101-Staff Report.pdf ADMINISTRATIVE SERVICES DEPARTMENT
CITY HALL
10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3227 www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting: February 7, 2012
Mid-Year budget adjustment
Subject
Approve mid-year budget adjustment
Recommended Action
Increase General Fund revenue and expenditure budgets by $271,240 as follows:
Description
Revenue Increases and (Decreases)
Sales Tax $412,240
Vehicle license fees (240,000)
Senior Center trip sales 75,000
Senior Center class sales 14,000
Blackberry Farm Park concession sales 10,000
TOTAL REVENUES
$271,240
Expenditure Increases
Everbridge (3N) emergency notification system $12,000
November 2011 election costs 70,000
Volunteer services management software 10,240
Personnel litigation 70,000
City Attorney staffing 10,000
Senior Center cost of trips 75,000
Senior Center cost of classes 14,000
Blackberry Farm Park concession supplies 10,000
TOTAL EXPENDITURES
$271,240
Revenue Increases - $271,240
Discussion
The City sees strong sales tax growth for 2011-12. Recreation revenues from Senior Center
programs and Blackberry Farm Park concessions are also coming in better than projected.
However, the State has permanently taken away motor vehicle license fees from cities and
instead will use it to fund law enforcement grants, such as Citizens Option for Public Safety, that
the State previously funded out of its general fund. While Cupertino will still get its annual
$100,000 COPS grant for the school resource officer, the City has lost $240,000 per year in
vehicle license fees that were used for general purposes. This year sales tax growth is sufficient
to offset this loss.
Expenditure Increases - $271,240 total
Everbridge emergency notification system - $12,000
In July of 2011, the County of Santa Clara implemented new fees associated with use of its
emergency notification system known as AlertSCC. In addition, the County's agreement with its
existing notification provider expires in 18 months. Alternatives have been sought to cost-
effectively augment the County system. The Public Safety and TIC Commissions both agreed
that the Everbridge system would be an essential tool for communicating with our residents,
businesses, staff and volunteers.
November 2011 election costs - $70,000
Costs of $244,000, including Measure C, were $70,000 higher than budgeted. Variables such as
whether a ballot measure would be included or the size of the ballot in other county jurisdictions
can affect the cost. Finance also underestimated the expense.
Volunteer services management software - $10,240
In order to improve coordination and deployment of volunteers on a City-wide basis for
emergencies and normal City services, a software package is available that can manage up to
3,000 volunteers.
Personnel litigation - $70,000
Legal and settlement costs for personnel matters have been higher than budgeted.
City Attorney staffing - $10,000
As allowed by contract, a one-time merit and evaluation-based payment of $5,000 to the City
Attorney is presented for Council consideration. In addition, a $5,000 budget increase to cover
temporary staff during the legal assistant’s absence is requested.
Senior Center cost of trips - $75,000
Senior Center cost of classes - $14,000
With revenue growth from the senior travel program and recreational classes, the associated cost
of providing the services is also increased. Costs are for contract instructors and travel packages.
Blackberry Farm Park concession supplies - $10,000
This year the City assumed the operation of the Blackberry Farm concession stand. Revenues
and expenses are both higher than expected.
Fiscal Impact
Approving all revenue and expenditure increase recommendations maintains a balanced General
Fund budget for 2011-12. _____________________________________
Prepared by: David Woo, Finance Director
Reviewed by: Carol A. Atwood, Director of Administrative Services
Approved for Submission by: David W. Knapp, City Manager