctr Resurf Tennis Cts - - - 45 420-90-938 Pub Bldg Solar Service Center - - 25,355 180 420-90-969 DeAnza/McClellan Signal Maint - - 145,700 90 420-90-971 STLG/280 Ped Bridge Lighting 8,017 - 38,433 252 420-90-999 Green Bike Lanes - - 95,000 90 420-99-003 MR Construct Trash Enclosure 33,702 - 106,270 1,601 420-99-004 MR Community Garden Improvements 45,722 1,500,000 1,200,000 6,622 420-99-007 ADA Improvements 27,367 80,000 195,648 84,984 420-99-014 Stevens Crk Bank Repair Concept - - 100,000 90 420-99-017 Sports Center Exterior Upgrades 1,207,593 - 39,135 21,201 420-99-018 Sports Center Interior Upgrades 20,000 - - 358 420-99-023 QCC Fire Alarm Control Panel Upg 8,934 - 17,962 5,626 420-99-030 MCClellan West -Parking Lot Impro 461,231 - 444,000 17,406 420-99-031 Rec Facilities Monument Signs 385,000 - - 3,609 420-99-033 City Hall - Turf Reduction 40,495 - 2,079 1,838 420-99-034 Svc Ctr - Shed No. 3 Improvement 992,260 - - 10,921 420-99-036 2016 Bike Plan Implementation 1,540,220 4,390,000 13,769,912 785,782 420-99-040 Retaining Wall Repair -Cordova Rd 298,300 - - 27,837 420-99-041 Retaining Wall Repl - Regnart Rd - - - 180 420-99-045 Citywide Park & Recreation MP 131,023 - 153,723 3,321 420-99-047 CIP Prelim Planning & Design 75,272 125,000 144,075 128,039 420-99-048 Capital Project Support 1,153 52,500 38,158 50,145 420-99-051 Inclusive Play Area - Planning 7,548 5,500,000 5,506,499 652 420-99-054 Senior Ctr Walkway Replacement - - 16,033 270 420-99-056 St Light Install - Annual Infill - 75,000 135,000 75,536 420-99-057 McClellan Sdwlk-RB to Hwy85 Over - - - 45 420-99-058 St Light Install -Randy & Larry 18,752 - 341,198 3,896 420-99-059 Senior Center Repairs 45,471 - 144,082 10,297 420-99-063 CW Bldg Condition Assess Impl 8,130 - 991,869 6,470 420-99-064 Creek Infall/Outfall Restoration 160,000 - - 1,605 420-99-065 DeAnza Med Islnd Landscaping Ph2 1,508,683 - 37,816 14,867 174 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Capital Project Fund Expenditures 420-99-068 Regnart Road Improvements 97,675 1,150,000 1,202,325 3,646 - - - 420-99-069 School Walk Audit Implementation 23,335 1,221,863 1,221,863 654 - - - - 420-99-070 SCB/Bandley Signal & Median Imps - - 150,000 90 - - - - 420-99-072 St Light Replacement CW (labor) - - 200,000 90 - - - - 420-99-073 BBF Park Pool Improvements - - - 446 - - - - 420-99-074 Interim City Hall 34,987 - 465,012 1,162 - - - - 420-99-075 New City Hall - - 3,500,000 90 - - - - 420-99-077 Library Expansion - 5,000,000 8,705,438 - - - - - 420-99-078 Civic Center Parking Analysis - 1,000,000 1,000,000 - - - - - 420-99-079 Mary Ave Protected Bikeway - 1,980,555 165,000 - - - - - 420-99-080 Bubb Rd Separated Bikeway Improv - 165,000 1,980,555 - - - - - 420-99-083 Citywide Community Garden - - 300,000 - - - - - 420-99-084 Linda Vista Trail - - 615,500 - - - - - 420-99-085 Playground EQ (Creekside&Varian) - - - 300,000 - - - - 420-99-086 Various Park Amenities - - - 200,000 - - - - TOTAL 7,181,470 22,239,918 43,397,367 1,770,623 - - - - STEVENS CREEK CORRIDOR PARK (FUND 427) 427-90-870 SC Corridor Park Ph 1 - - 38,115 626 - - - - 427-90-881 Phs II SC Corridor Park 26,228 - 43,871 2,025 - - - - TOTAL 26,228 - 81,986 2,651 - - - - 429-90-001 Transfer to Capital Improvement 12,801,500 15,705,000 26,057,719 1,989,449 - - - - TOTAL 12,801,500 15,705,000 26,057,719 1,989,449 - - - - TOTAL CAPITAL PROJECT FUNDS 20,009,198 37,944,918 69,537,072 3,762,723 - - - - 175 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Enterprise Fund Expenditures RESOURCE RECOVERY (FUND 520) + 520-81-801 Resources Recovery 1,735,884 2,365,018 2,999,490 1,700,225 1,700,225 1,700,225 1,700,225 1,700,225 TOTAL 1,735,884 2,365,018 2,999,490 1,700,225 1,700,225 1,700,225 1,700,225 1,700,225 JkLACKBERRY FARM GOLF COURSE (FUND 560) 560-63-616 BBF Golf Course 634,410 692,151 727,647 684,232 684,232 684,232 684,232 684,232 560-99-061 BBF Entrnc Rd Improv-Feasibility 11,057 - 63,942 2,002 - - - - 560-99-088 BBF Golf Renovation/Alt use - - - 50,000 - - - - TOTAL 645,467 692,151 791,589 736,234 684,232 684,232 684,232 684,232 570-63-621 Sports Center Operation 2,625,059 2,545,563 2,565,983 1,356,862 1,356,862 1,356,862 1,356,862 1,356,862 570-87-836 Bldg Maint Sports Center 410,977 470,355 601,588 487,440 - - - - 570-99-081 Sports Center Seismic Retrofit - 1,275,000 1,275,000 - - - - - 570-99-089 Spt Ctr Community Needs Analysis - - - 25,000 - - - - TOTAL 3,036,036 4,290,918 4,442,571 1,869,302 1,356,862 1,356,862 1,356,862 1,356,862 RECREATION PROGRAMS (FUND 580) 580-62-613 Youth Teen Recreation 1,730,863 2,463,342 2,486,039 1,963,790 1,963,790 1,963,790 1,963,790 1,963,790 580-63-620 Outdoor Recreation 1,192,472 1,587,760 1,608,722 907,695 - - - - 580-99-082 Quinlan Preschool Shade Structur - 125,000 125,000 - - - - - 580-99-090 QCC Sustainable Infrastructure - - - 502,000 - - - - TOTAL 2,923,335 4,176,102 4,219,761 3,373,485 1,963,790 1,963,790 1,963,790 1,963,790 OTAL ENTERPRISE FUNDS 8,340,722 11,524,189 12,453,411 7,679,246 5,705,109 176 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - Internal Service Fund Expenditures INFORMATION TECHNOLOGY (FUND 610) 610-30-300 Administration 252,099 297,998 345,452 356,506 356,506 356,506 356,506 356,506 610-34-310Infrastructure 2,198,359 2,267,832 2,650,696 2,076,714 2,076,714 2,076,714 2,076,714 2,076,714 610-35-986 GIS 1,045,553 1,096,093 1,185,312 1,081,259 1,081,259 1,081,259 1,081,259 1,081,259 TOTAL 3,496,011 3,661,923 4,181,460 3,514,479 3,514,479 3,514,479 3,514,479 3,514,479 WORKERS' COMPENSATION (FUND 620) 620-44-418 Workers Compensation Insurance 280,249 257,389 260,046 276,223 276,223 276,223 276,223 276,223 TOTAL 280,249 257,389 260,046 276,223 276,223 276,223 276,223 276,223 JLEHICLE/EQUIPMENT REPLACEMENT (FUND 630 630-85-849 Equipment Maintenance 1,468,437 1,565,864 1,585,610 1,495,116 1,495,116 1,495,116 1,495,116 1,495,116 630-90-985 Fixed Assets Acquisition 3,025 594,100 946,581 384,022 384,022 384,022 384,022 384,022 TOTAL 1,471,462 2,159,964 2,532,191 1,879,138 1,879,138 1,879,138 1,879,138 1,879,138 COMPENSATED ABSENCE & LONG-TERM DISABILITY (FUND 641 641-44-419 Long Term Disability 158,156 159,134 159,134 171,837 171,837 171,837 171,837 171,837 641-44-420 Compensated Absence 451,492 632,689 632,689 620,055 620,055 620,055 620,055 620,055 TOTAL 609,648 791,823 791,823 791,892 791,892 791,892 791,892 791,892 IREE MEDIC 642-44-414 HR. Retiree Benefits 1,081,653 1,077,262 1,077,262 1,211,333 1,211,333 1,211,333 1,211,333 1,211,333 TOTAL 1,081,653 1,077,262 INEV-TOTAL INTERNAL SERVICE FUNDS 7,948,361 1,077,262 1,211,333 1,211,333 1,211,333 8,84673,065 7,673,065 1,211,333 1,211,333 7,673,065 7,673,065 177 Table of Contents C�ENERALFUNDS Assigned Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - All Funds Fund Balance/Retained Earnings Beginning Balance 53,589,690 58,922,585 58,922,585 53,438,546 50,602,143 55,263,892 60,569,715 27,896,128 12,801,317 17,500,000 14,672,597 19,334,346 24,640,169 27,733,957 63,663,503 30,136,067 Unassigned 31,026,457 33,826,157 35,938,546 35,929,546 35,929,546 35,929,546 35,929,546 35,929,546 Ending Balance 58,922,585 46,627,474 53,438,546 50,602,143 55,263,892 60,569,715 63,663,503 66,065,613 SPECIAL REVENUE FUNDS Beginning Balance 29,231,626 11,591,698 34,275,080 23,397,927 27,645,576 32,527,962 37,410,348 42,292,734 Assigned 34,275,080 13,655,524 23,397,927 27,645,576 32,527,962 37,410,348 42,292,734 47,175,120 Unassigned - - - - - - - - Ending Balance 34,275,080 13,655,524 23,397,927 27,645,576 32,527,962 37,410,348 42,292,734 47,175,120 DEBT SERVICE FUND Beginning Balance 1,586,987 1,586,987 1,660,760 1,660,760 1,660,760 1,660,760 1,660,760 1,660,760 Assigned 1,660,760 1,586,987 1,660,760 1,660,760 1,660,760 1,660,760 1,660,760 1,660,760 Unassigned - - - - - - - - Ending Balance 1,660,760 1,586,987 1,660,760 1,660,760 1,660,760 1,660,760 1,660,760 1,660,760 PITAL PROJECT FUND Beginning Balance 29,129,616 21,093,773 33,211,944 48,538,113 46,205,390 46,205,390 46,205,390 46,205,390 Assigned 33,211,944 5,563,992 48,538,113 46,205,390 46,205,390 46,205,390 46,205,390 46,205,390 Unassigned - - - - - - - - Ending Balance 33,211,944 5,563,992 48,538,113 46,205,390 46,205,390 46,205,390 46,205,390 46,205,390 ENTERPRISE FUNDS Beginning Balance 9,648,709 7,118,711 8,056,505 5,001,676 4,289,472 5,536,405 6,783,338 8,030,271 Assigned 8,056,505 5,086,349 5,001,676 4,289,472 5,536,405 6,783,338 8,030,271 9,277,204 Unassigned - - - - - - - - Ending Balance 8,056,505 5,086,349 5,001,676 4,289,472 5,536,405 6,783,338 8,030,271 9,277,204 178 Table of Contents Fiscal Year 2020-21 Adopted Budget Five -Year Forecast - All Funds Fund Balance/Retained Earnings Beginning Balance 6,538,019 4,701,861 6,850,179 6,825,172 4,203,441 3,218,305 2,297,459 1,440,688 Assigned 6,850,179 4,883,053 6,825,172 4,203,441 3,218,305 2,297,459 1,440,688 647,630 Unassigned - - - - - - - - Ending Balance 6,850,179 4,883,053 6,825,172 4,203,441 3,218,305 2,297,459 1,440,688 647,630 TOTAL ALL FUNDS 142,977,053 77,403,379 138,862,194 134,606,782 144,412,713 154,927,011 163,293,346 171,031,718 179 Table of Contents This page intentionally left blank. 180 Table of Contents Council and Commissions Budget Unit Program 2021 Adopted Budget City Council $ 644,586 100-10-100 City Council $ 451,751 100-10-101 Community Funding $ 111,240 100-10-110 Sister Cities $ 81,595 Commissions $ 556,225 100-11-131 Technology, Information & Communications Commission $ 24,064 100-11-140 Library Commission $ 31,709 100-11-142 Fine Arts Commission $ 53,510 100-11-150 Public Safety Commission $ 30,817 100-11-155 Bicycle and Pedestrian Commission $ 35,238 100-11-160 Parks and Recreation Commission $ 50,896 100-11-165 Teen Commission $ 81,300 100-11-170 Planning Commission $119,563 100-11-175 Housing Commission $ 56,102 100-11-180 Sustainability Commission $ 52,782 100-11-190 Audit Committee $ 20,244 Total $1,200,811 181 Table of Contents Department Overview Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing Organization Steven Scharf, Mayor Darcy Paul, Vice Mayor Liang Chao, Council Member Rod Sinks, Council Member Jon Willey, Council Member 2021 Adopted Budget $ 954,826 $ 1,200,811 $ 245,985 20.5% 7.53 FTE 182 Table of Contents Citizens of Cupertino City Council Technology, Teen Commission Information, and Communications Commission Parks and Recreation W Library Commission Commission m Planning Commission �I--I Bicycle and Pedestrian Commission Fine Arts Commission �I--I Public Safety Commission Housing Commission Sustainability 1 1 Commission Adopted Budget On June 16, 2020, City Council approved a budget of $1,200,811 for the Council and Commissions department. This represents an increase of $170,519 (16.6%) from the FY 2019-20 Adopted Budget. 183 Table of Contents Adopted Expenditures by Division ■ City Council Commissions Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 184 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 535,636 $ 406,858 $ 586,473 $ 954,826 Total Revenues $ 535,636 $ 406,858 $ 586,473 $ 954,826 Expenditures Employee Compensation $ 268,117 $ 289,947 $ 319,262 $ 354,463 Employee Benefits $ 176,246 $165,047 $ 178,986 $ 217,629 Materials $130,106 $145,182 $ 210,864 $ 248,300 Contract Services $ 82,544 $109,238 $158,050 $166,133 Cost Allocation $176,865 $157,166 $150,923 $ 206,675 Special Projects $ 4,857 $ - $ - $ - Contingencies $ - $ - $ 12,207 $ 7,611 Total Expenditures $ 838,735 $ 866,580 $ 1,030,292 $1,200,811 Fund Balance $ - $ - $ - $ - General Fund Costs $ 303,099 $ 459,723 $ 443,819 $ 245,985 Staffing Total current positions - 7.31 FTE Total proposed positions - 7.53 FTE 185 Table of Contents City Council Budget Unit 100-10-100 General Fund - City Council - City Council Budget at a Glance 2021 Adopted Budget Total Revenues $ 954,826 Total Expenditures $ 451,751 Fund Balance $ - General Fund Costs $ (503,075) % Funded by General Fund-111.4% Total Staffing 5.85 FTE Program Overview The Mayor and councilmembers, acting as the elected representatives of the residents of Cupertino, establish public policies to meet the community needs of the City. Service Objectives . The City Council objectives are carried out by City staff under the sole direction of the City Manager. Adopted Budget On June 16, 2020, City Council approved a budget of $451,751 for the City Council program. This represents an increase of $28,440 (6.7%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in materials and contract services. The increase in materials is primarily due to Council technology equipment items now being budgeted in this account. In previous fiscal years, these items were budgeted in another department. The increase in contract services is due to the addition of City Council workshops. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 186 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 535,636 $ 406,858 $ 586,473 $ 954,826 Total Revenues $ 535,636 $ 406,858 $ 586,473 $ 954,826 Expenditures Employee Compensation $126,516 $ 138,405 $ 132,309 $139,932 Employee Benefits $ 112,616 $ 104,507 $ 97,804 $ 117,270 Materials $ 94,066 $ 98,283 $ 140,310 $ 170,671 Contract Services $ 227 $ 23,185 $ 6,250 $ 19,133 Cost Allocation $ 94,665 $ 54,145 $ 39,560 $ - Contingencies $ - $ - $ 7,078 $ 4,745 Total Expenditures $ 428,090 $ 418,525 $ 423,311 $ 451,751 Fund Balance $ - $ - $ - $ - General Fund Costs $ (107,546) $11,668 $ (163,162) $ (503,075) Staffing Total current positions - 5.85 FTE Total proposed positions - 5.85 FTE There are no changes to the current level of staffing. 187 Table of Contents Community Funding Budget Unit 100-10-101 General Fund - City Council - Community Funding Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 111,240 Fund Balance $ - General Fund Costs $ 111,240 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The Community Funding program provides funding for various community activities and community -based organizations throughout the fiscal year. Service Objectives • Provide funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. . Grant funding requests in a fair and equitable manner. • Grant funding requests per the updated Community Funding Policy adopted by City Council on January 21, 2020. Adopted Budget On June 16, 2020, City Council approved a budget of $111,240 for the Community Funding program. This represents an increase of $653 (0.6%) from the FY 2019-20 Adopted Budget. The increase is due to increased community funding to support non-profit organizations. This budget includes $110,000 for Community Funding Grants. As part of FY 2018-19 Final Budget Hearing and Adoption, City Council directed Staff to revise the existing process for the Community Funding Program along with a more robust outreach effort. The Parks and Recreation Commission, with assistance from staff, reviewed proposals and recommended funding non-profit organizations as shown below. The Parks and Recreation Commission recommended that City Council guarantee funding to Cupertino Historical Society each fiscal year. On June 18, 2019, City Council approved an annual mount of $20,000 for the Cupertino Historical Society. 188 Table of Contents Non -Profit FY 2020 Funding FY 2020 FY 2021 Funding FY 2021 Organization Program/Project/Event Program/Project/Event Breathe California $2,500 Seniors Breathe Easy $4,000 Seniors Breath Easy Bay Area Chrysanthemum $1,300 Chrysanthemum Show N/A3 N/A Society Bhubaneswar Sister N/A 1 N/A $7,500 Festival and City Exchanges Chinese American Coalition for N/A 1 N/A $6,000 Starting the Compassionate Conversation Care Cupertino De Anza $10,000 Ride4Diabetes N/A3 N/A Lion's Charities Cupertino $20,000 z Museum Exhibits $20,000 2 Museum Exhibits Historical Society Cupertino Rotary $12,000 Fall Festival $12,000 Fall Festival Club Cupertino $2,000 Equipment N/A 3 N/A Symphonic Band Elevate the Future N/A 1 N/A $3,000 Project Falcon Cupertino Euphrat Museum $10,000 Exhibition, Events, $10,000 Exhibition, Events, Community Outreach Community Outreach Friends of Deer $15,000 White Barn $15,000 White Barn Hollow Farm Renovation Renovation Heart of the Valley $7,000 Reaching Hearts N/A3 N/A Santa Clara $10,000 Wildlife & Harvest $7,500 Wildlife & Harvest Audubon Society Day Day Silicon Valley Jewish Film N/A 1 N/A $5,000 Jewish Film Festival Festival West Valley Community $20,000 4 Pantry Overhang $20,000 Building Expansion Services Total $109,800 $110,000 1 Organization did not apply for or receive a Community Funding Grant in FY 2020. 2 Parks and Recreation Commission recommends guaranteed funding to the Cupertino Historical Society each Fiscal Year. 189 Table of Contents 3 Organization did not apply for a Community Funding Grant in FY 2021. 4 Council approved a $5,000 out -of -cycle Community Funding Grant for West Valley Community Services "Gift of Hope Program" on December 03, 2019. This amount is not reflected in the FY 2020 funding total. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues $ - $ - $ - $ - Expenditures Contract Services $ 52,400 $ 52,400 $109,800 $110,000 Cost Allocation $ 411 $ 1,031 $ 787 $ 1,240 Total Expenditures $ 52,811 $ 53,431 $110,587 $ 111,240 Fund Balance $ - $ - $ - $ - General Fund Costs $ 52,811 $ 53,431 $ 110,587 $ 111,240 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 190 Table of Contents Sister Cities Budget Unit 100-10-110 General Fund - City Council - Sister Cities Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 81,595 Fund Balance $ - General Fund Costs $ 81,595 % Funded by General Fund 100.0% Total Staffing 0.10 FTE Program Overview Cupertino has four active sister cities registered with Sister Cities International; Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India. Service Objectives • To further international communication and understanding through the Sister City Program . To foster educational, technical, economic and cultural exchanges . To encourage student exchange programs to promote communication and understanding among people of different cultures Adopted Budget On June 16, 2020, City Council approved a budget of $81,595 for the Sister Cities program. This represents a decrease of $4,451 (-5.2%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged from last fiscal year. Increased costs in cost allocation are due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 191 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 8,727 $ 13,702 $ 32,741 $ 12,317 Employee Benefits $ 3,591 $ 5,189 $15,022 $ 5,732 Materials $ 397 $ 3,019 $ 5,605 $ 5,773 Contract Services $11,573 $ 20,570 $ 20,000 $ 20,000 Cost Allocation $ 2,936 $ 9,094 $11,398 $ 37,129 Special Projects $ 4,857 $ - $ - $ - Contingencies $ - $ - $ 1,280 $ 644 Total Expenditures $ 32,081 $ 51,574 $ 86,046 $ 81,595 Fund Balance $ - $ - $ - $ - General Fund Costs $ 32,080 $ 51,574 $ 86,046 $ 81,595 Staffing Total current positions - 0.40 FTE Total proposed positions - 0.10 FTE Staff time is being reallocated to better reflect actual time spent in this program 192 Table of Contents Technology, Information & Communications Commission Budget Unit 100-11-131 General Fund - Commissions - Technology, Information & Communications Commission Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 24,064 Fund Balance $ - General Fund Costs $ 24,064 % Funded by General Fund 100.0% Total Staffing 0.07 FTE Program Overview The Technology, Information & Communications Commission (TICC) advises the City Council and informs the community about issues relating to the rapidly changing fields of communication and technology. Commissioners also serve as a resource for the Planning Commission in offering technical guidance for antenna sightings. The Chief Technology Officer serves as staff liaison. The commission also supports public and educational access to cable services. Service Objectives . Continue to work with appropriate companies in bringing advanced services to interested residents. • Monitor AT&T and Comcast services and revenue. • Negotiate and manage public access provider KMVT to ensure maximum programming value for Cupertino residents. • Work with Community Development and Public Works regarding antenna placement and negotiate agreements for communication services that serve Cupertino. Adopted Budget On June 16, 2020, City Council approved a budget of $24,064 for the Technology, Information & Communications Commission program. This represents an increase of $17,036 (242.4%) from the FY 2019-20 Adopted Budget. The increase is primarily due to increases in materials and contract services, including a new contract to provide Small Cell/Radiation Level outreach education to the public. In the previous fiscal year, materials and contract services were not budgeted for. 193 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ - $ 3,972 $ 9,824 Employee Benefits $ - $ - $ 1,849 $ 4,229 Materials $ 13 $ 687 $ - $ 1,206 Contract Services $ - $ - $ - $ 5,000 Cost Allocation $ 8,159 $ 5,852 $ 1,207 $ 3,650 Contingencies $ - $ - $ - $ 155 Total Expenditures $ 8,172 $ 6,539 $ 7,028 $ 24,064 Fund Balance $ - $ - $ - $ - General Fund Costs $ 8,172 $ 6,539 $ 7,028 $ 24,064 Staffing Total current positions - 0.05 FTE Total proposed positions - 0.07 FTE Staff time is being reallocated to better reflect actual time spent in this program. 194 Table of Contents Library Commission Budget Unit 100-11-140 General Fund - Commissions - Library Commission Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 31,709 Fund Balance $ - General Fund Costs $ 31,709 % Funded by General Fund 100.0% Total Staffing 0.10 FTE Program Overview The Library Commission is a five -member commission appointed by the City Council to review and make recommendations related to the operations and services of the Cupertino Library. The Cupertino Library is operated by Santa Clara County Library Services. The building is provided by the City of Cupertino. County Library management serve as Commission staff and Parks and Recreation personnel serve as City liaison. Service Objectives . Monitor the various service activities of the library and make recommendations for improvements to appropriate bodies. • Support library advocacy groups, including Friends of the Cupertino Library and Cupertino Library Foundation. • Advocate library funding and service levels at the City, County, and state levels. . Represent the Cupertino library in the local community. . Participate in state and local library workshops and conferences. • Participate in the long-range planning of quality library services for the City. . Develop potential resources to expand volunteer efforts in the library. • Investigate ways to expand access to non-traditional media. • Continue library advocacy in Cupertino activities and with other organizations. . Coordinate and implement the annual Cupertino Poet Laureate program and provide staff support and City resources to sustain the program. • Continue emphasis on integrating additional technology into library services. Adopted Budget On June 16, 2020, City Council approved a budget of $31,709 for the Library Commission program. This represents an increase of $8,363 (35.8%) from the FY 2019-20 Adopted Budget. Increased costs in cost allocation are due to a change in allocation methodology. Increased costs in compensation and benefits are due to the reallocation of staff time noted below. 195 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 7,876 $ 8,601 $ 6,706 $ 9,915 Employee Benefits $ 3,377 $ 3,558 $ 2,672 $ 5,228 Materials $ 1,260 $ 46 $ 370 $ 380 Contract Services $ 525 $ - $ 2,000 $ 2,000 Cost Allocation $ 7,253 $ 9,870 $ 11,479 $ 14,126 Contingencies $ - $ - $ 119 $ 60 Total Expenditures $ 20,291 $ 22,075 $ 23,346 $ 31,709 Fund Balance $ - $ - $ - $ - General Fund Costs $ 20,291 $ 22,075 $ 23,346 $ 31,709 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.10 FTE Staff time is being reallocated to better reflect actual time spent in this program. 196 Table of Contents Fine Arts Commission Budget Unit 100-11-142 General Fund - Commissions - Fine Arts Commission Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 53,510 Fund Balance $ - General Fund Costs $ 53,510 % Funded by General Fund 100.0% Total Staffing 0.15 FTE Program Overview The Fine Arts Commission advances the arts in the City through a number of activities and programs. These include overseeing the "Quarter Percent for Art" requirement for developments over 50,000 square feet; promoting art in public places; making recommendations to City Council regarding arts opportunities; awarding grants to individuals and organizations; selecting winners for the "Energized by Art" Utility Box Contest to transform gray utility boxes into student eco-art canvasses; selecting artists for the "Art in Unexpected Places"wall mural art contest and selecting the "Distinguished Artist of the Year," the "Emerging Artist of the Year" and the "Young Artists of the Year." Service Objectives • Foster, encourage and assist the realization, preservation, advancement, and development of fine arts for the benefit of the citizens of Cupertino. . Act as a catalyst for the promotion of fine arts activities and provide liaison and coordination between fine arts activities, groups, and facilities. • Enhance the interaction between arts, local schools, private property owners and businesses through personal outreach. • Review and approve public art proposals. • Encourage and facilitate "art in unexpected places" through the donation of underutilized spaces, such as blank walls or utility screens, for private installation of art. Adopted Budget On June 16, 2020, City Council approved a budget of $53,510 for the Fine Arts Commission program. This represents a decrease of $1,031 (-1.9%) from the FY 2019-20 Adopted Budget. Increased costs in cost allocation are due to a change in allocation methodology. The decrease in contract services costs are due to one-time special projects completed in the previous fiscal year. 197 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $16,469 $16,704 $17,247 $14,486 Employee Benefits $ 6,739 $ 6,209 $ 7,125 $ 8,712 Materials $ 2,109 $ 2,554 $ 7,125 $ 7,341 Contract Services $ 770 $ - $ 10,000 $ - Cost Allocation $11,492 $11,810 $12,688 $ 22,787 Contingencies $ - $ - $ 356 $ 184 Total Expenditures $ 37,579 $ 37,277 $ 54,541 $ 53,510 Fund Balance $ - $ - $ - $ - General Fund Costs $ 37,579 $ 37,276 $ 54,541 $ 53,510 Staffing Total current positions - 0.15 FTE Total proposed positions - 0.15 FTE There are no changes to the current level of staffing. 198 Table of Contents Public Safety Commission Budget Unit 100-11-150 General Fund - Commissions - Public Safety Commission Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 30,817 Fund Balance $ - General Fund Costs $ 30,817 % Funded by General Fund 100.0% Total Staffing 0.05 FTE Program Overview The Public Safety Commission (PSC), a five -member board appointed by the City Council, assists the Council by advising on matters pertaining to safety, traffic, police, fire and other areas wherein the matter of public safety may be of concern. Service Objectives • Advise the City Council on safety issues and concerns. . Promote public education programs concerning safety issues. • Provide assistance in implementing public safety programs approved by the City Council. Adopted Budget On June 16, 2020, City Council approved a budget of $30,817 for the Public Safety Commission program. This represents an increase of $8,079 (35.5%) from the FY 2019-20 Adopted Budget. The increase is primarily due to increased costs in cost allocation due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 199 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ 3,236 $ 4,654 $ 4,848 Employee Benefits $ - $ 1,304 $ 2,055 $ 2,643 Materials $1,982 $ 2,477 $ 4,320 $ 4,451 Contract Services $10,000 $10,000 $10,000 $10,000 Cost Allocation $ 1,148 $ 1,941 $ 993 $ 8,514 Contingencies $ - $ - $ 716 $ 361 Total Expenditures $13,130 $18,958 $ 22,738 $ 30,817 Fund Balance $ - $ - $ - $ - General Fund Costs $13,130 $18,958 $ 22,738 $ 30,817 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.05 FTE Staff time is being reallocated to better reflect actual time spent in this program. 200 Table of Contents Bicycle and Pedestrian Commission Budget Unit 100-11-155 General Fund - Commissions - Bicycle and Pedestrian Commission Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 35,238 Fund Balance E12 General Fund Costs $ 35,238 % Funded by General Fund 100.0% Total Staffing 0.15 FTE Program Overview The Bicycle and Pedestrian Commission (BPC) is a five -member board appointed by the City Council, which assists the Council by reviewing, monitoring, and making recommendations on City transportation matters pertaining to bicycle and pedestrian traffic, parking, education, and recreation within Cupertino. The City's Transportation Manager serves as staff liaison. Service Objectives . Review and make recommendations on City transportation infrastructure, development standards, public and private development projects, and citizen outreach and education efforts as they affect bicycle and pedestrian traffic in the City of Cupertino. • Promote safe, efficient, and enjoyable travel for bicycle and pedestrian traffic within Cupertino. Adopted Budget On June 16, 2020, City Council approved a budget of $35,238 for the Bicycle and Pedestrian Commission program. This represents an increase of $33,994 (2732.6%) from the FY 2019-20 Adopted Budget. The increase is primarily due to increases in salary and benefits. In the previous fiscal year, staff time was not allocated for this budget. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 201 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ - $ - $ 23,985 Employee Benefits $ - $ - $ - $ 10,223 Materials $ 396 $ - $ 416 $ 200 Cost Allocation $ 292 $ 1,763 $ 807 $ 825 Contingencies $ - $ - $ 21 $ 5 Total Expenditures $ 688 $1,763 $1,244 $ 35,238 Fund Balance $ - $ - $ - $ - General Fund Costs $ 688 $ 1,763 $1,244 $ 35,238 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.15 FTE Staff time is being reallocated to better reflect actual time spent in this program. 202 Table of Contents Parks and Recreation Commission Budget Unit 100-11-160 General Fund - Commissions - Parks and Recreation Commission Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 50,896 Fund Balance E12 General Fund Costs $ 50,896 % Funded by General Fund 100.0% Total Staffing 0.10 FTE Program Overview The Parks and Recreation Commission is a five -member commission appointed by the City Council to make recommendations pertaining to parks, recreation, and community services. The Director of Parks and Recreation serves as staff liaison. Service Objectives • Engage the public in dialog regarding the design of new programs and facilities. . Make recommendations regarding these projects to the City Council. • Work with staff and the public to draft and/or revise policies for use of Parks and Recreation facilities. • Consider public input regarding the operation of Parks and Recreation facilities and make recommendations for their improvement. • Participate in special committees dealing with Parks and Recreation. . Serve as ambassadors for the Parks and Recreation Department. Adopted Budget On June 16, 2020, City Council approved a budget of $50,896 for the Parks and Recreation Commission program. This represents a decrease of $547 (-1.1%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from last fiscal year. Increased costs in cost allocation are due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 203 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 13,323 $ 14,415 $ 19,836 $ 15,942 Employee Benefits $ 5,504 $ 5,059 $ 8,154 $ 7,185 Materials $ 2,032 $ 2,154 $10,750 $ 8,188 Cost Allocation $ 9,670 $ 9,282 $12,165 $19,376 Contingencies $ - $ - $ 538 $ 205 Total Expenditures $ 30,529 $ 30,910 $ 51,443 $ 50,896 Fund Balance $ - $ - $ - $ - General Fund Costs $ 30,529 $ 30,909 $ 51,443 $ 50,896 Staffing Total current positions - 0.10 FTE Total proposed positions - 0.10 FTE There are no changes to the current level of staffing. 204 Table of Contents Teen Commission Budget Unit 100-11-165 General Fund - Commissions - Teen Commission Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 81,300 Fund Balance $ - General Fund Costs $ 81,300 % Funded by General Fund 100.0% Total Staffing 0.30 FTE Program Overview The Teen Commission is comprised of nine teens representing grades 8-11. The Teen Commission advises the City Council and staff on teen issues. A Parks and Recreation Department Recreation Coordinator serves as the staff liaison. Service Objectives • Engage the public in dialogue regarding the design of new programs, and make recommendations regarding these projects to City staff. • Assist staff with the programming and promotion of the Teen Center. • Assist staff with the evaluation of teen programming. • Work with staff and the public to create new avenues to interact with teens. Adopted Budget On June 16, 2020, City Council approved a budget of $81,300 for the Teen Commission program. This represents an increase of $17,281 (27.0%) from the FY 2019-20 Adopted Budget. The increase is primarily due to increased costs in cost allocation due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 205 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 25,293 $ 26,638 $ 25,880 $ 28,971 Employee Benefits $ 11,133 $ 11,167 $ 11,732 $ 13,635 Materials $ 8,571 $ 8,282 $ 9,218 $ 9,995 Contract Services $ - $ 405 $ - $ - Cost Allocation $ 7,666 $ 16,596 $ 16,728 $ 28,449 Contingencies $ - $ - $ 461 $ 250 Total Expenditures $ 52,663 $ 63,088 $ 64,019 $ 81,300 Fund Balance $ - $ - $ - $ - General Fund Costs $ 52,663 $ 63,088 $ 64,019 $ 81,300 Staffing Total current positions - 0.30 FTE Total proposed positions - 0.30 FTE There are no changes to the current level of staffing. 206 Table of Contents Planning Commission Budget Unit 100-11-170 General Fund - Commissions - Planning Commission Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 119,563 Fund Balance E12 General Fund Costs $119,563 % Funded by General Fund 100.0% Total Staffing 0.26 FTE Program Overview The Planning Commission is a five -member citizen board appointed by the City Council. The functions of the Planning Commission are as follows: . Advise the City Council on land use and development policy related to the General Plan; • Implement the General Plan through review and administration of specific plans and related ordinances; . Review land use applications for conformance with the General Plan and ordinances; and • Promote the coordination of local plans and programs with regional and other agencies. Service Objectives • Conduct periodic reviews of the General Plan. These reviews test the fundamental goals and measure the performance of short-term objectives. • Conduct public hearings for approximately 80 land development applications every year. Ensure that decisions are made fairly and expeditiously in accordance with adopted General Plan policies, zoning ordinances, development plans, and design guidelines. . Review specific plans, zoning ordinance amendments, and amendments to the General Plan and make recommendations to Council. • Serve on the Planning Commission Design Review Committee, the Environmental Review Committee, and in an advisory role to the Housing Commission and Economic Development Committee. Adopted Budget On June 16, 2020, City Council approved a budget of $119,563 for the Planning Commission program. This represents an increase of $9,776 (8.9%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from the previous fiscal year. Increased costs in cost allocation are due to a change in allocation methodology. 207 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 40,799 $ 42,998 $ 45,735 $ 38,684 Employee Benefits $ 14,807 $ 15,292 $ 17,918 $ 15,948 Materials $19,001 $ 22,078 $ 26,200 $ 33,381 Contract Services $ 7,049 $ 2,678 $ - $ - Cost Allocation $ 20,717 $ 19,241 $ 18,624 $ 30,715 Contingencies $ - $ - $ 1,310 $ 835 Total Expenditures $102,373 $102,287 $ 109,787 $119,563 Fund Balance $ - $ - $ - $ - General Fund Costs $102,374 $102,287 $ 109,787 $119,563 Staffing Total current positions - 0.21 FTE Total proposed positions - 0.26 FTE Staff time is being reallocated to better reflect actual time spent in this program. Table of Contents Housing Commission Budget Unit 100-11-175 General Fund - Commissions - Housing Commission Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 56,102 Fund Balance $ - General Fund Costs $ 56,102 % Funded by General Fund 100.0% Total Staffing 0.15 FTE Program Overview The Cupertino Housing Commission (CHC) is a five -member board appointed by the City Council to assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of General Plan Housing Element goals. The Commission also oversees the Community Development Block Grant (CDBG) program. Service Objectives . Assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of general plan housing element goals; • Recommend policies for implementation and monitoring of affordable housing projects; . Facilitate innovative approaches to affordable housing development and to generate ideas and interest in pursuing a variety of housing options; • When requested by the Director of Community Development or the City Council, to make recommendations to the Planning Commission and the City Council regarding affordable housing proposals in connection with applications for development. . Make recommendations regarding requests for money from the CDBG and Affordable Housing Funds; • Provide information about affordable housing; • Meet with neighborhood, community, regional and business groups as necessary to receive input and assist in generating affordable housing; • Help identify sources of funds to develop and build affordable housing; and • Perform any other advisory functions authorized by the City Council. Adopted Budget On June 16, 2020, City Council approved a budget of $56,102 for the Housing Commission program. This represents an increase of $17,851 (46.7%) from the FY 2019-20 Adopted Budget. Increased costs in cost allocation are due to a change in allocation methodology. 209 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $13,127 $14,055 $16,618 $ 22,801 Employee Benefits $ 7,040 $ 7,025 $ 8,125 $ 10,688 Materials $ 76 $ 495 $ 950 $ 979 Cost Allocation $10,544 $11,937 $12,510 $ 21,610 Contingencies $ - $ - $ 48 $ 24 Total Expenditures $ 30,787 $ 33,512 $ 38,251 $ 56,102 Fund Balance $ - $ - $ - $ - General Fund Costs $ 30,787 $ 33,513 $ 38,251 $ 56,102 Staffing Total current positions - 0.15 FTE Total proposed positions - 0.15 FTE There are no changes to the current level of staffing. 210 Table of Contents Sustainability Commission Budget Unit 100-11-180 General Fund - Commissions - Sustainability Commission Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 52,782 Fund Balance $ - General Fund Costs $ 52,782 % Funded by General Fund 100.0% Total Staffing 0.15 FTE Program Overview The Sustainability Commission is a five -member board appointed by the City Council to serve in an advisory capacity by providing expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino's Climate Action Plan and General Plan Environmental Resources/Sustainability Element. Service Objectives . Monitor and update the CAP based upon quantified metrics to measure and evaluate mitigated impacts and community benefits. • Suggest recommendations, review, and monitor the City's General Plan Environmental Resources/Sustainability Element and its intersections with the CAP. • Advise the City Council how to strategically accelerate Cupertino's progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability. . Periodically review policies governing specific practices and programs, such as greenhouse gas emissions reduction, water conservation, renewable energy, energy efficiency, materials management, and urban forestry. Illustrative examples include the creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, drafting of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll -out of pollution prevention campaigns, etc. • Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate the operational performance of City facilities, businesses, educational institutions, and homes by reducing costs, improving public health, and serving community needs. • Accept public input on the subject areas noted above and advise the City Council on ways to drive community awareness, behavior change, education and participation in City programs modeled upon the field's best practices. • Review and make recommendations to the City Council on Federal, State and regional policies related to sustainability that have the potential to impact City Council's goals and policies. • Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council. 211 Table of Contents Adopted Budget On June 16, 2020, City Council approved a budget of $52,782 for the Sustainability Commission program. This represents an increase of $14,831 (39.1%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in salary and benefits to better reflect actual time spent in this program. Increased costs in cost allocation are due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $15,987 $11,193 $13,564 $18,678 Employee Benefits $11,439 $ 5,737 $ 6,530 $ 9,972 Materials $ 203 $ 5,107 $ 5,600 $ 5,735 Cost Allocation $ 1,912 $ 4,604 $ 11,977 $ 18,254 Contingencies $ - $ - $ 280 $ 143 Total Expenditures $ 29,541 $ 26,641 $ 37,951 $ 52,782 Fund Balance $ - $ - $ - $ - General Fund Costs $ 29,541 $ 26,642 $ 37,951 $ 52,782 Staffing Total current positions - 0.10 FTE Total proposed positions - 0.15 FTE Staff time is being reallocated to better reflect actual time spent in this program. 212 Table of Contents Audit Committee Budget Unit 100-11-190 General Fund - Commissions - Audit Committee Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 20,244 Fund Balance $ - General Fund Costs $ 20,244 % Funded by General Fund 100.0% Total Staffing 0.10 FTE Program Overview The Audit Committee, consisting of two City Council members and a minimum of two and a maximum of three at large members, hold the following powers and functions: A. To review the annual audit report and management letter; B. To recommend appointment of auditors; C. To review the monthly Treasurer's report; D. To recommend a budget format; and E. To review City investment policies and internal controls of such policies. The Audit Committee meets at least quarterly. The Finance Manager serves as staff liaison. Service Objectives • To review the annual audit report and management letter; • To recommend appointment of auditors; . To review the monthly Treasurer's report; • To recommend a budget format; . To review City investment policies and internal controls of such policies. Adopted Budget On June 16, 2020, City Council approved a budget of $20,244 for the Audit Committee program. The Program is being created in FY 20-21 to more accurately account for the resources allocated for this function. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 213 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ - $ - $ 14,080 Employee Benefits $ - $ - $ - $ 6,164 Total Expenditures $ - $ - $ - $ 20,244 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ - $ - $ 20,244 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.10 FTE Staff time is being allocated to better reflect actual time spent in this program. 214 Table of Contents Administration Budget Unit Program 2021 Adopted Budget City Manager $ 4,679,443 100-12-120 City Manager $ 1,328,854 100-12-122 Sustainability $ 801,351 100-12-126 Office of Communications $ 685,842 100-12-305 Video $ 765,456 100-12-307 Public Access Support $ 80,020 100-12-632 Community Outreach and Neighborhood Watch $191,823 100-12-633 Disaster Preparedness $ 395,603 100-12-705 Economic Development $ 430,494 City Clerk $ 750,170 100-13-130 City Clerk $ 513,767 100-13-132 Duplicating and Mail Services $ 75,812 100-13-133 Elections $160,591 City Manager Discretionary $ 551,827 100-14-123 City Manager Contingency $ 551,827 City Attorney $ 2,036,404 100-15-141 City Attorney $ 2,036,404 Total $ 8,017,844 215 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,415,846 Total Expenditures $ 8,017,844 Fund Balance General Fund Costs $ 6,601,998 % Funded by General Fund 82.3% Total Staffing 17.85 FTE Organization Deborah L. Feng, City Manager Dianne Thompson, Assistant City Manager Heather Minner, City Attorney (Contract) Kirsten Squarcia, City Clerk 216 Table of Contents City Manager's Office Assistant City Manager City Manager Assistant to the I I Communications I I Economic City Manager Officer Development Manager Heads Sustainability Manager Sustainability Analyst City Attorney's Office Emergency Services Coordinator Community Coordinator Community reach Specie Communications Assistant Community Coordinator PST Community Relations Coordinator Multimedia Communications Specialist (3) City Clerk Deputy City Clerk Senior Office Assistant 217 Table of Contents 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 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target City Council minutes for regular meetings presented for Council 100% 94 /° 88 /° 100% approval by the following regular meeting Adopted City Council resolutions and ordinances processed and scanned to 100% 99 /° 97 /° ° 100% Laserfiche within a week of Clerk's office receipt of final, signed document Public Record Act requests responded 100% 100% 98% 100% to by the Statutory deadline date Office of Communications Goal: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents. Benefit: Residents have access to timely, engaging, and important information. Performance Measure FY 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target Social media engagement: total number of followers including City 10% annual 23,655 27,074 29,857 Hall Nextdoor, Facebook, Twitter, and increase Instagram accounts Social media engagement: average number of engagements (reactions, 87.9 67.2 10% annual 65.9 comments, shares, and clicksl) per increase post on City Hall Facebook account Cupertino 311: Average response time Average Close Average Close Average Close Average to customers organization -wide (in Time Time Time Close Time days) 2: 7.3 days 3.1 days 2.8 days 5 days 1 Clicks have now been added to the engagement metric, which will bump up the average number. 2 The performance measure for Access Cupertino: Average response time to customers organization -wide was revised as Access Cupertino was replaced by Cupertino 311 in September 2017. The Cupertino 311 Application is administered through the IT Department, but each individual department is responsible for 218 Table of Contents responding to its own requests. Response times are organized by request category. 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 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target % community -wide emissions 15% reduction by reduced from baseline of 307,288 MT Achieved goal in 2019. (24% decrease in 2020 (261,195 MT CO2e/yr 1 emissions from baseline (258,659 MT CO2e/yr) CO2e/yr) Initiate and implement all Climate Action Plan near -term measures: x% initiated 100% 100% 100% 100% x% complete or ongoing 45% 55% 70% 100% % municipal operations emissions Achieved goal in 2019. (66% reduction in 15% reduction by reduced from baseline of 1,865 MT emissions from baseline: 642 MTCO2e) 2020 CO2e/yr Projects 5% utility cost savings identified each identified to New performance measure proposed for FY2021 exceed 5% new year utility savings each year Offset 10% of Pursue grant and incentive funding special projects for special projects and base New performance measure proposed for FY2021 expenses with grants, rebates, or operations avoided utility expenses. 1 Cupertino's GHG inventories are conducted roughly every 3-5 years. Economic Development Division Goal: To actively pursue opportunities in the areas of business attraction, retention, and expansion as a means of promoting economic vitality, and strengthening the City's sales tax base to support Cupertino's excellent quality of life for its residents, businesses, and daytime population. Benefit: Cupertino's economy and sales tax revenue base are diversified to further enhance the City's financial stability and its ability to provide quality amenities to the community. 219 Table of Contents Performance Measure FY 2018 FY 2019 FY2020 Ongoing July -June July -June July -Dec Target Economic Development Business Buzz 700 in FY 17- Subscribers 1,568 1,442 1,442 18 Economic Development Business Workshops & Events 12 16 7 12 per year Video Division FY 2018 FY 2019 FY 2020 Ongoing Performance Measure July -June July -June July -Dec Target Percentage of total video productions 455% 176% 220% performed vs scheduled productions 100% 50/11 60/34 11/5 (city meetings excluded) Percentage of total engineering 143% 112% 300% 100% projects vs scheduled projects 10/7 9/8 3/1 Total video views on Youtube and 5% annual Granicus platforms combined 138,723 135,716 51,349 increase iThe Video Division is responsible for producing videos for both city staff as well as the general Cupertino public. Typically, dozens of video productions are completed every year. Video productions range in scope from relatively simple 30-second public service announcements to major projects like CREST that require more than two months of on -going field production, post -production editing, and a live awards program telecast. This specific Workload Indicator clearly indicates that a large percentage of annual video projects are unscheduled or unanticipated. The main reason is that video productions are oftentimes evaluated and prioritized on the basis of their immediate organizational value, impact and/or newsworthiness. Oftentimes, these unanticipated projects are identified and assigned with only a few days or weeks of advanced notice. As such, there is an on -going need within the division for workflow and work schedule adaptability when it comes to evaluating video productions and completing them on time and on budget. 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. 2Video staff is responsible for designing, managing, and maintaining the many audiovisual and broadcast systems located within the organization. These include systems within the conference and multipurpose rooms, office and huddle spaces, as well as the complex broadcast systems within the video control room at Community Hall. Engineering projects differ from simple repairs, tasks, and modifications in that projects, as defined, require a phased -in approach with advanced planning, design, budgeting, resource acquisition, and implementation. Most engineering projects are scheduled well in advance; occasionally, however, video staff may need to implement unanticipated projects if staff or council priorities require as such. The Workload Indicator here measures the number of projects completed vs. the number of scheduled projects. 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. 3Video staff historically tracks viewership data within our primary online video platforms— YouTube and 220 Table of Contents Granicus. We continue to see an upward trend in viewership of our videos which are used to promote city meetings, city programs, and city services. Our target is to increase viewership by 5% annually. Both YouTube and Granicus provide advanced reporting modules that allow us to accurately track the number of views over a given date range. The numbers here indicate total views rather than total unique views. Other online platforms were considered as part of this dataset; however, because we do not consistently post videos to our other social media sites such as Facebook, Twitter, Instagram, and Nextdoor, those statistics were not included as part of this specific performance measure. Similarly, we do have accurate viewership data for the City Channel, our government access television channel, so that platform was excluded as well. 221 Table of Contents Workload Indicators City Clerk Division Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June ul Dec July -Dec City Council minutes for regular meetings presented for Council approval by the 21/21 18/18 8/9 following regular meeting Adopted City Council resolutions and ordinances processed and scanned to 125/125 resos; 124/124 resos; 70/72 resos; Laserfiche within a week of Clerk's office 10/10 rods 10/10 ords 10/10 ords receipt of final, signed document Public Record Act requests responded to by 92/92 131/131 63/64 the Statutory deadline date Sustainability Division Staff plans to update workload indicators and performance measures as part of CAP 2.0 development in FY2021. Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec Number of local businesses visited / reached out to as part of GreenBiz program outreach 60 50 23 (est) Events related to increasing awareness of reducing greenhouse gas emissions (staff 14 14 8 organized or staff tabled) (est) Sustainability related metrics tracked and / or 90 90 90 analyzed (est) Climate Action Plan action steps initiated or 55 55 55 implemented (est) $ value of utility savings projects and New workload indicator proposed for FY2021. opportunities identified. Monitor all major utility spend accounts New workload indicator proposed for FY2021. (water, gas, electricity) 222 Table of Contents Economic Development Division Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec Meetings with large groups/organizations; appointments with brokers, prospective 240 275 180 business owners, business owners and operators, City staff, etc. Special events, including small business workshops and seminars, ICSC conferences and events, ribbon cuttings and grand 9 24 11 openings, networking events, and Small Business Saturday Celebration event and/or activities Presentations to local organizations and 15 12 6 visiting delegations Respond to calls and email inquires 80 250 175 Video FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Video Productions Completed vs. Those 455% Not tracked Not tracked Scheduledi 50/11 Engineering Projects Completed vs. Those 143% Not tracked Scheduled2 10/7 Not tracked Total Viewership on the YouTube and Granicus Platforms 138,723 Not tracked Not tracked iThe Video Division is responsible for producing videos for both city staff as well as the general Cupertino public. Typically, dozens of video productions are completed every year. Video productions range in scope from relatively simple 30-second public service announcements to major projects like CREST that require more than two months of on -going field production, post -production editing, and a live awards program telecast. This specific Workload Indicator clearly indicates that a large percentage of annual video projects are unscheduled or unanticipated. The main reason is that video productions are oftentimes evaluated and prioritized on the basis of their immediate organizational value, impact and/or newsworthiness. Oftentimes, these unanticipated projects are identified and assigned with only a few days or weeks of advanced notice. As such, there is an on -going need within the division for workflow and work schedule adaptability when it comes to evaluating video productions and completing them on time and on budget. 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. 223 Table of Contents 2Video staff is responsible for designing, managing, and maintaining the many audiovisual and broadcast systems located within the organization. These include systems within the conference and multipurpose rooms, office and huddle spaces, as well as the complex broadcast systems within the video control room at Community Hall. Engineering projects differ from simple repairs, tasks, and modifications in that projects, as defined, require a phased -in approach with advanced planning, design, budgeting, resource acquisition, and implementation. Most engineering projects are scheduled well in advance; occasionally, however, video staff may need to implement unanticipated projects if staff or council priorities require as such. The Workload Indicator here measures the number of projects completed vs. the number of scheduled projects. 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. 3Video staff historically tracks viewership data within our primary online video platforms— YouTube and Granicus. We continue to see an upward trend in viewership of our videos which are used to promote city meetings, city programs, and city services. Our target is to increase viewership by 5% annually. Both YouTube and Granicus provide advanced reporting modules that allow us to accurately track the number of views over a given date range. The numbers here indicate total views rather than total unique views. Other online platforms were considered as part of this dataset; however, because we do not consistently post videos to our other social media sites such as Facebook, Twitter, Instagram, and Nextdoor, those statistics were not included as part of this specific performance measure. Similarly, we do have accurate viewership data for the City Channel, our government access television channel, so that platform was excluded as well. Adopted Budget On June 16, 2020, City Council approved a budget of $8,017,844 for the Administration department. This represents an increase of $1,493,433 (22.9%) from the FY 2019-20 Adopted Budget. 224 Table of Contents Adopted Expenditures by Division ■ City Manager City Attorney ■ City Clerk City Manager Discretionary Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 225 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ - $ 1,300 $ 27,592 $ - Charges for Services $ 813,509 $ 712,070 $ 1,127,708 $ 1,388,254 Miscellaneous Revenue $ 40,418 $ 20,506 $ 20,500 $ 27,592 Total Revenues $ 853,927 $ 733,876 $ 1,175,800 $1,415,846 Expenditures Employee Compensation $ 1,944,122 $ 1,820,343 $ 1,876,732 $ 2,524,754 Employee Benefits $ 780,889 $ 653,296 $ 739,163 $ 1,019,993 Materials $ 280,122 $ 361,441 $ 403,089 $ 452,399 Contract Services $ 642,397 $ 1,998,612 $ 2,385,409 $ 2,782,757 Cost Allocation $ 376,097 $ 537,762 $ 469,747 $ 481,712 Special Projects $ 65,510 $ 59,291 $ 127,000 $ 175,092 Contingencies $ 911 $ - $ 523,271 $ 581,137 Total Expenditures $ 4,090,048 $ 5,430,745 $ 6,524,411 $ 8,017,844 Fund Balance $ - $ - $ - $ - General Fund Costs $ 3,236,119 $ 4,696,869 $ 5,348,611 $ 6,601,998 Staffing Total current positions - 14.20 FTE Total proposed positions - 17.85 FTE 226 Table of Contents City Manager Budget Unit 100-12-120 General Fund - City Manager - City Manager Budget at a Glance 2021 Adopted Budget Total Revenues $ 480,014 Total Expenditures $1,328,854 Fund Balance $ - General Fund Costs $ 848,840 % Funded by General Fund 63.9% Total Staffing 3.90 FTE Program Overview The City Manager is responsible to the City Council for the effective and efficient operation of the City. Under the direction of the City Council as a whole, the City Manager carries out the City's goals and objectives. Service Objectives . Accomplish the Council -approved City Work Program. • Manage City operations. . Ensure all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed. • Advise the City Council on policy, and the financial conditions and needs of the City. . Investigate all complaints concerning the operation of the City. • Prepare reports and initiate recommendations as may be desirable or as requested by the City Council. . Ensure that the City's policies and procedures provide a foundation for a secure financial position. Adopted Budget On June 16, 2020, City Council approved a budget of $1,328,854 for the City Manager program. This represents an increase of $67,597 (5.4%) from the FY 2019-20 Adopted Budget. The increase is primarily due to negotiated salary increases, contract services related to Federal legislative support, and the work program item to reduce secondhand smoke exposure. Special Projects The following table shows the special projects for the fiscal year. 227 Table of Contents Special Project Appropriation Revenue Funding Source Policies Reducing Secondhand Smoke $27,592 $27,592 County Grant Exposure Total $27,592 $27,592 Description Support research/outreach for reducing secondhand smoke exposure Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ - $ - $ 27,592 $ - Charges for Services $ 319,144 $ 332,342 $ 401,525 $ 452,422 Miscellaneous Revenue $ 770 $ 3,145 $ - $ 27,592 Total Revenues $ 319,914 $ 335,487 $ 429,117 $ 480,014 Expenditures Employee Compensation $ 620,086 $ 450,190 $ 758,600 $ 843,072 Employee Benefits $ 234,891 $120,510 $ 286,460 $ 293,674 Materials $ 42,119 $ 52,935 $ 77,045 $ 43,830 Contract Services $15,569 $ 62,307 $ 95,792 $117,400 Cost Allocation $ 31,937 $ 55,273 $ 40,423 $ - Special Projects $ - $ - $ - $ 27,592 Contingencies $ 911 $ - $ 2,937 $ 3,286 Total Expenditures $ 945,513 $ 741,215 $ 1,261,257 $ 1,328,854 Fund Balance $ - $ - $ - $ - General Fund Costs $ 625,599 $ 405,728 $ 832,140 $ 848,840 Staffing Total current positions - 3.90 FTE Total proposed positions - 3.90 FTE There are no changes to the current level of staffing. 228 Table of Contents Sustainability Budget Unit 100-12-122 General Fund - City Manager - Sustainability Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 801,351 Fund Balance E12 General Fund Costs $ 801,351 % Funded by General Fund 100.0% Total Staffing 1.80 FTE Program Overview The Sustainability Division works to implement the City's Climate Action Plan, and work across departments in building public good through activities that reduce greenhouse gas emissions, help to mitigate financial and regulatory risk, provide utility cost assurances, conserve 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 burgeoning state and federal regulations. • Serve as a technical resource on sustainability initiatives by preparing staff reports, developing local policies and ordinances, coordinating educational events, and making presentations to Council, City departments, and applicable outside organizations. • Coordinate municipal and community -wide greenhouse gas emissions inventories, develop emissions targets, execute a community -wide climate action plan, and track progress to achieve emissions reductions over time. • Expand existing compliance -focused environmental services to offer innovative energy, water, and resource conservation programs that effectively engage employees and community members. • Evaluate existing departmental programs and benchmark environmental achievements on an ongoing basis. . Research tools and best practices for efficient utility management and conservation and adapt these to the City's organizational culture, operations, and budgets. . Manage or perform resource audits, identify energy conservation and renewable energy generation opportunities, calculate feasibility and develop projects that are cost-effective and conserve resources. • Work with schools to expand successful municipal programs into educational institutions through effective partnerships that empower students as environmental leaders. 229 Table of Contents Adopted Budget On June 16, 2020, City Council approved a budget of $801,351 for the Sustainability program. This represents an increase of $245,688 (44.2%) from the FY 2019-20 Adopted Budget. The primary new project proposed is the Climate Action Plan update (CAP 2.0), which is a legislative priority of the State of California in response to SB100 and other legislation addressing greenhouse gas mitigation and adapting to climate risks such as wildfire and droughts. The increase since the previous year's budget also reflects a fully -staffed division as of August 2019, which has been under staffed during the last two fiscal years. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Identify costs and scope of work for Sustainable Offset the cost new sustainable infrastructure for Infrastructure City facilities. Target 5% utility cost Investment -grade $10,000 $10,000 with utility cost savings each year (see proposed avoidance. audit performance indicator to reduce utility cost exposure). Provide guidance and action plans for each department to comply with State regulations, provide enhanced Climate Action & community services, and build Adaptation 2.0 $100,000 $100,000 General Fund economic opportunities for local residents and businesses. The Climate Action Plan must include a carbon neutral goal by 2045 to align with California State targets. Green Create program and update policies Procurement $2,000 $2,000 General Fund for sustainable procurement. Funding Program request to build staff capacity by Development attending a seminar. Total $112,000 $112,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 230 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ 39,648 $ 5,963 $ 13,000 $ - Total Revenues $ 39,648 $ 5,963 $13,000 $ - Expenditures Employee Compensation $ 163,835 $ 172,616 $172,185 $ 244,755 Employee Benefits $ 80,863 $ 90,645 $ 82,848 $118,784 Materials $ 28,837 $ 14,035 $ 36,182 $ 20,687 Contract Services $161,313 $109,918 $138,850 $ 94,074 Cost Allocation $191,006 $155,255 $116,846 $ 208,182 Special Projects $ 65,510 $ 33,423 $ - $112,000 Contingencies $ - $ - $ 8,752 $ 2,869 Total Expenditures $ 691,364 $ 575,892 $ 555,663 $ 801,351 Fund Balance $ - $ - $ - $ - General Fund Costs $ 651,715 $ 569,929 $ 542,663 $ 801,351 Staffing Total current positions - 1.40 FTE Total proposed positions - 1.80 FTE Staff time is being reallocated across Sustainability Commission and Public Works (resource recovery) to better reflect actual time spent in this program. 231 Table of Contents Office of Communications Budget Unit 100-12-126 General Fund - City Manager - Office of Communications Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 685,842 Fund Balance $ - General Fund Costs $ 685,842 % Funded by General Fund 100.0% Total Staffing 2.95 FTE Program Overview The Office of Communications is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Office of Communications oversees and maintains many of the City's lines of communication with residents, including the City's website, social media accounts, monthly newsletter, videos, event tabling, flyers, and press releases. The Office of Communications also acts as a liaison between various City departments and the community when it comes to communicating information about projects and events. Service Objectives • Serve as the communications link between the City of Cupertino and residents • Ensure that the community has easy access to important, useful, and timely information through various forms of media including print, online, and video . Build community pride and positive identification with the City among residents . Increase interest and participation in City services, projects, and activities • Promote City Council and departmental goals, initiatives, programs, and services . Assist in creating better internal and external communication • Enhance the City's relationship with the news media Adopted Budget On June 16, 2020, City Council approved a budget of $685,842 for the Office of Communications program. This represents an increase of $16,735 (2.5%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in materials for project and events marketing printing and negotiated increases in salary and benefits. This increase is offset by a decrease in contract services. 232 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 150,385 $ 121,818 $ 260,873 $ - Miscellaneous Revenue $ - $ - $ 7,500 $ - Total Revenues $150,385 $121,818 $ 268,373 $ - Expenditures Employee Compensation $196,961 $ 249,333 $ 256,668 $ 360,868 Employee Benefits $ 83,865 $ 95,524 $ 110,723 $ 144,494 Materials $ 100,954 $ 112,689 $ 118,790 $ 153,222 Contract Services $ 26,983 $ 33,926 $ 96,710 $ 22,856 Cost Allocation $ 60,307 $ 70,741 $ 28,441 $ - Special Projects $ - $ - $ 50,000 $ - Contingencies $ - $ - $ 7,775 $ 4,402 Total Expenditures $ 469,070 $ 562,213 $ 669,107 $ 685,842 Fund Balance $ - $ - $ - $ - General Fund Costs $ 318,685 $ 440,394 $ 400,734 $ 685,842 Staffing Total current positions - 2.65 FTE Total proposed positions - 2.95 FTE Staff time is being reallocated to better reflect actual time spent in this program. 233 Table of Contents Video Budget Unit 100-12-305 General Fund - City Manager - Video Budget at a Glance 2021 Adopted Budget Total Revenues $ 293,110 Total Expenditures $ 765,456 Fund Balance $ - General Fund Costs $ 472,346 % Funded by General Fund 61.7% Total Staffing 3.00 FTE Program Overview In FY 2020-21, this program transferred from Innovation Technology to the City Manager's Office. Historical data can be found under Budget Unit 100-31-305. The primary goal of the Video Division is to increase public awareness, interest, understanding, and participation in the issues, programs, and services presented by the City of Cupertino. The staff promotes City services and programs through its 24/7 government access channel, radio station, digital signage network, City website, and numerous online video platforms. In addition, the video staff provides multimedia production services and technical support for all City departments. Video staff also oversees the design, maintenance, and engineering of the City's broadcast and audiovisual systems. Service Objectives Video staff works together to manage and maintain the following city services: • City Channel, the government access television channel which provides 24/7 information to Cupertino residents, includes full coverage of city meetings, community events, town hall forums, press conferences, election coverage, and local speaker series, as well as educational programming and state government affairs programming • Webcasting and video on demand services for live streaming city meetings, events and other programs of interest • Radio Cupertino for emergency and community information for public service announcements, traffic alerts, and weather forecasts • Digital signage to promote city programs and events via electronic displays in city facilities • Multimedia production services and maintenance of city video equipment Adopted Budget On June 16, 2020, City Council approved a budget of $765,456 for the Video program. This budget represents a decrease from the FY 2019-20 Adopted Budget. The decrease is primarily due to the completion of a one-time project funded in the previous fiscal year for Cupertino Room's AN upgrade. Decreased costs in cost allocation are due to a change in allocation methodology. Decreased costs in salary 234 Table of Contents are due to staff time being reallocated to better reflect actual time spent in the program. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Community Hall Replace the Community Hall Podium $15,000 $15,000 PEG fund podium with updated current Replacement technology. Portable, battery -operated signal Portable Signal $9000 ,, $9000 PEG fund generator/analyzer that can be Generator/Analyzer quickly connected to cables and components. Wireless Video A system to broadcast live video Transmission $11,500 $11,500 PEG fund wirelessly from the field using a System high -end, camera mounted transmitter. Total $35,500 $35,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ - $ - $ 293,110 Total Revenues $ - $ - $ - $ 293,110 Expenditures Employee Compensation $ - $ - $ - $ 397,965 Employee Benefits $ - $ - $ - $178,244 Materials $ - $ - $ - $ 55,769 Contract Services $ - $ - $ - $ 94,228 Special Projects $ - $ - $ - $ 35,500 Contingencies $ - $ - $ - $ 3,750 Total Expenditures $ - $ - $ - $ 765,456 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ - $ - $ 472,346 235 Table of Contents Staffing Total current positions - 0.00 FTE Total proposed positions - 3.00 FTE In FY 2020-21, Video staff transferred from Innovation Technology to the City Manager's Office. 236 Table of Contents Public Access Support Budget Unit 100-12-307 General Fund - City Manager - Public Access Support Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 80,020 Fund Balance E12 General Fund Costs $ 80,020 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The City assists in the funding of the KMVT Community Access Television Program. Service Objectives • Encourage Cupertino -based individuals and groups to use the community television production facilities for the purpose of expressing their interests, concerns, and ideas in a socially responsible manner. . Provide professional training in hands-on video production by providing access to television equipment, computers, and software that would be otherwise out of reach of the average person. • Provide workshops on all aspects of television production --including how to run a video camera, photography, editing, visual effects, social media, podcasting, and video blogging. • Assist individuals and community groups to develop and produce programs for broadcast on the community access channel. Adopted Budget On June 16, 2020, City Council approved a budget of $80,020 for the Public Access Support program. This budget reflects the City's partnership with KMVT. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 237 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $ - $ - $ - $ 75,120 Cost Allocation $ - $ - $ - $ 3,022 Contingencies $ - $ - $ - $ 1,878 Total Expenditures $ - $ - $ - $ 80,020 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ - $ - $ 80,020 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 238 Table of Contents Community Outreach and Neighborhood Watch Budget Unit 100-12-632 General Fund - City Manager - Community Outreach and Neighborhood Watch Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 191,823 Fund Balance E12 General Fund Costs $191,823 % Funded by General Fund 100.0% Total Staffing 0.75 FTE Program Overview Community Outreach programs facilitate communication and enhance cultural understanding in Cupertino neighborhoods. Block Leaders are instrumental in building connected communities, delivering timely and pertinent information to neighbors, and providing input to the City. Neighborhood Watch enhances public safety by providing crime prevention information to local businesses and residents. The program promotes an active relationship between the community and the Sheriff's Office. Service Objectives • Aid in the development, implementation, and coordination of City programs and community -building activities designed to bring Cupertino neighborhoods together. . Coordinate and disseminate useful and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods. . Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs. . Train residents to connect and organize neighbors and neighborhoods. • Get Block Leaders involved in the Parks and Recreation System Master Plan. . Create and implement Neighborhood Watch meetings and groups. • Disseminate important City news and safety information. • Organize and conduct annual National Night Out initiative. Adopted Budget On June 16, 2020, City Council approved a budget of $191,823 for the Community Outreach and Neighborhood Watch program. This represents an increase of $16,938 (9.7%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from the previous fiscal year. Increased costs in cost allocation are due to a change in allocation methodology. 239 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ 68,853 $ 89,316 $ 90,970 Employee Benefits $ - $ 21,550 $ 29,200 $ 32,425 Materials $ - $ 9,450 $ 8,943 $11,272 Contract Services $ - $ - $ 1,789 $ - Cost Allocation $ - $ 29,357 $ 43,100 $ 56,874 Special Projects $ - $ - $ 2,000 $ - Contingencies $ - $ - $ 537 $ 282 Total Expenditures $ - $ 129,210 $174,885 $191,823 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ 129,210 $ 174,885 $ 191,823 Staffing Total current positions - 0.75 FTE Total proposed positions - 0.75 FTE There are no changes to the current level of staffing. 240 Table of Contents Disaster Preparedness Budget Unit 100-12-633 General Fund - City Manager - Disaster Preparedness Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 395,603 Fund Balance E12 General Fund Costs $ 395,603 % Funded by General Fund 100.0% Total Staffing 0.95 FTE Program Overview The mission of the Office of Emergency Services 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 Services. • Maintain the City's Emergency Operations Center (EOC) in a perpetual state of operational readiness. . Support Citizen Corps, Cupertino Amateur Radio Emergency Service (CARES), Medical Reserve Corps (MRC), and Community Emergency Response Team (CERT). • Prepare, test and revise emergency response and recovery policies, plans, and procedures in compliance with the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System (NIMS). • Coordinate training of City staff in personal preparedness, SEMS/NIMS, and EOC functions. . Maintain effective liaison with local, state, and national emergency management organizations and/or allied disaster preparedness and response agencies. Adopted Budget On June 16, 2020, City Council approved a budget of $395,603 for the Disaster Preparedness program. This represents an increase of $212 (0.1%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to the one-time budgeting of the Continuity of Operations Plan in FY 2019-20. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 241 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ - $ 1,300 $ - $ - Total Revenues $ - $1,300 $ - $ - Expenditures Employee Compensation $ - $ 80,231 $127,596 $165,751 Employee Benefits $ - $ 24,121 $ 39,525 $ 52,268 Materials $ - $15,746 $ 38,835 $ 40,475 Contract Services $ - $ - $ 6,000 $ 7,100 Cost Allocation $ - $ 60,802 $106,193 $128,820 Special Projects $ - $ - $ 75,000 $ - Contingencies $ - $ - $ 2,242 $ 1,189 Total Expenditures $ - $ 180,900 $ 395,391 $ 395,603 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ 179,600 $ 395,391 $ 395,603 Staffing Total current positions - 1.00 FTE Total proposed positions - 0.95 FTE Staff time is being reallocated to better reflect actual time spent in this program. 242 Table of Contents Economic Development Budget Unit 100-12-705 General Fund - City Manager - Economic Development Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 430,494 Fund Balance E12 General Fund Costs $ 430,494 % Funded by General Fund 100.0% Total Staffing 1.00 FTE Program Overview The Economic Development program specifically targets business retention, expansion, and attraction with a focus on small business development, in order to support the City's financial stability. Service Objectives • Provide assistance and support to businesses to enable job creation, new business formation, private investment, and industry evolution. . Conduct outreach to existing small businesses to create strong working relationships. • Collaborate with internal city team members to keep the needs of businesses in the forefront when reviewing applications and projects. • Partner with local business associations, agencies, and organizations to create a strong and cohesive network offering business support and assistance. • Provide the public with current data and information easily accessible online or in printed format. . Assist with policy formation to align with business and community goals. Adopted Budget On June 16, 2020, City Council approved a budget of $430,494 for the Economic Development program. This represents an increase of $90,160 (26.5%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in staffing services offset by a decrease in salary and benefits. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 243 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ 63,749 $ 79,716 $ - Employee Benefits $ - $ 18,332 $ 23,632 $ 1,221 Materials $ - $ 20,163 $ 53,085 $ 54,995 Contract Services $ - $ 45,272 $ 141,988 $ 316,900 Cost Allocation $ - $ 25,257 $ 32,159 $ 50,406 Special Projects $ - $ 2,500 $ - $ - Contingencies $ - $ - $ 9,754 $ 6,972 Total Expenditures $ - $175,273 $ 340,334 $ 430,494 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $175,272 $ 340,334 $ 430,494 Staffing Total current positions - 1.00 FTE Total proposed positions - 1.00 FTE There are no changes to the current level of staffing 244 Table of Contents City Clerk Budget Unit 100-13-130 General Fund - City Clerk - City Clerk Budget at a Glance 2021 Adopted Budget Total Revenues $ 91,584 Total Expenditures $ 513,767 Fund Balance $ - General Fund Costs $ 422,183 % Funded by General Fund 82.2% Total Staffing 2.50 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; and provides partial mail service for all City Departments. Service Objectives . Ensure compliance with the Brown Act open meetings requirements, Maddy Act Commission vacancy requirements and the Public Records Act, to accurately process documents and maintain a records management system that facilitates timely access to information, including digital access to City records. • Provide complete, accurate and timely information to the public, staff and City Council. . Respond to internal routing requests within two working days; respond to internal requests requiring archival research within five working days. • Respond to Public Record Act requests within the time specified by State law. . Provide a digital City Council packet to members of the City Council and staff for use on mobile devices. • Process and sort routine incoming and outgoing mail and packages daily for each department. Adopted Budget On June 16, 2020, City Council approved a budget of $513,767 for the City Clerk program. This represents an increase of $10,082 (2.0%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from the previous fiscal year. 245 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 80,948 $ 63,559 $ 65,544 $ 91,584 Total Revenues $ 80,948 $ 63,559 $ 65,544 $ 91,584 Expenditures Employee Compensation $ 316,102 $ 347,154 $ 292,467 $ 311,593 Employee Benefits $ 125,429 $ 118,002 $ 116,739 $ 141,916 Materials $ 25,342 $ 23,452 $ 23,894 $ 24,609 Contract Services $ 37,394 $ 42,893 $ 33,380 $ 34,179 Cost Allocation $ 53,590 $ 47,103 $ 34,341 $ - Contingencies $ - $ - $ 2,864 $ 1,470 Total Expenditures $ 557,857 $ 578,604 $ 503,685 $ 513,767 Fund Balance $ - $ - $ - $ - General Fund Costs $ 476,909 $ 515,045 $ 438,141 $ 422,183 Staffing Total current positions - 2.50 FTE Total proposed positions - 2.50 FTE There are no changes to the current level of staffing. 246 Table of Contents Duplicating and Mail Services Budget Unit 100-13-132 General Fund - City Clerk - Duplicating and Mail Services Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 75,812 Fund Balance E12 General Fund Costs $ 75,812 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The Duplicating and Mail budget provides paper, envelope, and postage supplies Citywide, and is responsible for the maintenance costs of the postage and folder -inserter machines. Service Objectives . Supply paper, envelope, and postage Citywide and maintain postage and folder -inserter machines. Adopted Budget On June 16, 2020, City Council approved a budget of $75,812 for the Duplicating and Mail Services program. This represents an increase of $32,867 (76.5%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase is cost allocation resulting from a change in methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 247 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $19,907 $ 25,683 $ - $ - Employee Benefits $ 7,219 $ 10,028 $ - $ - Materials $ 37,376 $ 36,055 $ 35,000 $ 36,050 Contract Services $13,781 $ 8,121 $ 5,900 $ 5,900 Cost Allocation $ - $ 21 $ - $ 32,813 Special Projects $ - $ 23,368 $ - $ - Contingencies $ - $ - $ 2,045 $ 1,049 Total Expenditures $ 78,283 $ 103,276 $ 42,945 $ 75,812 Fund Balance $ - $ - $ - $ - General Fund Costs $ 78,282 $ 103,277 $ 42,945 $ 75,812 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 248 Table of Contents Elections Budget Unit 100-13-133 General Fund - City Clerk - Elections Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 160,591 Fund Balance $ - General Fund Costs $160,591 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The City Clerk's office administers the legislative process including management of local elections and filings of Fair Political Practices Commission documents. Service Objectives . Administer elections and Fair Political Practices Commission filings in compliance with State law. • Conduct a local election in even -numbered years and ballot measure elections as necessary, in compliance with the California Elections Code. • Facilitate timely filing of required and voluntary documentation from candidates and election committees, including Nomination Papers, Candidate Statements of Qualification, Campaign Financial Disclosure Statements, and Statements of Economic Interest, as well as candidate biographies and photographs. . Make election -related information available to the public and news media in a timely manner. Adopted Budget On June 16, 2020, City Council approved a budget of $160,591 for the Elections program. This represents an increase of $160,334 (62386.8%) from the FY 2019-20 Adopted Budget. The increase is due to an increase in election services and materials for the Santa Clara County Election Nov 2020 (every 2 years) and election year costs for consolidation with the County Registrar of Voters. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 249 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ - $ 11,398- Total Revenues $ - $11,398- Expenditures Materials $ 254 $ 6,766 $ 245 $ 6,947 Contract Services $ - $101,710 $ - $150,000 Cost Allocation $ 188 $ - $ - $1,595 Contingencies $ - $ - $ 12 $ 2,049 Total Expenditures $ 442 $ 108,476 $ 257 $ 160,591 Fund Balance $ - $ - $ - $ - General Fund Costs $ 442 $ 97,078 $ 257 $ 160,591 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 250 Table of Contents City Manager Contingency Budget Unit 100-14-123 General Fund - City Manager Discretionary - City Manager Contingency Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 551,827 Fund Balance E12 General Fund Costs $ 551,827 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The City Manager Contingency program was established to meet citywide unexpected expenses that may occur during the year. In FY 2013-14, a Contingencies expenditure category was added to each General Fund program to serve as a contingency for any unexpected expenditures that might occur during the year. In FY 2020-21, program contingencies were reduced from 5% of budgeted General Fund materials and contract services to 2.5%. Program contingencies have been allocated proportionately among operating programs based on each program's share of General Fund budget for materials and contract services. The City Manager Contingency is a second level of contingency established for unexpected expenditures that may occur over the program contingency. In FY 2020-21, City Manager contingencies were also reduced from 5% of budgeted General Fund materials and contract services to 2.5%. This brings total contingencies for the General Fund to 5% of budgeted materials and contract services. This percentage is consistent with best practices adopted by the Governmental Accounting Standards Board (GASB) which recommended 5-15% contingency. Program contingency budgets may be used to cover unanticipated program expenses at the department's discretion, while use of the City Manager Contingency will require City Manager approval. The Sheriff's and City Attorney services contracts are excluded from the contingency calculation. Adopted Budget On June 16, 2020, City Council approved a budget of $551,827 for the City Manager Contingency program. This represents an increase of $65,474 (13.5%) from the FY 2019-20 Adopted Budget. City Manager contingencies were updated to 2.5% of budgeted General Fund materials and contract services. This budget includes an additional $279,306 in contingencies for unforeseen Public Works maintenance and repairs. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 251 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Materials $ - $ 45,320 $ - $ - Cost Allocation $ 821 $ - $ - $ - Contingencies $ - $ - $ 486,353 $ 551,827 Total Expenditures $ 821 $ 45,320 $ 486,353 $ 551,827 Fund Balance $ - $ - $ - $ - General Fund Costs $ 821 $ 45,320 $ 486,353 $ 551,827 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 252 Table of Contents City Attorney Budget Unit 100-15-141 General Fund - City Attorney - City Attorney Budget at a Glance 2021 Adopted Budget Total Revenues $ 551,138 Total Expenditures $ 2,036,404 Fund Balance E12 General Fund Costs $1,485,266 % Funded by General Fund 72.9% Total Staffing 1.00 FTE Program Overview The City Attorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City Attorney's Office. The City Attorney's Office provides all legal services that are needed to support the City Council, City Commissions, City Manager, department directors, and City staff. Service Objectives The mission of the City Attorney's Office is to protect and defend the City by all legal and ethical means and to provide the municipal corporation with high -quality legal service and advice. These legal services include the following: • Prosecute and defend the City in any legal action such as civil matters involving personal injury or property damage, code enforcement, or any administrative action arising out of City business. • Manage all liability claims filed against the City including investigation and disposition. . Attend City Council, Planning Commission, and other public meetings as requested. . Prepare and review proposed legislation including ordinances and resolutions. • Draft and/or review contracts, agreements, and other legal documents. . Conduct legal research and analysis, and prepare legal memoranda. • Provide legal support for special projects, among other things. Adopted Budget On June 16, 2020, City Council approved a budget of $2,036,404 for the City Attorney program. This represents a decrease of $58,130 (-2.8%) from the FY 2019-20 Adopted Budget. The following table shows contract attorney services for fiscal year. 253 Table of Contents Legal Services General City Attorney Services Specialized Attorney Services Litigation and Related Services Total Appropriation $1,200,000 $405,000 $260,000 $1,865,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 263,032 $ 194,351 $ 399,766 $ 551,138 Total Revenues $ 263,032 $194,351 $ 399,766 $ 551,138 Expenditures Employee Compensation $ 627,231 $ 362,534 $100,184 $109,780 Employee Benefits $ 248,622 $154,584 $ 50,036 $ 56,967 Materials $ 45,240 $ 24,830 $11,070 $ 4,543 Contract Services $ 387,357 $1,594,465 $1,865,000 $1,865,000 Cost Allocation $ 38,248 $ 93,953 $ 68,244 $ - Contingencies $ - $ - $ - $ 114 Total Expenditures $ 1,346,698 $ 2,230,366 $ 2,094,534 $ 2,036,404 Fund Balance $ - $ - $ - $ - General Fund Costs $ 1,083,666 $ 2,036,016 $ 1,694,768 $ 1,485,266 Staffing Total current positions - 1.00 FTE Total proposed positions - 1.00 FTE There are no changes to the current level of staffing. 254 Table of Contents Law Enforcement Budget Unit Program 2021 Adopted Budget Law Enforcement $14,792,448 100-20-200 Law Enforcement $ 14,743,181 100-20-201 Interoperability Project $ 49,267 100-20-202 Code Enforcement $ - Total $14,792,448 255 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,137,328 Total Expenditures $ 14,792,448 Fund Balance General Fund Costs $ 13,655,120 % Funded by General Fund 92.3% Total Staffing 0.00 FTE Organization Captain Rich Urena, Office of the Sheriff Law Enforcement (Contracted) 256 Table of Contents 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 2018 FY 2019 FY 2020 July -June July -June July -Dec Response time for emergency calls Ongoing Target Priority 1 4.14 4.39 3.96 5 minutes Priority 2 7.14 6.23 6.74 9 minutes Priority 3 14.36 12.11 12.42 20 minutes % programs maintaining minimum attendance 100% 72% 48% 80% Teen Academy 100% 92% 200% 80% Citizen Academy 257 Table of Contents Workload Indicators Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec Total Priority 1 Calls 61 67 32 Total Priority 2 Calls 4,990 4,185 2,197 Total Priority 3 Calls 5,570 5,014 2,706 Total Teen/Community Academy Participants 74 41 62 Adopted Budget On June 16, 2020, City Council approved a budget of $14,792,448 for the Law Enforcement department. This represents an increase of $714,511 (5.1%) from the FY 2019-20 Adopted Budget. 258 Table of Contents Adopted Expenditures by Division ■ Law Enforcement Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 259 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $139,416 $148,747 $100,500 $100,000 Charges for Services $131,842 $ 352,944 $ 61,500 $ - Fines and Forfeitures $ 575,032 $ 320,922 $ 350,000 $ 200,000 Miscellaneous Revenue $ - $ 561,271 $ 558,979 $ 837,328 Total Revenues $ 846,290 $1,383,884 $ 1,070,979 $1,137,328 Expenditures Employee Compensation $ 236,925 $ 81,099 $ - $ - Employee Benefits $ 97,924 $ 38,072 $ - $ - Materials $ 92,046 $ 54,519 $ 51,803 $ 53,357 Contract Services $11,772,706 $12,884,671 $13,965,319 $14,614,029 Cost Allocation $163,020 $ 50,370 $ 58,388 $123,731 Contingencies $ - $ - $ 2,427 $ 1,331 Total Expenditures $ 12,362,621 $13,108,731 $ 14,077,937 $ 14,792,448 Fund Balance $ - $ - $ - $ - General Fund Costs $ 11,516,331 $11,724,848 $ 13,006,958 $ 13,655,120 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 260 Table of Contents Law Enforcement Budget Unit 100-20-200 General Fund - Law Enforcement - Law Enforcement Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,137,328 Total Expenditures $14,743,181 Fund Balance $ - General Fund Costs $13,605,853 % Funded by General Fund 92.3% Total Staffing 0.00 FTE Program Overview The Law Enforcement program provides law enforcement, emergency communications, School Resource Officers, and the Youth Probation Program. Law enforcement services are provided by the Santa Clara County Sheriff's Office, while communications services are provided by the Santa Clara County General Services Administration. The County's Youth Probation Program, also managed by the Sheriff's Office, is funded through a partnership with the Cupertino Union School District and the City of Cupertino. Other services include general law enforcement (patrol), traffic enforcement and investigation, detective services, and additional resources from specialized units. The State allocates the Citizens Option for Public Safety (COPS) grant to cities and counties for front-line law enforcement purposes. Funding is allocated proportionately based on population size with a minimum allocation of $100,000 per jurisdiction. This grant will be used to partially offset the cost of a second School Resource Officer that was added in the FY 2017 school year. Service Objectives • Protect life and property through innovative and progressive policing methods. . Respond to Priority 1 emergency situations within an average of fewer than five minutes. • Enforce the vehicle code with the goal of increasing traffic safety. • Divert first time/minor youth offenders from the juvenile justice system. • Provide daily on -site interaction with our youth. Adopted Budget On June 16, 2020, City Council approved a budget of $14,743,181 for the Law Enforcement program. This represents an increase of $716,980 (5.1%) from the FY 2019-20 Adopted Budget. 261 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $139,416 $148,747 $100,500 $100,000 Charges for Services $129,610 $ 352,631 $ 61,500 $ - Fines and Forfeitures $ 295,283 $ 255,217 $ 350,000 $ 200,000 Miscellaneous Revenue $ - $ 561,271 $ 558,979 $ 837,328 Total Revenues $ 564,309 $1,317,866 $ 1,070,979 $1,137,328 Expenditures Materials $ 51,483 $ 50,703 $ 51,803 $ 53,357 Contract Services $11,505,817 $12,805,201 $13,916,780 $14,565,490 Cost Allocation $ 70,655 $ 41,818 $ 57,618 $123,003 Contingencies $ - $ - $ - $1,331 Total Expenditures $11,627,955 $12,897,722 $14,026,201 $14,743,181 Fund Balance $ - $ - $ - $ - General Fund Costs $ 11,063,646 $11,579,857 $12,955,222 $13,605,853 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 262 Table of Contents Interoperability Project Budget Unit 100-20-201 General Fund - Law Enforcement - Interoperability Project Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 49,267 Fund Balance $ - General Fund Costs $ 49,267 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The Silicon Valley Regional Interoperability Authority (SVRIA) was formed under the Joint Exercise of Powers Act (JPA) to provide interoperable communications solutions to its members. The SVRIA represents the interests of all public safety agencies in Santa Clara County through its members. It services the Santa Clara Operational Area which includes the County of Santa Clara, its fifteen cities and towns, and all special districts. Service Objectives SVRIA exists to identify, coordinate, and implement communications interoperability solutions to its member agencies. The purpose of these projects is to seamlessly integrate voice and data communications between law enforcement, the fire and rescue service, emergency medical services, and emergency management for routine operations, critical incidents, and disaster response and recovery. Adopted Budget On June 16, 2020, City Council approved a budget of $49,267 for the Interoperability Project program. This represents a decrease of $2,469 (48%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 263 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $ 48,359 $ - $ 48,539 $ 48,539 Cost Allocation $ 274 $ 1,059 $ 770 $ 728 Contingencies $ - $ - $ 2,427 $ - Total Expenditures $ 48,633 $1,059 $ 51,736 $ 49,267 Fund Balance $ - $ - $ - $ - General Fund Costs $ 48,633 $1,059 $ 51,736 $ 49,267 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 264 Table of Contents Code Enforcement Budget Unit 100-20-202 General Fund - Law Enforcement - Code Enforcement Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing Program Overview 2021 Adopted Budget 0.0% 0.00 FTE In FY 2018-19, this program was transferred to a new Code Enforcement division in Planning and Community Development as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-74-202. This program will remain in order to maintain historical data. Once all prior year data as listed in the table below is $0, this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 265 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Charges for Services $ 2,232 $ 313- Fines and Forfeitures $ 279,749 $ 65,705- Total Revenues $ 281,981 $ 66,018- Expenditures Employee Compensation $ 236,925 $ 81,099- Employee Benefits $ 97,924 $ 38,072- Materials $ 40,563 $ 3,816- Contract Services $ 218,530 $ 79,470- Cost Allocation $ 92,091 $ 7,493 Total Expenditures $ 686,033 $ 209,950- Fund Balance $ - $ - General Fund Costs $ 404,052 $143,932 $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 266 Table of Contents Innovation and Technology Budget Unit Program 2021 Adopted Budget I&T Administration $ 356,506 610-30-300 Innovation & Technology Administration $ 356,506 Video $ - 100-31-305 Video $- 100-31-307 Public Access Support $ - Applications $1,981,299 100-32-308 Applications $1,981,299 Infrastructure $ 2,076,714 610-34-310 Infrastructure $ 2,076,714 GIS $1,081,259 610-35-986 GIS $ 1,081,259 Total $ 5,495,778 267 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ 3,989,234 Total Expenditures $ 5,495,778 Fund Balance $ (588,048) General Fund Costs $ 918,496 % Funded by General Fund 16.7% Total Staffing 11.93 FTE Organization Bill Mitchell, Chief Technology Officer Chief Technology Officer Administrative Assistant Applications I I GIS I I Infrastructure Manager Manager Manager Business Systems Business Systems Analyst {2� Analyst Applications I H Asset Specialist P/T(2) Management Technician Technician etwork Special ITTechnician {2) 268 Table of Contents 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 2018 FY 2019 FY 2020 Ongoing July -June July -June July - Dec Target GIS: Open Data average site visits per month 200 210 180 190 GIS: % of time spent Developing Applications/% of time Maintaining Not tracked Not tracked Not tracked 35%/65% applications GIS: Met Requests within SLA (map, data, Web maps, Cityworks, schema, other) 100% 100% 100% 100% completed GIS: Increase Property Information (Internal/External) site visits per month 369/No Data 420/383 601/624 610/440 GIS: Cityworks utilization - # of operational asset types Cupertino maintains vs # of operational asset types maintained in 42/18 42/20 42/21 42/25 Cityworks. Also the % increase of work units 10% 14% 20% 25% completed (WOs, INSP,SRs) 100% Infrastructure: Percentage based upon 3/3 (July - number of scheduled projects/Number of 60 160% 100% Dec) 100% projects completed on time 8/5 6/6 60% 3/5 (FY20) Infrastructure: Percentage based upon number of HelpDesk KACE tickets/SLA measurements Infrastructure: % Customer satisfaction based upon Satisfaction Rate from KACE tickets Infrastructure: % of network uptime (not including planned maintenance) Applications: % of citywide -enterprise application project management performed on time and on budget Applications: Number of website visits/hits2 99% 99% 99.7% 90% 1114/1117 100% 99% 100.00% 85% 99.99% 99.80% 99.90% 99% 96% 95% 95% 95% 1,573,821 1,615,799 846,389 5% annual increase 269 Table of Contents Performance Measure FY 2018 July -June Applications: Number of support request for the applications support per month Video3 1 Tracking started in FY 2016-17 Q2 2 Corrected to include total number of visits/hits FY 2019 FY 2020 Ongoing July -June July - Dec Target 25 20 3 Video Division Performance Measures can be found in the Administration Department 270 Table of Contents Workload Indicators Applications Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Application Support & Maintenances Not tracked Not tracked Not tracked Application Development2 Not tracked Not tracked Not tracked Percentage of Project Management Performed on Time and Budget for Citywide 96% 96% 96% Applications iThe Applications division is responsible for supporting enterprise applications like ERP, Land Management System, Recreation System, Laserfiche and many e-services custom applications like bid management, permit parking etc. business license as well as city's mobile apps. All these applications require constant support and maintenance. The related tasks may range from providing user access updates to issues that may require intensive programming to resolve. Troubleshooting existing or building new application configuration rules and parameters based on the current business process or new requirements. Creating custom application workflows in back office applications like Accela, and New World. Configure fee schedules in enterprise applications. Some issues require working and coordinating with software vendors to identify and resolve business workflows and other operational related problems. Coordinating the scheduling of corrective patches and upgrades between vendors and staff. 2The Applications division creates custom applications like Community Hall Speaker Card app and Bid Management app. The application development goes through all stages of Software Development Life Cycle (SDLC) of Requirement -gathering, Analysis, Designing, Coding, Testing and Deployment of these applications. The Application team works with various staff members and other key stakeholders during various phases of SDLC. Application staff gather business requirements, participate in a variety of system user and work groups to identify user needs and operational, programmatic, and or regulatory changes affecting application requirements and other related issues. Perform software application coding, building system integration and interfaces between applications. Perform end user application tests for functionality and usability. Writing test scripts based on business processes. Perform system tests, integration test and performance (volume) tests. sThis 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. 271 Table of Contents Infrastructure Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Percentage of helpdesk requests completed 99% Not tracked Not tracked 48 hours or lessi % of network uptime2 99.9% Not tracked Not tracked 16060 % Number of IT Projects Completeds Not tracked Not tracked 8/5 iInfrastructure is responsible for the acquisition, maintenance and support of all computer hardware necessary for the City's leading edge network (server, storage, switch, security, appliance) and end user (PC, tablet, VoIP Devices, Smartphones) services. Exemplary customer service coupled with highly skilled staff is the trademark of this team. 2Ensuring the City's vast network environment meets Business Continuity and Disaster Recovery requirements is a major responsibility of Infrastructure. Two geographically diverse data centers connected with a high speed Ethernet connection that traverses over 1000 miles provides this much needed service. 24x7 monitoring is done via a plethora of tools and contract services managed by Infrastructure. sPC based applications such as Microsoft Office, Team Collaboration, Adobe, Softphone, Antivirus, Teleconferencing and many more are procured, configured, maintained and supported. Citywide education of these products as well as end user security is the responsibility of Infrastructure which ensures a skilled City staff that know how to utilize software efficiently and securely. GIS Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Hours Spent Web Application Developmenti Not tracked Not tracked Not tracked Map, Data, Analysis, Report, Application Configuration Requests, Workflow 360 Not tracked Not tracked Enhancements Completed Requests2 Number of I&T workplan projects Not tracked Not tracked Not tracked Completeds iThe GIS Division builds web applications for staff to use as a tool in their daily workflows. The web application Property Info is a great example of this. Staff use it to review properties for development - select a property see all the associated layers of data, and access any related laserfiche documents. Property info is the main web mapping application staff use so we are constantly making improvements based on requests or new advancements in web development, or available widgets. We also create a number of web applications for the public https://www.cupertino.org/online-services/open-government-data/city-maps/web-maps-and- applications everything from the service finder that give residents a one stop shop of all City services to the CIP story map that give the public a visually appealing way to quickly interpret what capitol improvement projects are scheduled this year, where the project is located, what the project entails, and current status. 272 Table of Contents 2GIS receives requests from staff and sometimes Commissioners, Sheriffs office, City Council members... These requests range from hard copy maps (ex. Update a zoning designation and print all new zoning maps) to interactive web maps (ex. PW had a consultant evaluate a section of Regnart Rd and Chad asked us to create a web map with the data point locations and associate photos), data request (ex. how many Trees were trimmed this year), Data changes (ex. can I see this layer symbolized by status and added to property info application), crystal report requests (ex. fleet wants a report that shows how many times each vehicle has a repair work order based on a dynamic timeframe), to application modifications (ex. the Tree Division is tasked with mediating a tree virus issue and they would like a new work order type so they can track the problem over time or Planning had us create a layer for private trees and then add it to the Property info application.) Evaluating staff use of an application and implementing ways to streamline that workflow. Reduce the number of steps to performing a task by configuring/coding an application in a way that eliminates redundancies. We are also asked to configure GIS for enterprise applications such as Accela and ActiveNet. sProject 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 Video Division Video Division Workload Indicators can be found in the Administration Department Adopted Budget On June 16, 2020, City Council approved a budget of $5,495,778 for the Innovation and Technology department. This represents a decrease of $1,544,842 (-21.9%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to a decrease in cost allocation expenses. Cost allocation charges are decreasing due to a change in methodology for allocating Internal Service Fund charges to other Departments. 273 Table of Contents Adopted Expenditures by Division ■ Infrastructure Applications ■ GIS I&T Administration Video Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 274 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ - $ 13,496 $ - $ - Charges for Services $ 10,491 $ 3,765,092 $ 2,741,301 $ 3,989,234 Total Revenues $ 10,491 $ 3,778,588 $ 2,741,301 $ 3,989,234 Expenditures Employee Compensation $1,875,708 $ 2,060,331 $ 2,075,295 $1,935,740 Employee Benefits $ 800,653 $ 818,248 $ 818,509 $ 786,454 Materials $ 1,509,073 $ 1,200,801 $ 1,497,068 $ 1,700,226 Contract Services $ 741,129 $ 917,642 $ 860,743 $ 458,179 Cost Allocation $ 781,281 $ 1,295,911 $ 1,340,726 $ 246,932 Special Projects $191,925 $ 230,769 $ 345,500 $ 320,000 Contingencies $ - $ - $ 102,779 $ 48,247 Total Expenditures $ 5,899,769 $ 6,523,702 $ 7,040,620 $ 5,495,778 Fund Balance $ (2,381,425) $ 257,917 $ (858,222) $ (588,048) General Fund Costs $ 3,507,850 $ 3,003,035 $ 3,441,097 Staffing Total current positions - 14.95 FTE Total proposed positions - 11.93 FTE $ 918,496 275 Table of Contents Innovation & Technology Administration Budget Unit 610-30-300 Information Technology - I&T Administration - Innovation & Technology Administration Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 356,506 Fund Balance $ (356,506) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.53 FTE Program Overview The Innovation & Technology Department Administration Division is responsible for the strategic planning, governance, policy setting, and leadership in the use of digital services for the City. The services include a state of the art network which provides transport for best of class business applications, e.g., financial, land management, recreation, asset management, FIR, e-commerce and work order management . Additionally, Administration ensures oversight of budget, tactical plans, succession planning, partnership development (internal/external) and staffing. Procurement and budget monitoring are also responsibilities of Administration. Service Objectives • Develop a roadmap to effectively leverage existing technology and adopt emerging technology to meet business needs. • Create and sustain a workplace atmosphere that promotes a balance between employee innovation, accountability and business needs. • Ensure two-way communication between and among the City organization and stakeholders. . Improve user experience including ease of use, availability, and accessibility within the context of compliance with industry standards. • Ensure transparent and easy access to City information and services via multiple technologies, e.g. social media, TV, web, and radio. Adopted Budget On June 16, 2020, City Council approved a budget of $356,506 for the Innovation & Technology Administration program. This represents an increase of $58,508 (19.6%) from the FY 2019-20 Adopted Budget. The increase is mainly due to special projects in FY 2019-20 related to the Work Program. The projects include pilot adaptive traffic signaling, pilot multi -modal traffic count, pilot noise measurement, pilot pollution monitoring, and pilot water scheduling. 276 Table of Contents The increase in compensation and benefits is due to negotiated increases and reallocation of staff time. The decrease in cost allocation charges is due to a change in methodology for allocating Internal Service Fund charges to other Departments. Special Projects The following table shows the special projects for the fiscal year. Special Funding Appropriation Revenue Description Project Source Pilot Adaptive Traffic $65,000 Signaling Pilot Multi - modal Traffic $40,000 Count Pilot Noise $35,000 Measurement Pilot Pollution $35,000 Monitoring Pilot Water $10,000 Conservation Total $185,000 $65,000 General Fund Adaptive Traffic Signaling (ATS) to mitigate traffic $40,000 General Fund Tools to measure multi -modal traffic in real- time $35,000 General Fund IOT sensors will be deployed to measure noise levels due to air traffic $35,000 General Fund IOT sensors will be deployed to measure particulate size $10,000 General Fund Moisture sensors will be used to determine if/when a median should be watered $185,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 277 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ 359,741 $ 235,631 $ - Total Revenues $ - $ 359,741 $ 235,631 $ - Expenditures Employee Compensation $ 143,639 $ 95,800 $ 81,057 $ 112,457 Employee Benefits $ 66,242 $ 39,116 $ 33,737 $ 45,468 Materials $ 14,004 $ 9,900 $ 17,223 $ 7,450 Contract Services $ 3,017 $ 21,329 $ 75,223 $ 5,800 Cost Allocation $ 20,080 $ 85,954 $ 89,236 $ - Special Projects $ - $ - $ - $185,000 Contingencies $ - $ - $ 1,522 $ 331 Total Expenditures $ 246,982 $ 252,099 $ 297,998 $ 356,506 Fund Balance $ (246,981) $107,642 $ (62,367) $ (356,506) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.55 FTE Total proposed positions - 0.53 FTE Staff time is being reallocated to better reflect actual time spent in this program. 278 Table of Contents Video Budget Unit 100-31-305 General Fund - Video - Video Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing 2021 Adopted Budget 0.0% 0.00 FTE Program Overview In FY 2020-21, this program will be transferred to the City Manager's Office. A complete discussion of this program can be found under Budget Unit 100-12-305. 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. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 279 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Intergovernmental Revenue $ - $ 13,496 $ - $ - Charges for Services $ 10,491 $ 11,164 $ 9,600 $ - Total Revenues $10,491 $ 24,660 $ 9,600 $ - Expenditures Employee Compensation $ 501,030 $ 493,401 $ 505,959 $ - Employee Benefits $ 184,147 $ 177,043 $189,897 $ - Materials $ 37,688 $ 38,380 $107,040 $ - Contract Services $ 86,141 $103,565 $110,468 $ - Cost Allocation $ 204,749 $ 344,883 $ 280,610 $ - Special Projects $126,281 $188,879 $155,000 $ - Contingencies $ - $ - $ 9,125 $ - Total Expenditures $1,140,036 $1,346,151 $1,358,099 $ - Fund Balance $ - $ - $ - $ - General Fund Costs $1,129,545 $1,321,493 $1,348,499 $ - Staffing Total current positions - 3.25 FTE Total proposed positions - 0.00 FTE 280 Table of Contents Public Access Support Budget Unit 100-31-307 General Fund - Video - Public Access Support Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing 2021 Adopted Budget 0.0% 0.00 FTE Program Overview In FY 2020-21, this program will be transferred to the City Manager's Office. A complete discussion of this program can be found under Budget Unit 100-12-307. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Contract Services Cost Allocation Contingencies $ 68,121 $ 893 $ - $ 70,301 $ 1,961 $ - $ 71,542 $ 1,828 $ 3,577 $ - $ - $ - Total Expenditures $ 69,014 $ 72,262 $ 76,947 $ - Fund Balance $ - $ - $ - $ - General Fund Costs $ 69,014 $ 72,262 $ 76,947 $ - 281 Table of Contents Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 282 Table of Contents Applications Budget Unit 100-32-308 General Fund - Applications - Applications Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,307,803 Total Expenditures $1,981,299 Fund Balance $ - General Fund Costs $ 673,496 % Funded by General Fund 34.0% Total Staffing 3.50 FTE Program Overview The Applications Division is responsible for requirements gathering, design, development, procurement, project management, implementation and ongoing maintenance of all enterprise applications, e.g., Financial Enterprise Resource Planning (ERP), Land Based Management System, Recreation Software. Additionally and Electronic Content Management (Records Retention). Additionally, the Applications Division is responsible for the City's website, Intranet, mobile apps and e-service applications, e.g., permit request/payment, public records act (PRA), job application, business license, contract and bid management applications. Service Objectives • Deliver business solutions that meet customer requirements and integrate within the City's application framework. • Assist departments in developing streamlined and effective business processes that are easy to understand and translate into existing and new enterprise applications. • Work closely with City staff and members of the community to ensure that the City's enterprise applications are relevant and provide value to all the stakeholders. . Collaborate with various City departments to determine that the City's enterprise applications meet the functional requirements and long-term application implementation strategy of the organization. • Create and maintain effective online and mobile user access to municipal information and services. • Enable and facilitate the use of communication and technical resources by nontechnical staff and customers. Adopted Budget On June 16, 2020, City Council approved a budget of $1,981,299 for the Applications program. This represents an increase of $37,648 (1.9%) from the FY 2019-20 Adopted Budget. The increase is primarily due to increases in compensation, benefits, and materials expenses. This is offset by a decrease in cost allocation expenses. The increase in compensation and benefits expenses is due to negotiated increases. The increase in materials expenses is related to enhancing ProjectDox software which is 283 Table of Contents utilized for electronic plan submission and review. The decrease in cost allocation charges is due to a change in methodology for allocating Internal Service Fund charges to other Departments. ProjectDox improves the permitting process, making it fast and easy to submit requests, plan check review documents and drawings, and process corrections - all visible to the customer. IT is proposing to move the current on-prem application to cloud based enterprise SaaS. The move allows for increased functionality for Building and provides additional workflows for Planning and Public Works. Additionally, this change aligns with the IT Strategic Plan in transitioning from on-prem to the cloud based applications. Special Projects The following table shows the special projects for the fiscal year. Special Funding Appropriation Revenue Description Project Source Vehicle Select an application that can automate analysis of Miles $25,000 $25,000 General Fund Vehicle Miles Travelled (VMT) through crowd Travelled sourcing or similar technology. Total $25,000 $25,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ - $ - $ 1,307,803 Total Revenues $ - $ - $ - $ 1,307,803 Expenditures Employee Compensation $ 425,079 $ 488,649 $ 506,539 $ 623,650 Employee Benefits $152,025 $167,895 $172,493 $ 225,939 Materials $ 872,533 $ 510,914 $ 776,401 $ 958,682 Contract Services $ 214,457 $ 298,617 $187,502 $124,833 Cost Allocation $ 84,240 $143,205 $178,096 $ - Special Projects $11,250 $ - $ 80,000 $ 25,000 Contingencies $ - $ - $ 42,620 $ 23,195 Total Expenditures $ 1,759,584 $ 1,609,280 $ 1,943,651 $ 1,981,299 Fund Balance $ - $ - $ - $ - General Fund Costs $1,759,583 $1,609,280 $ 1,943,651 $ 673,496 284 Table of Contents Staffing Total current positions - 3.45 FTE Total proposed positions - 3.50 FTE Staff time is being reallocated to better reflect actual time spent in this program. 285 Table of Contents Infrastructure Budget Unit 610-34-310 Information Technology - Infrastructure - Infrastructure Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,767,098 Total Expenditures $ 2,076,714 Fund Balance $ (64,616) General Fund Costs $ 245,000 % Funded by General Fund 11.8% Total Staffing 4.50 FTE Program Overview The IT Infrastructure Division is responsible for technology -related expenses for the citywide management of information technology services. The Infrastructure Manager and staff are responsible for computer helpdesk, network availability, and performance, security and compliance, incident response, disaster recovery and business continuity, project management of implementations and upgrades, purchasing and inventory control, technical training, and maintenance of systems. Infrastructure is also tasked with ensuring that the City continues to follow best practices in technology adoption and security practices. Service Objectives • Provide and continuously improve helpdesk support as this function is often the face of IT that staff interacts with on a daily basis. • Maintain standards and procedures for the replacement, support, and maintenance of all City -owned computing devices, printers, networks, peripherals and systems defined by City policy. . Continue innovation and outreach to ensure the City follows best IT practices relating to equipment, policy, and security practices. Adopted Budget On June 16, 2020, City Council approved a budget of $2,076,714 for the Infrastructure program. This represents a decrease of $191,118 (-8.4%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to a decrease in cost allocation expenses. This is offset by increases to compensation, benefits, and materials expenses. The increase to compensation and benefits expenses is due to negotiated increases. The increase to materials expenses is due to new projects such as the Blackberry Farm Zoom Room. The decrease in cost allocation charges is due to a change in methodology for allocating Internal Service Fund charges to other Departments. Special Projects The following table shows the special projects for the fiscal year. 286 Table of Contents Special Project Appropriation Revenue Funding Source Description Artificial Intelligence $50,000 $50,000 General Fund See Below Remediation Facility Battery $40,000 $40,000 General Fund See Below Total $90,000 $90,000 In FY 2020-21, Infrastructure plans to implement Al remediation tools. Cyber intrusion, e.g., Ransomware, continues to negatively impact both public and private entities. Each year reports of cities falling victim to ransomware and the significant cost in dollars, downtime and customer service is of significant concern. Recently the financial impact to individual cities were in the millions of dollars. The Al will learn the City's network patterns and isolate patterns that deviate outside the norm, allowing the City to respond immediately to cyber intrusion. Ongoing costs will be $50,000 per year if approved. A data center facility battery for City Hall is also planned. Due to more stringent air quality regulations, replacing the generator is not viable with the current state of the City Hall building, which is currently near maximum critical loads. In the event a power event damages critical infrastructure due to generator malfunction or brownout, the City risks extended downtime due to equipment damage. An extended run-time backup battery will ensure proper operation and protection of critical business equipment. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 287 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ 2,284,031 $ 1,629,376 $ 1,767,098 Total Revenues $ - $ 2,284,031 $1,629,376 $1,767,098 Expenditures Employee Compensation $ 445,632 $ 537,277 $ 527,859 $ 645,656 Employee Benefits $ 235,859 $ 248,851 $ 251,652 $ 283,050 Materials $ 503,552 $ 516,478 $ 431,601 $ 544,670 Contract Services $ 254,464 $ 300,142 $ 306,254 $ 247,546 Cost Allocation $ 373,784 $ 553,720 $ 605,404 $ 246,932 Special Projects $ 34,829 $ 41,890 $110,500 $ 90,000 Contingencies $ - $ - $ 34,562 $ 18,860 Total Expenditures $1,848,120 $ 2,198,358 $ 2,267,832 $ 2,076,714 Fund Balance $ (1,298,412) $ 85,672 $ (566,456) $ (64,616) General Fund Costs $ 549,708 $ - $ 72,000 $ 245,000 Staffing Total current positions - 4.50 FTE Total proposed positions - 4.50 FTE There are no changes to the current level of staffing. Na Table of Contents GIS Budget Unit 610-35-986 Information Technology - GIS - GIS Budget at a Glance 2021 Adopted Budget Total Revenues $ 914,333 Total Expenditures $1,081,259 Fund Balance $ (166,926) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 3.40 FTE Program Overview The Geographic Information Systems (GIS) program captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, reports, dashboards, and charts we provide ways to view, understand, question, interpret, and visualize, our City in ways that reveal relationships, patterns, and trends. The GIS Program works to help our staff, citizens, business, and development communities answer questions and solve problems by looking at our data in a way that is quickly understood and easily shared — on a map! Service Objectives • Cupertino GIS works to provide and support state-of-the-art GIS mapping services and applications in the rapidly evolving and expanding field of geospatial technology. • Create, collect, maintain, and distribute high quality, up-to-date, and complete geospatial data. • Ensure that the City's GIS systems and data are available for day-to-day City and regional purposes. . Share the City's GIS data and services as widely as possible. • Raise the awareness of GIS. . Integrate spatial technology into Cupertino's business processes and applications. • Support emergency planning, response, and recovery. Adopted Budget On June 16, 2020, City Council approved a budget of $1,081,259 for the GIS program. This represents a decrease of $14,834 (-1.4%) from the FY 2019-20 Adopted Budget. The budget is relatively unchanged from the prior fiscal year. Increases in salaries and benefits are due to negotiated increases. This is offset by decreases in cost allocation expenses. The decrease in cost allocation charges is due to a change in methodology for allocating Internal Service Fund charges to other Departments. In FY 2020-21, GIS plans to pilot different sensor programs. ESRI IOT for Analytics is a SaaS solution that enables users to ingest, visualize, and analyze spatial big data real-time to gain insights that allow for analysis and data driven action. This application will allow the City to categorize and make sense of the data generated 289 Table of Contents from sensors. This is the underlying software for all IOT pilot programs adopted for the FY 2020-21 Work Program. GIS also plans to implement telematics for City vehicles. Telematics will enable fleet managers to download engine performance, and vehicle operations data for City vehicles. This data will help improve preventative maintenance, operator safety, fuel efficiency, vehicle utilization, and reduce vehicle downtime. Special Projects The following table shows the special projects for the fiscal year. Special Funding Appropriation Revenue Description Project Source A SaaS solution that enables users to ingest, IoT for $20,000 $20,000 General Fund visualize, and analyze spatial big data real-time to Analytics gain insights that allow for analysis and data driven action. Total $20,000 $20,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $1,110,156 $ 866,694 $ 914,333 Total Revenues $ - $ 1,110,156 $ 866,694 $ 914,333 Expenditures Employee Compensation $ 360,328 $ 445,204 $ 453,881 $ 553,977 Employee Benefits $162,380 $185,343 $170,730 $ 231,997 Materials $ 81,296 $125,129 $164,803 $189,424 Contract Services $114,929 $123,688 $109,754 $ 80,000 Cost Allocation $ 97,535 $ 166,188 $185,552 $ - Special Projects $19,565 $ - $ - $ 20,000 Contingencies $ - $ - $ 11,373 $ 5,861 Total Expenditures $ 836,033 $1,045,552 $1,096,093 $1,081,259 Fund Balance $ (836,032) $ 64,603 $ (229,399) $ (166,926) General Fund Costs 290 Table of Contents Staffing Total current positions - 3.20 FTE Total proposed positions - 3.40 FTE Staff time is being reallocated to better reflect actual time spent in this program. 291 Table of Contents This page intentionally left blank. 292 Table of Contents Administrative Services Budget Unit Program 2021 Adopted Budget Administrative Services $ 887,383 100-40-400 Administrative Services Administration $ 887,383 Finance $ 2,009,336 100-41-405 Accounting $ 1,601,238 100-41-406 Business Licenses $ 408,098 Human Resources $ 4,338,297 100-44-412 Human Resources $ 1,134,896 642-44-414 Retiree Benefits $ 1,211,333 100-44-417 Insurance Administration $ 923,953 620-44-418 Workers Compensation Insurance $ 276,223 641-44-419 Short Term and Long Term Disability $ 171,837 641-44-420 Compensated Absences $ 620,055 Total $ 7,235,016 293 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ 4,156,788 Total Expenditures $ 7,235,016 Fund Balance $ (1,794,063) General Fund Costs $ 1,284,165 % Funded by General Fund 17.7% Total Staffing 15.90 FTE Organization Kristina Alfaro, Director of Administrative Services 294 Table of Contents 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 2018 FY 2019 FY 2020 Ongoing July -Jun July -Jun July -Dec Target General fund balance as a % of 55% 70 /o 64 /0 35 /� ° budgeted appropriations Credit Rating AA+ AA+ AA+ AA+ Funding allocated to high priority services (Public Works, Community 45% 48% 57% 63% Development, Law Enforcement) Actual revenue vs. budget (within x% 4% 5 /o 41% 10% budget) Actual expenditures (% below budget) 13% 10% 46% 5% 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. 295 Table of Contents Performance Measure FY 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target # of Worker's Compensation Cases 16 12 10 0 Total Recordable Injury Rate YTD 6.4% 4.6% 3.8% 0% % absenteeism (% of total annual 4% 2% 2% 2% work hours) • turnover rate 6% 7% 3% 1% • employee satisfaction N/A N/A N/A 100% • employee participation in wellness 63% 63 /° ° 47 /° 75 /° ° activities Average # of applications received 40 37 43 50 per recruitment Recruitment timeline - # days from hiring request to offer letter 82 68 83 60 # of employees using the Telework 15 16 14 17 program % utilization of full -service employee portal 100% 100% 100% 100% 296 Table of Contents Workload Indicators Finance Division Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec # of vendor checks processed 6,793 6,536 2,953 # of payroll checks processed 10,387 10,301 5,401 # of business license applications 1,294 1,154 516 # of business license renewals 3,034 2,893 1,153 # of journal entries posted 2,830 4,521 2,279 # of purchase orders approved 597 600 340 # of receipts processed 9,766 13,913 9,496 Human Resources Division Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec # of regular recruitments 21 21 14 # of regular new hires 26 16 7 # of temporary new hires 101 105 19 # of personnel payroll changes 702 938 547 # of full-time employee exits processed 21 21 9 # of mandated training classes offered* 7 1 - # of employees participating in the wellness 111 119 86 program * some trainings mandated every other year, however not on the same annual schedule Adopted Budget On June 16, 2020, City Council approved a budget of $7,235,016 for the Administrative Services department. This represents an increase of $318,122 (4.6%) from the FY 2019-20 Adopted Budget. 297 Table of Contents Adopted Expenditures by Division ■ Human Resources Finance ■ Administrative Services Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget •a Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 3,322,468 $ 3,324,380 $ 4,133,645 $ 4,156,788 Miscellaneous Revenue $ 22,178 $ 60,999 $ 2,293 $ - Total Revenues $ 3,344,646 $ 3,385,379 $ 4,135,938 $ 4,156,788 Expenditures Employee Compensation $1,480,663 $1,759,429 $1,984,355 $ 2,129,859 Employee Benefits $1,738,589 $1,865,631 $1,857,420 $ 2,181,294 Materials $155,416 $140,482 $ 290,702 $160,639 Contract Services $ 2,620,686 $ 2,104,076 $ 2,340,001 $ 2,360,978 Cost Allocation $ 277,742 $ 299,513 $ 266,331 $ 341,705 Contingencies $ - $ - $178,085 $ 60,541 Total Expenditures $ 6,273,096 $ 6,169,131 $ 6,916,894 $ 7,235,016 Fund Balance $ 1,947,697 $105,210 $1,847,178 $ (1,794,063) General Fund Costs $ 4,876,147 $ 2,888,963 $ 4,628,134 $1,284,165 Staffing Total current positions - 16.00 FTE Total proposed positions - 15.90 FTE 299 Table of Contents Administrative Services Administration Budget Unit 100-40-400 General Fund - Administrative Services - Administrative Services Administration Budget at a Glance 2021 Adopted Budget Total Revenues $ 185,799 Total Expenditures $ 887,383 Fund Balance $ - General Fund Costs $ 701,584 % Funded by General Fund 79.1% Total Staffing 3.75 FTE Program Overview The Administrative Services Administration program oversees and coordinates the Human Resources/Risk Management, Finance, Budget, and Treasury divisions. Staff support is provided to the Fiscal Strategic and Audit Committees, as well as the Santa Clara County Leadership Academy. Service Objectives Manage the City's investment portfolio to obtain safety of funds, liquidity and a reasonable rate of return. • Provide short and long-term fiscal planning including the implementation of the Fiscal Strategic Plan. • Perform special projects for the City Manager. . Manage the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office. • Manage the City's budget process. • Provide staff support to the Santa Clara County Leadership Academy Adopted Budget On June 16, 2020, City Council approved a budget of $887,383 for the Administrative Services Administration program. This represents an increase of $25,797 (3.0%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in negotiated salary and benefits. This is offset by decreases in materials and contingencies, as well as a decrease in cost allocation resulting from a change in methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 300 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 67,900 $ 52,182 $ 69,263 $185,799 Miscellaneous Revenue $ - $ 51,504 $ 2,293 $ - Total Revenues $ 67,900 $103,686 $ 71,556 $185,799 Expenditures Employee Compensation $ 417,410 $ 586,160 $ 503,097 $ 576,540 Employee Benefits $179,213 $ 242,161 $ 221,239 $ 260,866 Materials $ 67,560 $ 48,002 $ 93,817 $ 45,140 Contract Services $ 50,855 $14,179 $ 3,500 $ 3,618 Cost Allocation $ 55,459 $ 47,985 $ 35,067 $ - Contingencies $ - $ - $ 4,866 $ 1,219 Total Expenditures $ 770,497 $ 938,487 $ 861,586 $ 887,383 Fund Balance $ - $ - $ - $ - General Fund Costs $ 702,597 $ 834,801 $ 790,030 $ 701,584 Staffing Total current positions - 3.80 FTE Total proposed positions - 3.75 FTE Staff time is being reallocated to better reflect actual time spent in this program. 301 Table of Contents Accounting Budget Unit 100-41-405 General Fund - Finance - Accounting Budget at a Glance 2021 Adopted Budget Total Revenues $ 2,114,792 Total Expenditures $1,601,238 Fund Balance $ - General Fund Costs $ (513,554) % Funded by General Fund -32.1% Total Staffing 6.85 FTE Program Overview The Finance Division oversees all financial accounting and treasury functions for the City. Accurate and timely maintenance of all City financial records, including financial reporting, revenue collection, banking and investments, disbursement of all funds, and payroll processing are handled by the Finance Division. All required Federal, State and other regulatory reporting with respect to the City's financial condition are prepared in the Accounting program of Finance. In addition, Finance monitors the City's two investment policies, manages budget -to -actual activities for both operational and capital budgets, performs all financial analyses, conducts research, and prepares reports on all fiscal matters of the City for internal and external customers. Service Objectives • Process all financial transactions of the City of Cupertino, including general ledger accounting, cash management and investment of City funds, payroll, accounts payable, revenue collections, banking, and miscellaneous billing. • Record all City financial transactions prudently and within all regulatory requirements. . Produce timely and accurate financial reports. • Maintain a high level of professionalism when fulfilling the City's financial policies, processing its financial transactions, and representing the City to its residents. . Respond promptly to inquiries from the public and other City departments. Adopted Budget On June 16, 2020, City Council approved a budget of $1,601,238 for the Accounting program. This represents an increase of $122,873 (8.3%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in negotiated salary and benefits and contract services for internal audit offset. This is offset by decreases in materials and contingencies, as well as a decrease in cost allocation due to a change in methodology. 302 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 906,996 $1,197,426 $1,673,028 $ 2,114,792 Miscellaneous Revenue $ 7,977 $ 9,495 $ - $ - Total Revenues $ 914,973 $ 1,206,921 $ 1,673,028 $ 2,114,792 Expenditures Employee Compensation $ 564,178 $ 631,541 $ 742,506 $ 824,704 Employee Benefits $ 232,070 $ 282,102 $ 312,458 $ 377,877 Materials $ 29,587 $ 35,726 $ 37,322 $ 22,903 Contract Services $ 833,287 $ 260,518 $ 312,220 $ 368,470 Cost Allocation $ 80,321 $ 80,706 $ 58,882 $ - Contingencies $ - $ - $ 14,977 $ 7,284 Total Expenditures $ 1,739,443 $ 1,290,593 $1,478,365 $1,601,238 Fund Balance $ - $ - $ - $ - General Fund Costs $ 824,469 $ 83,672 $ (194,663) $ (513,554) Staffing Total current positions - 6.90 FTE Total proposed positions - 6.85 FTE Staff time is being reallocated to better reflect actual time spent in this program. 303 Table of Contents Business Licenses Budget Unit 100-41-406 General Fund - Finance - Business Licenses Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 408,098 Fund Balance $ - General Fund Costs $ 408,098 % Funded by General Fund 100.0% Total Staffing 1.10 FTE Program Overview The Business Licenses program monitors business licensing activity for compliance with the City Municipal Code and applicable state law. Service Objectives . Issue business licenses to entities conducting business within the city limits of Cupertino. • Collect appropriate business license fees. . Monitor compliance with the Business License Tax Code and provide useful information related to business activity to City departments. • Identify non -compliant business activity. Adopted Budget On June 16, 2020, City Council approved a budget of $408,098 for the Business Licenses program. This represents an increase of $190,617 (87.6%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in cost allocation resulting from a change in methodology. The increase in salaries and benefits is due to negotiated increases. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 304 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 54,515 $ 75,264 $ 80,383 $ 95,622 Employee Benefits $ 24,387 $ 37,305 $ 42,069 $ 60,442 Materials $ 905 $ 416 $ - $ - Contract Services $ 6,271 $ 6,508 $ - $ - Cost Allocation $ 99,764 $ 75,257 $ 95,029 $ 252,034 Total Expenditures $ 185,842 $ 194,750 $ 217,481 $ 408,098 Fund Balance $ - $ - $ - $ - General Fund Costs $ 185,842 $ 194,750 $ 217,481 $ 408,098 Staffing Total current positions - 1.10 FTE Total proposed positions - 1.10 FTE There are no changes to the current level of staffing. 305 Table of Contents Human Resources Budget Unit 100-44-412 General Fund - Human Resources - Human Resources Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,609,812 Total Expenditures $1,134,896 Fund Balance $ - General Fund Costs $ (474,916) % Funded by General Fund -41.8% Total Staffing 3.85 FTE Program Overview The Human Resources Division is responsible for the administration of human resource, employee benefits, and labor relation programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee training and development, benefits, and retirement. In addition, Human Resources administers risk management, safety and wellness programs, and a self -insured workers' compensation program. Funding for retiree medical insurance is also covered in the Human Resources budget. Service Objectives • Provide a working environment where respect for the individual is encouraged and safeguarded. . Provide timely personnel services to departments and divisions in a fair, objective, and equitable manner. • Enter into agreements with employee groups concerning terms and conditions of employment. . Provide an employee development program addressing immediate and long-term training needs. • Provide departments a listing of qualified persons for employment consideration within sixty days of an authorized vacant position. • Ensure equal employment opportunities. • Administer classification plan. . Administer employee benefits. • Provide personnel services consistent with the operational needs of the user department. Adopted Budget On June 16, 2020, City Council approved a budget of $1,134,896 for the Human Resources program. This represents a decrease of $205,941 (-15.4%) from the FY 2019-20 Adopted Budget. The decrease is due to decreases in compensation, materials, contract services, cost allocation, and contingencies. The decrease in compensation is due to a reduction in part-time staffing. The decrease in contract services is due to the end of the HR office space lease. The decrease in cost allocation is due to a 306 Table of Contents change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 708,224 $ 788,243 $ 959,351 $1,609,812 Miscellaneous Revenue $ 14,201 $ - $ - $ - Total Revenues $ 722,425 $ 788,243 $ 959,351 $ 1,609,812 Expenditures Employee Compensation $ 398,729 $ 436,100 $ 616,234 $ 585,422 Employee Benefits $ 222,405 $ 214,096 $ 262,695 $ 280,114 Materials $ 57,355 $ 56,335 $159,563 $ 92,596 Contract Services $ 286,428 $ 389,069 $ 240,962 $170,194 Cost Allocation $18,646 $ 57,838 $ 42,307 $ - Contingencies $ - $ - $ 19,076 $ 6,570 Total Expenditures $ 983,563 $ 1,153,438 $1,340,837 $1,134,896 Fund Balance $ - $ - $ - $ - General Fund Costs $ 261,139 $ 365,195 $ 381,486 $ (474,916) Staffing Total current positions - 3.85 FTE Total proposed positions - 3.85 FTE There are no changes to the current level of staffing. 307 Table of Contents Retiree Benefits Budget Unit 642-44-414 Retiree Medical - Human Resources - Retiree Benefits Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $1,211,333 Fund Balance $ (1,165,333) General Fund Costs $ 46,000 % Funded by General Fund 3.8% Total Staffing 0.00 FTE Program Overview The Retiree Benefits program administers the City's Other Post Employment Benefits (OPEB). Service Objectives Provide investment oversight and appropriate funding for the City's retiree medical liability. The City established a trust account with Public Agency Retirement Services (PARS) that will fund the future liability. Annual contributions from the City are deposited into the trust and invested in a portfolio of equity, bond, and money market funds. Adopted Budget On June 16, 2020, City Council approved a budget of $1,211,333 for the Retiree Benefits program. This represents an increase of $134,071 (12.4%) from the FY 2019-20 Adopted Budget. The increase is due to increased retiree benefit costs. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 308 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Benefits $ 1,059,248 $ 1,075,908 $ 1,000,000 $ 1,179,851 Contract Services $ - $ - $ 20,000 $ 20,000 Cost Allocation $ 5,525 $ 5,745 $ 6,262 $ 10,982 Contingencies $ - $ - $ 51,000 $ 500 Total Expenditures $1,064,773 $1,081,653 $1,077,262 $1,211,333 Fund Balance $1,303,711 $ 49,821 $1,314,738 $ (1,165,333) General Fund Costs $ 2,368,484 $1,131,474 $ 2,392,000 $ 46,000 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 309 Table of Contents Insurance Administration Budget Unit 100-44-417 General Fund - Human Resources - Insurance Administration Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 923,953 Fund Balance E12 General Fund Costs $ 923,953 % Funded by General Fund 100.0% Total Staffing 0.15 FTE Program Overview The Insurance Administration program manages Risk Management safety programs and self -insured Workers' Compensation and General Liability programs. Service Objectives . Satisfy statutory regulations regarding Workers' Compensation and employee safety. • Promote work environment that emphasizes safe work practices. Adopted Budget On June 16, 2020, City Council approved a budget of $923,953 for the Insurance Administration program. This represents an increase of $31,802 (3.6%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in cost allocation resulting from a change in methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 310 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 718,110 $ 788,243 $ 959,351 $ - Total Revenues $ 718,110 $ 788,243 $ 959,351 $ - Expenditures Employee Compensation $ 17,488 $ 11,054 $ 17,310 $ 19,372 Employee Benefits $ 7,759 $ 5,186 $ 8,327 $ 9,623 Materials $ 9 $ 3 $ - $ - Contract Services $ 715,994 $ 593,373 $ 817,833 $ 827,910 Cost Allocation $ 956 $10,698 $ 7,789 $ 46,350 Contingencies $ - $ - $ 40,892 $ 20,698 Total Expenditures $ 742,206 $ 620,314 $ 892,151 $ 923,953 Fund Balance $ - $ - $ - $ - General Fund Costs $ 24,096 $ (167,929) $ (67,200) $ 923,953 Staffing Total current positions - 0.15 FTE Total proposed positions - 0.15 FTE There are no changes to the current level of staffing. 311 Table of Contents Workers Compensation Insurance Budget Unit 620-44-418 Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance 2021 Adopted Budget Total Revenues $ 246,385 Total Expenditures $ 276,223 Fund Balance $ (29,838) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.20 FTE Program Overview This program provides oversight of the Workers' Compensation program, including claims, proactive Risk Management, return to work accommodations and excess workers compensation insurance. Service Objectives . Manage employee personal injuries and illnesses and provide proactive risk management for disability avoidance. . Monitor costs associated with claims. • Analyze and implement proactive measures to curtail costs. • Implement a return to work policy. Adopted Budget On June 16, 2020, City Council approved a budget of $276,223 for the Workers Compensation Insurance program. This represents an increase of $18,834 (7.3%) from the FY 2019-20 Adopted Budget. The increase is due to an increase in Worker's Compensation costs. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 312 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 921,238 $ 498,286 $ 472,652 $ 246,385 Total Revenues $ 921,238 $ 498,286 $ 472,652 $ 246,385 Expenditures Employee Compensation $ 28,343 $19,310 $ 24,825 $ 28,199 Employee Benefits $ 13,507 $ 8,873 $ 10,632 $ 12,521 Contract Services $ 300,538 $ 235,169 $ 195,486 $ 205,786 Cost Allocation $ 13,442 $ 16,896 $ 16,672 $ 24,572 Contingencies $ - $ - $ 9,774 $ 5,145 Total Expenditures $ 355,830 $ 280,248 $ 257,389 $ 276,223 Fund Balance $ 565,408 $ 218,037 $ 215,263 $ (29,838) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.20 FTE Total proposed positions - 0.20 FTE There are no changes to the current level of staffing. 313 Table of Contents Short Term and Long Term Disability Budget Unit 641-44-419 Compensated Absence/LTD - Human Resources - Short Term and Long Term Disability Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 171,837 Fund Balance $ (171,837) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview This program oversees claims and premiums associated with Long and Short Term Disability. Service Objectives . Obtain and manage insurance policies . Negotiate rates • Coordination of claims Adopted Budget On June 16, 2020, City Council approved a budget of $171,837 for the Short Term and Long Term Disability program. This represents an increase of $12,703 (8.0%) from the FY 2019-20 Adopted Budget. The increase is due to an increase in contract services. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 314 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $ 151,893 $ 156,540 $ 150,000 $ 165,000 Cost Allocation $ 615 $ 1,616 $ 1,634 $ 2,712 Contingencies $ - $ - $ 7,500 $ 4,125 Total Expenditures $152,508 $ 158,156 $159,134 $171,837 Fund Balance $ (152,508) $ (158,156) $ (159,134) $ (171,837) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 315 Table of Contents Compensated Absences Budget Unit 641-44-420 Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 620,055 Fund Balance $ (427,055) General Fund Costs $193,000 % Funded by General Fund 31.1% Total Staffing 0.00 FTE Program Overview This program provides for payment of liabilities associated with employees retiring or leaving service. Service Objectives Properly account and disburse benefits as set forth in the employee contracts. Adopted Budget On June 16, 2020, City Council approved a budget of $620,055 for the Compensated Absences program. This represents a decrease of $12,634 (-2.0%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged since last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 316 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $ 275,420 $ 448,720 $ 600,000 $ 600,000 Cost Allocation $ 3,014 $ 2,772 $ 2,689 $ 5,055 Contingencies $ - $ - $ 30,000 $15,000 Total Expenditures $ 278,434 $ 451,492 $ 632,689 $ 620,055 Fund Balance $ 231,086 $ (4,492) $ 476,311 $ (427,055) General Fund Costs $ 509,520 $ 447,000 $1,109,000 $193,000 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 317 Table of Contents This page intentionally left blank. 318 Table of Contents Parks and Recreation Budget Unit Program 2021 Adopted Budget Parks and Recreation $1,535,188 100-60-601 Recreation Administration $1,216,848 100-60-634 Park Planning and Restoration $ - 100-60-636 Library Services $ 318,340 Business and Community Services $1,588,853 100-61-602 Administration $ 762,614 100-61-605 Cultural Events $ 359,263 100-61-630 Facilities $ 466,976 100-61-632 Community Outreach and Neighborhood Watch $ - Recreation and Education $ 4,350,432 100-62-608 Administration $ 784,511 580-62-613 Youth Teen Recreation $1,963,790 100-62-623 Senior Center $1,164,038 100-62-639 Teen Programs $ 272,913 100-62-640 Neighborhood Events $165,180 Sports, Safety and Outdoor Recreation $ 4,242,874 100-63-612 Park Facilities $1,183,885 100-63-615 Administration $110,200 560-63-616 Blackberry Farm Golf Course $ 684,232 580-63-620 Outdoor Recreation $ 907,695 570-63-621 Sports Center Operations $1,356,862 100-63-633 Disaster Preparedness $ - Total $11,717,347 319 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ 3,241,329 Total Expenditures $11,717,347 Fund Balance $ 42,275 General Fund Costs $ 8,518,293 % Funded by General Fund 72.7% Total Staffing 31.90 FTE Organization Joanne Magrini, Director of Parks and Recreation Director of Parks and Recreation Administrative Assistant Assistant Director I I Recreation Supervisor Management Recreation Analyst IH Coordinator (2) Community Senior Office Outreach Specialist Assistant (2) Office Assistant Recreation Supervisor Recreation Coordinator (3) Recreation Supervisor Recreation Coordinator (4) Case Manager (2) 1 Li Office Assistant Senior Office Assistant Facility Attendant 19 Facility Attendant (2) Recreation Supervisor Recreation Coordinator (5) 320 Table of Contents Performance Measures Goal: Create a positive, healthy and connected community. Benefit: Cupertino has an exceptional system of parks & services that align with community values. Performance Measure FY 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target % of Parks and Recreation Department customers surveyed who 97%1 98% 98% 85% rate services as good or excellent % of programs maintaining minimum 70%1 70% 69% 80 /� ° registration % Department's total cost recovery for 63%1 44 /� o 53 /0 40% all (direct and indirect) costs # of new programs or events offered 1191 105 59 50 % change in participants 2 22%1 -7% -3% +1% 1 Due to a server crash in FY 2017-18, activity, facility, and customer information is estimated for the period January — June 2018. 2 Decrease due to lack of volunteers to do class counts. 321 Table of Contents Workload Indicators Business and Community Services Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June ul Dec July -Dec Number of reservations at Quinlan Center 560 402 263 Number of festival applications received 10 10 6 Recreation and Education Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Number of registrations 2,633 9,165 5,396 Number of survey respondents 110 2187 1501 Number of Senior Center classes offered 246 320 129 Number of Senior Center trips offered 44 45 19 Sports, Safety, and Outdoor Recreation Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Number of programs offered 835 567 332 Number of picnic reservations at BBF 154 154 227 Number of rounds of golf at BBF Golf Course 28,193 27,205 14,476 Number of Sports Center Memberships 1,885 1,829 1,802 Adopted Budget On June 16, 2020, City Council approved a budget of $11,717,347 for the Parks and Recreation department. This represents a decrease of $4,150,872 (-26.2%) from the FY 2019-20 Adopted Budget. 322 Table of Contents Adopted Expenditures by Division ■ Recreation and Education Sports, Safety and Outdoor Recreation ■ Business and Community Services Parks and Recreation Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 323 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ 538,585 $ 617,779 $ 400,000 $ 546,520 Charges for Services $ 6,189,628 $ 5,503,172 $ 5,608,759 $ 2,663,809 Miscellaneous Revenue $ 43,850 $ - $ - $ 31,000 Total Revenues $ 6,772,063 $ 6,120,951 $ 6,008,759 $ 3,241,329 Expenditures Employee Compensation $ 4,559,850 $ 4,276,261 $ 4,673,165 $ 4,415,056 Employee Benefits $ 1,544,745 $ 1,346,670 $ 1,423,806 $ 1,504,047 Materials $ 780,270 $ 766,499 $ 775,552 $ 630,587 Contract Services $ 4,151,481 $ 4,382,802 $ 4,181,011 $ 2,814,526 Cost Allocation $ 3,652,570 $ 4,327,431 $ 4,539,528 $ 2,229,446 Special Projects $ 146,362 $ 79,258 $ 57,500 $ - Contingencies $ - $ - $ 217,657 $ 123,685 Total Expenditures $14,835,278 $15,178,921 $15,868,219 $11,717,347 Fund Balance $ (476,286) $ (1,535,531) $ (547,989) $ 42,275 General Fund Costs $ 7,586,928 $ 7,522,438 $ 9,311,471 $ 8,518,293 Staffing Total current positions - 32.15 FTE Total proposed positions - 31.90 FTE 324 Table of Contents Recreation Administration Budget Unit 100-60-601 General Fund - Parks and Recreation - Recreation Administration Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $1,216,848 Fund Balance E12 General Fund Costs $1,216,848 % Funded by General Fund 100.0% Total Staffing 4.55 FTE Program Overview The Recreation Administration program provides overall department administration, project management, community outreach, and support to the Parks and Recreation and Library Commissions. Service Objectives • Provide overall department administration, budget control, contract support, policy development, and employee development and evaluation. . Support the Planning and Public Works Departments in the development, renovation, and improvements of parks and open spaces. • Complete long-term and strategic plans for the Department including the Parks and Recreation System Master Plan and 3 Year Strategic Plan. • Monitor and facilitate partnerships in regards to Library and other community organizations. . Outreach to the community in conjunction with programs and the Parks and Recreation System Master Plan. • Promote partnerships with Cupertino Union School District, Fremont Union High School District, and De Anza College with quarterly meetings and joint projects. Adopted Budget On June 16, 2020, City Council approved a budget of $1,216,848 for the Recreation Administration program. This represents a decrease of $13,264 (-1.1%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged since last fiscal year. This budget will fund a new Summer Camp Recreation Guide that will increase awareness of Cupertino summer camps to increase revenue and community participation. 325 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ 39,600 $ - $ - $ - Total Revenues $ 39,600 $ - $ - $ - Expenditures Employee Compensation $ 301,717 $ 450,419 $ 658,554 $ 686,212 Employee Benefits $ 107,447 $166,122 $ 278,883 $ 305,203 Materials $ 50,180 $ 51,321 $181,301 $146,553 Contract Services $ 27,050 $1,618 $ 72,912 $ 74,629 Cost Allocation $ 36,814 $ 35,426 $ 27,563 $ - Contingencies $ - $ - $ 10,899 $ 4,251 Total Expenditures $ 523,208 $ 704,906 $1,230,112 $ 1,216,848 Fund Balance $ - $ - $ - $ - General Fund Costs $ 483,608 $ 704,906 $ 1,230,112 $ 1,216,848 Staffing Total current positions - 4.60 FTE Total proposed positions - 4.55 FTE Staff time is being reallocated to better reflect actual time spent in this program. 326 Table of Contents Park Planning and Restoration Budget Unit 100-60-634 General Fund - Parks and Recreation - Park Planning and Restoration Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing 2021 Adopted Budget 0.0% 0.00 FTE Program Overview In FY 2018-19, this program was transferred to Public Works. A complete discussion of this program can be found under Budget Unit 100-82-806. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 327 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 151,063 $ 55,606- Employee Benefits $ 63,248 $ 24,386- Materials $ 2,354 $ 22- Contract Services $ 1,050 $ -- Cost Allocation $ 16,662 $ 6,796- Total Expenditures $ 234,377 $ 86,810- Fund Balance $ - $ - General Fund Costs $ 234,377 $ 86,810 $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 328 Table of Contents Library Services Budget Unit 100-60-636 General Fund - Parks and Recreation - Library Services Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 318,340 Fund Balance E12 General Fund Costs $ 318,340 % Funded by General Fund 100.0% Total Staffing 0.00 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 the Go Go Biblio Program. • Explore partnerships with the SCC Library for recreation and community programs. Adopted Budget On June 16, 2020, City Council approved a budget of $318,340 for the Library Services program. This represents a decrease of $479,700 (-60.1%) from the FY 2019-20 Adopted Budget. Decreased costs in cost allocation are due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 329 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $ 449,295 $ 468,023 $ 117,000 $ 117,000 Cost Allocation $ 334,021 $ 501,482 $ 681,040 $ 198,415 Contingencies $ - $ - $ - $ 2,925 Total Expenditures $ 783,316 $ 969,505 $ 798,040 $ 318,340 Fund Balance $ - $ - $ - $ - General Fund Costs $ 783,316 $ 969,505 $ 798,040 $ 318,340 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 330 Table of Contents Administration Budget Unit 100-61-602 General Fund - Business and Community Services - Administration Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 762,614 Fund Balance E12 General Fund Costs $ 762,614 % Funded by General Fund 100.0% Total Staffing 3.75 FTE Program Overview The Business Division supports department programs and services through the provision of customer service and analytical support, development, and administration of policies, and administration of recreation management software. The division is also responsible for the department's community outreach programs, including community festivals and City events at a variety of parks. This division also manages Quinlan Community Center (QCC) and Community Hall, as well as facility and park picnic rentals. Service Objectives . Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards. . Administer and manage recreation software system for customer registration, memberships, point -of - sale, and facility rentals. . Collect and analyze data from customer satisfaction surveys and program and revenue reports to improve programs and services. • Increase participation at City events including 4th of July, Summer Concerts, Cinema at Sundown, Shakespeare in the Park, and the Tree Lighting Ceremony. • Issue parks and facilities permits for individual customers as well as community festivals and events that promote our diverse culture and connected community. . Maintain a positive relationship with neighborhoods adjacent to our facilities and parks. Adopted Budget On June 16, 2020, City Council approved a budget of $762,614 for the Administration program. This represents an increase of $20,108 (2.7%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from last fiscal year. Increased costs in cost allocation are due to a change in allocation methodology. 331 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues $ - $ - $ - $ - Expenditures Employee Compensation $ 432,066 $ 407,471 $ 391,823 $ 323,637 Employee Benefits $ 221,792 $ 204,778 $ 200,351 $ 182,434 Materials $ 8,687 $12,607 $ 2,321 $ 2,390 Contract Services $ 3,811 $ 3,934 $ - $ - Cost Allocation $130,188 $135,290 $147,895 $ 254,093 Special Projects $ 5,313 $ - $ - $ - Contingencies $ - $ - $ 116 $ 60 Total Expenditures $ 801,857 $ 764,080 $ 742,506 $ 762,614 Fund Balance $ - $ - $ - $ - General Fund Costs $ 801,857 $ 764,080 $ 742,506 $ 762,614 Staffing Total current positions - 5.00 FTE Total proposed positions - 3.75 FTE Staff time is being reallocated to better reflect actual time spent in this program. 332 Table of Contents Cultural Events Budget Unit 100-61-605 General Fund - Business and Community Services - Cultural Events Budget at a Glance 2021 Adopted Budget Total Revenues $ 31,000 Total Expenditures $ 359,263 Fund Balance E12 General Fund Costs $ 328,263 % Funded by General Fund 91.4% Total Staffing 0.70 FTE Program Overview The Business and Community Service Division's events program produces the City's special events including 4th of July festivities and Big Bunny 5K, and those hosted at Memorial Park and Quinlan Community Center including the Summer Concert Series, Cinema at Sundown, Shakespeare in the Park, and Tree Lighting. This staff also serves as liaison and issues permits for community and cultural events at Memorial Park including the Cherry Blossom Festival, World Journal Festival, Kids 'N Fun Festival, Fall Festival, Veteran's Day Memorial Ceremony, Diwali Festival, and more. Service Objectives • Provide a summer concert series at Memorial Park. • Produce a summer movie series at Memorial Park. • Partner with the San Francisco Shakespeare Company to produce Free Shakespeare in the Park in Cupertino. . Organize and facilitate the 4th of July Independence Day celebration and fireworks show. • Organize and facilitate the Big Bunny 5K fun run. . Bring the community together with the annual Tree Lighting celebration. • Serve as liaison and issue special event permits to nonprofit organization event producers to ensure successful community and cultural festivals in Memorial Park. Adopted Budget On June 16, 2020, City Council approved a budget of $359,263 for the Cultural Events program. This represents an increase of $56,404 (18.6%) from the FY 2019-20 Adopted Budget. Increases in compensation and benefits are due negotiated salary and benefit changes. The increase is mainly due to departmental reorganization. This budget now includes expenses for Big Bunny 5K which was moved from 580-63-620. 333 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ - $ - $ - $ 31,000 Total Revenues $ - $ - $ - $ 31,000 Expenditures Employee Compensation $ 103,939 $ 71,232 $ 64,735 $ 104,897 Employee Benefits $ 40,295 $ 29,846 $ 26,264 $ 39,342 Materials $ 12,872 $ 7,925 $ 7,798 $ 36,860 Contract Services $ 144,543 $ 179,672 $ 153,207 $ 115,410 Cost Allocation $ 42,685 $ 45,209 $ 43,037 $ 58,947 Contingencies $ - $ - $ 7,818 $ 3,807 Total Expenditures $ 344,334 $ 333,884 $ 302,859 $ 359,263 Fund Balance $ - $ - $ - $ - General Fund Costs $ 344,334 $ 333,884 $ 302,859 $ 328,263 Staffing Total current positions - 0.50 FTE Total proposed positions - 0.70 FTE Staff time is being reallocated to better reflect actual time spent in this program. 334 Table of Contents Facilities Budget Unit 100-61-630 General Fund - Business and Community Services - Facilities Budget at a Glance 2021 Adopted Budget Total Revenues $ 206,455 Total Expenditures $ 466,976 Fund Balance $ - General Fund Costs $ 260,521 % Funded by General Fund 55.8% Total Staffing 3.00 FTE Program Overview Community Hall provides space for City Council meetings and various Commission meetings, as well as facility rental space available for a variety of activities including business meetings, community events, and Cupertino Library programs. The Quinlan Community Center houses the administrative office of the Parks and Recreation Department and serves as facility space for rentals and a variety of recreational, social, and community activities. Service Objectives • Provide a rental facility for community meetings, business functions, social events, and other similar activities. • Provide a facility for City Channel programming, and City Council, Planning Commission, Parks & Recreation Commission and other City meetings. . Offer in -person and online registration for recreation programs. . Schedule facility space for contractual and staff -run classes and camps. • House the Cupertino Historical Society. . Serve as an Emergency Operations Shelter in case of disasters. Adopted Budget On June 16, 2020, City Council approved a budget of $466,976 for the Facilities program. This represents a decrease of $13,267 (-2.8%) from the FY 2019-20 Adopted Budget. Increases in compensation and benefits are due to negotiated salary and benefit changes. Decreased costs in cost allocation are due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 335 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $116,757 $ 213,102 $138,000 $170,000 Charges for Services $ 489,372 $ 458,471 $ 401,282 $ 36,455 Total Revenues $ 606,129 $ 671,573 $ 539,282 $ 206,455 Expenditures Employee Compensation $ 306,411 $ 244,541 $ 285,429 $ 307,331 Employee Benefits $ 106,126 $ 68,225 $ 99,285 $127,096 Materials $ 56,656 $ 33,778 $ 30,110 $ 26,379 Contract Services $ 8,210 $12,060 $ 5,220 $ 5,376 Cost Allocation $ 85,157 $151,524 $ 58,657 $ - Contingencies $ - $ - $ 1,542 $ 794 Total Expenditures $ 562,560 $ 510,128 $ 480,243 $ 466,976 Fund Balance $ - $ - $ - $ - General Fund Costs $ (43,569) $ (161,445) $ (59,039) $ 260,521 Staffing Total current positions - 2.50 FTE Total proposed positions - 3.00 FTE Staff time is being reallocated to better reflect actual time spent in this program. 336 Table of Contents Community Outreach and Neighborhood Watch Budget Unit 100-61-632 General Fund - Business and Community Services - Community Outreach and Neighborhood Watch Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview In FY 2018-19, this program was transferred to the City Manager's Office. A complete discussion of this program can be found under Budget Unit 100-12-632. 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. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 337 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $116,904 $ 40,485- Employee Benefits $ 42,824 $ 13,650- Materials $ 8,166 $ 4,179- Contract Services $ 1,769 $ 91- Cost Allocation $ 42,400 $ 9,786- Total Expenditures $ 212,063 $ 68,191- Fund Balance $ - $ - General Fund Costs $ 212,063 $ 68,190 $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 338 Table of Contents Administration Budget Unit 100-62-608 General Fund - Recreation and Education - Administration Budget at a Glance 2021 Adopted Budget Total Revenues $ 25,000 Total Expenditures $ 784,511 Fund Balance $ - General Fund Costs $ 759,511 % Funded by General Fund 96.8% Total Staffing 3.35 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, case management services, volunteer opportunities, and facility rentals. Service Objectives • Provide management and supervision of all programs, activities, personnel, and facilities within the senior services division. • Establish program goals and priorities. • Ensure operational hours accommodate community desires. . Provide first-rate customer service and manage customer registration, memberships, point -of -sale, and facility rentals at the Senior Center. Adopted Budget On June 16, 2020, City Council approved a budget of $784,511 for the Administration program. This represents a decrease of $29,293 (-3.6%) from the FY 2019-20 Adopted Budget. Increases in compensation and benefits, due to negotiated salary and benefit changes, are offset by decreased costs in cost allocation, due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 339 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Use of Money and Property $ 22,455 $ 28,134 $ 25,000 $ 25,000 Miscellaneous Revenue $ 4,250 $ - $ - $ - Total Revenues $ 26,705 $ 28,134 $ 25,000 $ 25,000 Expenditures Employee Compensation $ 425,324 $ 323,242 $ 357,732 $ 377,605 Employee Benefits $168,223 $114,270 $127,224 $147,638 Materials $ 40,374 $ 22,426 $13,310 $15,880 Contract Services $ 20,840 $ 3,836 $ 2,800 $ 2,800 Cost Allocation $ 452,107 $ 690,664 $ 311,932 $ 240,121 Special Projects $ 45,506 $ - $ - $ - Contingencies $ - $ - $ 806 $ 467 Total Expenditures $1,152,374 $1,154,438 $ 813,804 $ 784,511 Fund Balance $ - $ - $ - $ - General Fund Costs $1,125,669 $1,126,305 $ 788,804 $ 759,511 Staffing Total current positions - 3.35 FTE Total proposed positions - 3.35 FTE There are no changes to the current level of staffing. 340 Table of Contents Youth Teen Recreation Budget Unit 580-62-613 Recreation Program - Recreation and Education - Youth Teen Recreation Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,108,517 Total Expenditures $1,963,790 Fund Balance $ (855,273) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 1.60 FTE Program Overview This program encompasses fee -based youth and teen programs such as academic and enrichment classes, STEAM programming, recreational camps, preschool, and special events, enrichment classes for adults, and special interest programming. Service Objectives • Provide a preschool program, summer camps, and an extensive variety of contract classes for youth, teens, and adults, while collaborating with the Cupertino Union School District and Fremont Union High School District on select program offerings. • Promote programs through social media to increase community awareness and interest in programs. . Increase the number of youth and teen Science Technology Engineering Art, and Math (STEAM) programs offered. . Expand all -day summer camp offerings to meet daycare needs of working families. . Provide family -oriented programs designed to increase community engagement. • Provide safe, fun, life-long learning activities that promote the foundations of self-confidence, skill development, and personal growth. • Provide programs that enhance cultural awareness to youth and teens. Adopted Budget On June 16, 2020, City Council approved a budget of $1,963,790 for the Youth Teen Recreation program. This represents a decrease of $499,552 (-20.3%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to decreased costs in cost allocation due to a change in allocation methodology, partially offset by increases in contract agreements. 341 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 1,468,822 $ 1,222,219 $ 1,037,390 $ 1,108,517 Total Revenues $1,468,822 $ 1,222,219 $ 1,037,390 $1,108,517 Expenditures Employee Compensation $ 495,400 $ 392,428 $ 461,639 $ 444,713 Employee Benefits $134,393 $ 78,652 $ 73,364 $ 83,645 Materials $ 72,296 $ 68,662 $ 23,627 $ 32,030 Contract Services $ 900,752 $ 844,453 $ 797,672 $ 1,125,286 Cost Allocation $ 357,107 $ 346,668 $ 1,070,264 $ 250,857 Contingencies $ - $ - $ 36,776 $ 27,259 Total Expenditures $1,959,948 $ 1,730,863 $ 2,463,342 $1,963,790 Fund Balance $ (491,126) $ (508,644) $ (1,425,952) $ (855,273) General Fund Costs Staffing Total current positions - 1.60 FTE Total proposed positions - 1.60 FTE There are no changes to the current level of staffing. 342 Table of Contents Senior Center Budget Unit 100-62-623 General Fund - Recreation and Education - Senior Center Budget at a Glance 2021 Adopted Budget Total Revenues $ 167,000 Total Expenditures $ 1,164,038 Fund Balance $ - General Fund Costs $ 997,038 % Funded by General Fund 85.7% Total Staffing 4.65 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+; and 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 over 24,000 hours of volunteer service annually. Staff provides Case Management services and information and referral to assist seniors to remain independent and safe in their own homes. Service Objectives • Enhance partnerships with Fremont Union High School District Adult Education, the Santa Clara County Library District, De Anza College, and other local nonprofit agencies. • Provide appreciation events for senior volunteers who support the Parks and Recreation Department throughout the year. . Provide multi-lingual senior case management services. • 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. Adopted Budget On June 16, 2020, City Council approved a budget of $1,164,038 for the Senior Center program. This represents a decrease of $252,293 (-17.8%) from the FY 2019-20 Adopted Budget. The decrease in materials and contract services are primarily due to the reduction of the Senior Travel Program, in response to the COVID-19 Pandemic and current State -mandated orders. 343 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $1,833 $ 3,846 $ - $ - Charges for Services $ 470,818 $ 388,892 $ 430,150 $167,000 Total Revenues $ 472,651 $ 392,738 $ 430,150 $167,000 Expenditures Employee Compensation $ 581,360 $ 528,003 $ 535,164 $ 542,283 Employee Benefits $186,248 $194,515 $194,081 $100,391 Materials $127,725 $129,906 $122,694 $ 80,860 Contract Services $ 256,676 $ 255,290 $191,875 $ 80,280 Cost Allocation $ 552,901 $ 415,210 $ 357,244 $ 356,195 Contingencies $ - $ - $ 15,273 $ 4,029 Total Expenditures $ 1,704,910 $1,522,924 $1,416,331 $1,164,038 Fund Balance $ - $ - $ - $ - General Fund Costs $ 1,232,258 $1,130,186 Staffing Total current positions - 4.65 FTE Total proposed positions - 4.65 FTE There are no changes to the current level of staffing. $ 986,181 $ 997,038 344 Table of Contents Teen Programs Budget Unit 100-62-639 General Fund - Recreation and Education - Teen Programs Budget at a Glance 2021 Adopted Budget Total Revenues $ 5,020 Total Expenditures $ 272,913 Fund Balance E12 General Fund Costs $ 267,893 % Funded by General Fund 98.2% Total Staffing 0.55 FTE Program Overview This program supports teen programs and services for the Recreation and Education Division. It provides for the supervision and operation of the Cupertino Teen Center, the satellite Teen Center at Lawson Middle School, the Youth Activity Board, the Cupertino Teen Leadership Academy, and the teen summer volunteer program. Service Objectives . Empower youth by creating enriching and stress -free programs that foster physical, mental, and social development. • Provide an exclusive space for Cupertino Teens to de -stress, create, study, and to socially develop. . Create opportunities for youth and teens to build their leadership abilities by creating activities, events, and programs by teens for teens. . Create reciprocal engagement and outreach efforts between the City of Cupertino and Cupertino teens. • Develop teen leadership skills and career growth opportunities by providing an interactive teen leadership program. • Provide the opportunity for teens to gain applied skills and develop leadership abilities by volunteering in a summer camp and/or an Aquatic Learn -to Swim program. . Foster the partnership with Lawson Middle School to bring the Cupertino Teen Center to a local school community. . Create programs that support mental health and wellness in youth and teens. Adopted Budget On June 16, 2020, City Council approved a budget of $272,913 for the Teen Programs program. This represents an increase of $14,043 (5.4%) from the FY 2019-20 Adopted Budget. The increase is primarily due to increased cost allocations caused by changes in allocation methodology. 345 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ - $ 210 $ 5,000 $ 2,520 Charges for Services $ - $ 962 $ 2,500 $ 2,500 Total Revenues $ - $ 1,172 $ 7,500 $ 5,020 Expenditures Employee Compensation $ - $113,823 $197,431 $173,684 Employee Benefits $ - $ 14,299 $ 16,352 $ 30,452 Materials $ - $ 23,870 $ 37,205 $ 38,595 Contract Services $ - $1,761 $ 7,882 $ 800 Cost Allocation $ - $ - $ - $ 28,397 Contingencies $ - $ - $ - $ 985 Total Expenditures $ - $153,753 $ 258,870 $ 272,913 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $152,581 $ 251,370 $ 267,893 Staffing Total current positions - 0.35 FTE Total proposed positions - 0.55 FTE Staff time is being reallocated to better reflect actual time spent in this program. 346 Table of Contents Neighborhood Events Budget Unit 100-62-640 General Fund - Recreation and Education - Neighborhood Events Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 165,180 Fund Balance E12 General Fund Costs $165,180 % Funded by General Fund 100.0% Total Staffing 0.40 FTE Program Overview The Neighborhood Programs provide a varied schedule of summer events in neighborhood parks. Events include outdoor concerts, outdoor movies, performances, and free arts and fitness programs in the parks. These programs are designed to engage new customers and to promote current programs. This program will continue to develop partnerships with local agencies, businesses, and non -profits to better engage our community. Service Objectives • To provide outdoor summer concerts in neighborhood parks. • To provide outdoor summer movies in neighborhood parks. . To provide outdoor summer fitness opportunities in neighborhood parks. • To provide outdoor summer arts opportunities in neighborhood parks. . To provide an array of outdoor cultural special events in neighborhood parks. . To provide activities for kids and families of all ages. . To build community through partnerships with local agencies, businesses and non -profits. Adopted Budget On June 16, 2020, City Council approved a budget of $165,180 for the Neighborhood Events program. This represents a decrease of $4,388 (-2.6%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from the previous fiscal year. The decreases in materials and contract services are due to reduced events produced in response to the COVID-19 Pandemic and current State orders. This is offset by increases in employee benefits and cost allocations due to changes in allocation methodology and department reorganization. 347 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ - $ 5,000 $ - Total Revenues $ - $ - $ 5,000 $ - Expenditures Employee Compensation $ - $ 61,618 $ 84,022 $ 86,072 Employee Benefits $ - $ 2,667 $ 6,666 $ 21,325 Materials $ - $ 41,809 $ 20,033 $ 7,500 Contract Services $ - $ 66,096 $ 58,847 $ 36,500 Cost Allocation $ - $ - $ - $ 12,683 Contingencies $ - $ - $ - $ 1,100 Total Expenditures $ - $ 172,190 $ 169,568 $ 165,180 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ 172,190 $ 164,568 $ 165,180 Staffing Total current positions - 0.10 FTE Total proposed positions - 0.40 FTE Staff time is being reallocated to better reflect actual time spent in this program. 348 Table of Contents Park Facilities Budget Unit 100-63-612 General Fund - Sports, Safety and Outdoor Recreation - Park Facilities Budget at a Glance 2021 Adopted Budget Total Revenues $ 124,000 Total Expenditures $1,183,885 Fund Balance E12 General Fund Costs $1,059,885 % Funded by General Fund 89.5% Total Staffing 3.43 FTE Program Overview Blackberry Farm provides the community with recreational space to swim, picnic, enjoy ranger -led activities, and the Stevens Creek Trail. McClellan Ranch Preserve offers environmental education classes/creek tours to school groups, nature programs, and is the location of the Community Garden program and non-profit operations such as Grassroots Ecology, Santa Clara Valley Audubon Society, UCCE Master Gardeners, and Rolling Hills 4-H Club. The Creekside Park building provides community members with facility space which can be used for a variety of activities. The Monta Vista Recreation Center is home to a diverse array of recreational activities including gymnastics classes and preschool. Service Objectives Blackberry Farm Picnic Grounds and Pools: • Provide the community with two recreational pools for drop -in use and swim lessons. • Continue to offer a Junior Lifeguard course for teens, ages 13 -15. . Engage and provide the community with annual 4th of July, Pooch Plunge, and Corridor Stroll events. • Partner with the Audubon Society to provide Wildlife & Harvest Day at Blackberry Farm. . Increase residential usage of the facility. • Continue to offer Park Ranger -led activities such as interpretive walks, star -gazing events, and implement a Stevens Creek Corridor volunteer program. McClellan Ranch Preserve: • Continue to offer drop -in visitor hours at the Environmental Education Center and Blacksmith Shop on Saturdays, Sundays, and some school holidays. . Develop park management internship opportunities in partnership with the West Valley Community College Park Management Program. . Partner with SCVAS, Grassroots Ecology, Watershed Stewardship Program Members, Santa Clara Valley Audubon Society, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs. . Expand programming opportunities for teens. 349 Table of Contents • Increase volunteer/docent opportunities at McClellan Ranch. . Develop and increase community garden programming. Creekside Park Building: • Rent facility for nonprofit board meetings, birthday parties, school group picnics, and other similar activities. • Provide contract and staff -run classes and camps. . Provide space for year-round farmers' market Monta Vista Recreation Center: • Provide gymnastics classes via a certified gymnastics business. . Offer department run preschool program. • Provide contract and staff -run classes and camps. . Make space available for co -sponsored clubs and rentals. Adopted Budget On June 16, 2020, City Council approved a budget of $1,183,885 for the Park Facilities program. This represents a decrease of $1,069,007 (47.5%) from the FY 2019-20 Adopted Budget. Decreases in compensation and benefits are due to the closure of Blackberry Farm for the season, in response to the COVID-19 Pandemic and current State -mandated orders. Decreased costs in cost allocation are due to a change in allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 350 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Use of Money and Property $ 201,787 $ 203,590 $ 204,000 $ 59,000 Charges for Services $197,733 $176,470 $180,000 $ 65,000 Total Revenues $ 399,520 $ 380,060 $ 384,000 $124,000 Expenditures Employee Compensation $ 585,928 $ 663,199 $ 709,998 $ 600,364 Employee Benefits $114,806 $145,783 $147,805 $177,586 Materials $110,726 $107,451 $ 94,435 $ 85,053 Contract Services $ 48,532 $17,946 $ 89,251 $ 86,926 Cost Allocation $ 954,759 $1,277,319 $1,202,972 $ 229,792 Special Projects $ 62,643 $ 74,498 $ - $ - Contingencies $ - $ - $ 8,431 $ 4,164 Total Expenditures $ 1,877,394 $ 2,286,196 $ 2,252,892 $1,183,885 Fund Balance $ - $ - $ - $ - General Fund Costs $ 1,477,874 $1,906,136 $1,868,892 $ 1,059,885 Staffing Total current positions - 3.28 FTE Total proposed positions - 3.43 FTE Staff time is being reallocated to better reflect actual time spent in this program. 351 Table of Contents Administration Budget Unit 100-63-615 General Fund - Sports, Safety and Outdoor Recreation - Administration Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 110,200 Fund Balance E12 General Fund Costs $110,200 % Funded by General Fund 100.0% Total Staffing 0.45 FTE Program Overview This program supports all facets of the Sports, Safety, and Outdoor Recreation Division. It provides for the supervision and operation of the Cupertino Sports Center, Blackberry Farm Golf Course, Blackberry Farm picnic area and swimming pools, McClellan Ranch Preserve, Monta Vista Recreation Center and Creekside Park building. The Sports, Safety, and Outdoor Recreation Division includes a diverse offering of recreation programs for all ages including sports leagues, camps/classes, nature programs, volunteer opportunities, drop -in activities, special events, aquatics, golf, and specialty classes. Service Objectives • Efficiently manage the Cupertino Sports Center, Blackberry Farm Golf Course, Blackberry Farm picnic sites and swimming pools, McClellan Ranch Preserve, Monta Vista Recreation Center, Creekside Park building, nine school sites and various City fields. . Continue to improve coordination among staff within the Stevens Creek Corridor in order to enhance customer service and the experience for park visitors. • Oversee marketing, budget development, and program plans for all locations. . Continue to expand the aquatics program. Adopted Budget On June 16, 2020, City Council approved a budget of $110,200 for the Administration program. This represents a decrease of $3,978 (-3.5%) from the FY 2019-20 Adopted Budget. Increases in compensation and benefits are due to negotiated salary and benefit changes. The decrease in materials and cost allocations are due to changes in allocation methodology and department reorganization. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 352 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $186,622 $ 49,338 $ 46,034 $ 54,067 Employee Benefits $ 69,295 $ 18,936 $ 16,279 $ 24,066 Materials $ 6,228 $ 2,600 $ 8,465 $ 270 Contract Services $ 3,889 $ 412 $ - $ - Cost Allocation $ 87,147 $ 108,578 $ 43,392 $ 31,790 Contingencies $ - $ - $ 8 $ 7 Total Expenditures $ 353,181 $179,864 $ 114,178 $110,200 Fund Balance $ - $ - $ - $ - General Fund Costs $ 353,181 $179,864 $ 114,178 $110,200 Staffing Total current positions - 0.40 FTE Total proposed positions - 0.45 FTE Staff time is being reallocated to better reflect actual time spent in this program. 353 Table of Contents Blackberry Farm Golf Course Budget Unit 560-63-616 Blackberry Farm - Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course Budget at a Glance 2021 Adopted Budget Total Revenues $ 210,000 Total Expenditures $ 684,232 Fund Balance $ (24,232) General Fund Costs $ 450,000 % Funded by General Fund 65.8% Total Staffing 1.15 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 private golf instruction, family events, high school golf team partnerships, leagues, and camps. • Continue to operate a golf course concession where customers may purchase golfing accessories and golf instruction. Adopted Budget On June 16, 2020, City Council approved a budget of $684,232 for the Blackberry Farm Golf Course program. This represents a decrease of $7,919 (-1.1%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Increases in compensation and benefits are due to negotiated salary and benefit changes. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 354 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Use of Money and Property $ 30,910 $ 28,489 $ 27,000 $ 30,000 Charges for Services $ 314,754 $ 288,128 $ 300,000 $180,000 Total Revenues $ 345,664 $ 316,617 $ 327,000 $ 210,000 Expenditures Employee Compensation $136,361 $148,832 $168,337 $170,410 Employee Benefits $ 50,556 $ 41,855 $ 42,698 $ 58,778 Materials $ 98,956 $ 93,667 $106,249 $108,003 Contract Services $ 258,776 $ 258,580 $ 267,345 $ 248,885 Cost Allocation $ 97,561 $ 91,476 $ 91,074 $ 89,471 Special Projects $ 32,900 $ - $ - $ - Contingencies $ - $ - $ 16,448 $ 8,685 Total Expenditures $ 675,110 $ 634,410 $ 692,151 $ 684,232 Fund Balance $ (29,446) $ (317,793) $ 244,849 $ (24,232) General Fund Costs $ 300,000 $ - $ 610,000 $ 450,000 Staffing Total current positions - 1.15 FTE Total proposed positions - 1.15 FTE There are no changes to the current level of staffing. 355 Table of Contents Outdoor Recreation Budget Unit 580-63-620 Recreation Program - Sports, Safety and Outdoor Recreation - Outdoor Recreation Budget at a Glance 2021 Adopted Budget Total Revenues $ 483,225 Total Expenditures $ 907,695 Fund Balance $ 737,530 General Fund Costs $1,162,000 % Funded by General Fund 128.0% Total Staffing 2.07 FTE Program Overview This program encompasses the coordination and delivery of a wide range of sports, fitness, and outdoor activities for youth and adults. Service Objectives . Operate a summer learn -to -swim program for infants, children, teens, and adults. • Coordinate spring, summer, and fall adult softball leagues. . Provide sports, dance, fitness, and wellness classes for youth, teens, and adults. • Manage user group field rentals under the Cupertino Union School District/City Joint Use Agreement. • Increase nature, blacksmithing, and environmental classes for parent/child, teen, and adult demographics. • Increase youth and teen activities to better accommodate working parents. • Provide an afternoon summer nature program to provide all -day camp options for families. • Offer fee -based gardening programs for youth and adults. Adopted Budget On June 16, 2020, City Council approved a budget of $907,695 for the Outdoor Recreation program. This represents a decrease of $680,065 (-42.8%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to reductions in staffing and contract services in response to the COVID-19 Pandemic and current State -mandated Social Distancing Protocols. The decrease is also due to departmental reorganization of its programs. Big Bunny 5K was previously budgeted in this account. Due to the reorganization, Big Bunny is now budgeted in Cultural Events 100-61-605. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 356 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ 163,670 $ 139,590 $ - $ 140,000 Charges for Services $ 845,638 $ 624,377 $ 1,201,937 $ 343,225 Total Revenues Expenditures Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Special Projects Contingencies Total Expenditures Fund Balance $ 1,009,308 $ 763,967 $ 335,428 $ 305,646 $ 101,340 $ 111,674 $ 112,440 $ 120,385 $ 464,655 $ 409,487 $ 258,603 $ 245,281 $ 1,272,466 $1,192,473 $ (263,159) $ (428,506) $1,201,937 $ 364,143 $ 103,062 $ 68,194 $ 720,311 $ 265,476 $ 30,500 $ 36,074 $ 1,587,760 $179,177 General Fund Costs $ - $ - $ 565,000 Staffing Total current positions - 2.42 FTE Total proposed positions - 2.07 FTE Staff time is being reallocated to better reflect actual time spent in this program. $ 483,225 $ 234,270 $ 97,848 $ 24,153 $ 254,261 $ 281,896 $ 15,267 $ 907,695 $ 737,530 $1,162,000 357 Table of Contents Sports Center Operations Budget Unit 570-63-621 Sports Center - Sports, Safety and Outdoor Recreation - Sports Center Operations Budget at a Glance 2021 Adopted Budget Total Revenues $ 881,112 Total Expenditures $1,356,862 Fund Balance $ 184,250 General Fund Costs $ 660,000 % Funded by General Fund 48.6% Total Staffing 2.25 FTE Program Overview The Cupertino Sports Center offers a variety of health and wellness activities including a full fitness center, child care, and a wide assortment of fitness classes, youth sports classes, and a variety of racquet sports, including tennis, table tennis, pickle ball, and badminton classes, camps, and programs. Service Objectives • Increase memberships, participation in fitness classes, and enrollment in contract camps and classes. . Market programs through social media, the recreation schedule, a new 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 each quarter. • Offer special classes for International Yoga Day and the annual Open House. Adopted Budget On June 16, 2020, City Council approved a budget of $1,356,862 for the Sports Center Operations program. This represents a decrease of $1,188,701 (-46.7%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to the reduction of contract services in response to the COVID-19 Pandemic, current State requirements of Social Distancing Protocols, and the Shelter in Place, and the closure due to the Seismic Retrofit construction project in the Fall. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 358 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Use of Money and Property $1,173 $ 818 $1,000 $120,000 Charges for Services $ 2,402,491 $ 2,343,653 $ 2,050,500 $ 761,112 Total Revenues $ 2,403,664 $ 2,344,471 $ 2,051,500 $ 881,112 Expenditures Employee Compensation $ 308,350 $ 373,687 $ 348,124 $ 309,511 Employee Benefits $103,327 $ 99,189 $ 91,492 $108,243 Materials $ 39,774 $ 41,425 $ 59,810 $ 26,061 Contract Services $1,561,619 $1,859,543 $1,696,689 $ 666,373 Cost Allocation $183,146 $ 246,455 $ 238,982 $196,789 Special Projects $ - $ 4,760 $ 27,000 $ - Contingencies $ - $ - $ 83,466 $ 49,885 Total Expenditures $ 2,196,216 $ 2,625,059 $ 2,545,563 $1,356,862 Fund Balance $ 307,445 $ (280,588) $ 453,937 $184,250 General Fund Costs $ 99,996 $ - $ 948,000 $ 660,000 Staffing Total current positions - 2.25 FTE Total proposed positions - 2.25 FTE There are no changes to the current level of staffing. 359 Table of Contents Disaster Preparedness Budget Unit 100-63-633 General Fund - Sports, Safety and Outdoor Recreation - Disaster Preparedness Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing 2021 Adopted Budget 0.0% 0.00 FTE Program Overview In FY 2018-19, this program was transferred to the City Manager's Office. A complete discussion of this program can be found under Budget Unit 100-12-633. 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. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 360 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 92,977 $ 46,691- Employee Benefits $ 34,825 $ 17,823- Materials $ 32,836 $ 4,466- Contract Services $14 $ -- Cost Allocation $ 21,312 $ 20,267- Total Expenditures $ 181,964 $ 89,247- Fund Balance $ - $ - General Fund Costs $ 181,964 $ 89,246 $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 361 Table of Contents This page intentionally left blank. 362 Table of Contents Community Development Budget Unit Program 2021 Adopted Budget Community Development $ 730,583 100-70-700 Community Development Administration $ 730,583 Planning $ 3,762,405 100-71-701 Current Planning $ 2,747,295 100-71-702 Mid and Long Term Planning $1,014,383 100-71-704 Annexations $ 727 100-71-705 Economic Development $ - Housing Services $1,190,196 260-72-707 CDBG General Admin $ 97,195 260-72-709 CDBG Capital/Housing Projects $ 260,000 260-72-710 CDBG Public Service Grants $ 65,000 265-72-711 BMR Affordable Housing Fund $ 661,071 100-72-712 Human Service Grants $106,930 Building $ 4,043,931 100-73-713 General Building $ 899,738 100-73-714 Building Plan Review $ 1,658,248 100-73-715 Building Code Enforcement $1,402,918 100-73-718 Muni Code Enforcement $ 83,027 Code Enforcement $1,157,600 100-74-202 Code Enforcement $ 1,157,600 Total $ 10,884,715 363 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ 7,950,218 Total Expenditures $10,884,715 Fund Balance $ 2,343,202 General Fund Costs $ 5,277,699 % Funded by General Fund 48.5% Total Staffing 28.49 FTE Organization Benjamin Fu, Director of Community Development D i recto r of Community Housin Plannin Senior Planner De ut Board Management �mm,;ty g 8 P Y g Manager Manager (2) Clerk Analyst oe ebp—'U/B�ildi^e ofnuai Associate --- Administra Officerf3l live Permit Center Deputy Building Planner(3} Enforcement Assistant Manager Official n2tPlanne Office AssistantI Plan SeniorBuiIding� I u EnnIn InsPector Permit Building Technician(3) IH Inspector(4) 364 Table of Contents 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 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target Building permit applications plan N/A N/A ° 85 /° 80% reviewed within 15 business daysl Customer/Applicants visiting the Building Permit Counter shall be N/A N/A 90% 80% assisted within 15 minutes Applicants visiting the Planning N/A N/A 89% 50 ° Counter shall be assisted Building permit applications 65% 68% 88% 75% reviewed over-the-counter (OTC) Average number of days to initiate investigation of code complaints 1.96 1.35 1.4 < 7 Code enforcement cases resolved 92.98% 88.63% 90% 80% without issuance of citations Landlord -tenant counseling and dispute resolution cases provided 70 55 14 100 per year Below market rate rental and purchase vacancies filled 30 11 14 15 per year Housing resources and referrals provided 1040 1040 520 400 per year Complimentary/courtesy prelim app reviews completed within 4 weeks2 N/A N/A 69% 80% Public Outreach Events N/A N/A 7 12 per year 1 We will be able to report the percentage of building plan reviews completed within 15 business days and the percentage of building inspections requested online when the new land use and permitting software goes live. 365 Table of Contents Workload Indicators Planning Division Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec Number of preliminary reviews 82 90 55 Number of planning applications received 169 138 97 Number of planning counter inquiries N/A N/A 1606 Housing Services Division Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec Number of housing resources and referrals 1040 1040 520 Number of BMR rental and ownership vacancies filled 30 11 14 Number of landlord tenant counseling and dispute cases received 70 55 14 Number of annual HUD documents (CAPER, Action Plan, Consolidated Plan, Affirmatively 2 2 2 Furthering Fair Housing) completed Housing and Human Services Grant Funds 30 35 25 inquiries Building Division Workload Indicator FY 2018 FY 2019 FY 2020 July -June July -June July -Dec Number of permits received 2,322 2,321 1,267 Number of inspections requested 16,026 13,625 7,298 Number of building counter inquiries N/A N/A 3,781 Adopted Budget On June 16, 2020, City Council approved a budget of $10,884,715 for the Community Development department. This represents an increase of $235,710 (2.2%) from the FY 2019-20 Adopted Budget. 366 Table of Contents Adopted Expenditures by Division ■ Building Planning ■ Housing Services Code Enforcement Community Development Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 367 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Taxes $165,324 $159,179 $ 3,000 $ 3,025,898 Licenses and Permits $ 2,728,492 $ 4,072,243 $ 2,500,000 $ 3,115,000 Use of Money and Property $ 3,265 $ 2,659 $ 3,300 $ 3,300 Intergovernmental Revenue $ 316,688 $ 344,323 $ 361,597 $ 397,270 Charges for Services $ 5,830,945 $ 3,387,551 $1,310,000 $1,135,000 Fines and Forfeitures $ - $190,550 $ 265,000 $ 225,000 Miscellaneous Revenue $ 683,494 $ 302,940 $139,539 $ 48,750 Total Revenues $ 9,728,208 $ 8,459,445 $ 4,582,436 $ 7,950,218 Expenditures Employee Compensation $ 3,051,272 $ 3,132,061 $ 3,448,362 $ 3,866,430 Employee Benefits $1,254,973 $1,271,121 $1,441,002 $1,699,406 Materials $ 595,759 $ 714,672 $ 753,792 $ 873,685 Contract Services $ 316,008 $ 334,768 $ 563,170 $ 586,888 Cost Allocation $ 2,069,309 $ 2,490,593 $ 2,923,486 $ 3,592,758 Special Projects $ 8,659,121 $1,895,890 $1,503,500 $ 250,000 Contingencies $ - $ - $ 15,693 $ 15,548 Total Expenditures $15,946,442 $ 9,839,105 $10,649,005 $10,884,715 Fund Balance $ (4,017,687) $ (269,573) $ (676,319) $ 2,343,202 General Fund Costs $ 2,200,550 $1,110,087 $ 5,390,250 $ 5,277,699 Staffing Total current positions - 28.39 FTE Total proposed positions - 28.49 FTE 368 Table of Contents Community Development Administration Budget Unit 100-70-700 General Fund - Community Development - Community Development Administration Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 730,583 Fund Balance E12 General Fund Costs $ 730,583 % Funded by General Fund 100.0% Total Staffing 0.50 FTE Program Overview The Community Development Administration program manages general office and oversight functions for the Community Development Department. Service Objectives . Coordinate and direct general office affairs related to community development functions. • Manage professional and administrative staff. . Prepare and implement the department budget. • Coordinate as necessary with other departments in the City. • Review and evaluate City and department goals and objectives. Adopted Budget On June 16, 2020, City Council approved a budget of $730,583 for the Community Development Administration program. This represents an increase of $5,960 (0.8%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged since last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 369 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ - $ 20 $ - $ - Total Revenues $ - $ 20- Expenditures Employee Compensation $ 101,233 $ 79,223 $100,414 $ 112,188 Employee Benefits $ 38,455 $ 30,403 $ 39,127 $ 37,199 Materials $ 14,886 $ 5,596 $ 23,955 $ 24,674 Contract Services $ 3,727 $1,843 $100,000 $103,380 Cost Allocation $146,586 $ 498,053 $ 454,929 $ 449,941 Contingencies $ - $ - $ 6,198 $ 3,201 Total Expenditures $ 304,887 $ 615,118 $ 724,623 $ 730,583 Fund Balance $ - $ - $ - $ - General Fund Costs $ 304,887 $ 615,098 $ 724,623 $ 730,583 Staffing Total current positions - 0.50 FTE Total proposed positions - 0.50 FTE There are no changes to the current level of staffing. 370 Table of Contents Current Planning Budget Unit 100-71-701 General Fund - Planning - Current Planning Budget at a Glance 2021 Adopted Budget Total Revenues $1,045,000 Total Expenditures $ 2,747,295 Fund Balance E12 General Fund Costs $1,702,295 % Funded by General Fund 62.0% Total Staffing 7.48 FTE Program Overview The Current Planning program serves to review projects and implement City ordinances, land use plans and the General Plan goals and objectives through the planning review and building plan check processes. Service Objectives . Maintain a high level of customer service. • Provide assistance at the public counter, over the telephone, or via email. . Implement the City's General Plan, land use plans and Zoning Ordinance. • Evaluate Planning applications for consistency with City ordinance, General Plan goals, and applicable State and Federal regulations. • Coordinate internal review of Planning applications with other City departments. • Conduct environmental review of projects in compliance with California Environmental Quality Act (CEQA) and applicable regional, State and Federal regulations. . Provide technical analysis and recommendations to the Council, Planning Commission and Design Review Committee. . Review building permits to ensure implementation of zoning requirements, environmental mitigation measures and planning entitlement conditions of approval. Adopted Budget On June 16, 2020, City Council approved a budget of $2,747,295 for the Current Planning program. This represents an increase of $264,539 (10.7%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in cost allocation resulting from a change in methodology and Marina Plaza legal fees. Special Projects The following table shows the special projects for the fiscal year. 371 Table of Contents Special Project Appropriation Revenue Marina Plaza $50,000 $57,500 Funding Source Description Marina Plaza project legal fees Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $1,400,389 $1,534,193 $1,100,000 $1,000,000 Miscellaneous Revenue $ 88,813 $ 70,846 $ 75,000 $ 45,000 Total Revenues $ 1,489,202 $ 1,605,039 $1,175,000 $ 1,045,000 Expenditures Employee Compensation $ 856,419 $ 875,109 $ 957,430 $1,003,612 Employee Benefits $ 330,183 $ 326,246 $ 357,547 $ 407,829 Materials $19,957 $ 31,711 $ 31,430 $ 32,374 Contract Services $ 22,705 $ 2,334 $ - $ - Cost Allocation $ 725,723 $ 729,234 $1,126,277 $ 1,252,671 Special Projects $ 282,993 $ 388,463 $ 8,500 $ 50,000 Contingencies $ - $ - $ 1,572 $ 809 Total Expenditures $ 2,237,980 $ 2,353,097 $ 2,482,756 $ 2,747,295 Fund Balance $ - $ - $ - $ - General Fund Costs $ 748,778 $ 748,056 $1,307,756 $1,702,295 Staffing Total current positions - 7.43 FTE Total proposed positions - 7.48 FTE Staff time is being reallocated to better reflect actual time spent in this program. 372 Table of Contents Mid and Long Term Planning Budget Unit 100-71-702 General Fund - Planning - Mid and Long Term Planning Budget at a Glance 2021 Adopted Budget Total Revenues $ 138,750 Total Expenditures $1,014,383 Fund Balance $ - General Fund Costs $ 875,633 % Funded by General Fund 86.3% Total Staffing 2.49 FTE Program Overview The Mid- and Long -Term Planning program assists the community in preparing, reviewing and amending documents including the General Plan, Specific Plans, Conceptual Plans, and the Municipal Code, including the Zoning Ordinance. Additionally, the program anticipates and evaluates trends, and develops strategies and plans to help the City address change. Service Objectives . Review and amend the City's General Plan, Housing Element, and Municipal Code, including the Zoning Ordinance, Specific, Conceptual and Master Plans. • Ensure City processes and regulations are in compliance with State and Federal regulations, including the California Environmental Quality Act (CEQA). • Review and implement policies in the General Plan, Housing Element, Zoning Ordinance, Specific, Conceptual and Master Plans. . Coordinate with various local, regional, State and Federal agencies on projects. • Facilitate the planning and implementation of the City Council's annual community development goals and objectives. Adopted Budget On June 16, 2020, City Council approved a budget of $1,014,383 for the Mid and Long Term Planning program. This represents a decrease of $866,361 (-46.1%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to FY2019-20 special projects totaling $1.28 million offset by an increase in cost allocation resulting from a change in methodology. Special Projects The following table shows the special projects for the fiscal year. 373 Table of Contents Special Project Appropriation Revenue FundingDescription Source Create objective design standards for Residential and Mixed -use residential and mixed -use residential Residential Design $200,000 $200,000 General projects, including ensuring adequate Standards Fund buffers from neighboring low density residential development. Total $200,000 $200,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $1,467,516 $1,415,725 $ 210,000 $135,000 Miscellaneous Revenue $150,591 $160,835 $15,000 $ 3,750 Total Revenues $1,618,107 $1,576,560 $ 225,000 $138,750 Expenditures Employee Compensation $ 289,923 $ 282,913 $ 309,606 $ 386,265 Employee Benefits $ 111,372 $103,392 $116,272 $ 151,978 Materials $ 4,659 $ 2,417 $ 4,100 $ 4,224 Contract Services $ 2,550 $ 847 $ - $ 7,500 Cost Allocation $ 151,267 $ 157,674 $170,561 $ 264,123 Special Projects $1,496,955 $ 920,313 $1,280,000 $ 200,000 Contingencies $ - $ - $ 205 $ 293 Total Expenditures $ 2,056,726 $1,467,556 $ 1,880,744 $1,014,383 Fund Balance $ - $ - $ - $ - General Fund Costs $ 438,619 $ (109,004) $ 1,655,744 $ 875,633 Staffing Total current positions - 2.44 FTE Total proposed positions - 2.49 FTE Staff time is being reallocated to better reflect actual time spent in this program. 374 Table of Contents Annexations Budget Unit 100-71-704 General Fund - Planning - Annexations Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 727 Fund Balance $ - General Fund Costs $ 727 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The Annexations program was created in FY 2014-15 to account for annexations of property from outside city limits. Service Objectives . Identify and process annexations Adopted Budget On June 16, 2020, City Council approved a budget of $727 for the Annexations program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues $ - $ - $ - $ - Expenditures Cost Allocation $ 141 $ 903 $ - $ 727 Total Expenditures $141 $ 903 $ - $ 727 Fund Balance $ - $ - $ - $ - General Fund Costs $141 $ 903 $ - $ 727 375 Table of Contents Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 376 Table of Contents Economic Development Budget Unit 100-71-705 General Fund - Planning - Economic Development Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing Program Overview 2021 Adopted Budget 0.0% 0.00 FTE In FY 2018-19, this program was transferred to Administration as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-12-705. This program will remain in order to maintain historical data. Once all prior year data as listed in the table below is $0, this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 377 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 95,026 $ 37,374- Employee Benefits $ 29,480 $ 11,075- Materials $ 16,576 $ 5,887- Contract Services $ 44,893 $ 10,327- Cost Allocation $ 28,270 $ 8,419- Special Projects $ 75,083 $16,728 Total Expenditures $ 289,328 $ 89,810- Fund Balance $ - $ - General Fund Costs $ 289,328 $ 89,810 $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 378 Table of Contents CDBG General Admin Budget Unit 260-72-707 CDBG - Housing Services - CDBG General Admin Budget at a Glance 2021 Adopted Budget Total Revenues $ 79,450 Total Expenditures $ 97,195 Fund Balance $ (17,745) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.39 FTE Program Overview The General Administration of the Community Development Block Grant (CDBG) federal entitlement program is reserved for program administration costs to cover salary and benefits of staff who operate the CDBG program. The CDBG program is a federal entitlement program which serves low- and moderate - income Cupertino residents. CDBG program administration costs represent 20% of the City's annual federal CDBG allocation plus prior year program income. Service Objectives • Prepare and submit an Annual Plan to the US Department of Housing and Urban Development (HUD). • Prepare and submit annual Consolidated Annual Performance and Evaluation Report (CAPER) to HUD. • Prepare and submit a five-year Consolidated Plan to HUD. . Meet quarterly with Santa Clara County CDBG Coordinators. • Conduct four -eight public hearings per year to allocate CDBG funding, review Annual Plan, CAPER, and Consolidated Plan. • Provide technical assistance to grantees and applicants. • Monitor grantees for compliance with federal regulations. Adopted Budget On June 16, 2020, City Council approved a budget of $97,195 for the CDBG General Admin program. This represents an increase of $27,918 (40.3%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in negotiated salary and benefits. 379 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ 60,128 $ 48,691 $ 72,319 $ 79,450 Total Revenues $ 60,128 $ 48,691 $ 72,319 $ 79,450 Expenditures Employee Compensation Employee Benefits $ 37,917 $ 22,211 $ 36,624 $ 20,011 $ 45,758 $ 23,519 $ 65,674 $ 31,521 Total Expenditures $ 60,128 $ 56,635 $ 69,277 $ 97,195 Fund Balance $ - $ (7,944) $ 3,042 $ (17,745) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.39 FTE Total proposed positions - 0.39 FTE There are no changes to the current level of staffing. 380 Table of Contents CDBG Capital/Housing Projects Budget Unit 260-72-709 CDBG - Housing Services - CDBG Capital/Housing Projects Budget at a Glance 2021 Adopted Budget Total Revenues $ 261,532 Total Expenditures $ 260,000 Fund Balance $1,532 General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview This portion of the Community Development Block Grant (CDBG) federal entitlement program is reserved for grants and loans to non-profit developers and agencies for eligible activities such as public improvements, property acquisition for affordable housing, rehabilitation of affordable units, and development of affordable housing. CDBG Capital/Housing costs represent 65% of the City's annual federal CDBG allocation plus prior year program income. Service Objectives • Issue Requests for Proposals (RFPs) on an annual basis for Capital/Housing Projects. • Review applications and make funding recommendations to Housing Commission and City Council. . On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee. . Review quarterly reports and reimbursements requests from agencies and enter data into HUD IDIS program. • Coordinate entitlement process with the Planning Division for affordable development projects. . Monitor project progress of grantees through the construction phase. • Coordinate CEQA/NEPA environmental review processes for all affordable developments. • Coordinate preparation of all grant and loan agreements, Deeds of Trust, Promissory Notes, and Regulatory Agreements. • On an annual basis, prepare grant agreements or amendments for each grantee. . Provide technical assistance to grantees and applicants. • Monitor grantees for compliance with federal regulations. Adopted Budget On June 16, 2020, City Council approved a budget of $260,000 for the CDBG Capital/Housing Projects program. This represents an increase of $19,798 (8.2%) from the FY 2019-20 Adopted Budget. The increase is due to an increase in grant funding allocation. 381 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property Intergovernmental Revenue $ 3,265 $ 208,577 $ 2,659 $ 240,201 $ 3,300 $ 235,038 $ 3,300 $ 258,232 Total Revenues $ 211,842 $ 242,860 $ 238,338 $ 261,532 Expenditures Materials $ 224,461 $ 240,201 $ 240,202 $ 260,000 Total Expenditures $ 224,461 $ 240,201 $ 240,202 $ 260,000 Fund Balance $ (12,620) $ 2,659 $ (1,864) $1,532 General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 382 Table of Contents CDBG Public Service Grants Budget Unit 260-72-710 CDBG - Housing Services - CDBG Public Service Grants Budget at a Glance 2021 Adopted Budget Total Revenues $ 59,588 Total Expenditures $ 65,000 Fund Balance $ (5,412) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview This portion of the Community Development Block Grant (CDBG) federal entitlement program is reserved for grants to nonprofit agencies serving low- and moderate -income Cupertino residents. The agencies provide services such as food assistance, job training, emergency housing, legal assistance, etc. CDBG Public Services costs represent 15% of the City's annual federal CDBG allocation plus prior year program income. Service Objectives . Issue Requests for Proposals (RFPs) on a bi- or tri-annual basis for public services programs. . Review applications and make funding recommendations to Housing Commission and City Council. • On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee. • Review quarterly reports and reimbursements requests from agencies and enter data into HUD IDIS program. . On an annual basis, prepare grant agreements or amendments for each grantee. • Provide technical assistance to grantees and applicants. . Monitor grantees for compliance with federal regulations. Adopted Budget On June 16, 2020, City Council approved a budget of $65,000 for the CDBG Public Service Grants program. This represents an increase of $15,000 (30.0%) from the FY 2019-20 Adopted Budget. The increase is due to an increase in grant funding allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 383 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ 47,983 $ 55,431 $ 54,240 $ 59,588 Total Revenues $ 47,983 $ 55,431 $ 54,240 $ 59,588 Expenditures Materials $ 47,983 $ 55,431 $ 50,000 $ 65,000 Total Expenditures $ 47,983 $ 55,431 $ 50,000 $ 65,000 Fund Balance $ - $ - $ 4,240 $ (5,412) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 384 Table of Contents BMR Affordable Housing Fund Budget Unit 265-72-711 BMR Housing - Housing Services - BMR Affordable Housing Fund Budget at a Glance 2021 Adopted Budget Total Revenues $ 3,025,898 Total Expenditures $ 661,071 Fund Balance $ 2,364,827 General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.41 FTE Program Overview This program covers administration of the Below Market Rate (BMR) Housing program. Service Objectives • Contract with BMR Program Administrator annually for services relating to rental and ownership units. • Prepare and monitor agreement, process monthly reimbursement requests, and provide technical assistance to BMR Program Administrator. • Review and maintain the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual). . Review and maintain the BMR Housing Mitigation Program Procedural Manual (Housing Mitigation Manual) Adopted Budget On June 16, 2020, City Council approved a budget of $661,071 for the BMR Affordable Housing Fund program. This represents a decrease of $23,666 (-3.5%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to FY 2019-20 special projects totaling $180,000 offset by an increase in negotiated salary and benefits, affordable housing placement program and public service grant costs. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 385 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Taxes $ 165,324 $ 159,179 $ 3,000 $ 3,025,898 Charges for Services $ 34,135 $ 29,145 $ - $ - Miscellaneous Revenue $ 4,754 $ 901 $ - $ - Total Revenues $ 204,213 $189,225 $ 3,000 $ 3,025,898 Expenditures Employee Compensation $ 32,733 $ 37,739 $ 47,152 $ 67,674 Employee Benefits $18,681 $ 20,648 $ 24,237 $ 32,480 Materials $183,393 $ 227,955 $ 232,150 $ 310,786 Contract Services $177,626 $ 78,934 $ 201,170 $ 201,288 Cost Allocation $ 2,582 $ - $ 28 $ 48,843 Special Projects $ 3,794,265 $ 88,236 $180,000 $ - Total Expenditures $ 4,209,280 $ 453,512 $ 684,737 $ 661,071 Fund Balance $ (4,005,067) $ (264,288) $ (681,737) $ 2,364,827 General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.41 FTE Total proposed positions - 0.41 FTE There are no changes to the current level of staffing. 386 Table of Contents Human Service Grants Budget Unit 100-72-712 General Fund - Housing Services - Human Service Grants Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 106,930 Fund Balance $ - General Fund Costs $106,930 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview The City of Cupertino sets aside $100,000 from its General Fund for non-profit agencies providing services to low- and moderate -income Cupertino residents. Eligible programs include senior services, homeless services, and others that serve low- and moderate -income residents. Service Objectives • Issue Requests for Proposals (RFPs) on a bi- or tri-annual basis for public services programs. . Review applications and make funding recommendations to Housing Commission and City Council. • On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee. . Review quarterly reports and reimbursements requests from agencies. • On an annual basis, prepare grant agreements or amendments for each grantee. . Provide technical assistance to grantees and applicants. . Monitor grantees for compliance. Adopted Budget On June 16, 2020, City Council approved a budget of $106,930 for the Human Service Grants program. This represents a decrease of $910 (-0.8%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged since last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 387 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Materials $ 40,000 $ 83,599 $100,000 $100,000 Cost Allocation $ 1,836 $ 3,010 $ 2,840 $ 4,430 Contingencies $ - $ - $ 5,000 $ 2,500 Total Expenditures $ 41,836 $ 86,609 $107,840 $106,930 Fund Balance $ - $ - $ - $ - General Fund Costs $ 41,836 $ 86,609 $107,840 $106,930 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 388 Table of Contents General Building Budget Unit 100-73-713 General Fund - Building - General Building Budget at a Glance 2021 Adopted Budget Total Revenues $ 315,000 Total Expenditures $ 899,738 Fund Balance $ - General Fund Costs $ 584,738 % Funded by General Fund 65.0% Total Staffing 2.92 FTE Program Overview The General Building program establishes the minimum requirements to safeguard the public health, safety and general welfare through structural strength, means of egress facilities, stability, accessibility, sanitation, adequate lighting and ventilation and energy conservation; safety to life and property from fire and other hazards attributed to the built environment; and to provide safety to fire fighters and emergency responders during emergency operations. Service Objectives • Provide efficient and friendly service that will assist customers with their building permit goals and objectives. • Continue to streamline the workflow process to provide efficient and friendly customer service. • Work proactively to enhance the public interface and information systems. . Continue efforts to create a more effective records management system and land use data system using Geographic Information System (GIS). Increase staff knowledge through in-house training, meetings, and seminars Adopted Budget On June 16, 2020, City Council approved a budget of $899,738 for the General Building program. This represents an increase of $108,477 (13.7%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in negotiated salary and benefits and cost allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 389 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Licenses and Permits $ 305,951 $ 396,662 $ 300,000 $ 315,000 Charges for Services $ 350 $ 2,466 $ - $ - Miscellaneous Revenue $ 53 $ 158 $ - $ - Total Revenues $ 306,354 $ 399,286 $ 300,000 $ 315,000 Expenditures Employee Compensation $ 332,847 $ 322,821 $ 359,785 $ 410,670 Employee Benefits $ 136,400 $ 133,281 $ 152,528 $ 179,641 Materials $ 18,852 $ 17,328 $ 19,240 $ 18,479 Contract Services $ 3,650 $ 1,011 $ - $ - Cost Allocation $ 236,112 $ 270,495 $ 258,746 $ 290,486 Special Projects $ 13,053 $ 8,292 $ - $ - Contingencies $ - $ - $ 962 $ 462 Total Expenditures $ 740,914 $ 753,228 $ 791,261 $ 899,738 Fund Balance $ - $ - $ - $ - General Fund Costs $ 434,561 $ 353,941 $ 491,261 $ 584,738 Staffing Total current positions - 2.92 FTE Total proposed positions - 2.92 FTE There are no changes to the current level of staffing. 390 Table of Contents Building Plan Review Budget Unit 100-73-714 General Fund - Building - Building Plan Review Budget at a Glance 2021 Adopted Budget Total Revenues $1,300,000 Total Expenditures $1,658,248 Fund Balance $ - General Fund Costs $ 358,248 % Funded by General Fund 21.6% Total Staffing 5.90 FTE Program Overview The Building Plan Review program is responsible for the timely and accurate review and approval of construction drawings for all residential, commercial and industrial permit applications for buildings and structures to ensure the proposed design meets or exceeds the minimum life safety, plumbing, mechanical, electrical, accessibility, energy and structural safety standards of the California Building Code and all governing local amendments. Service Objectives • Provide a streamlined building plan review system that will ensure plans comply with all applicable state and local codes and ordinances. . Continue to streamline the internal application processing system and permit review process. • Confer with design professionals on project application and pre -application meetings. . Provide general code information for property owners, design professionals, developers, contractors and the general public. • Assist building inspectors in difficult or unusual code interpretation as it applies to various buildings and structures. • Assist in training of building inspectors and permit technicians in conducting residential and minor commercial plan review. Adopted Budget On June 16, 2020, City Council approved a budget of $1,658,248 for the Building Plan Review program. This represents an increase of $201,212 (13.8%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in negotiated salary and benefits. 391 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Licenses and Permits $ 927,741 $ 1,505,039 $ 1,000,000 $ 1,300,000 Charges for Services $ 463,108 $ 110,007 $ - $ - Miscellaneous Revenue $ 69,466 $ 26,501 $ 49,539 $ - Total Revenues $1,460,315 $ 1,641,547 $ 1,049,539 $1,300,000 Expenditures Employee Compensation $ 596,332 $ 630,862 $ 658,969 $ 743,419 Employee Benefits $ 271,670 $ 281,577 $ 302,174 $ 356,239 Materials $ 6,437 $ 19,815 $ 6,865 $ 7,189 Contract Services $ 6,802 $ 6,305 $ - $ - Cost Allocation $ 349,802 $ 436,132 $ 453,685 $ 551,221 Special Projects $ 459,558 $ 110,860 $ 35,000 $ - Contingencies $ - $ - $ 343 $ 180 Total Expenditures $1,690,601 $ 1,485,551 $ 1,457,036 $1,658,248 Fund Balance $ - $ - $ - $ - General Fund Costs $ 230,287 $ (155,995) $ 407,497 $ 358,248 Staffing Total current positions - 5.90 FTE Total proposed positions - 5.90 FTE There are no changes to the current level of staffing. 392 Table of Contents Building Code Enforcement Budget Unit 100-73-715 General Fund - Building - Building Code Enforcement Budget at a Glance 2021 Adopted Budget Total Revenues $1,500,000 Total Expenditures $1,402,918 Fund Balance $ - General Fund Costs $ (97,082) % Funded by General Fund -6.9% Total Staffing 5.15 FTE Program Overview The Building Inspection program is established to enforce certain minimum standards pursuant to the California Building Code and all local amendments for all new and existing buildings and structures within the City of Cupertino jurisdiction. These minimum standards include public safety, health and general welfare through structural strength, stability, sanitation, adequate light and ventilation, and safety to life and property from fire, hurricane, and other hazards attributed to the built environment. These include alteration, repair, removal, demolition, use, and occupancy of buildings, structures or premises. The Building Inspections Division also regulates the installation and maintenance of all electrical, gas, mechanical and plumbing systems, which may be referred to as service systems. The program also responds to stormwater pollution protection, emergency situations and complaints of unsafe structures, work without permits, and prepares Notices of Violation as necessary. Unabated cases are referred to the Code Enforcement Division for further action. Service Objectives • Build and maintain a positive working relationship with co-workers, other city employees and the general public using principles of quality customer service. • Build and maintain a partnership with property owners, developers, and contractors to help our customers meet their building occupancy goals. • Perform building inspections within 48 hours of receiving the request. • Consistently and accurately document non -complying code issues to ensure proper and safe installation of routine and complex building systems. . Ensure that minimum building code safety requirements are met in all phases of construction for structural, electrical, plumbing, mechanical and accessibility installations. . Educate community members about life and safety inspection issues as they occur before and during the construction process. • Work with owners, developers, and contractors to implement principles of green building as required in the CALGreen Building Code and Cupertino green building requirements. 393 Table of Contents Adopted Budget On June 16, 2020, City Council approved a budget of $1,402,918 for the Building Code Enforcement program. This represents an increase of $227,822 (19.4%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in negotiated salary and benefits and cost allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Licenses and Permits $ 1,494,800 $ 2,170,542 $ 1,200,000 $ 1,500,000 Charges for Services $ 2,465,447 $ 292,735 $ - $ - Miscellaneous Revenue $ 369,817 $ 43,679 $ - $ - Total Revenues $ 4,330,064 $ 2,506,956 $ 1,200,000 $ 1,500,000 Expenditures Employee Compensation $ 582,740 $ 536,891 $ 582,979 $ 643,621 Employee Benefits $ 242,557 $ 224,832 $ 267,646 $ 306,336 Materials $15,776 $17,411 $ 28,250 $ 32,750 Contract Services $ 52,726 $ 71,494 $ - $ - Cost Allocation $ 317,989 $ 299,990 $ 294,808 $ 419,429 Special Projects $ 2,537,214 $ 362,998 $ - $ - Contingencies $ - $ - $ 1,413 $ 782 Total Expenditures $ 3,749,002 $1,513,616 $1,175,096 $ 1,402,918 Fund Balance $ - $ - $ - $ - General Fund Costs $ (581,061) $ (993,339) $ (24,904) $ (97,082) Staffing Total current positions - 5.15 FTE Total proposed positions - 5.15 FTE There are no changes to the current level of staffing. 394 Table of Contents Muni Code Enforcement Budget Unit 100-73-718 General Fund - Building - Muni Code Enforcement Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 83,027 Fund Balance $ - General Fund Costs $ 83,027 % Funded by General Fund 100.0% Total Staffing 0.25 FTE Program Overview The Community Development Code Enforcement program provides enforcement of various provisions of the municipal code relating to nonconforming land use and building code compliance. These activities include building without permits, unpermitted removal of protected trees, nonconforming accessory structures, various use permit violations, private residential fence height/setback violations, and nonconforming signs. Assistance is provided to Planning and Building Division staff in the resolution of different code violations and land use concerns, which are contrary to the municipal code. Service Objectives • Respond to citizen, City department, or outside agency referrals within 48 hours. . Provide services with an emphasis on community education and customer service. • Enforce the codes in a fair, equitable, and objective manner. Adopted Budget On June 16, 2020, City Council approved a budget of $83,027 for the Muni Code Enforcement program. This represents a decrease of $14,754 (-15.1%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to a decrease in cost allocation offset by an increase in negotiated salary and benefits. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 395 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $126,102 $ 62,523 $ 28,636 $ 31,201 Employee Benefits $ 53,964 $ 29,045 $13,028 $14,868 Materials $ 2,779 $ 3,134 $ - $ 80 Contract Services $ 1,329 $ 764 $ - $ - Cost Allocation $ 109,001 $ 64,205 $ 56,117 $ 36,878 Total Expenditures $ 293,175 $ 159,671 $ 97,781 $ 83,027 Fund Balance $ - $ - $ - $ - General Fund Costs $ 293,174 $ 159,671 $ 97,781 $ 83,027 Staffing Total current positions - 0.25 FTE Total proposed positions - 0.25 FTE There are no changes to the current level of staffing. 396 Table of Contents Code Enforcement Budget Unit 100-74-202 General Fund - Code Enforcement - Code Enforcement Budget at a Glance 2021 Adopted Budget Total Revenues $ 225,000 Total Expenditures $1,157,600 Fund Balance E12 General Fund Costs $ 932,600 % Funded by General Fund 80.6% Total Staffing 3.00 FTE Program Overview The Code Enforcement program provides enforcement of various provisions of the municipal code relating to parking citations, noise, animal control, zoning and building, and other compliance areas. Assistance is provided to the Sheriff Department in the areas of traffic control and other complaint responses. Service Objectives • Respond to resident, City department, or outside agency referrals within 48 hours. . Provide services with an emphasis on community education and customer service. • Enforce the codes in a fair, equitable, and objective manner. • Manage the animal control services contract with the City of San Jose. Adopted Budget On June 16, 2020, City Council approved a budget of $1,157,600 for the Code Enforcement program. This represents an increase of $269,948 (30.4%) from the FY 2019-20 Adopted Budget. The increase is primarily due to an increase in negotiated salary and benefits and cost allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 397 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ 3,280 $ - $ - Fines and Forfeitures $ - $ 190,550 $ 265,000 $ 225,000 Total Revenues $ - $193,830 $ 265,000 $ 225,000 Expenditures Employee Compensation $ - $ 229,982 $ 357,633 $ 402,106 Employee Benefits $ - $ 90,611 $ 144,924 $ 181,315 Materials $ - $ 4,187 $ 17,600 $ 18,129 Contract Services $ - $ 160,909 $ 262,000 $ 274,720 Cost Allocation $ - $ 22,478 $ 105,495 $ 274,009 Contingencies $ - $ - $ - $ 7,321 Total Expenditures $ - $ 508,167 $ 887,652 $1,157,600 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ 314,337 $ 622,652 $ 932,600 Staffing Total current positions - 3.00 FTE Total proposed positions - 3.00 FTE There are no changes to the current level of staffing 398 Table of Contents Public Works Budget Unit Program 2021 Adopted Budget Public Works Administration $ 883,679 100-80-800 Public Works Administration $ 883,679 Environmental Programs $ 3,494,379 520-81-801 Resource Recovery $1,700,225 230-81-802 Non -Point Source $1,041,170 230-81-855 Storm Drain Maintenance $ 752,984 Developmental Services $ 3,123,958 100-82-804 Plan Review $1,662,433 100-82-806 CIP Administration $1,461,525 Service Center $1,243,775 100-83-807 Service Center Administration $ 1,243,775 Grounds $ 6,365,608 100-84-808 McClellan Ranch Park $145,814 100-84-809 Memorial Park $ 796,482 100-84-811 BBF Ground Maintenance $ 173,471 100-84-812 School Site Maintenance $1,563,973 100-84-813 Neighborhood Parks $ 2,359,344 100-84-814 Sport Fields Jollyman, Creekside $ 805,416 100-84-815 Civic Center Maintenance $ 521,108 Streets $ 7,125,742 100-85-818 Storm Drain Maintenance $ - 270-85-820 Sidewalk Curb and Gutter $1,511,071 270-85-821 Street Pavement Maintenance $ 2,247,004 270-85-822 Street Sign Marking $ 854,135 100-85-848 Street Lighting $ 823,526 630-85-849 Equipment Maintenance $1,495,116 100-85-850 Environmental Materials $194,890 Trees and Right of Way $ 3,730,874 100-86-824 Overpasses and Medians $1,478,657 Total $ 33,498,783 399 Table of Contents Budget Unit Program 2021 Adopted Budget 100-86-825 Street Tree Maintenance $1,686,834 100-86-826 Sheriff Work Program $ 565,383 Facilities and Fleet $ 4,414,433 100-87-827 City Hall Maintenance $ 471,489 100-87-828 Library Maintenance $ 587,995 100-87-829 Service Center Maintenance $ 289,230 100-87-830 Quinlan Community Center Maintenance $ 560,338 100-87-831 Senior Center Maintenance $ 379,647 100-87-832 McClellan Ranch Maintenance $ 204,573 100-87-833 Monta Vista Community Center Maintenance $ 241,333 100-87-834 Wilson Park Maintenance $ 68,527 100-87-835 Portal Park Maintenance $ 84,490 570-87-836 Sports Center Maintenance $ 487,440 100-87-837 Creekside Park Maintenance $103,161 100-87-838 Community Hall Maintenance $ 230,943 100-87-839 Teen Center Maintenance $ 47,874 100-87-840 Park Bathrooms Maintenance $120,681 100-87-841 Blackberry Farm Maintenance $ 529,132 100-87-852 Franco Traffic Operations Center $ 7,580 Transportation $ 2,732,313 100-88-844 Traffic Engineering $1,229,029 100-88-845 Traffic Signal Maintenance $ 898,614 100-88-846 Safe Routes 2 School $ 604,670 Non -Departmental $ 384,022 210-90-978 Minor Storm Drain Improvement $ - 630-90-985 Fixed Assets Acquisition $ 384,022 Total $ 33,498,783 400 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ 9,012,512 Total Expenditures $ 33,498,783 Fund Balance $ (4,294,807) General Fund Costs $ 20,206,464 % Funded by General Fund 60.3% Total Staffing 90.15 FTE Organization Roger Lee, Director of Public Works Director of Public Works for Management Analyst Administrative Assistant City Hall Assistant Director ofj PuhIIC Works/City Capital Improvement Transportation Manager Engineer Program Manager Environmental Service Center Engineering d Public Works ProjectSenior d Transportation Programs Manager Superintendent Manager (2) Planner t/T Environmental Acn-mist•ative Public Works Public Works Proje Associate Civil Programs As=_�=_:snt As=_ -:on: Ser�•::e Inspector Manager L/T Engineer f2; .._ �:er Trans/Development E� �•: -or •- eI enior Cf :e e icr C •:i Engi eer Assistant CiviI Comolia r.ssistartJe:= c:n e t i::gTechnici En ineer Transportation Environmental S:ree:=_ »_p:r ,,,is Associate Civil Engineer Assistant Engineer Specialist Trans/Development L/T Grounds Supervisor Engineering Traffic Signal Technician Technician (2) Trees & ROW afe Routes 2 Schoo Supervisor Community Coordinator Facilities & Fleet Supervisor Asset Management Technician 401 Table of Contents Performance Measures Capital Project Delivery Goal: Deliver capital projects on time and within budget. Benefit: Residents and businesses are assured their community is being improved by efficient use of taxes and fees. Performance Measure FY 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target Projects are on budget 100% (7) 100% (4) TBD 80% Projects are on time 100% (7) 75% (3 of 4) TBD 90% Development Services Goal: Provide timely review and permitting of privately completed improvements within the public right of way. Benefit: Customers receive quality reviews and permitting on a defined schedule. Performance Measure FY 2018 FY 2019 FY 2020 Ongoing July -June July -June July -Dec Target Respond to complete plan submittals 99% N/A N/A 90% or applications within two (2) weeks Respond to complete encroachment N/A 93% 95% 90 /o ° permit applications within (2) weeks Respond to public inquiries at the Public Works counter in City Hall 100% 100% 94% 95% within 15 minutes. Dependable Infrastructure Goal: Maintain timely levels of service to meet community and environment requirements at optimal life - cycle costs. Benefit: Cupertino has well maintained infrastructure and programs that meets the needs of the community. 402 Table of Contents Performance Measure FY 2018 FY 2019 FY 2020 July -June July -June July -Dec Pavement condition index (PCI) > or equal to 82 81 85 85 Respond to and close Sidewalk 311 request within 2 business days 100% 100% 100% Troubleshoot, respond to and close Streetlight 311 requests within 3 100% 100% 100% business days Storm Drain System: Total number of storm drain inlets inspected/cleaned 100% 100% 100% in Fiscal Year Roadway Signs repaired/replaced within 4 business days of being 100% 100% 100% damaged Facilities: % of Preventative Maintenance work orders completed New Measure New Measure New Measure within 14 calendar days % of Preventative Maintenance work orders for vehicles completed within New Measure New Measure New Measure 14 calendar days of the due date Environment Goal: Protect our natural environment for current and future generations. Benefit: Current and future residents enjoy a healthy, sustainable environment. Ongoing Target 90 99% 99% 100% 100% 95% 95% 403 Table of Contents FY 2018 FY 2019 FY 2020 Ongoing Performance Measure July -June July -June July -Dec Target Respond to reports of actual or potential discharge the same business 95% 90% 82% 95% day Percent of businesses in compliance during annual proactive stormwater N/A 93% N/A 75% pollution prevention inspections Diversion: Residents and businesses New Measure New Measure New Measure 100% separating organics % of street trees maintained within New Measure New Measure New Measure 98% annual maintenance zones Removed:67 Removed:155 Removed:82 Number of trees planted compared Planted: 53 Planted: 192 Planted: 95 110% to number of trees removed 79% 124% 116% 404 Table of Contents Workload Indicators Capital Improvement Program Workload Indicator Number of projects started in the first year funded Number of Active Projects vs Total number of projects Developmental Services Division Workload Indicator Number of development permit applications received Number of encroachment permits applications received Number of customers serviced at the counter Streets Division Workload Indicator Storm Drain Inlets Inspected/Cleaned Roadway Signs Repaired/Replaced Sidewalk/Pathway Assets Repaired Streetlight Outages/Investigated/Resolved Facilities and Fleet Division Workload Indicator Number of Preventative Maintenance work orders received Number of Preventative Maintenance work orders for vehicles received FY 2018 FY 2019 FY 2020 July -June July -June July -Dec 8/13 N/A N/A 29/40 N/A N/A FY 2018 FY 2019 FY 2020 July -June July -June July -Dec 428 434 214 121 136 67 Not Tracked Not Tracked 797 FY 2018 FY 2019 FY 2020 July -June July -June July -Dec 815 1,063 819 404 721 173 1,036 738 270 175 39 24 FY 2018 FY 2019 FY 2020 July -June July -June July -Dec New Measure New Measure New Measure New Measure New Measure New Measure 405 Table of Contents Environmental Programs Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Number of actual or potential discharges 126 125 N/A Number of stormwater pollution prevention N/A N/A N/A inspections Number of outreach site visits, workshops, events and activities to educate residents and 65 126 46 businesses Trees and Right of Way Division FY 2018 FY 2019 FY 2020 Workload Indicator July -June July -June July -Dec Number of trees maintained vs number of 2,988 896/1,648 364/1,437 active trees within maintenance zones Number of trees planted/number of trees 53/67 155/192 82/95 removed Adopted Budget On June 16, 2020, City Council approved a budget of $33,498,783 for the Public Works department. This represents an increase of $178,323 (0.5%) from the FY 2019-20 Adopted Budget. M. Table of Contents Adopted Expenditures by Division ■ Streets Grounds ■ Facilities and Fleet Trees and Right of Way Environmental Programs ■ Developmental Services Transportation ■ Service Center ■ Public Works Administration Non -Departmental Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 407 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ 275,069 $ 216,483 $ 210,770 $ 238,442 Intergovernmental Revenue $ 955,327 $ 1,693,844 $ 6,055,305 $ 1,638,826 Charges for Services $ 6,838,460 $ 6,889,754 $ 9,050,219 $ 6,979,000 Fines and Forfeitures $ 27,902 $ 22,541 $ 10,000 $ 10,000 Miscellaneous Revenue $ 964,867 $ 197,736 $ 390,493 $ 146,244 Total Revenues $ 9,061,625 $ 9,020,358 $15,716,787 $ 9,012,512 Expenditures Employee Compensation $ 7,617,713 $ 7,865,671 $ 8,958,370 $ 9,861,882 Employee Benefits $ 3,589,800 $ 3,528,882 $ 4,132,297 $ 4,703,469 Materials $ 3,433,779 $ 3,212,328 $ 3,792,650 $ 4,216,133 Contract Services $ 4,104,863 $ 3,705,523 $ 4,060,858 $ 4,291,920 Cost Allocation $ 3,860,953 $ 3,838,768 $ 4,930,595 $ 6,911,037 Capital Outlays $101,200 $ 4,000 $1,000,000 $ 800,000 Special Projects $12,260,174 $ 6,490,496 $ 5,971,985 $ 2,505,960 Contingencies $ - $ - $ 473,705 $ 208,382 Total Expenditures $ 34,968,482 $ 28,645,668 $ 33,320,460 $ 33,498,783 Fund Balance $ (5,551,988) $ 871,138 $ (1,708,472) $ (4,294,807) General Fund Costs $ 20,354,869 $ 20,506,452 $ 15,895,201 $ 20,206,464 Staffing Total current positions - 90.75 FTE Total proposed positions - 90.15 FTE M Table of Contents Public Works Administration Budget Unit 100-80-800 General Fund - Public Works Administration - Public Works Administration Budget at a Glance 2021 Adopted Budget Total Revenues $ 120,000 Total Expenditures $ 883,679 Fund Balance E12 General Fund Costs $ 763,679 % Funded by General Fund 86.4% Total Staffing 3.05 FTE Program Overview The Public Works Department is comprised of the following eight divisions: • Development Services (including inspection services) . Capital Improvement Program Administration • Environmental Programs • Transportation . Facilities and Fleet . Trees and Right -of -Way . Grounds • Streets Service Objectives • Provide capital project delivery, development plan check, permitting and inspection, solid waste and recycling services, stormwater quality compliance, and public works maintenance services in a responsive and efficient manner by continuously adapting programs and resources to meet the community's expectations. • Provide a response within 24 hours to the community on complaints and requests for services. Plan and program maintenance of the City's public facilities and infrastructure. • Program and deliver Capital Improvement Projects in a timely and cost-efficient manner. Work with operating departments and the community to ensure projects meet expectations. . Collaborate with Community Development to efficiently deliver predictable, responsive and efficient development services. • Represent the City on county and regional issues such as congestion management, and mobility and transit planning. • Manage and adapt traffic operations to efficiently move traffic and protect neighborhoods. • Oversee and manage stormwater, solid waste and recycling programs. Table of Contents Adopted Budget On June 16, 2020, City Council approved a budget of $883,679 for the Public Works Administration program. This represents a decrease of $51,762 (-5.5%) from the FY 2019-20 Adopted Budget. This decrease is represented by an increase in negotiated staffing costs offset by decreases in materials, contract services, and cost allocation charges. Most significantly, the Program budgeted $100,000 for a grant management contractor in FY 19-20 that is not budgeted for FY 20-21. The increase in revenue is due to the transfer of rental payments for the Blue Pheasant Restaurant. In prior years, the Blue Pheasant Restaurant's Lease Agreement was managed by the Parks and Recreation Department and the generated revenue was recorded in the Park Facilities program. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Municipal Water Municipal Water System (City System $50,000 $50,000 General Fund Council Work Program) Total $50,000 $50,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 410 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Use of Money and Property $ - $ - $ - $120,000 Charges for Services $ 13,843 $ 728 $ - $ - Total Revenues $13,843 $ 728 $ - $120,000 Expenditures Employee Compensation $ 492,767 $ 435,895 $ 546,007 $ 588,451 Employee Benefits $173,702 $139,533 $191,458 $ 232,171 Materials $ 23,015 $18,685 $ 32,600 $12,739 Contract Services $ 844 $ 7,319 $105,525 $ - Cost Allocation $ 69,802 $ 72,830 $ 52,945 $ - Special Projects $ 23,803 $ - $ - $ 50,000 Contingencies $ - $ - $ 6,906 $ 318 Total Expenditures $ 783,933 $ 674,262 $ 935,441 $ 883,679 Fund Balance $ - $ - $ - $ - General Fund Costs $ 770,090 $ 673,534 $ 935,441 $ 763,679 Staffing Total current positions - 3.05 FTE Total proposed positions - 3.05 FTE There are no changes to the current level of staffing. 411 Table of Contents Resource Recovery Budget Unit 520-81-801 Resource Recovery - Environmental Programs - Resource Recovery Budget at a Glance 2021 Adopted Budget Total Revenues $1,435,188 Total Expenditures $1,700,225 Fund Balance $ (265,037) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 2.50 FTE Program Overview The Resource Recovery program manages the City's garbage and recycling franchised hauler contract and provides garbage and recycling customer service for residents and business owners; develops and implements programs and policy to comply with AB 939 source reduction and recycling mandates; oversees the free compost giveaway at Stevens Creek Quarry and the associated property lease and trucking agreement for the compost site; and represents the City on countywide committees. The public education and outreach programs led by this division include visits to businesses and apartment complexes to provide recycling instruction, kitchen containers, and visual materials; presentations at events and schools and employee training for businesses on -site as needed. The program coordinates many complimentary activities with the Sustainability program in the Office of the City Manager. Service Objectives • Meet State AB 939 requirements to divert a minimum of 50% of Citywide waste from landfill and achieve the State (AB 341) goal of 75% diversion by 2020. Help businesses implement the City's Mandatory Organics Recycling ordinance (6.24.037) which ensures compliance with AB 1826. Assist businesses and multi -family properties with preparations to recycle organics. Provide landlords and property owners with support and educational materials for their tenants. Visit the management of each multi -family complex via a knock and talk campaign to distribute free kitchen pails and guidance to help residents sort kitchen waste for their central garbage and recycling area. Conduct waste characterization studies to determine future services. . Provide contract oversight and customer service for garbage and recycling collection, yard waste processing, composting and household hazardous waste collection. Manage community events such as the citywide Garage Sale and the spring and summer 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. 412 Table of Contents Adopted Budget On June 16, 2020, City Council approved a budget of $1,700,225 for the Resource Recovery program. This represents a decrease of $664,793 (-28.1%) from the FY 2019-20 Adopted Budget. This decrease is due to staffing reallocations and decreases in contract services and special projects. The greatest decrease is due to a special project in FY 19-20 for solid waste hauler RFP development that was not budgeted for in FY 20-21. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Trash Enclosure for Trash Enclosure $2,500 $2,500 Resource Recovery Storm Water Master SWMP Plan Single Use Plastics Single Use Plastics $30,000 $30,000 Resource Recovery Ordinance Ordinance Total $32,500 $32,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 413 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ 71,114 $ 101,341 $ - $ - Intergovernmental Revenue $ 14,781 $ 30,023 $ 15,000 $ 15,000 Charges for Services $ 2,475,967 $ 1,658,612 $ 1,270,000 $ 1,420,188 Miscellaneous Revenue $ 69,114 $ 61,643 $ 66,000 $ - Total Revenues $ 2,630,976 $1,851,619 $1,351,000 $1,435,188 Expenditures Employee Compensation $ 514,086 $ 486,937 $ 534,397 $ 371,232 Employee Benefits $ 276,031 $ 236,592 $ 220,152 $ 144,051 Materials $ 32,959 $ 42,135 $ 75,796 $ 52,258 Contract Services $ 1,604,941 $ 780,363 $ 1,045,724 $ 803,608 Cost Allocation $ 166,494 $ 186,630 $ 182,873 $ 275,854 Special Projects $ - $ 3,228 $ 250,000 $ 32,500 Contingencies $ - $ - $ 56,076 $ 20,722 Total Expenditures $ 2,594,511 $1,735,885 $ 2,365,018 $1,700,225 Fund Balance $ 36,464 $115,735 $ (1,014,018) $ (265,037) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 4.20 FTE Total proposed positions - 2.50 FTE Staff time is being reallocated to better reflect actual time spent in this program. 414 Table of Contents Non -Point Source Budget Unit 230-81-802 Env Mgmt Cln Creek Storm Drain - Environmental Programs - Non -Point Source Budget at a Glance 2021 Adopted Budget Total Revenues $1,532,493 Total Expenditures $ 1,041,170 Fund Balance $ 491,323 General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 2.85 FTE Program Overview The Non -Point Source program manages the City's compliance with its State -mandated Municipal Regional Stormwater NPDES Permit; provides program and policy development and implementation of state - mandated activities including complaint response and enforcement programs; conducts annual interdepartmental staff training, scheduled business and construction site inspections and review of private 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 articles in the Cupertino Scene, webpage development, visits to businesses and presentations at local schools, De Anza College and community events. Public participation events include two or more annual volunteer creek cleanup days, a water quality monitoring day at Blackberry Farm, Earth Day and various countywide collaborative events. Implementation and annual progress assessment of the City's eight -year litter reduction plan are among the requirements of the City's Non -Point Source program. Service Objectives • Oversee the City's compliance with the Municipal Regional Stormwater Permit (MRP 2.0) with regard to water pollution prevention, erosion control, conserving water as a resource (e.g. infiltration rather than runoff), and low impact development (LID) via the City's permit application process and conditions of approval. • Coordinate urban runoff pollution and erosion prevention activities with other departments, divisions, and private businesses. Mandated activities include: catch basin cleaning; post -construction oversight of permanent stormwater treatment measures installed at private new and redeveloped sites; implementation of, and annual progress assessments for the eight -year litter reduction plan; oversight of construction best management practices during private and public construction; inspection of grease -generating and wet -waste food facilities and other businesses to prevent water -polluting discharges; complaint response and investigation to protect water quality; and education of staff and local businesses on best management practices for outdoor storage and activities. 415 Table of Contents Represent the City on county and regional committees to prevent creek and San Francisco Bay pollution, erosion, and illegal dumping. Adopted Budget On June 16, 2020, City Council approved a budget of $1,041,170 for the Non -Point Source program. This represents an increase of $297,892 (40.1%) from the FY 2019-20 Adopted Budget. This is mostly due to increases in street sweeping and inlet drain protection services and increases in cost allocation charges. The increase in revenue is due to the addition of the 2019 Clean Water Fees to this program. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Trash Enclosure in Trash Enclosure accordance with SWMP $2,500 $2,500 Non -Point Source Storm Water Master Plan Total $2,500 $2,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 416 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Use of Money and Property $ 255 $ 524 $ - $ - Charges for Services $ 369,443 $ 369,014 $ 370,000 $1,522,493 Fines and Forfeitures $ 27,902 $ 22,541 $10,000 $10,000 Total Revenues $ 397,600 $ 392,079 $ 380,000 $ 1,532,493 Expenditures Employee Compensation $ 210,662 $ 221,636 $ 221,319 $ 319,706 Employee Benefits $ 96,863 $ 96,764 $101,711 $156,579 Materials $ 3,169 $ 27,812 $ 32,848 $ 31,415 Contract Services $ 263,079 $ 239,633 $ 299,841 $ 384,248 Cost Allocation $ 66,387 $ 73,001 $ 70,925 $136,205 Special Projects $ - $ - $ - $ 2,500 Contingencies $ - $ - $16,634 $10,517 Total Expenditures $ 640,160 $ 658,846 $ 743,278 $1,041,170 Fund Balance $ (158,441) $169,232 $ 296,722 $ 491,323 General Fund Costs $ 84,120 $ 436,000 $ 660,000 $ - Staffing Total current positions - 2.90 FTE Total proposed positions - 2.85 FTE Staff time is being reallocated to better reflect actual time spent in this program. 417 Table of Contents Storm Drain Maintenance Budget Unit 230-81-855 Env Mgmt Cln Creek Storm Drain - Environmental Programs - Storm Drain Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 752,984 Fund Balance $ (752,984) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 2.20 FTE Program Overview Maintenance of storm drain system to provide the efficient flow of stormwater and to comply with stormwater pollution prevention requirements. Service Objectives . Provide effective and timely inspection and maintenance of the storm drain system including inlet and outfall structures, 2,216 storm drain inlets, and collection system. . Provide annual cleaning and inspection of all inlets. Adopted Budget On June 16, 2020, City Council approved a budget of $752,984 for the Storm Drain Maintenance program. This is a newly established Program for the purposes of consolidating storm drain maintenance activities. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Service Center IND $5000 $5000 Non -Point Source Service Center IND Inspection ,, Inspections Total $5,000 $5,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 418 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ - $ - $ 223,786 Employee Benefits $ - $ - $ - $ 101,262 Materials $ - $ - $ - $ 23,332 Contract Services $ - $ - $ - $ 302,762 Cost Allocation $ - $ - $ - $ 92,340 Special Projects $ - $ - $ - $ 2,600 Contingencies $ - $ - $ - $ 6,902 Total Expenditures $ - $ - $ - $ 752,984 Fund Balance $ - $ - $ - $ (752,984) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 2.20 FTE Staffing allocations increased to reflect the recording of the newly created program. 419 Table of Contents Plan Review Budget Unit 100-82-804 General Fund - Developmental Services - Plan Review Budget at a Glance 2021 Adopted Budget Total Revenues $ 731,489 Total Expenditures $1,662,433 Fund Balance E12 General Fund Costs $ 930,944 % Funded by General Fund 56.0% Total Staffing 5.00 FTE Program Overview The Development Services Division is comprised of two areas: Development Services - reviews plans for private developments and utility encroachments to ensure conformance with City standards and policies. Inspection Services - ensures compliance with City standards and approved plans on all public and private developments and utility projects. Service Objectives • Ensure that private development projects provide necessary supporting infrastructure and potential impacts on the community are mitigated. • Place safety of the general public, City employees and construction workers as the highest priority on construction sites. . Inspect utility encroachment permits for work within the City right-of-way and return streets and sidewalks to City standards. • Ensure compliance with stormwater permits and prevent runoff from polluting nearby watersheds. Work closely with the Environmental Programs Division to continue inspecting job sites before, during and after each rain event and conduct annual inspections of all Post Construction Treatments and Stormwater Pollution Prevention Plan (SWPPP) compliance. . Respond to public inquiries or complaints in a timely manner. • Provide aid and information to other City Divisions and Departments, including Community Development, Building, Capital Improvements, City Attorney's Office, Public Works Maintenance and Operations and Parks and Recreation as needed to facilitate private developments and public infrastructure projects. Adopted Budget On June 16, 2020, City Council approved a budget of $1,662,433 for the Plan Review program. This represents an increase of $345,837 (26.3%) from the FY 2019-20 Adopted Budget. 420 Table of Contents This increase is primarily due to professional consulting services for development permit surveying and adjustments in cost allocations. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Alternatives to New Investigate City Hall $25,000 $25,000 General Fund alternatives for New City Hall Total $25,000 $25,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ - $ 31,233 $ 9,270 $ 31,500 Charges for Services $1,011,940 $ 667,697 $1,521,160 $ 688,144 Miscellaneous Revenue $ 93,509 $ 11,411 $ 130,812 $ 11,845 Total Revenues $1,105,449 $ 710,341 $ 1,661,242 $ 731,489 Expenditures Employee Compensation $ 572,352 $ 726,468 $ 724,006 $ 804,380 Employee Benefits $ 241,255 $ 283,463 $ 309,231 $ 322,042 Materials $19,851 $ 9,501 $10,585 $ 9,568 Contract Services $118,379 $195,943 $ 90,388 $173,040 Cost Allocation $179,733 $171,369 $177,337 $ 323,847 Special Projects $ 563,781 $ 97,297 $ - $ 25,000 Contingencies $ - $ - $ 5,049 $ 4,556 Total Expenditures $1,695,351 $1,484,041 $1,316,596 $1,662,433 Fund Balance $ - $ - $ - $ - General Fund Costs $ 589,902 $ 773,701 $ (344,646) $ 930,944 421 Table of Contents Staffing Total current positions - 5.50 FTE Total proposed positions - 5.00 FTE Staff time is being reallocated to better reflect actual time spent in this program. 422 Table of Contents CIP Administration Budget Unit 100-82-806 General Fund - Developmental Services - CIP Administration Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 1,461,525 Fund Balance $ - General Fund Costs $1,461,525 % Funded by General Fund 100.0% Total Staffing 6.20 FTE Program Overview The Capital Improvement Program (CIP) provides design and construction administration for all capital improvement projects including streets, sidewalks, storm drainage, buildings, parks, bicycle and pedestrian improvements and other public facilities. Service Objectives • Ensure that all public improvements are designed and constructed in accordance with community expectations and City standards. • Place safety of the general public, City employees and workers as the highest priority in the delivery of capital projects. . Respond to public inquiries or complaints in a timely manner. Adopted Budget On June 16, 2020, City Council approved a budget of $1,461,525 for the CIP Administration program. This represents an increase of $77,831 (5.6%) from the FY 2019-20 Adopted Budget. The increase is represented by staffing reallocations, partially offset by decreases due to methodology changes in calculating cost allocations. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 423 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 374,747 $ 468,286 $ 898,365 $1,003,803 Employee Benefits $127,546 $164,939 $ 380,534 $ 443,986 Materials $ 9,675 $ 8,268 $15,102 $13,401 Contract Services $ 26,010 $ 368 $15,904 $ - Cost Allocation $ 87,944 $ 74,624 $ 72,239 $ - Contingencies $ - $ - $ 1,550 $ 335 Total Expenditures $ 625,922 $ 716,485 $1,383,694 $1,461,525 Fund Balance $ - $ - $ - $ - General Fund Costs $ 625,922 $ 716,484 $1,383,694 $1,461,525 Staffing Total current positions - 6.00 FTE Total proposed positions - 6.20 FTE Staff time is being reallocated to better reflect actual time spent in this program. 424 Table of Contents Service Center Administration Budget Unit 100-83-807 General Fund - Service Center - Service Center Administration Budget at a Glance 2021 Adopted Budget Total Revenues $ 98,674 Total Expenditures $ 1,243,775 Fund Balance $ - General Fund Costs $1,145,101 % Funded by General Fund 92.1% Total Staffing 3.50 FTE Program Overview The Service Center Administration program manages Public Works maintenance operations that include the major divisions of streets, grounds, trees and medians, facilities and fleet, as well as the minor divisions of signs/markings, storm drain, sidewalk, curb and gutter, overpasses and storm water; provides customer service to the general public; provides administrative support for maintenance staff, supervisors, and management; general training prioritization; assignment of service calls; provides oversight of various contracted services including street sweeping, janitorial and a wide variety of maintenance and minor public works contracts; manages the sheriff's work furlough program 7 days per week; and collaborates with Public Works Engineering for asset improvements beyond routine maintenance. Service Objectives • Create a positive environment that fosters efficiency and innovation for service center employees. • Ensure proper documentation and inventory of trees, sidewalk repair, striping and legends, street signs, vehicle and equipment, streetlights and stormwater pollution. • Maintain records of all complaints and requests for services by tracking responses through computer programs and written service request forms. • Process the payments for all services and materials generated through the Service Center. • Maintain productivity units of measure for key tasks performed. • Support Public Works Engineering in the collection of field data, review of improvement drawings and development of capital improvement projects. . Timely manage completion of employee performance reviews, as well as provide timely progressive discipline per City policy when necessary. • Maintain, lead and implement all elements of the Injury and Illness Prevention Program. . Maintain positive, accountable relations with employee bargaining groups. Adopted Budget On June 16, 2020, City Council approved a budget of $1,243,775 for the Service Center Administration program. This represents a decrease of $8,055 (-0.6%) from the FY 2019-20 Adopted Budget. 425 Table of Contents This budget is relatively unchanged from last fiscal year. Increases due to departmental materials consolidation is offset with decreases to cost allocation due to a change in methodology. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Facilities Office Facilities Office Reconfiguration - $95,000 $95,000 General Fund Reconfiguration - Various Sites Various Sites Total $95,000 $95,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ 59,867 $ 61,075 $ 60,000 $ 62,933 Miscellaneous Revenue $12,517 $ 34,669 $ 25,000 $ 35,741 Total Revenues $ 72,384 $ 95,744 $ 85,000 $ 98,674 Expenditures Employee Compensation $ 398,819 $ 367,372 $ 421,033 $ 476,257 Employee Benefits $153,860 $148,076 $184,434 $197,380 Materials $107,892 $ 63,001 $ 76,162 $122,327 Contract Services $ 262,909 $ 22,436 $ 8,557 $17,973 Cost Allocation $ 644,091 $ 339,672 $ 482,408 $ 331,330 Capital Outlays $13,267 $ - $ - $ - Special Projects $129,318 $ 457,010 $ 75,000 $ 95,000 Contingencies $ - $ - $ 4,236 $ 3,508 Total Expenditures $1,710,156 $1,397,567 $1,251,830 $1,243,775 Fund Balance $ - $ - $ - $ - General Fund Costs $ 1,637,772 $1,301,823 $1,166,830 $1,145,101 426 Table of Contents Staffing Total current positions - 3.65 FTE Total proposed positions - 3.50 FTE Staff time is being reallocated to better reflect actual time spent in this program. 427 Table of Contents McClellan Ranch Park Budget Unit 100-84-808 General Fund - Grounds - McClellan Ranch Park Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 145,814 Fund Balance $ - General Fund Costs $145,814 % Funded by General Fund 100.0% Total Staffing 0.40 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 citizens 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 programs of garden plots. . Provide logistical support to the Parks & Recreation Department for all of the City's special events. Adopted Budget On June 16, 2020, City Council approved a budget of $145,814 for the McClellan Ranch Park program. This represents an increase of $54,197 (59.2%) from the FY 2019-20 Adopted Budget. This increase is primarily due to cost allocation adjustments and an appropriation for backflow prevention device replacements in FY 20-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 428 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 29,393 $ 30,076 $ 30,356 $ 40,975 Employee Benefits $13,758 $13,992 $14,665 $ 20,753 Materials $15,354 $15,214 $16,635 $ 33,106 Contract Services $10,750 $15,200 $10,080 $ 8,240 Cost Allocation $ 956 $11,786 $18,545 $ 42,081 Contingencies $ - $ - $ 1,336 $ 659 Total Expenditures $ 70,211 $ 86,268 $ 91,617 $145,814 Fund Balance $ - $ - $ - $ - General Fund Costs $ 70,210 $ 86,268 $ 91,617 $145,814 Staffing Total current positions - 0.30 FTE Total proposed positions - 0.40 FTE Staffing allocations have been adjusted to better reflect actual activities in the program. 429 Table of Contents Memorial Park Budget Unit 100-84-809 General Fund - Grounds - Memorial Park Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 796,482 Fund Balance E12 General Fund Costs $ 796,482 % Funded by General Fund 100.0% Total Staffing 2.50 FTE Program Overview Memorial Park is one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Memorial Park is the largest and most utilized park in Cupertino. Service Objectives . The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. . Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and basic play structure inspections and maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas, tennis court cleaning and general maintenance, basketball court maintenance and programmed play structure inspections and maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over -seeding, top dressing, and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre -emergent applications, playground woodchip replenishing and preparation of athletic fields for seasonal use. • Maintain all playgrounds in accordance with California playground safety requirements. • Minimize the negative effects of waterfowl to park patrons. . Reduce water consumption wherever practicable. • Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks & Recreation Department for all the City's special events. Adopted Budget On June 16, 2020, City Council approved a budget of $796,482 for the Memorial Park program. This represents an increase of $13,410 (1.7%) from the FY 2019-20 Adopted Budget. This budget remains relatively unchanged from last year. Decreases in staffing were offset by increases in cost allocation charges due to a change in methodology. 430 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ 14,000 $ - $ - $ - Total Revenues $14,000 $ - $ - $ - Expenditures Employee Compensation $ 233,435 $ 261,346 $ 279,167 $ 209,464 Employee Benefits $122,804 $128,154 $128,531 $109,320 Materials $ 172,237 $ 141,858 $186,484 $ 182,937 Contract Services $ 26,216 $ 22,633 $ 24,652 $ 30,584 Cost Allocation $ 29,474 $ 83,673 $153,681 $ 258,949 Capital Outlays $ 47,851 $ - $ - $ - Special Projects $ 9,950 $ - $ - $ - Contingencies $ - $ - $ 10,557 $ 5,228 Total Expenditures $ 641,967 $ 637,664 $ 783,072 $ 796,482 Fund Balance $ - $ - $ - $ - General Fund Costs $ 627,966 $ 637,664 $ 783,072 $ 796,482 Staffing Total current positions - 3.00 FTE Total proposed positions - 2.50 FTE Staff time is being reallocated to better reflect actual time spent in this program. 431 Table of Contents BBF Ground Maintenance Budget Unit 100-84-811 General Fund - Grounds - BBF Ground Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 173,471 Fund Balance E12 General Fund Costs $173,471 % Funded by General Fund 100.0% Total Staffing 1.00 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 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 and programmed play structure inspections and maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over -seeding, top dressing, and pruning of trees and shrubs. . Provide semi-annual maintenance that may include replacement of planting material, pre -emergent applications, playground woodchip replenishing and preparation of athletic fields for seasonal use. • Maintain all playgrounds in accordance with California playground safety requirements. . Reduce water consumption wherever practicable. • Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks & Recreation Department for all the City's special events. Adopted Budget On June 16, 2020, City Council approved a budget of $173,471 for the BBF Ground Maintenance program. This program has been created for purposes of more discretely presenting the grounds maintenance costs attributable to Blackberry Farm. 432 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ - $ - $ - $ 120,076 Employee Benefits $ - $ - $ - $ 49,884 Materials $ - $ - $ - $ 360 Contract Services $ - $ - $ - $ 3,106 Contingencies $ - $ - $ - $ 45 Total Expenditures $ - $ - $ - $173,471 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ - $ - $173,471 Staffing Total current positions - 0.00 FTE Total proposed positions - 1.00 FTE The increase in staffing for this newly created Program is represented by an re -distribution of Grounds Maintenance staff within the Public Works Department. 433 Table of Contents School Site Maintenance Budget Unit 100-84-812 General Fund - Grounds - School Site Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ 143,700 Total Expenditures $1,563,973 Fund Balance E12 General Fund Costs $1,420,273 % Funded by General Fund 90.8% Total Staffing 4.20 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 citizens of Cupertino with the cleanest and safest recreational areas / athletic fields in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas and other maintenance. . Provide quarterly maintenance that may include fertilization, aerating, over -seeding, top dressing, and pruning of trees and shrubs. . Provide semi-annual maintenance that may include replacement of planting material, pre -emergent applications and preparing athletic fields for seasonal use. • Maintain school sites for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports. • Reduce water consumption wherever practicable. . Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. . Provide logistical support to the Park and Recreation Department for all the City's special events. Adopted Budget On June 16, 2020, City Council approved a budget of $1,563,973 for the School Site Maintenance program. This represents an increase of $402,655 (34.7%) from the FY 2019-20 Adopted Budget. 434 Table of Contents This increase is primarily due to increases in water services charges and to one-time special projects for Hyde Middle School and Collins School. Additionally, there are increases in cost allocation due to a change in methodology. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Irrigation Pump for $85,000 $85,000 Hyde Middle School Dedicated Water Service at Collins $60,000 $60,000 School Hyde Middle School $6,600 $6,600 Fence Repairs F Total $151,600 $151,600 Funding Source Description General Fund Irrigation Pump for Hyde Middle School Dedicated Water General Fund Service at Collins School General Fund Hyde Middle School Fence Repairs Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $135,000 $143,707 $135,000 $143,700 Total Revenues $135,000 $143,707 $135,000 $143,700 Expenditures Employee Compensation $ 310,059 $ 327,671 $ 335,106 $ 367,561 Employee Benefits $160,866 $163,835 $177,090 $ 206,910 Materials $ 357,372 $ 286,591 $ 386,127 $ 475,709 Contract Services $16,556 $19,433 $17,217 $ 3,605 Cost Allocation $ 85,733 $106,639 $ 206,111 $ 346,605 Special Projects $143,717 $ - $19,500 $151,600 Contingencies $ - $ - $ 20,167 $11,983 Total Expenditures $1,074,303 $ 904,169 $1,161,318 $1,563,973 Fund Balance $ - $ - $ - $ - General Fund Costs $ 939,303 $ 760,462 $1,026,318 $ 1,420,273 435 Table of Contents Staffing Total current positions - 4.30 FTE Total proposed positions - 4.20 FTE Staff time is being reallocated to better reflect actual time spent in this program. 436 Table of Contents Neighborhood Parks Budget Unit 100-84-813 General Fund - Grounds - Neighborhood Parks Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 2,359,344 Fund Balance E12 General Fund Costs $ 2,359,344 % Funded by General Fund 100.0% Total Staffing 8.60 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 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 prepare athletic fields for seasonal use. . Maintain all playgrounds in accordance with California playground safety requirements. • Reduce water consumption wherever practicable. . Utilize Weekend Work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks & Recreation Department for all the City's special events. Adopted Budget On June 16, 2020, City Council approved a budget of $2,359,344 for the Neighborhood Parks program. This represents an increase of $522,341 (28.4%) from the FY 2019-20 Adopted Budget. 437 Table of Contents Increased costs in cost allocation are due to one-time project expenses and a change in allocation methodology for IT charges. Materials increased due to water services and the addition of playground re -surfacing materials. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Master Valve and Flow Sensor at $12,000 $12,000 General Fund Hoover Park Tot Lot Rubber $80,000 $80,000 General Fund Resurfacing Irrigation and Domestic Service $70,000 $70,000 General Fund Environmental $14,000 Consulting Services Total $176,000 $14,000 $176,000 General Fund Description Master Valve and Flow Sensor Installation at Hoover Park Resurfacing at Wilson, Sterling Barnhardt, and Franco Park Replace irrigation and domestic service at Portal Park Environmental Consulting Services at Stevens Creek Corridor Park Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 438 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 548,016 $ 576,364 $ 601,627 $ 668,743 Employee Benefits $ 277,329 $ 295,279 $ 318,627 $ 368,546 Materials $ 380,745 $ 312,131 $ 407,429 $ 486,847 Contract Services $ 78,994 $105,127 $ 72,428 $ 26,933 Cost Allocation $105,213 $165,814 $ 363,239 $ 619,768 Special Projects $112,474 $ 65,700 $ 49,660 $176,000 Contingencies $ - $ - $ 23,993 $12,507 Total Expenditures $1,502,771 $ 1,520,415 $1,837,003 $ 2,359,344 Fund Balance $ - $ - $ - $ - General Fund Costs $ 1,502,772 $ 1,520,415 $ 1,837,003 $ 2,359,344 Staffing Total current positions - 8.30 FTE Total proposed positions - 8.60 FTE Staff time is being reallocated to better reflect actual time spent in this program 439 Table of Contents Sport Fields Jollyman, Creekside Budget Unit 100-84-814 General Fund - Grounds - Sport Fields Jollyman, Creekside Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 805,416 Fund Balance $ - General Fund Costs $ 805,416 % Funded by General Fund 100.0% Total Staffing 2.50 FTE Program Overview The sports fields at Jollyman and Creekside parks are among the 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Sports fields at these two parks are heavily used and enjoyed by the community. Service Objectives • The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas and sports fields in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. . Provide weekly maintenance that may include mowing and edging of turf areas, programmed play structure inspections, and other maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over -seeding, top dressing, and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre -emergent applications and preparing sports fields for seasonal use. • Maintain sports fields for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports. . Maintain all playgrounds in accordance with California playground safety requirements. • Reduce water consumption wherever practicable. . Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks & Recreation Department for all the City's special events. Adopted Budget On June 16, 2020, City Council approved a budget of $805,416 for the Sport Fields Jollyman, Creekside program. This represents an increase of $83,843 (11.6%) from the FY 2019-20 Adopted Budget. 440 Table of Contents This increase is due to cost allocation adjustments, increased costs in water services, and the addition of playground re -surfacing materials. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues $ - $ - $ - $ - Expenditures Employee Compensation $ 198,514 $ 212,260 $ 222,133 $ 198,684 Employee Benefits $ 97,168 $106,205 $115,509 $103,383 Materials $ 206,416 $164,048 $ 223,001 $ 250,074 Contract Services $ 300 $ 15,014 $ 315 $ 8,871 Cost Allocation $ 42,072 $ 66,998 $149,449 $ 238,074 Special Projects $12,600 $ 9,300 $ - $ - Contingencies $ - $ - $ 11,166 $ 6,330 Total Expenditures $ 557,070 $ 573,825 $ 721,573 $ 805,416 Fund Balance $ - $ - $ - $ - General Fund Costs $ 557,069 $ 573,824 $ 721,573 $ 805,416 Staffing Total current positions - 3.10 FTE Total proposed positions - 2.50 FTE Staff time is being reallocated to better reflect actual time spent in this program. 441 Table of Contents Civic Center Maintenance Budget Unit 100-84-815 General Fund - Grounds - Civic Center Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ 253,880 Total Expenditures $ 521,108 Fund Balance $ - General Fund Costs $ 267,228 % Funded by General Fund 51.3% Total Staffing 0.80 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 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 other maintenance. . Provide weekly maintenance that may include mowing and edging of turf areas and general maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over -seeding, top dressing, and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material and pre - emergent applications. • Maintain Library Field for recreational activities including soccer, cricket and a variety of other sports. • Reduce water consumption wherever practicable. • Provide logistical support to all City Departments for special events. Adopted Budget On June 16, 2020, City Council approved a budget of $521,108 for the Civic Center Maintenance program. This represents an increase of $272,128 (109.3%) from the FY 2019-20 Adopted Budget. This increase is primarily due to an increase and consolidation of various contract services and fuel charges across all Programs. 442 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $175,468 $196,807 $ 204,590 $ 253,880 Total Revenues $ 175,468 $196,807 $ 204,590 $ 253,880 Expenditures Employee Compensation $ 82,372 $ 87,113 $ 84,111 $ 77,106 Employee Benefits $ 44,406 $ 43,952 $ 46,391 $ 43,943 Materials $ 66,936 $ 54,924 $ 70,934 $ 309,633 Contract Services $ - $ - $ - $ 80,675 Cost Allocation $ 7,006 $ 22,078 $ 43,997 $ - Contingencies $ - $ - $ 3,547 $ 9,751 Total Expenditures $ 200,720 $ 208,067 $ 248,980 $ 521,108 Fund Balance $ - $ - $ - $ - General Fund Costs $ 25,252 $ 11,261 $ 44,390 $ 267,228 Staffing Total current positions - 1.00 FTE Total proposed positions - 0.80 FTE Staff time is being reallocated to better reflect actual time spent in this program. 443 Table of Contents Storm Drain Maintenance Budget Unit 100-85-818 General Fund - Streets - Storm Drain Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ - Fund Balance $ - General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview Maintenance of storm drain system to provide the efficient flow of stormwater and to comply with stormwater pollution prevention requirements. Service Objectives . Provide effective and timely inspection and maintenance of the storm drain system including inlet and outfall structures, 2,216 storm drain inlets and collection system. . Provide annual cleaning and inspection of all inlets. Adopted Budget There is no budget requested for this program. The activities in this Program were moved to the Environmental Management Special Revenue Fund in FY 20- 21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 444 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 117,112 $108,311 $ 129,294 $ - Employee Benefits $ 52,053 $ 43,589 $ 52,724 $ - Materials $ 8,162 $14,044 $ 9,776 $ - Contract Services $176,175 $ 24,293 $185,436 $ - Cost Allocation $ 33,530 $ 43,770 $ 47,104 $ - Contingencies $ - $ - $ 9,761 $ - Total Expenditures $ 387,032 $ 234,007 $ 434,095 $ - Fund Balance $ - $ - $ - $ - General Fund Costs $ 387,031 $ 234,007 $ 434,095 $ - Staffing Total current positions - 1.20 FTE Total proposed positions - 0.00 FTE The staff in this Program were moved to the Environmental Management Special Revenue Fund in FY 20-21. 445 Table of Contents Sidewalk Curb and Gutter Budget Unit 270-85-820 Transportation Fund - Streets - Sidewalk Curb and Gutter Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 1,511,071 Fund Balance $ (1,511,071) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 1.40 FTE Program Overview Maintain sidewalks, curb and gutter to a standard that is functional and improves accessibility and minimizes liability. Optimize the use of available funds by coordinating with other improvement projects. Service Objectives . Timely maintain concrete improvements in response to citizen complaints and coordinate with programmed asphalt improvements. Adopted Budget On June 16, 2020, City Council approved a budget of $1,511,071 for the Sidewalk Curb and Gutter program. This represents an increase of $133,665 (9.7%) from the FY 2019-20 Adopted Budget. This increase is due to negotiated staffing increases as well as an increase in cost allocation due to changes in methodology. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Annual Sidewalk $1,000,000 $1,000,000 Transportation Annual Sidewalk Curb & Gutter Fund/General Fund Curb & Gutter Annual Sidewalk $80,000 $80,000 Transportation/General Annual Sidewalk Grinding Project Fund Grinding Project Total $1,080,000 $1,080,000 446 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ 3,765 $ - $ - Total Revenues $ - $ 3,765 $ - $ - Expenditures Employee Compensation $102,099 $123,763 $134,552 $161,978 Employee Benefits $ 50,970 $ 61,597 $ 67,722 $ 85,044 Materials $ 3,833 $ 4,730 $ 5,195 $10,873 Contract Services $ 80 $ 90 $ - $ 30,900 Cost Allocation $ 68,111 $ 62,753 $ 69,677 $141,232 Special Projects $ 914,385 $ 898,000 $1,100,000 $1,080,000 Contingencies $ - $ - $ 260 $ 1,044 Total Expenditures $ 1,139,478 $ 1,150,933 $ 1,377,406 $1,511,071 Fund Balance $ (289,482) $ (347,168) $ (1,156,406) $ (1,511,071) General Fund Costs $ 849,996 $ 800,000 $ 221,000 $ - Staffing Total current positions - 1.30 FTE Total proposed positions - 1.40 FTE Staff time is being reallocated to better reflect actual time spent in this program. 447 Table of Contents Street Pavement Maintenance Budget Unit 270-85-821 Transportation Fund - Streets - Street Pavement Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,571,161 Total Expenditures $ 2,247,004 Fund Balance $ (675,843) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 3.95 FTE Program Overview This program maintains streets to a standard that balances preventative maintenance with stop -gap measures while minimizing liability. Service Objectives • Perform preventative maintenance activities of fog seal and crack fill. • Perform stop -gap maintenance of arterial, collector and residential streets. . Oversee and manage contracted pavement maintenance projects. Adopted Budget On June 16, 2020, City Council approved a budget of $2,247,004 for the Street Pavement Maintenance program. This represents a decrease of $1,659,198 (42.5%) from the FY 2019-20 Adopted Budget. Increases in the Program are primarily due to staffing increases to better reflect actual time spent on activities in this budget and cost allocation adjustments. Decreases in revenue are due to one-time grant and measure related revenues that were awarded in FY 19-20 that are not budgeted for FY 20-21. Additionally, special projects are decreasing $2 million over FY 19-20 in an effort to reduce costs. Unspent FY 19-20 appropriations will be carried over and used for pavement maintenance activities in FY 20-21. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Pavement Maintenance $800,000 $800,000 (capital outlay) Total $800,000 $800,000 Funding Source Description Transportation Annual Ashpalt Fund/General Fund Project 448 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ 750,546 $1,520,114 $ 5,905,305 $1,480,126 Charges for Services $ 22,261 $ 3,862 $ - $ 3,978 Miscellaneous Revenue $ 772,596 $ 84,521 $ 163,521 $ 87,057 Total Revenues $ 1,545,403 $ 1,608,497 $ 6,068,826 $1,571,161 Expenditures Employee Compensation $ 275,484 $ 266,381 $ 297,698 $ 421,137 Employee Benefits $ 135,934 $122,979 $141,722 $ 204,518 Materials $ 33,406 $ 29,731 $ 38,761 $ 33,577 Contract Services $ 35,426 $120,699 $192,570 $ 428,750 Cost Allocation $ 145,640 $ 174,145 $ 223,884 $ 347,464 Capital Outlays $ - $ - $1,000,000 $ 800,000 Special Projects $ 9,234,931 $ 3,515,876 $ 2,000,000 $ - Contingencies $ - $ - $ 11,567 $ 11,558 Total Expenditures $ 9,860,821 $ 4,229,811 $ 3,906,202 $ 2,247,004 Fund Balance $ (2,315,418) $ 2,378,685 $ 2,162,624 $ (675,843) General Fund Costs $ 6,000,000 $ 5,000,000 $ - $ - Staffing Total current positions - 3.35 FTE Total proposed positions - 3.95 FTE Staff time is being reallocated to better reflect actual time spent in this program. 449 Table of Contents Street Sign Marking Budget Unit 270-85-822 Transportation Fund - Streets - Street Sign Marking Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 854,135 Fund Balance $ (854,135) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 3.40 FTE Program Overview This program maintains street regulatory and informational signs, street striping, markings, and legends, as well as removes graffiti within street right-of-way in a timely manner. Service Objectives • Respond to regulatory and informational sign issues in a timely manner. • Coordinate and respond to work orders from the Traffic Engineer. . Maintain street sign and traffic marking assets in compliance with the Manual of Uniform Traffic Control Devices. • Remove graffiti in a timely manner. Adopted Budget On June 16, 2020, City Council approved a budget of $854,135 for the Street Sign Marking program. This represents an increase of $134,860 (18.7%) from the FY 2019-20 Adopted Budget. Increases in compensation and benefits are due to negotiated salary and benefit changes. Increased costs in cost allocation are due to a change in allocation methodology for IT charges. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Stanley Cutoff & $5,600 $5,600 Chain Saws Total $5,600 $5,600 Funding Source General Fund Description Stanley Cutoff & Chain Saws 450 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 2,680 $ 9,566 $ - $ - Total Revenues $ 2,680 $ 9,566 $ - $ - Expenditures Employee Compensation $ 276,727 $ 259,861 $ 279,089 $ 316,230 Employee Benefits $143,452 $128,668 $145,864 $169,030 Materials $ 120,513 $115,311 $129,783 $126,683 Contract Services $ 39,335 $11,044 $ 34,316 $ 25,750 Cost Allocation $ 268,028 $115,555 $122,018 $ 206,819 Special Projects $19,308 $ - $ - $ 5,600 Contingencies $ - $ - $ 8,205 $ 4,023 Total Expenditures $ 867,363 $ 630,439 $ 719,275 $ 854,135 Fund Balance $ (864,683) $ (620,873) $ (719,275) $ (854,135) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 3.50 FTE Total proposed positions - 3.40 FTE Staff time is being reallocated to better reflect actual time spent in this program. 451 Table of Contents Street Lighting Budget Unit 100-85-848 General Fund - Streets - Street Lighting Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 823,526 Fund Balance E12 General Fund Costs $ 823,526 % Funded by General Fund 100.0% Total Staffing 1.05 FTE Program Overview Maintain city -owned streetlights (2,950), parking lot lights and park lighting. Service Objectives • Respond to outages in a timely manner. • Conserve electricity through the conversion of older less efficient light technology to current and tested technologies. . Replace direct buried wiring with wiring in conduits as failures occur. Adopted Budget On June 16, 2020, City Council approved a budget of $823,526 for the Street Lighting program. This represents an increase of $326,482 (65.7%) from the FY 2019-20 Adopted Budget. The increase is primarily due to the special project of street light pole replacement and the LED light upgrades for the Don Burnett Bridge and Linda Vista Park, the adjustment of cost allocations to the Program, and the addition of an annual agreement for street light infrastructure repair. Special Projects The following table shows the special projects for the fiscal year. 452 Special Project Appropriation Revenue Street Light Pole $145,000 $145,000 Replacement Don Burnett Bridge Pathway and Linda Vista Park LED $7,000 $7,000 Light Upgrade Total $152,000 $152,000 Table of Contents Funding Source Description General Fund Street light pole replacement Don Burnett Bridge Pathway and Linda General Fund Vista Park LED Light Upgrade Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 66,064 $ 124,003 $ 105,751 $ 124,061 Employee Benefits $ 31,914 $ 53,055 $ 44,216 $ 55,232 Materials $ 256,096 $ 286,924 $ 269,806 $ 292,672 Contract Services $ 2,588 $101,339 $ 2,429 $ 63,232 Cost Allocation $ 22,437 $ 39,199 $ 49,730 $127,431 Special Projects $ 46,129 $197,959 $11,500 $152,000 Contingencies $ - $ - $ 13,612 $ 8,898 Total Expenditures $ 425,228 $ 802,479 $ 497,044 $ 823,526 Fund Balance $ - $ - $ - $ - General Fund Costs $ 425,228 $ 802,480 $ 497,044 $ 823,526 Staffing Total current positions - 0.95 FTE Total proposed positions - 1.05 FTE Staff time is being reallocated to better reflect actual time spent in this program. 453 Table of Contents Equipment Maintenance Budget Unit 630-85-849 Vehicle/Equip Replacement - Streets - Equipment Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ 1,633,518 Total Expenditures $1,495,116 Fund Balance $ 144,402 General Fund Costs $ 6,000 % Funded by General Fund 0.4% Total Staffing 3.00 FTE Program Overview The Fleet Division maintains all fleet equipment, including small power equipment. Equipment includes vehicles (103), rolling stock (10), trailers (28), riding mowers (16), and all power equipment (357). The division also manages above ground fuel storage tank at Service Center. Service Objectives • Maintain all city vehicles and equipment to reduce operating costs and increase safety. . Fabricate, weld and repair equipment that includes vehicles, apparatus, structures, facilities for function and safety. • Develop specifications and bid per City policy the purchases of trucks, tractors and other significant equipment. • Maintain surplus vehicles and other equipment per City policy. • Ensure all vehicles conform to State of California emission regulations. . Maintain/inspect above ground fuel tanks as required. • Maintain accurate inventory of fleet/equipment assets. . Maintain a safe and clean working environment be approved for the equipment mechanics and welding. Adopted Budget On June 16, 2020, City Council approved a budget of $1,495,116 for the Equipment Maintenance program. This represents a decrease of $70,748 (-4.5%) from the FY 2019-20 Adopted Budget. This budget is decreasing due to cost allocation charges due to changes in the calculation methodology. Special Projects The following table shows the special projects for the fiscal year. 454 Table of Contents Special Project Appropriation Revenue Mechanic Shop $9,000 $9,000 Hose Reels Total $9,000 $9,000 Funding Source Description Vehicle Hose Reels for the Replacement Fund Mechanic Shop Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $1,056,968 $1,352,200 $1,633,518 Total Revenues $ - $1,056,968 $1,352,200 $1,633,518 Expenditures Employee Compensation $ 281,210 $ 225,658 $ 248,768 $ 275,235 Employee Benefits $160,348 $112,056 $130,242 $143,809 Materials $ 294,185 $ 267,065 $ 302,479 $ 302,698 Contract Services $ 82,489 $ 82,733 $ 81,399 $103,497 Cost Allocation $ 730,497 $ 791,875 $ 783,782 $ 650,752 Special Projects $ 22,456 $ (10,950) $ - $ 9,000 Contingencies $ - $ - $19,194 $10,125 Total Expenditures $1,571,185 $1,468,437 $1,565,864 $1,495,116 Fund Balance $ (1,571,185) $ (411,469) $ (213,664) $144,402 General Fund Costs $ - $ - $ - $ 6,000 Staffing Total current positions - 3.00 FTE Total proposed positions - 3.00 FTE There are no changes to the current level of staffing. 455 Table of Contents Environmental Materials Budget Unit 100-85-850 General Fund - Streets - Environmental Materials Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 194,890 Fund Balance $ - General Fund Costs $194,890 % Funded by General Fund 100.0% Total Staffing 0.65 FTE Program Overview This program manages Service Center solid waste disposal, Service Center safety inspections, handling/disposal/reporting of City generated hazardous waste and materials — including waste that may be illegally deposited upon the right-of-way. Provide street cleaning for unforeseen events such as debris from trucks or other sources. Service Objectives . Coordinate disposal of solid waste. • Adhere to the requirements of hazardous waste/materials storage, handling and reporting. • Comply with Fire Marshal safety inspection requirements for Service Center facilities. . Inspect and maintain below ground fuel tanks as required. • Clean up traffic debris that may become deposited on streets while reducing traffic hazards. Adopted Budget On June 16, 2020, City Council approved a budget of $194,890 for the Environmental Materials program. This represents an increase of $28,787 (17.3%) from the FY 2019-20 Adopted Budget. Increases in compensation and benefits are due to negotiated salary and benefit changes and increases in materials and contract services are due to increased costs in hazardous waste/materials management, cleaning and disposal. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 456 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 54,331 $ 60,442 $ 57,735 $ 64,688 Employee Benefits $ 25,434 $ 26,976 $ 28,261 $ 32,575 Materials $18,445 $ 32,367 $ 24,620 $ 32,730 Contract Services $ 9,125 $ 2,157 $ - $ 6,773 Cost Allocation $ 52,137 $ 58,129 $ 54,256 $ 57,136 Contingencies $ - $ - $ 1,231 $ 988 Total Expenditures $159,472 $180,071 $166,103 $194,890 Fund Balance $ - $ - $ - $ - General Fund Costs $159,471 $180,071 $166,103 $194,890 Staffing Total current positions - 0.65 FTE Total proposed positions - 0.65 FTE There are no changes to the current level of staffing. 457 Table of Contents Overpasses and Medians Budget Unit 100-86-824 General Fund - Trees and Right of Way - Overpasses and Medians Budget at a Glance 2021 Adopted Budget Total Revenues $ 10,761 Total Expenditures $1,478,657 Fund Balance $ - General Fund Costs $1,467,896 % Funded by General Fund 99.3% Total Staffing 6.30 FTE Program Overview The Overpasses and Medians program maintains 31.54 developed acres of median island hardscapes and softscapes as well as 21.69 undeveloped acres of city right-of-way, the landscaped area of the Lawrence trail, and the landscaped area of the Don Burnett Bridge. Service Objectives • Maintain and improve median islands, landscape strips, trails, landscaped roadsides and public right- of-ways. • Maintain and improve water efficient programming of irrigation systems. • Meet all Department of Pesticide Regulation requirements for weed and pest control. . Timely pruning of plant material to promote plant health, maximize aesthetics and to reduce future maintenance requirements. . Plant and care for new plant stock to help ensure future plant health and reduce future maintenance requirements. Conserve water through the planting of appropriate plant stock. Adopted Budget On June 16, 2020, City Council approved a budget of $1,478,657 for the Overpasses and Medians program. This represents an increase of $227,067 (18.1%) from the FY 2019-20 Adopted Budget. Increases in this budget are primarily due to changes in methodology for calculating IT and vehicle cost allocation charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 458 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ 791 $ 4,652 $ - $ 10,761 Total Revenues $ 791 $ 4,652 $ - $10,761 Expenditures Employee Compensation $ 443,892 $ 463,208 $ 471,560 $ 506,867 Employee Benefits $ 236,388 $ 233,368 $ 244,647 $ 274,057 Materials $ 195,719 $ 188,138 $ 230,260 $ 186,715 Contract Services $ 64,134 $ 97,752 $ - $ 14,343 Cost Allocation $ 248,423 $ 227,651 $ 273,248 $ 491,649 Special Projects $ - $ - $ 19,725 $ - Contingencies $ - $ - $ 12,150 $ 5,026 Total Expenditures $1,188,556 $ 1,210,117 $ 1,251,590 $1,478,657 Fund Balance $ - $ - $ - $ - General Fund Costs $1,187,766 $ 1,205,465 $1,251,590 $1,467,896 Staffing Total current positions - 6.30 FTE Total proposed positions - 6.30 FTE There are no changes to the current level of staffing. 459 Table of Contents Street Tree Maintenance Budget Unit 100-86-825 General Fund - Trees and Right of Way - Street Tree Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ 10,761 Total Expenditures $1,686,834 Fund Balance $ - General Fund Costs $1,691,073 % Funded by General Fund 100.3% Total Staffing 8.40 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, spraying, 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 annual forestry work plan to document our urban forest and to establish goals and objectives to be approved for the care and planting of trees. • Oversee street tree maintenance and removal contracts. Adopted Budget On June 16, 2020, City Council approved a budget of $1,686,834 for the Street Tree Maintenance program. This represents an increase of $347,900 (26.0%) from the FY 2019-20 Adopted Budget. Increases in the budget are primarily due to changes in methodology for calculating IT and vehicle cost allocation charges and increases in compensation and benefits from negotiated salary and benefit changes. Special Projects The following table shows the special projects for the fiscal year. 460 Table of Contents Special Projects Appropriation Revenue Trees and Badges $15,000 $15,000 Total $15,000 $15,000 Funding Source Description Tree Fund Trees and Badges Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $12,382 $ 16,879 $ 22,577 $10,761 Total Revenues $12,382 $16,879 $ 22,577 $10,761 Expenditures Employee Compensation $ 485,290 $ 473,588 $ 589,848 $ 652,491 Employee Benefits $ 261,940 $ 253,771 $ 317,417 $ 362,736 Materials $116,910 $ 90,695 $127,065 $112,892 Contract Services $11,850 $19,975 $11,130 $ 9,078 Cost Allocation $ 253,459 $ 232,296 $ 274,584 $ 531,588 Special Projects $ 6,751 $113,347 $12,000 $15,000 Contingencies $ - $ - $ 6,890 $ 3,049 Total Expenditures $ 1,136,200 $ 1,183,672 $1,338,934 $ 1,686,834 Fund Balance $ - $ - $ - $ - General Fund Costs $ 1,123,818 $ 1,176,794 $1,316,357 $ 1,691,073 Staffing Total current positions - 8.40 FTE Total proposed positions - 8.40 FTE There are no changes to the current level of staffing. 461 Table of Contents Sheriff Work Program Budget Unit 100-86-826 General Fund - Trees and Right of Way - Sheriff Work Program Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 565,383 Fund Balance $ - General Fund Costs $ 565,383 % Funded by General Fund 100.0% Total Staffing 2.30 FTE Program Overview The Sheriff Work Program supplements existing Service Center staffing with individuals in a sentencing alternative program. Participants of the program perform manual labor type duties. The work performed by this program reduces the number of full-time maintenance workers required. Service Objectives • Efficiently administer and schedule the Sheriff Work Program for a variety of non -skilled activities, including trash pick-up, weed control, right-of-way maintenance and sandbag filling. • Offset manual work currently performed by skilled labor so as to increase overall productivity at the Service Center. Adopted Budget On June 16, 2020, City Council approved a budget of $565,383 for the Sheriff Work Program program. This represents an increase of $115,591 (25.7%) from the FY 2019-20 Adopted Budget. Increases in this budget are primarily due to changes in methodology for calculating IT and vehicle cost allocation charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 462 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $ 243,924 $ 203,981 $ 233,423 $ 233,440 Employee Benefits $ 98,122 $ 80,549 $ 85,910 $100,848 Materials $ 6,350 $11,490 $10,276 $ 9,873 Contract Services $ - $ 22 $ - $ - Cost Allocation $ 76,840 $ 93,211 $119,669 $ 220,975 Contingencies $ - $ - $ 514 $ 247 Total Expenditures $ 425,236 $ 389,253 $ 449,792 $ 565,383 Fund Balance $ - $ - $ - $ - General Fund Costs $ 425,236 $ 389,253 $ 449,792 $ 565,383 Staffing Total current positions - 2.30 FTE Total proposed positions - 2.30 FTE There are no changes to the current level of staffing. 463 Table of Contents City Hall Maintenance Budget Unit 100-87-827 General Fund - Facilities and Fleet - City Hall Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ 500,394 Total Expenditures $ 471,489 Fund Balance E12 General Fund Costs $ (28,905) % Funded by General Fund -6.1% Total Staffing 1.00 FTE Program Overview Maintain City Hall building to ensure efficient operations, employee satisfaction, and community pride. Service Objectives • Provide a safe, clean and productive working environment for the public and city employees. . Respond to requests made by City Hall staff. • Manage and responsibly coordinate work completed by contractors. . Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $471,489 for the City Hall Maintenance program. This represents a decrease of $171,496 (-26.7%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to one-time mechanical, electrical, and plumbing repairs that were included in the FY 19-20 budget and not included in the FY 20-21 budget. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 464 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 355,380 $ 303,250 $ 459,503 $ 500,394 Total Revenues $ 355,380 $ 303,250 $ 459,503 $ 500,394 Expenditures Employee Compensation $ 92,817 $ 97,313 $ 102,628 $ 110,447 Employee Benefits $ 44,258 $ 45,179 $ 46,496 $ 53,019 Materials $ 181,854 $ 183,154 $ 157,101 $ 199,247 Contract Services $ 139,195 $ 197,252 $ 235,389 $ 101,271 Cost Allocation $ 34,135 $ 52,555 $ 81,746 $ - Special Projects $ 27,341 $ 14,389 $ - $ - Contingencies $ - $ - $ 19,625 $ 7,505 Total Expenditures $ 519,600 $ 589,842 $ 642,985 $ 471,489 Fund Balance $ - $ - $ - $ - General Fund Costs $164,220 $ 286,591 $183,482 $ (28,905) Staffing Total current positions - 1.00 FTE Total proposed positions - 1.00 FTE There are no changes to the current level of staffing. 465 Table of Contents Library Maintenance Budget Unit 100-87-828 General Fund - Facilities and Fleet - Library Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ 287,754 Total Expenditures $ 587,995 Fund Balance E12 General Fund Costs $ 300,241 % Funded by General Fund 51.1% Total Staffing 0.80 FTE Program Overview Maintain Library building to ensure public and employee satisfaction and community pride. Service Objectives • Provide a safe, clean and productive working environment for the public and County employees. . Respond to requests made by County staff. • Manage and responsibly coordinate work completed by contractors. . Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $587,995 for the Library Maintenance program. This represents a decrease of $7,398 (-1.2%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 466 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Use of Money and Property $143,833 $ 22,310 $141,500 $ 24,009 Charges for Services $ 375,124 $ 377,363 $ 931,354 $ 263,745 Total Revenues $ 518,957 $ 399,673 $1,072,854 $ 287,754 Expenditures Employee Compensation $ 61,052 $ 68,183 $ 67,075 $ 75,343 Employee Benefits $ 33,476 $ 33,798 $ 34,928 $ 40,244 Materials $11,452 $ 9,030 $ 30,143 $ 9,854 Contract Services $ 308,529 $ 292,334 $ 376,614 $ 370,074 Cost Allocation $11,541 $ 23,259 $ 45,986 $ 82,239 Special Projects $ 20,259 $ - $ - $ - Contingencies $ - $ - $ 40,647 $ 10,241 Total Expenditures $ 446,309 $ 426,604 $ 595,393 $ 587,995 Fund Balance $ - $ - $ - $ - General Fund Costs $ (72,649) $ 26,930 $ (477,461) $ 300,241 Staffing Total current positions - 0.80 FTE Total proposed positions - 0.80 FTE There are no changes to the current level of staffing. 467 Table of Contents Service Center Maintenance Budget Unit 100-87-829 General Fund - Facilities and Fleet - Service Center Maintenance Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing 2021 Adopted Budget $ 289,230 $ 289,230 100.0% 0.70 FTE Program Overview This program maintains the Service Center buildings to ensure employee satisfaction and community pride. Service Objectives • Provide a safe, clean and productive working environment for the public and employees. . Respond to requests made by Service Center staff. • Manage and responsibly coordinate work completed by contractors. . Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $289,230 for the Service Center Maintenance program. This represents a decrease of $159 (-0.1%) from the FY 2019-20 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Storage Shed $7,000 $7,000 General Fund Replacement Mechanic Shop $g 000 $8,000 General Fund Asbestos Removal Total $15,000 $15,000 Description Storage Shed Replacement Mechanic Shop Asbestos Removal 468 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 429,316 $ 323,466 $ 262,382 $ - Total Revenues $ 429,316 $ 323,466 $ 262,382 $ - Expenditures Employee Compensation $ 56,660 $ 60,845 $ 61,583 $ 68,702 Employee Benefits $ 29,160 $ 29,789 $ 30,664 $ 35,903 Materials $ 71,207 $ 54,732 $ 95,620 $ 41,783 Contract Services $ 42,010 $ 52,806 $ 46,505 $ 44,995 Cost Allocation $ 63,292 $ 21,652 $ 40,518 $ 80,684 Special Projects $ 34,369 $ - $ - $15,000 Contingencies $ - $ - $ 14,499 $ 2,163 Total Expenditures $ 296,698 $ 219,824 $ 289,389 $ 289,230 Fund Balance $ - $ - $ - $ - General Fund Costs $ (132,617) $ (103,642) $ 27,007 $ 289,230 Staffing Total current positions - 0.70 FTE Total proposed positions - 0.70 FTE There are no changes to the current level of staffing. 469 Table of Contents Quinlan Community Center Maintenance Budget Unit 100-87-830 General Fund - Facilities and Fleet - Quinlan Community Center Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 560,338 Fund Balance E12 General Fund Costs $ 560,338 % Funded by General Fund 100.0% Total Staffing 0.80 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. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $560,338 for the Quinlan Community Center Maintenance program. This represents an increase of $47,606 (9.3%) from the FY 2019-20 Adopted Budget. This increase is primarily due to one-time special projects for restroom partition replacement and security system retrofit. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Special Projects The following table shows the special projects for the fiscal year. 470 Special Project Appropriation Revenue Restroom Partition $10,000 $10,000 Replacement Security System $25,000 $25,000 Retrofit Total $35,000 $35,000 Table of Contents Funding Source Description General Fund Restroom Partition Replacement General Fund Security System Retrofit Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $181,950 $ 385,272 $ - Total Revenues $ - $ 181,950 $ 385,272 $ - Expenditures Employee Compensation $ 64,935 $ 71,650 $ 70,702 $ 78,511 Employee Benefits $ 29,986 $ 30,438 $ 30,531 $ 35,976 Materials $139,419 $130,641 $127,597 $158,272 Contract Services $126,426 $195,601 $160,513 $145,295 Cost Allocation $ 8,793 $ 32,352 $ 55,406 $ 99,702 Special Projects $ 66,102 $ 83,678 $ 40,000 $ 35,000 Contingencies $ - $ - $ 27,983 $ 7,582 Total Expenditures $ 435,661 $ 544,360 $ 512,732 $ 560,338 Fund Balance $ - $ - $ - $ - General Fund Costs $ 435,660 $ 362,411 $127,460 $ 560,338 Staffing Total current positions - 0.80 FTE Total proposed positions - 0.80 FTE There are no changes to the current level of staffing. 471 Table of Contents Senior Center Maintenance Budget Unit 100-87-831 General Fund - Facilities and Fleet - Senior Center Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 379,647 Fund Balance $ - General Fund Costs $ 379,647 % Funded by General Fund 100.0% Total Staffing 0.80 FTE Program Overview Maintain Senior Center building to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $379,647 for the Senior Center Maintenance program. This represents an increase of $58,405 (18.2%) from the FY 2019-20 Adopted Budget. The budget is increasing moderately across categories due to negotiated salary and benefit increases as well as consumer price index inflators for materials and adjustments to cost allocation methodology. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Drinking Fountain $6,000 $6,000 Replacement Total $6,000 $6,000 Funding Source General Fund Description Drinking Fountain Replacement 472 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 241,640 $181,950 $ 262,630 $ - Miscellaneous Revenue $ - $ - $ 1,700 $ - Total Revenues $ 241,640 $ 181,950 $ 264,330 $ - Expenditures Employee Compensation $ 51,115 $ 57,894 $ 61,994 $ 69,883 Employee Benefits $ 28,660 $ 30,160 $ 31,625 $ 40,208 Materials $ 74,913 $ 83,535 $ 69,717 $ 85,080 Contract Services $ 104,793 $ 77,775 $ 94,301 $ 95,794 Cost Allocation $1,912 $13,387 $ 35,231 $ 78,167 Special Projects $ 35,586 $136 $12,000 $ 6,000 Contingencies $ - $ - $ 16,374 $ 4,515 Total Expenditures $ 296,979 $ 262,887 $ 321,242 $ 379,647 Fund Balance $ - $ - $ - $ - General Fund Costs $ 55,339 $ 80,937 $ 56,912 $ 379,647 Staffing Total current positions - 0.80 FTE Total proposed positions - 0.80 FTE There are no changes to the current level of staffing. 473 Table of Contents McClellan Ranch Maintenance Budget Unit 100-87-832 General Fund - Facilities and Fleet - McClellan Ranch Maintenance Budget at a Glance Total Revenues 2021 Adopted Budget $ 840 Total Expenditures $ 204,573 Fund Balance E12 General Fund Costs $ 203,733 % Funded by General Fund 99.6% Total Staffing 0.60 FTE Program Overview This program maintains McClellan Ranch buildings to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $204,573 for the McClellan Ranch Maintenance program. This represents an increase of $25,549 (14.3%) from the FY 2019-20 Adopted Budget. The budget is increasing moderately across categories due to negotiated salary and benefit increases as well as consumer price index inflators for materials and adjustments to cost allocation methodology. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 474 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ - $ 95,425 $ - Miscellaneous Revenue $ 840 $ 840 $ 3,460 $ 840 Total Revenues $ 840 $ 840 $ 98,885 $ 840 Expenditures Employee Compensation $ 46,139 $ 51,152 $ 53,002 $ 58,549 Employee Benefits $ 23,658 $ 23,337 $ 24,255 $ 28,211 Materials $ 15,407 $ 15,168 $ 16,263 $ 17,126 Contract Services $15,129 $ 43,066 $ 52,007 $ 40,974 Cost Allocation $ 5,736 $12,832 $ 26,690 $ 58,140 Special Projects $1,837 $ 37,657 $ - $ - Contingencies $ - $ - $ 6,807 $ 1,573 Total Expenditures $ 107,906 $183,212 $ 179,024 $ 204,573 Fund Balance $ - $ - $ - $ - General Fund Costs $ 107,065 $ 182,373 $ 80,139 $ 203,733 Staffing Total current positions - 0.60 FTE Total proposed positions - 0.60 FTE There are no changes to the level of staffing. 475 Table of Contents Monta Vista Community Center Maintenance Budget Unit 100-87-833 General Fund - Facilities and Fleet - Monta Vista Community Center Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 241,333 Fund Balance E12 General Fund Costs $ 241,333 % Funded by General Fund 100.0% Total Staffing 0.40 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 Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $241,333 for the Monta Vista Community Center Maintenance program. This represents an increase of $82,699 (52.1%) from the FY 2019-20 Adopted Budget. The budget is increasing moderately across categories due to negotiated salary and benefit increases as well as consumer price index inflators for materials and adjustments to cost allocation methodology. Additionally, a one-time special projects for Monta Vista Partition and Key Replacement is contributing to the increase. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Special Projects The following table shows the special projects for the fiscal year. 476 Table of Contents Special Project Appropriation Revenue Funding Source Description Monta Vista Monta Vista Partition and Key $57,000 $57,000 General Fund Partition and Key Replacement Replacement Total $57,000 $57,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $148,708 $121,300 $118,070 $ - Total Revenues $148,708 $121,300 $118,070 $ - Expenditures Employee Compensation $ 32,743 $ 35,405 $ 36,912 $ 39,284 Employee Benefits $15,945 $16,507 $16,916 $ 20,390 Materials $ 27,023 $ 26,460 $ 27,979 $ 28,805 Contract Services $ 35,244 $ 42,834 $ 47,217 $ 44,217 Cost Allocation $ 2,868 $ 9,984 $ 22,103 $ 49,814 Special Projects $19,688 $18,062 $ - $ 57,000 Contingencies $ - $ - $ 7,507 $1,823 Total Expenditures $133,511 $149,252 $158,634 $ 241,333 Fund Balance $ - $ - $ - $ - General Fund Costs $ (15,197) $ 27,952 $ 40,564 $ 241,333 Staffing Total current positions - 0.40 FTE Total proposed positions - 0.40 FTE There are no changes to the current level of staffing. 477 Table of Contents Wilson Park Maintenance Budget Unit 100-87-834 General Fund - Facilities and Fleet - Wilson Park Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 68,527 Fund Balance E12 General Fund Costs $ 68,527 % Funded by General Fund 100.0% Total Staffing 0.20 FTE Program Overview This program maintains Wilson Park Ceramics Center to ensure efficient operations, user satisfaction, and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $68,527 for the Wilson Park Maintenance program. This represents a decrease of $28,635 (-29.5%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to materials and contract work performed in FY 19-20 that are not included in the FY 20-21 budget. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 478 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ - $ 77,225 $ - Total Revenues $ - $ - $ 77,225 $ - Expenditures Employee Compensation $19,031 $19,077 $18,565 $ 20,105 Employee Benefits $10,089 $10,108 $10,338 $11,723 Materials $14,070 $13,002 $16,156 $ 80 Contract Services $ 13,952 $ 22,414 $ 37,013 $ - Cost Allocation $ 5,737 $ 8,158 $ 12,432 $ 36,619 Special Projects $ 24,446 $ - $ - $ - Contingencies $ - $ - $ 2,658 $ - Total Expenditures $ 87,325 $ 72,759 $ 97,162 $ 68,527 Fund Balance $ - $ - $ - $ - General Fund Costs $ 87,325 $ 72,759 $19,937 $ 68,527 Staffing Total current positions - 0.20 FTE Total proposed positions - 0.20 FTE There are no changes to the current level of staffing. 479 Table of Contents Portal Park Maintenance Budget Unit 100-87-835 General Fund - Facilities and Fleet - Portal Park Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 84,490 Fund Balance $ - General Fund Costs $ 84,490 % Funded by General Fund 100.0% Total Staffing 0.10 FTE Program Overview This program maintains Portal Park building to ensure user efficient operations, satisfaction, and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $84,490 for the Portal Park Maintenance program. This represents an increase of $45,167 (114.9%) from the FY 2019-20 Adopted Budget. This increase is primarily due to increases in water and electrical charges, janitorial services, and adjustments to cost allocation methodology. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 480 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ - $ 41,483 $ - Total Revenues $ - $ - $ 41,483 $ - Expenditures Employee Compensation $ 9,250 $ 9,372 $ 9,002 $ 9,938 Employee Benefits $ 4,981 $ 5,016 $ 5,169 $ 5,861 Materials $ 5,790 $ 4,823 $ 6,268 $ 19,540 Contract Services $ 5,218 $ 3,862 $ 9,623 $ 22,021 Cost Allocation $ 2,869 $ 5,416 $ 8,466 $ 26,092 Special Projects $18,800 $ - $ - $ - Contingencies $ - $ - $ 795 $ 1,038 Total Expenditures $ 46,908 $ 28,489 $ 39,323 $ 84,490 Fund Balance $ - $ - $ - $ - General Fund Costs $ 46,908 $ 28,489 $ (2,160) $ 84,490 Staffing Total current positions - 0.10 FTE Total proposed positions - 0.10 FTE There are no changes to the current level of staffing 481 Table of Contents Sports Center Maintenance Budget Unit 570-87-836 Sports Center - Facilities and Fleet - Sports Center Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 487,440 Fund Balance $ (487,440) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.70 FTE Program Overview This program maintains Sport Center facilities to ensure efficient operations, employee satisfaction, user satisfaction, and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $487,440 for the Sports Center Maintenance program. This represents an increase of $17,085 (3.6%) from the FY 2019-20 Adopted Budget. The budget is increasing moderately across categories due to negotiated salary and benefit increases as well as consumer price index inflators for contract services and adjustments to cost allocation methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 482 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Charges for Services $ - $ 4,998 $ - $ - Total Revenues $ - $ 4,998- Expenditures Employee Compensation $ 75,499 $ 75,404 $ 66,021 $ 71,339 Employee Benefits $ 43,295 $ 34,804 $ 34,095 $ 38,965 Materials $130,940 $115,245 $130,168 $128,792 Contract Services $ 90,409 $104,227 $117,121 $ 124,356 Cost Allocation $ 90,098 $ 81,296 $ 83,606 $117,665 Special Projects $ 7,292 $ - $14,000 $ - Contingencies $ - $ - $ 25,344 $ 6,323 Total Expenditures $ 437,533 $ 410,976 $ 470,355 $ 487,440 Fund Balance $ (437,533) $ (405,979) $ (470,355) $ (487,440) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.70 FTE Total proposed positions - 0.70 FTE There are no changes to the current level of staffing. 483 Table of Contents Creekside Park Maintenance Budget Unit 100-87-837 General Fund - Facilities and Fleet - Creekside Park Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 103,161 Fund Balance $ - General Fund Costs $103,161 % Funded by General Fund 100.0% Total Staffing 0.20 FTE Program Overview This program maintains Creekside Park building to ensure efficient operations, user satisfaction, and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $103,161 for the Creekside Park Maintenance program. This represents an increase of $16,139 (18.5%) from the FY 2019-20 Adopted Budget. This increase is primarily due to cost allocation adjustments. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 484 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 80,300 $ 60,650 $ 47,545 $ - Total Revenues $ 80,300 $ 60,650 $ 47,545 $ - Expenditures Employee Compensation $16,642 $19,703 $ 20,391 $ 23,189 Employee Benefits $ 8,664 $ 9,311 $ 9,656 $ 10,576 Materials $ 10,218 $ 14,631 $ 10,345 $ 15,989 Contract Services $ 15,372 $ 18,948 $ 26,546 $ 14,638 Cost Allocation $ 2,868 $ 8,509 $17,199 $ 38,004 Special Projects $ - $ 96,486 $ - $ - Contingencies $ - $ - $ 2,885 $ 765 Total Expenditures $ 53,764 $167,588 $ 87,022 $103,161 Fund Balance $ - $ - $ - $ - General Fund Costs $ (26,536) $106,938 $ 39,477 $103,161 Staffing Total current positions - 0.20 FTE Total proposed positions - 0.20 FTE There are no changes to the current level of staffing 485 Table of Contents Community Hall Maintenance Budget Unit 100-87-838 General Fund - Facilities and Fleet - Community Hall Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 230,943 Fund Balance E12 General Fund Costs $ 230,943 % Funded by General Fund 100.0% Total Staffing 0.50 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 City Hall staff. . 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. Adopted Budget On June 16, 2020, City Council approved a budget of $230,943 for the Community Hall Maintenance program. This represents a decrease of $70,400 (-23.4%) from the FY 2019-20 Adopted Budget. The decrease is primarily due to mechanical, electrical, and plumbing costs that were incurred in the FY 19-20 budget. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: M. Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Charges for Services $ 27,280 $ 202,167 $ 233,028 $ - Total Revenues $ 27,280 $ 202,167 $ 233,028 $ - Expenditures Employee Compensation $ 33,952 $ 37,845 $ 38,039 $ 42,926 Employee Benefits $19,540 $ 20,231 $ 20,927 $ 25,778 Materials $ 45,005 $ 42,681 $ 71,214 $ 45,110 Contract Services $ 66,422 $ 81,152 $132,750 $ 51,445 Cost Allocation $ 3,825 $14,384 $ 28,215 $ 63,275 Capital Outlays $ 31,082 $ - $ - $ - Special Projects $ 63,678 $ 43,378 $ - $ - Contingencies $ - $ - $ 10,198 $ 2,409 Total Expenditures $ 263,504 $ 239,671 $ 301,343 $ 230,943 Fund Balance $ - $ - $ - $ - General Fund Costs $ 236,225 $ 37,505 $ 68,315 $ 230,943 Staffing Total current positions - 0.50 FTE Total proposed positions - 0.50 FTE There are no changes to the current level of staffing. 487 Table of Contents Teen Center Maintenance Budget Unit 100-87-839 General Fund - Facilities and Fleet - Teen Center Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 47,874 Fund Balance $ - General Fund Costs $ 47,874 % Funded by General Fund 100.0% Total Staffing 0.10 FTE Program Overview This program maintains the Teen Center area below the Sports Center to ensure efficient operations, employee satisfaction, user satisfaction, and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. • Respond to requests made by Parks & Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $47,874 for the Teen Center Maintenance program. This represents a decrease of $7,571 (-13.7%) from the FY 2019-20 Adopted Budget. This decrease is primarily due to a one-time special project in last year's budget for upgrades to the teen center facility. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 488 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ 97,868 $ 80,867 $ 21,469 $ - Total Revenues $ 97,868 $ 80,867 $ 21,469 $ - Expenditures Employee Compensation $ 9,957 $ 9,594 $ 9,746 $ 11,741 Employee Benefits $ 5,037 $ 5,077 $ 5,169 $ 5,861 Materials $ 6,413 $ 5,285 $ 40 $ 6,299 Contract Services $ - $ 8,800 $ 17,049 $ - Cost Allocation $ 2,869 $ 3,951 $ 5,587 $ 23,817 Special Projects $ - $16,740 $17,000 $ - Contingencies $ - $ - $ 854 $ 156 Total Expenditures $ 24,276 $ 49,447 $ 55,445 $ 47,874 Fund Balance $ - $ - $ - $ - General Fund Costs $ (73,592) $ (31,420) $ 33,976 $ 47,874 Staffing Total current positions - 0.10 FTE Total proposed positions - 0.10 FTE There are no changes to the current level of staffing 489 Table of Contents Park Bathrooms Maintenance Budget Unit 100-87-840 General Fund - Facilities and Fleet - Park Bathrooms Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 120,681 Fund Balance E12 General Fund Costs $120,681 % Funded by General Fund 100.0% Total Staffing 0.20 FTE Program Overview This program maintains park restrooms to ensure efficient operations, user satisfaction, and community pride. Service Objectives • Provide clean and functioning restrooms at various park locations. . Respond to requests made by the users of the park. • Manage and responsibly coordinate work completed by contractors. . Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $120,681 for the Park Bathrooms Maintenance program. This represents a decrease of $23,188 (-16.1%) from the FY 2019-20 Adopted Budget. This decrease is mostly due to mechanical, electrical, and plumbing repairs that were included in last year's budget. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 490 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Charges for Services $ - $ - $ 85,967 $ - Total Revenues $ - $ - $ 85,967 $ - Expenditures Employee Compensation $ 16,726 $ 16,658 $ 17,697 $ 17,667 Employee Benefits $ 8,511 $ 8,405 $ 8,448 $ 9,615 Materials $12,451 $15,364 $13,279 $ 21,166 Contract Services $ 29,459 $ 57,344 $ 84,961 $ 35,399 Cost Allocation $ 1,912 $ 8,402 $ 14,572 $ 35,422 Special Projects $ 28,152 $15,115 $ - $ - Contingencies $ - $ - $ 4,912 $ 1,412 Total Expenditures $ 97,211 $ 121,288 $ 143,869 $ 120,681 Fund Balance $ - $ - $ - $ - General Fund Costs $ 97,211 $ 121,288 $ 57,902 $ 120,681 Staffing Total current positions - 0.20 FTE Total proposed positions - 0.20 FTE There are no changes to the current level of staffing. 491 Table of Contents Blackberry Farm Maintenance Budget Unit 100-87-841 General Fund - Facilities and Fleet - Blackberry Farm Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 529,132 Fund Balance E12 General Fund Costs $ 529,132 % Funded by General Fund 100.0% Total Staffing 0.90 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 Recreation and Community Services Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $529,132 for the Blackberry Farm Maintenance program. This represents an increase of $78,217 (17.3%) from the FY 2019-20 Adopted Budget. This increase is primarily due to a one-time purchase of re -circulation pumps for the pool and adjustments to cost allocations. Revenues from charges for services are decreasing due to a change in methodology for allocating facilities charges to other Departments. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 492 Category 2018 Actual 2019 Actual 2020 Adopted Budget Table of Contents 2021 Adopted Budget Revenues Charges for Services $ 339,664 $ 444,766 $ 322,155 $ - Total Revenues $ 339,664 $ 444,766 $ 322,155 $ - Expenditures Employee Compensation $ 59,840 $ 68,144 $ 71,727 $ 77,428 Employee Benefits $ 39,467 $ 38,086 $ 40,026 $ 45,760 Materials $105,132 $ 93,040 $110,107 $131,429 Contract Services $ 76,745 $ 71,882 $ 86,582 $ 81,053 Cost Allocation $ 8,606 $ 83,822 $122,841 $ 188,709 Special Projects $ 74,498 $ 26,242 $ - $ - Contingencies $ - $ - $ 19,632 $ 4,753 Total Expenditures $ 364,288 $ 381,216 $ 450,915 $ 529,132 Fund Balance $ - $ - $ - $ - General Fund Costs $ 24,624 $ (63,549) $ 128,760 $ 529,132 Staffing Total current positions - 0.90 FTE Total proposed positions - 0.90 FTE There are no changes to the current level of staffing. 493 Table of Contents Franco Traffic Operations Center Budget Unit 100-87-852 General Fund - Facilities and Fleet - Franco Traffic Operations Center Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 7,580 Fund Balance E12 General Fund Costs $ 7,580 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview This program maintains the Traffic Operations Center on Franco Court to ensure efficient operations, user satisfaction, and community pride. Service Objectives . Provide a safe, clean and productive working environment for city employees. • Respond to requests made by Traffic Operations Center staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 16, 2020, City Council approved a budget of $7,580 for the Franco Traffic Operations Center program. This represents a decrease of $44,663 (-85.5%) from the FY 2019-20 Adopted Budget. This decrease is primarily due to a reduction in cost allocation charges for changes in methodology. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 494 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Materials $ - $ 414 $137 $ 134 Contract Services $ - $ 23,117 $ - $1,883 Cost Allocation $ - $ 35,633 $ 44,599 $ 5,513 Special Projects $ - $ 22,164 $ 7,500 $ - Contingencies $ - $ - $ 7 $ 50 Total Expenditures $ - $ 81,328 $ 52,243 $ 7,580 Fund Balance $ - $ - $ - $ - General Fund Costs $ - $ 81,328 $ 52,243 $ 7,580 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE There are no changes to the current level of staffing. 495 Table of Contents Traffic Engineering Budget Unit 100-88-844 General Fund - Transportation - Traffic Engineering Budget at a Glance 2021 Adopted Budget Total Revenues $ 681,899 Total Expenditures $1,229,029 Fund Balance $ - General Fund Costs $ 547,130 % Funded by General Fund 44.5% Total Staffing 3.40 FTE Program Overview The Transportation Division oversees traffic operations, traffic studies, transportation planning, and transportation capital improvements to safely and efficiently manage all modes of travel within the City's street and trail network. This includes responding to citizen requests and concerns regarding traffic issues, developing plans for the installation of traffic signals, traffic signs, and pavement markings, and developing design standards. The Division assists in the preparation of the General Plan, street plan lines and the capital improvement program related to street improvements. Division staff are active on Santa Clara Valley Transportation Authority (VTA) subcommittees and working groups and keeps abreast regarding current developments in the field as well as grant funding opportunities for large projects. The Transportation Division also participates in the review of private development proposals to identify potential traffic impacts and to require necessary mitigations to maintain levels of service and safe and efficient traffic operations. Service Objectives • Ensure the efficiency and safety of the street system for all modes of travel through continual observation of traffic patterns, traffic signals and other traffic control devices. • Review traffic collision reports, traffic flow patterns, and neighborhood traffic issues and respond as needed. • Cooperate with neighboring jurisdictions on regional issues that affect both traffic safety and traffic efficiency at City boundaries. . Continue training personnel in traffic engineering by encouraging attendance at classes and seminars. . Encourage the use of alternate modes of transportation to the single occupancy vehicle through the implementation of recommendations from the Bicycle and Pedestrian Transportation Plans. . Supports transit initiatives, ride -share programs, carpool programs, and transportation planning work for all modes of transportation. 496 Table of Contents Adopted Budget On June 16, 2020, City Council approved a budget of $1,229,029 for the Traffic Engineering program. This represents a decrease of $1,445,994 (-54.1%) from the FY 2019-20 Adopted Budget. This decrease is primarily due to a one-time special project pilot program for Via Shuttle. This pilot program is on -going into FY 20-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Intergovernmental Revenue $ 55,000 $ - $ - $_ Charges for Services $ 659,196 $ 623,129 $ 966,184 $ 681,899 Total Revenues $ 714,196 $ 623,129 $ 966,184 $ 681,899 Expenditures Employee Compensation $ 376,704 $ 429,522 $ 474,818 $ 505,506 Employee Benefits $ 149,555 $ 165,357 $198,781 $ 213,982 Materials $ 14,422 $ 13,810 $105,292 $ 18,751 Contract Services $ 147,477 $ 216,177 $13,546 $ 252,914 Cost Allocation $ 92,467 $106,461 $126,644 $ 233,018 Special Projects $ 679,808 $ 766,657 $1,750,000 $ - Contingencies $ - $ - $ 5,942 $ 4,858 Total Expenditures $1,460,433 $1,697,984 $ 2,675,023 $ 1,229,029 Fund Balance $ - $ - $ - $ - General Fund Costs $ 746,237 $ 1,074,854 $1,708,839 $ 547,130 Staffing Total current positions - 3.50 FTE Total proposed positions - 3.40 FTE Staff time is being reallocated to better reflect actual time spent in this program. 497 Table of Contents Traffic Signal Maintenance Budget Unit 100-88-845 General Fund - Transportation - Traffic Signal Maintenance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 898,614 Fund Balance E12 General Fund Costs $ 898,614 % Funded by General Fund 100.0% Total Staffing 2.00 FTE Program Overview The Traffic Signal Maintenance Division oversees the operation and maintenance of the City's 60 traffic signals, including eight traffic signals owned by the State of California. The Division also maintains the traffic signal communication infrastructure, such as the fiber optic network and the traffic operation center hub. Service Objectives Ensure the continuous and safe operation of the City's traffic signal system on a continuous 24-hour basis with full-time and on -call staff, which is accomplished by regularly performing preventative maintenance, diagnosing malfunctions and repairs, investigating citizen complaints, replacing or upgrading obsolete hardware, inspecting the work of contractors, responding to knockdowns and power outages, and adjusting signal timing parameters. Continue training, maintaining proficiency of traffic signal technicians and on -call staff by encouraging attendance at classes and seminars. Adopted Budget On June 16, 2020, City Council approved a budget of $898,614 for the Traffic Signal Maintenance program. This represents an increase of $343,855 (62.0%) from the FY 2019-20 Adopted Budget. The increase is primarily due to the Adaptive Traffic Signaling and Battery Backup special project as well as increases in cost allocation due one time project expenses. Special Projects The following table shows the special projects for the fiscal year. Special Project Adaptive Traffic Signaling and Battery Backup Total Appropriation Revenue $180,000 $180,000 $180,000 $180,000 Table of Contents Funding Source Description Adaptive Traffic General Fund Signaling and Batter Backup Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $184,997 $128,810 $ 222,997 $ 229,892 Employee Benefits $ 78,508 $ 49,213 $ 95,775 $104,817 Materials $ 97,897 $185,601 $103,612 $156,848 Contract Services $ 41,657 $ 51,337 $ 43,377 $ 46,025 Cost Allocation $127,856 $ 84,404 $ 81,649 $175,960 Special Projects $ (23,995) $ - $ - $180,000 Contingencies $ - $ - $ 7,349 $ 5,072 Total Expenditures $ 506,920 $ 499,365 $ 554,759 $ 898,614 Fund Balance $ - $ - $ - $ - General Fund Costs $ 506,921 $ 499,365 $ 554,759 $ 898,614 Staffing Total current positions - 2.00 FTE Total proposed positions - 2.00 FTE There are no changes to the current level of staffing. Table of Contents Safe Routes 2 School Budget Unit 100-88-846 General Fund - Transportation - Safe Routes 2 School Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 604,670 Fund Balance $ - General Fund Costs $ 604,670 % Funded by General Fund 100.0% Total Staffing 1.00 FTE Program Overview Safe Routes 2 School seeks to engage local schools, school districts, parent organizations, community groups, and the Santa Clara County Sheriff's Office in the mission of reducing Singular Occupancy Vehicle (SOV) travel to and from school in order to reduce carbon emission and car traffic and increase student safety. The program seeks to achieve these objectives through education, encouragement, enforcement, and engineering infrastructure changes in and around Cupertino schools. Service Objectives . Help to improve the health and well-being of children by increasing the number of students who walk or bike to school. . Develop partnerships with school administrators, staff, parents, and children. • Encourage and empower more students and families to walk, bike, carpool, and take alternative transit to school. . Adjust signage and infrastructure surrounding Cupertino schools to facilitate a safer environment for bicycle and pedestrian travel. . Educate students and families about the benefits of walking and bicycling to school; health, environmental protection, academic improvements, community building and more. • Minimize gaps in communication between City, School Districts, and Schools and collaborate on efforts to increase student safety. • Enhance bicyclist and pedestrian student safety through coordination of skills classes and distribution of educational material. Adopted Budget On June 16, 2020, City Council approved a budget of $604,670 for the Safe Routes 2 School program. This represents an increase of $50,893 (9.2%) from the FY 2019-20 Adopted Budget. 500 Table of Contents With the exception of negotiated salary and benefit increases, the annual increases in materials and contract services, and the addition of the pedestrian education special project, this budget remains relatively unchanged from the previous fiscal year. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Pedestrian Pedestrian Education $41,160 $41,160 General Fund education Total $41,160 $41,160 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Miscellaneous Revenue $ 1,500 $ - $ - $ - Total Revenues $1,500 $ - $ - $ - Expenditures Employee Compensation $ 98,299 $ 98,480 $110,126 $125,081 Employee Benefits $ 34,867 $ 36,674 $ 41,440 $ 48,521 Materials $ 20,926 $ 21,049 $19,888 $19,409 Contract Services $16,646 $ 261,022 $ 281,833 $ 293,598 Cost Allocation $ 9,562 $18,613 $ 85,404 $ 69,076 Special Projects $ - $ - $ - $ 41,160 Contingencies $ - $ - $ 15,086 $ 7,825 Total Expenditures $ 180,300 $ 435,838 $ 553,777 $ 604,670 Fund Balance $ - $ - $ - $ - General Fund Costs $ 178,801 $ 435,837 $ 553,777 $ 604,670 Staffing Total current positions - 1.00 FTE Total proposed positions - 1.00 FTE There are no changes to the current level of staffing. 501 Table of Contents Minor Storm Drain Improvement Budget Unit 210-90-978 Storm Drain Improvement - Non -Departmental - Minor Storm Drain Improvement Budget at a Glance Total Revenues Total Expenditures Fund Balance General Fund Costs % Funded by General Fund Total Staffing 2021 Adopted Budget 0.0% 0.00 FTE Program Overview This program provides funding for drainage repairs as needed in various locations. Service Objectives Provide storm drain repairs throughout the City on an annual basis. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Capital Outlays $ 9,000 $ 4,000- Total Expenditures $ 9,000 $ 4,000 Fund Balance $ (9,000) $ (4,000) General Fund Costs $ - $ - 502 Table of Contents Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 503 Table of Contents Fixed Assets Acquisition Budget Unit 630-90-985 Vehicle/Equip Replacement - Non -Departmental - Fixed Assets Acquisition Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 384,022 Fund Balance $ (384,022) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview This program purchases equipment having a value greater than $5,000 and expected life of more than one year. Equipment users are charged for the use of these assets through a depreciation schedule. Equipment used by Special Revenue and Enterprise funds are charged to the respective funds. Service Objectives • Obtain quality equipment through competitive bidding. . Purchase energy efficient vehicles whenever practical. • Purchase quiet, ergonomic and environmentally friendly equipment whenever practical. Adopted Budget On June 16, 2020, City Council approved a budget of $384,022 for the Fixed Assets Acquisition program. This represents a decrease of $210,078 (-35.4%) from the FY 2019-20 Adopted Budget. This decrease is due to a reduction in asset acquisition and replacement due to COVID-19 and its short and long-term financial constraints. Special Projects The following table shows the special projects for the fiscal year. 504 Table of Contents Replacement Vehicles Cost Replace #87 Ford Escape Hybrid $40,000 Total Replacement Vehicles $40,000 Replacement Equipment Replace #946 Bigshot 500 $42,000 New Wanco Message Board $20,000 Replace #311 Line Lazer 200 $20,000 Replace #182 Toro GM 4000 Mower $80,000 New Hydrovac Trailer $85,000 Replace #107 Komatsu Forklift $40,000 Replace #139 Portable Toilet Trailer $8,000 New Wanco Arrow Board $10,000 Replace #134 Sitdown Electric Mower $30,000 Total Replacement Equipment $335,000 Grand Total $375,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues $ - $ - $ - $ - Expenditures Cost Allocation $ - $ - $ - $ 9,022 Special Projects $ (57,290) $ 3,025 $ 594,100 $ 375,000 Total Expenditures $ (57,290) $ 3,025 $ 594,100 $ 384,022 Fund Balance $ 57,290 $ (3,025) $ (594,100) $ (384,022) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE There are no changes to the current level of staffing. 505 Table of Contents 506 Table of Contents Non- Departmental Budget Unit Program 2021 Adopted Budget Non -Departmental $ 15,122,276 100-90-001 General Fund Transfers Out $ 9,948,689 281-90-001 Tree Fund Transfers Out $15,000 429-90-001 Capital Reserve Transfers Out $ 1,989,449 365-90-500 Facility Lease Debt Service $ 3,169,138 100-90-502 Employee Housing Assistance $ - Total $15,122,276 507 Table of Contents Department Overview Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $15,122,276 Fund Balance $ (5,173,587) General Fund Costs $ 9,948,689 % Funded by General Fund 65.8% Total Staffing 0.00 FTE Adopted Budget On June 16, 2020, City Council approved a budget of $15,122,276 for the Non -Departmental department. This represents a decrease of $14,307,119 (-48.6%) from the FY 2019-20 Adopted Budget. This decrease is primarily due to a reduction of Capital Improvement Program projects which require corresponding transfers out of the Capital Reserve. 508 Table of Contents Adopted Expenditures by Division ■ Non -Departmental Department Expenditure History 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget 509 Table of Contents Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ (19,707) $ 126,433 $ - $ - Charges for Services $ 20,432 $ 10,087 $ 21,045 $ - Total Revenues $ 725 $136,520 $ 21,045 $ - Expenditures Materials $ 5,625 $ 9 $ - $ - Contract Services $ 1,050 $ - $ - $ - Cost Allocation $ 42,562,330 $ 35,358,525 $ 29,429,395 $ 15,122,276 Capital Outlays $ 2,450,108 $ - $ - $ - Total Expenditures $ 45,019,113 $ 35,358,534 $ 29,429,395 $15,122,276 Fund Balance $ (1,826,044) $ (325,730) $ (18,516,074) $ (5,173,587) General Fund Costs $ 43,192,343 $ 34,896,284 $10,892,276 $ 9,948,689 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 510 Table of Contents General Fund Transfers Out Budget Unit 100-90-001 General Fund - Non -Departmental - General Fund Transfers Out Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 9,948,689 Fund Balance $ - General Fund Costs $ 9,948,689 % Funded by General Fund 100.0% Total Staffing 0.00 FTE Program Overview Transfers represent transfers of monies between various funds. These transfers provide subsidies and resources and 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. Service Objectives Transfers out are evaluated each year to ensure funds outside of the General Fund remain with a minimum fund balance of 15% of budgeted operating expenses. These transfers are normally for Special Revenue and Enterprise funds requiring a subsidy due to revenues falling short of full program costs. In addition, the City has reoccurring transfers to fund the total budget costs associated with Annual Debt Payment, Compensated Absences, and Retiree Health. Adopted Budget On June 16, 2020, City Council approved a budget of $9,948,689 for the General Fund Transfers Out program. This represents a decrease of $590,868 (-5.6%) from the FY 2019-20 Adopted Budget. General Fund Transfers Out are as follows: 511 Table of Contents Receiving Fund Description Special Revenue Funds Storm Drain, Non -Point Source, Sidewalk, Curb and Gutter Maintenance Debt Service Funds Annual Debt Payment Blackberry Farm Golf Course, Sports Center Operation, Enterprise Funds Outdoor Recreation, Public Safety Power Shutoff IT Infrastructure, General Fund Subsidy of Compensated Amount $ 3,800,000 $ 3,169,138 $ 2,489,551 Internal Service Funds Absences and Retiree Medical $ 490,000 Total $ 9,948,689 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues $ - $ - $ - $ - Expenditures Materials Cost Allocation Capital Outlays $ (2,071) $ 24,129,372 $ 2,450,108 $ 9 $19,376,087 $ - $ - $10,539,557 $ - $ - $ 9,948,689 $ - Total Expenditures $ 26,577,409 $19,376,096 $10,539,557 $ 9,948,689 Fund Balance $ - $ - $ - $ - General Fund Costs $ 26,577,409 $ 19,376,096 $ 10,539,557 $ 9,948,689 Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 512 Table of Contents Tree Fund Transfers Out Budget Unit 281-90-001 Tree Fund - Non -Departmental - Tree Fund Transfers Out Budget at a Glance 2021 Adopted Budget Total Revenues $ - Total Expenditures $ 15,000 Fund Balance $ (15,000) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview Transfers represent transfers of monies between various funds. These transfers provide subsidies and resources and to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies to other funds and funding of capital projects are included in transfers. Adopted Budget On June 16, 2020, City Council approved a budget of $15,000 for the Tree Fund Transfers Out program. This represents an increase of $3,000 (25.0%) from the FY 2019-20 Adopted Budget. Funds are to be used for the planting and replacement cost of trees within the Right of Way and other areas throughout the City where Public Works is responsible for planting and maintaining trees. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 513 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ 971 $ 4,317 $ - $ - Charges for Services $ 20,432 $10,087 $ 21,045 $ - Total Revenues $ 21,403 $14,404 $ 21,045 $ - Expenditures Cost Allocation $ - $ 10,000 $ 12,000 $ 15,000 Total Expenditures $ - $10,000 $12,000 $15,000 Fund Balance $ 21,403 $ 4,404 $ 9,045 $ (15,000) General Fund Costs $ - $ - $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 514 Table of Contents Capital Reserve Transfers Out Budget Unit 429-90-001 Capital Reserve - Non -Departmental - Capital Reserve Transfers Out Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $1,989,449 Fund Balance $ (1,989,449) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview Transfers represent transfers of monies between various funds. These transfers provide subsidies and resources and 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. Service Objectives Transfers out from the Capital Reserve vary from year to year depending on the projects selected in the Capital Improvement Plan. In addition, funding sources for each project are reviewed and then allocated appropriately. After this review, the remaining balance of the project left to fund is then transferred from the Capital Reserve Fund. Adopted Budget On June 16, 2020, City Council approved a budget of $1,989,449 for the Capital Reserve Transfers Out program. This represents a decrease of $13,715,551 (-87.3%) from the FY 2019-20 Adopted Budget. Capital Reserve Transfers Out are as follows: 515 Table of Contents Receiving Fund Description Special Revenue Funds Traffic Calming Regnart Creek Trail Fencing Improvements, SCB Class IV Bikeway Phase 2 - Design, Park Amenity Capital Projects Funds Improvements, Retaining Wall Repair - Cordova Road, ADA Improvements, Street Light Installation, Annual Playground Replacement BBF Golf Course Alternative Use, QCC Multi -site Amount $200,000 $1,430,000 Enterprise Funds Sustainable Infrastructure Upgrade, Sports Center $359,449 Community Needs Analysis Total $1,989,449 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Use of Money and Property $ (20,678) $ 122,116 $ - $_ Total Revenues $ (20,678) $122,116 $ - $_ Expenditures Cost Allocation $15,259,920 $12,801,500 $15,705,000 $1,989,449 Total Expenditures $15,259,920 $12,801,500 $15,705,000 $ 1,989,449 Fund Balance $ (1,841,953) $ (328,634) $ (15,352,281) $ (1,989,449) General Fund Costs $13,438,644 $12,350,750 $ 352,719 $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 516 Table of Contents Facility Lease Debt Service Budget Unit 365-90-500 Public Facilities Corp - Non -Departmental - Facility Lease Debt Service Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ 3,169,138 Fund Balance $ (3,169,138) General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview The Debt Service Program provides 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. Service Objectives 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/community center - $10 million. 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. 517 Table of Contents Schedule of Lease Payments Total Lease Annual Lease Payment Date Principal Component Interest Component Payment Payment 12/15/12 687,643.15 687,643.15 6/15/13 1,920,000.00 567,778.75 2,487,778.75 3,175,421.90 12/15/13 564,418.75 564,418.75 6/15/14 2,040,000.00 564,418.75 2,604,418.75 3,168,837.50 12/15/14 559,318.75 559,318.75 6/15/15 2,055,000.00 559,318.75 2,614,318.75 3,173,637.50 12/15/15 538,768.75 538,768.75 6/15/16 2,090,000.00 538,768.75 2,628,768.75 3,167,537.50 12/15/16 517,868.75 517,868.75 6/15/17 2,135,000.00 517,868.75 2,652,868.75 3,170,737.50 12/15/17 496,518.75 496,518.75 6/15/18 2,180,000.00 496,518.75 2,676,518.75 3,173,037.50 12/15/18 474,718.75 474,718.75 6/15/19 2,220,000.00 474,718.75 2,694,718.75 3,169,437.50 12/15/19 441,418.75 441,418.75 6/15/20 2,290,000.00 441,418.75 2,731,418.75 3,172,837.50 12/15/20 407,068.75 407,068.75 6/15/21 2,355,000.00 407,068.75 2,762,068.75 3,169,137.50 12/15/21 371,743.75 371,743.75 6/15/22 2,425,000.00 371,743.75 2,796,743.75 3,168,487.50 12/15/22 335,368.75 335,368.75 6/15/23 2,500,000.00 335,368.75 2,835,368.75 3,170,737.50 12/15/23 297,868.75 297,868.75 6/15/24 2,575,000.00 297,868.75 2,872,868.75 3,170,737.50 12/15/24 259,243.75 259,243.75 6/15/25 2,655,000.00 259,243.75 2,914,243.75 3,173,487.50 12/15/25 219,418.75 219,418.75 6/15/26 2,730,000.00 219,418.75 2,949,418.75 3,168,837.50 12/15/26 178,468.75 178,468.75 6/15/27 2,815,000.00 178,468.75 2,993,468.75 3,171,937.50 12/15/27 136,243.75 136,243.75 518 Table of Contents Payment Date Principal Component Interest Component 6/15/28 2,900,000.00 136,243.75 12/15/28 92,743.75 6/15/29 2,985,000.00 92,743.75 12/15/29 47,968.75 6/15/30 3,070,000.00 47,968.75 Total 43,940,000.00 13,133,759.40 Total Lease Annual Lease Payment Payment 3,036,243.75 3,172,487.50 92,743.75 3,077,743.75 3,170,487.50 47,968.75 3,117,968.75 3,165,937.50 57,073,759.40 57,073,759.40 Adopted Budget On June 16, 2020, City Council approved a budget of $3,169,138 for the Facility Lease Debt Service program. This represents a decrease of $3,700 (-0.1%) from the FY 2019-20 Adopted Budget. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues $ - $ - $ - $ - Expenditures Cost Allocation $ 3,173,038 $ 3,170,938 $ 3,172,838 $ 3,169,138 Total Expenditures $ 3,173,038 $ 3,170,938 $ 3,172,838 $ 3,169,138 Fund Balance $ (5,494) $ (1,500) $ (3,172,838) $ (3,169,138) General Fund Costs $ 3,167,544 $ 3,169,438 $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 519 Table of Contents Employee Housing Assistance Budget Unit 100-90-502 General Fund - Non -Departmental - Employee Housing Assistance Budget at a Glance 2021 Adopted Budget Total Revenues Total Expenditures $ - Fund Balance General Fund Costs $ - % Funded by General Fund 0.0% Total Staffing 0.00 FTE Program Overview The recruitment and hiring of top quality department heads are essential to the efficient operation of the City. Housing costs in Silicon Valley tend to act as a disincentive to persons relocating to the area, and therefore, as an obstacle to the recruitment, hiring, and retention of such top quality personnel. To assist in this end, the Council adopted the housing assistance program for department heads. Service Objectives The housing assistance program for department heads provides housing loans for their primary residence at interest rates indexed with the 11th District cost of funds with an optional deferred interest feature for the first five years. There is assistance with half of the closing costs. The City may assist in the purchase by acquiring up to thirty percent of the equity share in the residence. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 520 Table of Contents Category 2018 Actual 2019 Actual 2020 Adopted Budget 2021 Adopted Budget Revenues Total Revenues - Expenditures Materials $ 7,696- Contract Services $ 1,050 Total Expenditures $ 8,746- Fund Balance $ - General Fund Costs $ 8,746 $ - $ - $ - Staffing Total current positions - 0.00 FTE Total proposed positions - 0.00 FTE 521 Table of Contents This page intentionally left blank. 522 Table of Contents Fiscal Year 2020-21 Adopted Budget Personnel Summary CITY COUNCIL/COMMISSIONS i i City Council 0.50 0.45 0.30 1.15 1.05 0.85 0.00 0.85 Sister Cities 0.00 0.05 0.05 0.10 0.10 0.40 -0.30 0.10 Technology, Information & Communications Commission 0.10 0.10 0.10 0.00 0.00 0.05 0.02 0.07 Library Commission 0.05 0.05 0.05 0.05 0.05 0.03 0.07 0.10 Fine Arts Commission 0.15 0.15 0.15 0.15 0.15 0.15 0.00 0.15 Public Safety Commission 0.00 0.00 0.00 0.00 0.05 0.05 0.00 0.05 Bicycle and Pedestrian Commission 0.00 0.00 0.00 0.00 0.00 0.00 0.15 0.15 Parks and Recreation Commission 0.05 0.10 0.10 0.10 0.10 0.12 -0.02 0.10 Teen Commission 0.25 0.25 0.30 0.30 0.30 0.30 0.00 0.30 Housing Commission 0.15 0.15 0.15 0.15 0.15 0.15 0.00 0.15 Sustainability Commission 0.00 0.00 0.10 0.10 0.10 0.10 0.05 0.15 Planning Commission 0.30 0.30 0.25 0.25 0.30 0.31 -0.05 0.26 Audit Committee 0.00 0.00 0.00 0.00 0.00 0.00 0.10 0.10 1.55 1.60 1.55 2.35 2.35 2.51 0.02 2.53 City Manager Sustainability Office of Communications Video Community Outreach & Neighborhood Watch Disaster Preparedness Economic Development City Clerk City Attorney M1NOVATION & TECHNOLOGY Administration Cupertino Scene Video Applications GIS Infrastructure ADMINISTRATIVE SERVICES Administration Accounting Business Licensing Human Resources Insurance Administration 2.55 3.30 3.02 3.37 3.62 4.90 -1.00 3.90 0.60 1.55 1.55 1.80 1.80 1.40 0.40 1.80 0.00 0.00 0.00 1.85 2.15 2.65 0.30 2.95 0.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00 0.00 0.00 0.00 0.00 0.00 0.75 0.00 0.75 0.00 0.00 0.00 0.00 0.00 0.95 0.00 0.95 1.00 0.00 0.00 0.00 0.00 1.00 0.00 1.00 3.60 3.00 3.00 3.10 2.90 2.50 0.00 2.50 3.00 3.00 3.00 4.00 5.00 1.00 0.00 1.00 10.75 10.85 10.57 14.12 15.47 15.15 2.70 17.85 1.80 1.15 2.45 0.85 0.70 0.55 -0.02 0.53 0.35 0.35 0.30 0.00 0.00 0.00 0.00 0.00 3.15 2.95 3.40 3.25 3.20 3.25 -3.25 0.00 0.95 0.95 0.80 3.20 3.45 3.45 0.05 3.50 0.00 2.00 2.30 2.65 3.20 3.20 0.20 3.40 4.00 4.00 4.70 4.60 4.50 4.50 0.00 4.50 10.25 11.40 13.95 14.55 15.05 14.95 -3.02 11.93 1.80 2.50 2.50 2.80 3.80 3.80 -0.05 3.75 5.60 5.20 5.75 5.40 6.40 6.90 -0.05 6.85 0.50 1.10 0.55 0.60 0.60 1.10 0.00 1.10 3.75 3.15 3.15 2.85 2.85 3.85 0.00 3.85 0.35 0.35 0.35 0.35 0.35 0.35 0.00 0.35 12.00 12.30 12.30 12.00 14.00 16.00 -0.10 15.90 PARKS AND RECREATION Administration 3.05 2.95 2.85 2.90 3.85 4.55 0.00 4.55 Business and Community Services 9.85 8.85 9.55 10.60 10.30 8.00 -0.55 7.45 Recreation and Education 4.53 5.58 11.85 10.70 10.00 10.05 0.50 10.55 Sports, Safety and Outdoor Recreation 6.00 6.00 8.83 10.93 10.65 9.50 -0.15 9.35 Senior Center/Stevens Creek Trail/Blue Pheasant 7.10 8.10 0.00 0.00 0.00 0.00 0.00 0.00 Community Outreach 0.75 0.70 0.00 0.00 0.00 0.00 0.00 0.00 31.28 32.18 33.08 35.13 34.80 32.10 -0.20 31.90 rOMMUNITY DEVELOPMENT AND PLANNING Administration 0.90 0.90 0.55 0.55 0.55 0.60 -0.10 0.50 Planning 9.10 8.60 10.63 10.63 10.58 9.67 0.30 9.97 Housing Services 0.80 0.80 0.80 0.80 0.80 0.80 0.00 0.80 Building 12.25 13.30 13.95 13.85 13.95 13.97 0.25 14.22 Economic Development/RDA Successor Agency 0.00 1.00 1.00 1.00 1.00 0.00 0.00 0.00 Muni/Building Code Enforcement 1.75 2.70 1.25 1.25 1.25 0.25 -0.25 0.00 Code Enforcement 0.00 0.00 0.00 0.00 0.00 3.00 0.00 3.00 24.80 27.30 28.18 28.08 28.13 28.29 0.20 28.49 523 Fiscal Year 2020-21 Adopted Budget Personnel Summary Table of Contents Administration Environmental Programs Development Services Service Center Grounds Streets Trees and Right of Way Facilities and Fleet Transportation LAW ENFORCEMENT Code Enforcement i 3.25 3.25 3.25 3.25 3.25 2.05 4.17 6.22 6.22 6.27 6.20 6.10 7.40 7.40 7.40 7.50 8.50 11.50 2.30 2.70 3.70 3.05 2.55 3.65 19.75 19.75 19.75 19.60 20.00 20.00 13.10 13.65 13.65 13.95 13.95 13.95 16.40 16.40 16.40 16.40 16.00 17.00 7.15 8.15 8.15 8.00 8.00 8.00 3.60 4.60 5.60 6.50 6.50 6.50 1.00 3.05 1.45 7.55 -0.30 11.20 -0.15 3.50 0.00 20.00 -0.50 13.45 0.00 17.00 0.00 8.00 -0.10 6.40 77.12 82.12 84.12 84.52 84.95 88.75 1.40 90.15 V 1 2.00 2.00 2.00 2.00 2.00 0.00 0.00 0.00 2.00 2.00 2.00 2.00 2.00 0.00 0.00 0.00 Total Benefitted Positions 169.75 179.75 185.75 192.75 196.75 197.75 1.00 198.75 Total Benefitted Positions (including Councilmembers) 174.75 184.75 190.75 197.75 201.75 202.75 1.00 203.75 524 Table of Contents Fiscal Year 2020-21 Adopted Budget Capital Improvement Program Summary Annual Playground Replacement 420-99-085 $ 300,000 Park Amenity Improvements MdEFF, 420-99-086 $ 200,000 Stevens Creek Boulevard Class IV Bikeway Phase 2 - Design 420-99-036 $ 350,000 Regnart Creek Trail Fencing 420-99-036 $ 400,000 Traffic Calming 270-99-087 $ 200,000 Retaining Wall Repair - Cordova Road 420-99-040 $ 25,000 ADA Improvements (multi -year funding) 420-99-007 $ 80,000 Street Light Infill (multi -year funding) 420-99-056 $ 75,000 BBF Golf Course Alternatives Analysis 560-99-088 $ 50,000 Sports Center Community Needs Analysis 570-99-089 $ 25,000 Quinlan Community Center/Multi-Site Sustainable Infrastructure Upgrade 580-99-090 $ 502,000 Total $ 2,207,000 Access the Capital Improvement Program budget: cupertino.org/budget 525 Table of Contents This page intentionally left blank. 526