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CC 06-04-2024 Item No. 14 Consider Operating and CIP Budget for FY 2024-25CC 06-04-2024 #14 Consider the Recommended Operating and CIP Budgets for FY 2024-25 Written Communications From:Rhoda Fry To:City Clerk; City Council Subject:City Council June 4 Oral Communications - why 3 different org charts? Date:Tuesday, June 4, 2024 11:28:43 AM Attachments:org chart FY 2024-25 Proposed Budget.pdf City Organization Chart.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear City Council, I am asking again that you direct the City Manager to restore the Citizens of Cupertino to the top of the org chart as shown in the 3rd attachment and as reflected in most City org charts in the State of California. There is an inconsistency between current org charts available from the City website. Please fix it and put the Citizens of Cupertino on the top of the org chart where they belong. 1. Org chart in budget 2. Org chart on website 3. Downloaded pdf org chart Sincerely, Rhoda Fry Virus-free.www.avg.com Citizens of Cupertino City Council Committees and Commissions City Manager City TreasurerCity Attorney Sustainability ProgramsPublic AffairsCity Clerk Recreation and Community Services Public WorksCommunity Development Innovation & Technology Administrative Services Finance Human Resources Building Planning Economic Development Code Enforcement (Zoning & Building) Recreation & Education Sports,Safety & Outdoor Recreation TransportationCapital Improvement Program Environmental Programs Development Services Service Center Streets Trees & ROWGrounds Facilities & Fleet InfrastructureGIS ApplicationsVideo Housing Business & Community Services Law Enforcement (Santa Clara County Sherriff – Contract) Code Enforcement From:Deepa Mahendraker To:City Council Cc:City Clerk Subject:Request for Correction of Organizational Chart to Reflect Citizens of Cupertino at the Top Date:Tuesday, June 4, 2024 12:18:46 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. City Council of Cupertino City Hall 10300 Torre Avenue Cupertino, CA 95014 Dear Honorable Mayor Sheila Mohan, Members of the Cupertino City Council and City Manager Wu, I hope this letter finds you in good health and high spirits. I am writing to bring to your attention a matter of great significance that requires your immediate consideration and rectification. This issue pertains to the representation of the Citizens of Cupertino in the organizational structure of our city government, as depicted in the official org charts. Upon reviewing the organizational charts currently available on the City of Cupertino’s official website, I have observed a notable inconsistency that merits correction. In several other municipal organizational charts across the State of California, it is customary and fitting for the Citizens to be prominently positioned at the pinnacle, reflecting their paramount role in the governance and stewardship of the community. This arrangement is not merely symbolic; it underscores the foundational principle that government exists to serve its people, and that the citizens are the ultimate authority to whom all public servants are accountable. In the documents provided on the City’s website, there appears to be a discrepancy in this regard. Specifically, the organizational chart included in the budget documents, the org chart available directly on the website, and a downloaded PDF version of the org chart all differ in their presentation and do not consistently place the Citizens of Cupertino at the apex. This inconsistency not only causes confusion but also diminishes the recognized status of the citizens in the governance framework of our city. Therefore, I earnestly request that the Cupertino City Council direct City Manager Wu to address and rectify this discrepancy with urgency. The Citizens of Cupertino should be restored to the top position of the organizational chart, as illustrated in the third attachment, aligning with the standard practice observed in other cities within our state. This adjustment will ensure that our organizational charts accurately reflect the true structure and spirit of our city’s governance, emphasizing the centrality of the Citizens in all municipal affairs. In conclusion, I urge you to consider this matter with the seriousness it warrants and take the necessary steps to update the organizational charts to reflect the rightful position of the Citizens of Cupertino. Your attention to and action on this issue will greatly contribute to reaffirming the values of transparency, accountability, and citizen- centric governance that we all hold dear. Thank you for your time and consideration. I look forward to your prompt response and the appropriate amendments to the organizational charts. Sincerely, Deepa Mahendraker Resident of Cupertino since 2002 ( consider my family of four asking for this not just me - my husband and both my children who went to local schools and are now in college) Sent from my iPhone From:Rhoda Fry To:City Clerk; City Council Subject:June 4 2024 City Council agenda #14 budget Date:Tuesday, June 4, 2024 3:55:09 PM Attachments:22d6c5a3-bd2c-4979-9487-8100905a616e.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear City Council, At the previous City Council, Councilmember Kitty Moore asked an interesting and compelling question about the potential of property tax revenue going down. So I took a look at our disclosure documents pertaining to our City debt and found that the valuation of our 10 largest property owners has indeed gone down as follows: In FY 2023 the assessed value of our top 10 property taxpayers was: $10,882,692,169 In FY 2024 the assessed value of our top 10 property taxpayers was: $10,547,531,000 How will we account for that in our budget? Sincerely, Rhoda Fry Virus-free.www.avg.com Prepared for: CITY OF CUPERTINO Continuing Disclosure Annual Report For Fiscal Year Ended June 30, 202 3 By: URBAN FUTURES, INC. Analytics & Compliance Group C ity of Cupertino Continuing Disclosure Annual Report for the Fiscal Year Ended June 30, 202 3 Urban Futures, Inc. – Analytics & Compliance Group 2 Affected Issuance(s): $22,040,000 CITY OF CUPERTINO 2020A Certificates of Participation C ity of Cupertino Continuing Disclosure Annual Report for the Fiscal Year Ended June 30, 202 3 Urban Futures, Inc. – Analytics & Compliance Group 3 TABLE OF CONTENTS INTRODUCTION ............................................................................................................................................. 4 I. BACKGROUND ................................................................................................................................... 4 II. OBJECTIVE .......................................................................................................................................... 4 III. CUSIP NUMBERS ................................................................................................................................ 5 FINANCIAL INFORMATION & OPERATING DATA .......................................................................................... 6 I. FINANCIAL STATEMENTS ................................................................................................................... 6 II. ASSESSED VALUATION ....................................................................................................................... 6 III. TOP TEN PRINCIPAL PROPERTY TAXPAYERS ...................................................................................... 7 IV. SALES TAX REVENUES ........................................................................................................................ 8 V. SIGNIFICANT EVENTS ......................................................................................................................... 8 C ity of Cupertino Continuing Disclosure Annual Report for the Fiscal Year Ended June 30, 202 3 Urban Futures, Inc. – Analytics & Compliance Group 4 INTRODUCTION I. BACKGROUND $22,040,000 2020A Certificates of Participation On October 22, 2020, the City of Cupertino (“City”) issued its $22,040,000 2020A Certificates of Participation (“2020A Certificates”). Proceeds from the sale of the 2020A Certificates were used to: (i) provide funds to prepay the outstanding Certificates of Participation (2012 Refinancing Project); and (ii) pay the costs of issuance incurred in connection with the execution and delivery of the 2020A Certificates. Please see the Official Statement for the 2020A Certificates as provided online at Municipal Securities Rulemaking Board’s (“MSRB”) Electronic Municipal Market Access (“EMMA”) repository for further background information. Capitalized terms used but not defined herein shall have their meanings as given in the Indenture. Interest represented by the 2020A Certificates is payable semiannually on June 1 and December 1 of each year, commencing on December 1, 2020, with principal payments due on June 1. II. OBJECTIVE Pursuant to the Continuing Disclosure section of the Official Statement and Continuing Disclosure Agreement/Certificate for the Affected Issuance(s), this Annual Report is being provided by the Dissemination Agent for distribution to the MSRB’s EMMA document repository. This Annual Report has been prepared by Urban Futures, Inc., at the direction of the City. The information set forth herein has been furnished by the City and/or County, along with other sources believed to be reliable, but no representation as to the accuracy or completeness of any such information is made by the City or Urban Futures, Inc. The City and Urban Futures, Inc. make no representation that this Annual Report contains all information material to make a decision to purchase or sell bonds or any other debt obligations of the City. Any information contained herein which involves estimates, forecasts, projections, and expressions of opinion, whether or not expressly stated, is intended solely as such and is not to be construed as representations of fact by the City or Urban Futures, Inc., and no representation is made that such opinions or estimates will be realized. The information, opinions, and estimates herein are subject to change without notice. The City and Urban Futures, Inc. shall not take responsibility for any statements or information of any kind disseminated to the MSRB or EMMA or any other medium that is not disseminated by and authorized in writing by either the City or Urban Futures, Inc. C ity of Cupertino Continuing Disclosure Annual Report for the Fiscal Year Ended June 30, 202 3 Urban Futures, Inc. – Analytics & Compliance Group 5 III. CUSIP NUMBERS The CUSIP numbers below are provided for convenience of reference. City of Cupertino 2020A Certificates of Participation Maturity Date CUSIP* 6/1/2021 231210GE9 6/1/2022 231210GF9 6/1/2023 231210GG4 6/1/2024 231210GH2 6/1/2025 231210GJ8 6/1/2026 231210GK5 6/1/2027 231210GL3 6/1/2028 231210GM1 6/1/2029 231210GN9 6/1/2030 231210GP4 *CUSIP is a registered trademark of American Bankers Association. C ity of Cupertino Continuing Disclosure Annual Report for the Fiscal Year Ended June 30, 202 3 Urban Futures, Inc. – Analytics & Compliance Group 6 FINANCIAL INFORMATION & OPERATING DATA The following financial information and operating data is provided pursuant to the Continuing Disclosure section of the Official Statement and the Continuing Disclosure Agreement/Certificate. I. FINANCIAL STATEMENTS As outlined in Continuing Disclosure Agreement/Certificate, the financial statements required as part of the Annual Report for the fiscal year ended June 30, 2023, will be posted to the EMMA document repository upon availability. II. ASSESSED VALUATION The table below presents a historical summary, including the most recent Fiscal Year, of the secured and unsecured valuations, net of exemptions, for property in the City. Fiscal Year Local Secured Unsecured SBE Non- Utility Total 2015 16,133,637,244$ 965,141,148$ -$ 17,098,778,392$ 2016 18,308,720,226 1,086,786,901 - 19,395,507,127 2017 20,196,258,418 1,150,311,942 - 21,346,570,360 2018 22,024,906,420 1,114,123,426 - 23,139,029,846 2019 23,402,123,229 1,779,936,377 - 25,182,059,606 2020 24,370,718,536 1,641,863,322 - 26,012,581,858 2021 25,397,331,860 2,423,984,683 - 27,821,316,543 2022 27,083,468,890 1,723,829,174 - 28,807,298,064 2023 29,758,348,085 1,069,629,678 - 30,827,977,763 2024 31,093,380,458 1,779,123,738 - 32,872,504,196 CITY OF CUPERTINO Assessed Valuation Fiscal Year Ended June 30 Source: Santa Clara County Assessor (Urban Analytics, LLC). C ity of Cupertino Continuing Disclosure Annual Report for the Fiscal Year Ended June 30, 202 3 Urban Futures, Inc. – Analytics & Compliance Group 7 III. TOP TEN PRINCIPAL PROPERTY TAXPAYERS The table below presents a summary of the top ten principal property taxpayers in the City based on assessed valuation for the most recent and prior Fiscal Years. Property Owner FY 2024 Assessed Valuation Percent of Total (1) APPLE INC $8,435,035,247 25.66% CUPERTINO CITY CENTER 435,824,402 1.33% MAIN STREET CUPERTINO 381,524,334 1.16% VALLCO SHOPPING MALL LLC 364,276,620 1.11% MARKHAM APARTMENTS LP 256,729,104 0.78% CUPERTINO PROPERTY DEVELOPMENT LLC 215,132,010 0.65% PR CUPERTINO GATEWAY LLC 140,150,193 0.43% AVERY GLENBROOK LP 116,016,640 0.35% LAKE BILTMORE APARTMENTS 109,817,517 0.33% CUPERTINO VILLAGE LP 93,024,933 0.28% Total $10,547,531,000 32.09% CITY OF CUPERTINO Ten Principal Property Taxpayers Fiscal Year Ended June 30, 2024 (1) Total FY 2024 Assessed Valuation (secured and unsecured) net of exemptions: $32,872,504,196. Source: Santa Clara County Assessor (Urban Analytics, LLC). Property Owner FY 2023 Assessed Valuation Percent of Total (1) APPLE INC $8,888,725,321 28.83% MAIN STREET CUPERTINO 373,936,694 1.21% VALLCO SHOPPING MALL LLC 357,133,944 1.16% SWIFT RESULTS WAY LLC 352,920,000 1.14% CUPERTINO CITY CENTER 240,731,454 0.78% CUPERTINO PROPERTY DEVELOPMENT LLC 216,935,305 0.70% PR CUPERTINO GATEWAY LLC 137,402,151 0.45% AVERY GLENBROOK LP 113,723,103 0.37% MARKHAM APARTMENTS LP 109,473,477 0.36% CUPERTINO VILLAGE LP 91,710,720 0.30% Total $10,882,692,169 35.30% CITY OF CUPERTINO Ten Principal Property Taxpayers Fiscal Year Ended June 30, 2023 Source: Santa Clara County Assessor (Urban Analytics, LLC). (1) Total FY 2023 Assessed Valuation (secured and unsecured) net of exemptions: $30,827,977,763. C ity of Cupertino Continuing Disclosure Annual Report for the Fiscal Year Ended June 30, 202 3 Urban Futures, Inc. – Analytics & Compliance Group 8 IV. SALES TAX REVENUES The table below presents a five-year historical summary, including the most recent Fiscal Year, of total sales tax revenues received by the City. V. SIGNIFICANT EVENTS In compliance with the Continuing Disclosure Agreement/Certificate, material event notices are posted on MSRB’s EMMA document repository at the following web address under the “Continuing Disclosure” tab: $22,040,000 2020A Certificates of Participation https://emma.msrb.org/IssueView/Details/P1405077 Fiscal Year Total Sales Tax Revenues 2019 $24,901,779 2020 35,657,214 2021 42,581,070 2022 43,646,813 2023 34,819,341 CITY OF CUPERTINO Sales Tax Revenues Source: City of Cupertino. From:Ravi Kiran Singh To:City Council; City Clerk; City Clerk Subject:Request for Correction of Organizational Chart to Reflect Citizens of Cupertino at the Top Date:Tuesday, June 4, 2024 3:54:37 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Honorable Mayor Sheila Mohan, City Council Members, and City Manager Wu, I am writing to bring to your attention a discrepancy in the City of Cupertino's organizational charts, which currently do not consistently place the Citizens of Cupertino at the top. This omission diminishes the recognized status of citizens in the governance framework and causes confusion. I request that the City Council direct City Manager Wu to rectify this inconsistency, restoring the Citizens to the top position, as seen in other California municipal charts. This adjustment will ensure accurate reflection of our city's governance structure and spirit, emphasizing citizen centrality. Please take prompt action to update the organizational charts, reaffirming transparency, accountability, and citizen-centric governance values. Thank you for your attention to this matter. Regards, Ravi Kiran Singh Cupertino Resident From:Santosh Rao To:City Council; Pamela Wu Cc:City Clerk Subject:Subject: Request for Correction of Organizational Chart to Reflect Citizens of Cupertino at the Top Date:Tuesday, June 4, 2024 12:05:07 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Honorable Mayor Sheila Mohan, Members of the Cupertino City Council and City Manager Wu, I hope this letter finds you in the pink of health and high spirits. I am writing to bring to your attention a matter of utmost import and significance that requires your immediate consideration, prioritization and rectification. This issue pertains to the representation of the Citizens of Cupertino in the organizational structure of our city government, as depicted in the official org charts. Upon reviewing the organizational charts currently available on the City of Cupertino’s official website, I have observed a notable inconsistency that merits immediate correction. In several other municipal organizational charts across the State of California, it is customary and fitting for the Citizens to be prominently positioned at the pinnacle, reflecting their paramount role in the governance and stewardship of the community. This arrangement is not merely symbolic; it underscores the foundational principle that government exists to serve its people, and that the citizens are the ultimate authority to whom all public servants are accountable. In the documents provided on the City’s website, there appears to be a discrepancy in this regard. Specifically, the organizational chart included in the budget documents, the org chart available directly on the website, and a downloaded PDF version of the org chart all differ in their presentation and do not place the Citizens of Cupertino at the apex. The citizens of Cupertino are entirely ABSENT in the org chart. We the people of Cupertino have been eliminated from the city org chart. This omission not only causes confusion but more importantly diminishes the recognized status of Cupertino citizens and voters in the governance framework of our city. Therefore, I earnestly request that the City Council direct City Manager Wu to address and rectify this discrepancy with urgency. The Citizens of Cupertino should be restored to the top position of the organizational chart, as illustrated in the third attachment, aligning with the standard practice observed in other cities within our state. This adjustment will ensure that our organizational charts accurately reflect the true structure and spirit of our city’s governance, emphasizing the centrality of the Citizens in all municipal affairs. In conclusion, I urge you to consider this matter with the seriousness it warrants and take the necessary steps to update the organizational charts to reflect the rightful position of the Citizens of Cupertino. Your attention to and action on this issue will greatly contribute to reaffirming the values of transparency, accountability, and citizen-centric governance that we all hold dear. Further, I urge you to inform the public how this came about Was this change made with the Mayor’s direction. Was this change made upon council direction. Was this change made upon direction from city manager or another city staff member. Please investigate the root cause of what led to the removal of we the people of Cupertino from the city org chart. We look forward to hearing your findings. Please agendaize this topic on council agenda so the people may hear your findings and whether council members directed the city to eliminate the people of Cupertino from the org chart. Thank you for your time and consideration. I look forward to your prompt action and the appropriate amendments to the organizational charts. Thank you for your service to the city. Sincerely, Santosh Rao Cupertino resident