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Budget 2017-2018City of Cupertino, California • www.cupertino.org 2017 –2018ADOPTED BUDGET — FISCAL YEAR 2017–2018 Table of Contents i Organizational Chart ................................................................................................................................ 1 Directory of City Officials ....................................................................................................................... 2 Commissions and Committees ............................................................................................................... 3 Distinguished Budget Award ................................................................................................................. 4 Operating Budget Excellence Award .................................................................................................... 5 Resolutions ................................................................................................................................................. 6 Budget Message ....................................................................................................................................... 13 Budget Guide ............................................................................................................................................... Mission Statement ............................................................................................................................ 33 Elements of the Budget Document ................................................................................................ 34 Glossary of Budget Terminology ................................................................................................... 36 Commonly Used Acronyms ........................................................................................................... 39 What is the Revenue /Expenditure Schedule ............................................................................... 40 Community Profile ..................................................................................................................................... History ............................................................................................................................................... 41 2017 Community Economic Profile ............................................................................................... 42 2017 City Profile ............................................................................................................................... 44 Education .......................................................................................................................................... 46 Programs and Applications……………………………………………………………………….47 Community Statistics ....................................................................................................................... 50 Community Recreation Services .................................................................................................... 52 Things to do and See ....................................................................................................................... 53 Financial Policies and Schedules ............................................................................................................. Annual Budget Process ................................................................................................................... 55 Structure of City Finances ............................................................................................................... 56 Fund Structure .................................................................................................................................. 58 Fiscal Policies .................................................................................................................................... 62 Debt Limit ......................................................................................................................................... 72 Financial Overview by Fund .......................................................................................................... 77 Flow of Fund Chart (Sankey) ......................................................................................................... 78 General Fund Contribution Schedule ........................................................................................... 79 Fund Balance Report ....................................................................................................................... 83 Table of Contents ii Financial Policies and Schedules (Continued) ...................................................................................... General Fund Summary .................................................................................................................. 84 All Funds Summary ....................................................................................................................... 115 Five Year Budget Forecast .......................................................................................................................... Five Year Budget Forecast ............................................................................................................ 123 Departmental Operating Budgets ............................................................................................................ COUNCILS AND COMMISSIONS .............................................................................................. 145 City Council City Council ............................................................................................................................... 149 Community Funding ................................................................................................................ 151 Sister Cities ................................................................................................................................. 154 Commissions Technology, Information & Communications Commission ............................................... 156 Library Commission ................................................................................................................. 158 Fine Arts Commission .............................................................................................................. 161 Public Safety Commission ....................................................................................................... 164 Bicycle and Pedestrian Commission ...................................................................................... 166 Parks and Recreation Commission ......................................................................................... 168 Teen Commission ...................................................................................................................... 170 Planning Commission .............................................................................................................. 172 Housing Commission ............................................................................................................... 175 Sustainability Commission………………………………………………………………..….177 ADMINISTRATION ........................................................................................................................ 181 City Manager City Manager ............................................................................................................................. 188 Sustainability ............................................................................................................................. 190 Economic Development (moved to Community Development) ....................................... 194 Public Affairs ............................................................................................................................. 196 City Clerk City Clerk ................................................................................................................................... 198 Duplicating and Mail Services ................................................................................................ 200 Elections ..................................................................................................................................... 202 Table of Contents iii ADMINISTRATION (Continued) ....................................................................................................... City Manager Discretionary Fund City Manager – Discretionary Fund ....................................................................................... 204 City Attorney City Attorney ............................................................................................................................. 206 LAW ENFORCEMENT .................................................................................................................... 209 Law Enforcement Law Enforcement ...................................................................................................................... 214 Interoperability Interoperability Project ............................................................................................................. 216 Code Enforcement Code Enforcement .................................................................................................................... 218 INNOVATION AND TECHNOLOGY (Formally Public Affairs) .......................................... 221 Innovation & Technology (Formerly Information Services) Information Services Administration ..................................................................................... 226 Innovation & Technology Administration ............................................................................ 228 Cupertino Scene ........................................................................................................................ 231 Video (Formerly Government Channel) Video .......................................................................................................................................... 233 Public Access Support .............................................................................................................. 236 Applications (Formerly City Website) Applications .............................................................................................................................. 238 Infrastructure (Formerly IT) Infrastructure ............................................................................................................................ 241 GIS GIS ............................................................................................................................................... 244 Citywide – Non Departmental Network Upgrade (Formerly Equipment Acquisition) ....................................................... 247 ADMINISTRATIVE SERVICES .................................................................................................... 249 Administration Administration .......................................................................................................................... 254 Table of Contents iv ADMINISTRATIVE SERVICES (Continued) ................................................................................... Finance Accounting ................................................................................................................................. 256 Business Licensing .................................................................................................................... 258 Human Resources Human Resources ..................................................................................................................... 260 Retiree Medical .......................................................................................................................... 263 Insurance Administration ........................................................................................................ 265 Workers’ Compensation Insurance ........................................................................................ 267 Long Term Disability ................................................................................................................ 269 Compensated Absences ........................................................................................................... 271 RECREATION AND COMMUNITY SERVICES ....................................................................... 273 Recreation and Community Services Leadership 95014 ....................................................................................................................... 279 Recreation Administration ...................................................................................................... 281 Park Planning and Restoration ............................................................................................... 283 Library Services ......................................................................................................................... 285 Business and Community Services Administration .......................................................................................................................... 287 Blackberry Farm Picnic Area ................................................................................................... 290 Community Hall Operations ................................................................................................... 292 Cultural Events .......................................................................................................................... 294 Quinlan Community Center Operations ............................................................................... 298 Facilities ...................................................................................................................................... 300 Community Outreach & Neighborhood Watch ................................................................... 302 Recreation and Education Administration ......................................................................................................................... 305 Youth Program ......................................................................................................................... 307 Teen Program ........................................................................................................................... 309 Teen Center ................................................................................................................................ 311 Park Facilities ............................................................................................................................. 313 Youth Teen Recreation ............................................................................................................ 315 Youth, Teen and Senior Adult Recreation ............................................................................ 317 Table of Contents v RECREATION AND COMMUNITY SERVICES (Continued) ...................................................... Sports, Safety and Outdoor Recreation Park Facilities ............................................................................................................................ 320 Administration ......................................................................................................................... 323 Blackberry Farm Golf Course ................................................................................................. 325 Creekside Park Youth Sport ................................................................................................... 327 Outdoor Recreation ................................................................................................................. 329 Sports Center Operations ........................................................................................................ 331 Disaster Preparedness ............................................................................................................. 333 Monta Vista Recreation Center .............................................................................................. 336 Senior Programs Senior Programs ........................................................................................................................ 338 Youth, Teen, and Senior Adult Recreation ........................................................................... 340 Senior Adult Recreation .......................................................................................................... 342 Facilities ..................................................................................................................................... 344 Community Services Community Outreach & Neighborhood Watch .................................................................. 346 Emergency/Disaster Preparedness ........................................................................................ 348 Neighborhood Watch .............................................................................................................. 350 Library Services ........................................................................................................................ 352 PLANNING & COMMUNITY DEVELOPMENT ...................................................................... 355 Administration Planning Administration ......................................................................................................... 360 Planning/Economic Development Current Planning ....................................................................................................................... 362 Mid and Long Term Planning ................................................................................................. 364 Annexations .............................................................................................................................. 366 Economic Development .......................................................................................................... 368 Housing Services Community Development Block Grant (CDBG) Administration ..................................... 371 Affordable Housing ................................................................................................................. 373 Public Service Grants ............................................................................................................... 375 BMR Housing ........................................................................................................................... 377 Human Services Grants ........................................................................................................... 380 Table of Contents vi PLANNING & COMMUNITY DEVELOPMENT (Continued) ...................................................... Building General Building ...................................................................................................................... 382 Building Plan Review .............................................................................................................. 384 Building Code Enforcement ................................................................................................... 386 Muni Code Enforcement ......................................................................................................... 389 PUBLIC WORKS ............................................................................................................................... 391 Administration Public Works Administration ................................................................................................. 399 Environmental Programs Resource Recovery .................................................................................................................... 402 Non-Point Source ..................................................................................................................... 405 Development Services Plan Review ............................................................................................................................... 408 CIP Administration ................................................................................................................... 411 Service Center Administration .......................................................................................................................... 413 Grounds McClellan Ranch Park .............................................................................................................. 416 Memorial Park .......................................................................................................................... 419 School Site Maintenance ......................................................................................................... 422 Neighborhood Parks ................................................................................................................ 425 Sports Field Jollyman, Creekside ........................................................................................... 428 Civic Center Maintenance ....................................................................................................... 431 Streets Storm Drain Maintenance ........................................................................................................ 434 Sidewalk Curb and Gutter ...................................................................................................... 436 Street Pavement Maintenance ................................................................................................ 438 Street Sign Markings .............................................................................................................. 441 Street Lighting .......................................................................................................................... 444 Equipment Maintenance ......................................................................................................... 447 Trees and Right of Way Overpasses and Medians ........................................................................................................ 450 Table of Contents vii PUBLIC WORKS (Continued) ............................................................................................................... Street Tree Maintenance .......................................................................................................... 452 Weekend Work Program ........................................................................................................ 455 Facilities and Fleet City Hall ..................................................................................................................................... 457 Library ........................................................................................................................................ 460 Service Center ........................................................................................................................... 463 Quinlan Community Center ................................................................................................... 466 Senior Center ............................................................................................................................ 469 McClellan Ranch ...................................................................................................................... 472 Monta Vista Community Center ............................................................................................. 475 Wilson Park ............................................................................................................................... 478 Portal Park ................................................................................................................................. 481 Cupertino Sports Center ......................................................................................................... 484 Creekside Park ........................................................................................................................... 487 Community Hall ...................................................................................................................... 490 Teen Center ................................................................................................................................ 493 Park Bathrooms ........................................................................................................................ 496 Blackberry Farm Facilities Maintenance ............................................................................... 499 Environmental Materials ........................................................................................................ 502 Transportation Franco Traffic Operations Center .......................................................................................... 504 Traffic Engineering .................................................................................................................. 506 Traffic Signal and Maintenance ............................................................................................. 509 Safe Routes 2 School ................................................................................................................ 511 Citywide – Non Departmental Minor Storm Drain Improvement ………………………………………………………...…513 Fixed Assets Acquisition .......................................................................................................... 515 NON DEPARTMENTAL OPERATING BUDGETS .................................................................. 519 Transfers Out Transfers Out ............................................................................................................................. 522 Debt Service Public Facilities Corporation ................................................................................................... 525 Employee Housing Assistance Employee Housing Assistance ................................................................................................ 528 Table of Contents viii PERSONNEL SCHEDULES ............................................................................................................ 531 CAPITAL IMPROVEMENT PROGRAM .................................................................................... 533 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 1 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2017-18 CITY COUNCIL DIRECTORY OF CITY OFFICIALS David Brandt – City Manager Aarti Shrivastava – Assistant City Manager/Director of Community Development Randolph Stevenson Hom – City Attorney Kristina Alfaro – Director of Administrative Services Bill Mitchell – Chief Technology Officer Timm Borden – Director of Public Works Jeff Milkes – Director of Recreation and Community Services Rod Sinks Council member Barry Chang Council member Steven Scharf Council member Savita Vaidhyanathan Mayor Darcy Paul Vice Mayor 2 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2017-18 COMMISSIONS AND COMMITTEES AUDIT COMMITTEE LIBRARY COMMISSION Peter Shin Rose Grymes Eno Schmidt Liana Crabtree Steven Scharf Gopal Kumarappan Rod Sinks Amanda Wo Mark Zavislak Christie Wang HOUSING COMMISSION PLANNING COMMISSION Sue Bose Geoffrey Paulsen Shirley Chu Jerry Liu Nina Daruwalla David Fung Sanjiv Kapil Don Sun John Zhao Alan Takahashi FINE ARTS COMMISSION BICYCLE PEDESTRIAN COMMISSION Janki Chokshi Gerhard Eschelbeck Wenjia Chen Jennifer Shearin Rajeswari Mahalingam Peter Heller Diana Matley Sean Lyn Michael Sanchez Erik Lindskog PUBLIC SAFETY COMMISSION TEEN COMMISSION Neha Sahai Grace Huang Shivani Sahni Hymanand Nellore Ankita Sahni Sidharth Rajaram Robert McCoy Meesha Reiisieh Christina Lau Gerald Tallinger Anooj Vadodkar Andy Huang SUSTAINABILITY COMMISSION ECONOMIC DEVELOPMENT Angela Chen Meera Ramanathan Darcy Paul Angela Tsui Gary Latshaw Anna Weber Timm Borden Rich Abdalah Vignesh Swminathan Savita Vaidhyanathan David Brandt Aarti Shrivastava Anjali Kausar FISCAL STRATEGIC COMMITTEE Kevin McClelland Mike Rohde Kristina Alfaro Aarti Shrivastava Jason Lundegaard Rod Sinks Darcy Paul Geoffrey Paulsen Timm Borden Lisa Taitano TECHNOLOGY, INFORMATION & PARKS AND RECREATION COMMISSION COMMUNICATIONS COMMISSION Meenakshi Biyani Helen Davis Rajaram Soundararajam Rod Livingood Carol Stanek Neesha Tambe Keita Broadwater Arnold de Leon Judy Wilson Vaishali Deshpande 3 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Pres en ta tion Award PRESENTED TO City of Cupertino California For the Fiscal Year Beginning July 1, 2016 Executive Director 4 California Society of Municipal Finance Officers Certificate of Award Operating Budget Excellence Award Fiscal Year 2016-2017 Presented to the City of Cupertino For meeting the criteria established to achieve the Operating Budget Excellence Award. January 31, 2017 John Adams Craig Boyer, Chair CSMFO President Professional Standards and Recognition Committee Dedicated Excellence in Municipal Financial Reporting 5 RESOLUTION NO. 17-053 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING A PORTION OF THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2017-18 RELATED TO PASS-THROUGH REVENUES FOR THE APPLE CAMPUS 2 PROJECT 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 his 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; and WHEREAS, a portion of the Public Works Department budget for fiscal year 2017-18 budget involves "pass-through" revenues paid to the City to cover the costs for various consultants needed on the Apple Campus 2 project, which have been included in the budget to provide transparency and accountability. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the following: Section 1: That portion of the Public Works Department's budget for fiscal year 2017-18 reflecting pass-through revenues paid to the City to cover consultant and expert costs associated with the Apple Campus 2 project, as .shown in more detail on Attachment Al, attached and incorporated by reference. 6 7 8 9 10 11 12 Budget Message June 20, 2017 To the Residents of Cupertino, Honorable Mayor and Members of the City Council: I am pleased to submit a balanced FY 2018 Adopted Budget. Cupertino prides itself on being a financially stable organization, which helped the City avoid severe service level reductions and layoffs during the last economic downturn. The City has been fortunate that revenues have outpaced expenditures for the last several years. However, cities in California are expecting a 7- year ramp up of CalPERS retirement rates due to the reduction in the expected investment rate of return from 7.5% to 7%, which will increase personnel costs significantly over the forecast period. With healthy reserves and projected surpluses in all five years of the forecast period, the City is well positioned to manage these rapidly increasing costs. The City’s strong incoming financial position notwithstanding, this significant new and permanent liability warrants a response. Consequently, I propose increasing our CalPERS Retirement reserve from $500,000 to $4.8 million in FY 2018. Over the next several months, staff will be exploring the efficacy of transferring part or all of this reserve into a trust account similar to the one we created to fund the City’s OPEB liability. Based on 10-year projections, this approach will allow the City to weather the significant increases to employer retirement rates and minimize their impacts on City operations. Reflected in this budget are increases in salary and benefit costs resulting from three-year bargaining unit contract agreements approved by Council in October 2016. I am pleased that Cupertino employees are compensated well above median for our region allowing us to retain and attract talent. Other budget resources are proposed for maintaining existing service levels and infrastructure with few service level enhancements. The focus for next fiscal year will be on better utilizing existing resources to maximize efficiency in delivering services to our residents. I am recommending strategic investments in the areas of transportation, emergency preparedness, senior recreation services, and Council staff support. A total of 4.0 new positions were requested and approved by Council in this budget to help the City meet demands for enhanced services. However, these positions will be limited-term in order to minimize long- term impacts on the City’s fiscal health. I am also recommending a one-year extension of a limited-term position that supports our sustainability programs. Finally, Staff is recommending 13 additional funds for contractual services in the Administrative Services Department to assist in modernizing policies and internal processes that have languished for many years. Two new funding sources will assist with our investment in transportation maintenance and improvements. Measure B, a voter-approved county-wide transportation tax will result in approximately $1.3 million additional revenue for local street and road maintenance. The Road Repair and Accountability Act of 2017 (SB1, Beall) signed by Governor Brown in March will provide an additional $336,000 in FY 2018 for pavement maintenance, which will increase to $1.3 million annually by FY 2020. Over the past four years, the City’s investment in pavement maintenance has brought the City’s pavement condition index from 64 (fair) in 2012 up to an improving 78 (good) today. As a city’s index nears 80, more money is spent on preservation rather than rehabilitation, and consequently, maintenance costs are lower and require less effort. Public Works staff is deservedly proud of this remarkable accomplishment and the new Measure B and SB1 will help Cupertino meet and exceed its goal of an 80 pavement condition index. The 2016 fiscal year saw significant development in the City of Cupertino. Projects included a variety of retail, residential, mixed-use and office. In 2017, we expect a drop in the level of large projects and a sustained level or a slight decrease in smaller commercial and residential projects. Below is a list of some of the major projects that have either been recently approved and/or are in the construction stage. These projects contribute to the smart and diverse growth of the city, contribute significantly to the growth in City financial resources, and provide a much desired identity for the community: • Apple Park. Construction has been progressing with an estimated goal of occupancy from Spring 2017 through the end of the year. The project includes an approximately 3.4 million square feet of office and labs for research and development as well as a 1,000 seat theater and supporting facilities. The completion of this project is expected to focus more global interest in the city, and foster economic development by attracting businesses and supporting services. • Main Street. Construction for the retail portion was completed with the majority of the spaces occupied. The office and flex space (which houses small businesses) are 100% occupied. The Grand Opening of the plaza was held on September 17, 2016. Community based events such as tree lighting and holiday music and dance have been planned and held at the plaza. Main Street provides a gathering place for residents and a place to host community events. Other uses that are to come in the upcoming year include a 180- room Marriot Courtyard hotel, 120 apartments and a 0.5-acre public park in addition to the already built Town Square. 14 • Hamptons. In July 2016, the City Council approved the redevelopment for the Hamptons Project located near the Apple Park. The site was identified as a “Priority Housing Element Site” in the Housing Element, proposes to replace the existing 342 apartments with a total of 942 apartments. Community benefits include $7 million towards the Civic Center, an additional $7 million for the I-280/Wolfe Road interchange, extension of a recycled water line to the project, and will share the cost toward the establishment and operation of Transportation Demand Association that may fund community shuttles. The project would also add 37 Below Market-rate (BMR) units for a total of 71 affordable units. The project will also pay impact fees for parks, schools and traffic improvements. • Marina Plaza. In September 2016, the City Council approved the Marina Plaza project which was also identified as a “Priority Housing Site” in the Housing Element. The project replaces the existing Marina Shopping Center and Mandarin Gourmet restaurant with 23,000 square feet of new retail and restaurant uses and provides an opportunity to relocate some existing businesses as well as a small market, a new 122-room hotel along De Anza Boulevard, and 188 residential units that include 18 affordable below-market rate units. The project will increase the affordable housing stock in the city and provide a new hotel, which will bring in much needed services and revenue. • Target. On September 27, 2016, the Planning Commission approved an application from Target to remodel the existing store at 20745 Stevens Creek Boulevard. The project maintains the existing building footprint but has a redesigned interior to adapt to new consumer trends and a new curbside pickup area on the west side of the building. Project goals also include adding sustainability features such as solar canopies, living walls (greenery), and drought-tolerant planting, accentuating the pedestrian link to the entry plaza. The project has been put on hold for a year and is expected to begin in January 2018. When the construction is completed, the Cupertino Target store will be one of the first new corporate stores in the country to be designed with these features, bringing economic viability and visibility to the city. Organizational Changes Last year, I hired the City’s first Chief Technology Officer (CTO) to lead a newly created department focused on technology services. After assessing staff skills, the CTO has renamed the department Innovation and Technology (IT) and reorganized it into five divisions: Administration, Infrastructure, Applications, GIS, and Video. The Communication program was split into the Video program, which comprises the technical audio-visual side of communications, and Public Affairs. Public Affairs has moved into the City Manager’s Office and is focused on community engagement, outreach, marketing, and branding. IT application and hardware budgets will be centralized and managed by IT. Overall, this change has 15 improved IT customer service, as reflected in our recent internal customer satisfaction surveys, with departments feeling more supported in making technology investments. Organizational Accomplishments & Highlights The City is proud of its reputation as a green city. To further its sustainability goals, the following service level enhancements were implemented in FY 2017: Community Choice Energy Last year, the City partnered with the cities of Sunnyvale, Mountain View, the County and with eight other Santa Clara communities to form the Silicon Valley Clean Energy Authority (SVCEA) and operate the region’s first Community Choice Aggregation program. As of April 1, 2017, SVCEA is directly procuring renewable and low greenhouse gas (GHG) emitting electrical power supplies on behalf of the residents and businesses in Santa Clara County. While electric supply is handled by SVCEA, the electricity grid and customer service remain with PG&E. Service to residential customers is being phased in April-October 2017. To see the latest on SVCEA, visit www.svcleanenergy.org. Drought and Storm Response The beginning of the year was a peak for the multi-year State-wide drought emergency. Water conservation was a priority City-wide. Municipal facilities achieved an overall water savings of 35% as compared to 2013. These savings exceeded local area goals and resulted in the conservation of over 47.8 million gallons. Ironically, the very rains that ended the drought emergency were the cause for the State and Federal flood disaster emergencies in Santa Clara County. Fortunately, incidences of flooding and other damage were very light in Cupertino. This is attributed to good preparation, experienced staff and well-maintained infrastructure. Minimum Wage Per Council direction, staff worked with the Cities Association of Santa Clara County on a regional Minimum Wage Ordinance to increase the minimum wage to $15/hour by 2019. In addition to helping craft the ordinance, staff made significant efforts to obtain feedback from business stakeholders through an employer survey, several presentations at Chamber of Commerce Legislative Action Committee, three business outreach meetings, and an online community poll. After Council adopted Ordinance No. 16-2151 establishing a citywide minimum wage on October 4, 2016, staff continued its outreach to ensure compliance with the January 1, 2017 increase to $12/hour. Notices and postcards were sent out to every business license holder in the City and residents were informed of potential price increases. To date, the City has not received any complaints related to compliance. For more information, visit www.cupertino.org/wagewatch. 16 Beekeeping Ordinance In order to address an alarming reduction of bees in the United States, the City Council joined many other cities and towns in the country to approve an amendment to the city’s current Beekeeping Ordinance that had previously prohibited beekeeping within the majority of the city’s 13 square miles. The amendment provides more reasonable and flexible regulations to support and encourage urban beekeeping. Community Development Department collaborated with Cupertino’s Rolling Hills 4-H team to develop regulations for the ordinance. The Ordinance became effective on January 6, 2017. Cupertino Scene The City is improving its communication tools to better engage with the public. In February, the Public Affairs team gave the Cupertino Scene a new look. The reimagined Scene is larger, has brighter colors, features more articles, and includes a Q&A section for frequently asked questions. The feedback has been very positive. Implementation of 2016 Bicycle Transportation Plan Following up on recommendations contained within the 2016 Bicycle Transportation Plan, a study of conceptual designs is underway for protected bike lanes on Stevens Creek Boulevard and McClellan Road, as well as for a network of bicycle boulevards on local streets throughout the City. Implementation of these improvements is anticipated to begin in summer, 2017. Also, a Request for Proposals has also been initiated for two major trail projects identified in the plan. Pavement Management This year, the city’s street pavement asset hit a new milestone. The measurement index in which pavement condition is rated advanced from a network value of 70 out of 100 to a value of 78. The value of this is that pavement conditions are becoming very good and the future cost to maintain the network will become less. Also important is that this good condition results in less wear and tear on vehicles, and much better surfaces for biking and walking. Safe Routes to School Now expanded from the initial six-school pilot program to include all fourteen public schools, the Safe Routes to School (SR2S) program has continued to grow its influence among the public school community within Cupertino. Just a few of the many accomplishments include: •Creating a library of educational materials to encourage the use of alternate modes of transportation to schools and to enhance safety for all roadway users; •Scheduled walk audits at every Cupertino school to identify areas of improvement; •Scheduled and coordinated bike rodeos at middle and elementary schools; •Incorporated bike safety education at 6th-grade assemblies in CUSD; 17 • Oversight of the City’s crossing guard and bike fleet programs; and • Travel mode data collection at all schools to monitor overall success of program In addition, the SR2S Program is actively seeking to identify Parent Champions at each school to advocate locally within their school community, and efforts are underway to expand in-class education to every 3rd, 5th and 6th grade student in Cupertino, a key overall goal of the Program. Below Market Rate (BMR) Manual Staff updated the Policy & Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual), which was adopted by Council on September 20, 2016. The BMR Manual establishes guidelines and procedures for the on-going administration of affordable units. The amendments improve transparency by making the procedures more accessible and clear. The City has received over 700 applications for placement on the BMR Eligibility List for ownership and rental, which is a record high for Cupertino. While the demand for such units severely outstrips supply, the City continues to work with developers to increase affordable units in their housing projects. Citywide Parks and Recreation System Master Plan The Citywide Parks and Recreation System Master Plan is underway. A new consultant agreement was approved by the City Council in January 2017 with MIG. Work has resumed on the Plan, with on-site tours and interviews conducted in March and April 2017. A stakeholder group will be formed in the coming months. The project is progressing well and expected to be completed in 2018. Stevens Creek Corridor Park Rangers Shifting the City’s Park Rangers from a contract service to in-house City employees has proved to be very beneficial for the Stevens Creek Corridor. The Rangers, hired summer 2016, have become a welcome presence in the Corridor, providing a higher level of safety, security, and customer service. The Rangers monitor and patrol the Corridor, work with the City Naturalist on habitat restoration, and engage and educate visitors and volunteers on a variety of topics including corridor restoration efforts, natural history, wildlife sightings, and leash laws. Technology Services The City has been leveraging software to increase efficiency and transparency, including: • CityWorks expansion of GIS asset management to additional Public Works divisions and replacement of MapGuide with updated property information application to improve internal and community access to data. 18 • OpenGov budgeting module and in house Collective Budgeting tool to assist with budget development. • NeoGov recruiting and onboarding software to assist HR. Labor Negotiations The City successfully negotiated three-year labor agreements with its bargaining groups, highlights include: o Cost of living adjustments (3.5% Year 1, 3.25% Year 2, and 2.5% Year 3); o Employees fully funding the employee contribution of retirement by July 2017 (Tier 1 – 8%, Tier 2 – 7%, Tier 3 – 6.25%); o Increased health coverage contributions to $810 for family coverage the equivalent of 85% of the Kaiser Plan with 5% increases in January 2018 and January 2019; o Fully covering dental costs and moving all groups to the same $2,500 benefit plan; and o Adding short-term disability for employees not covered under the State Plan. Capital Improvement Projects Completed At the end of fiscal year 2017, ten CIP projects will have been completed, including: • Blacksmith Shop Forge Restoration • Quinlan Community Center Fire Alarm Control Panel Replacement • City Hall Turf Reduction • De Anza Boulevard Monument Sign • Pasadena Avenue Public Improvements • Sidewalk Renovation on Stevens Creek Boulevard • Resurfacing of tennis courts at the Sport Center and at Memorial Park In addition, the Pedestrian Master Plan and the New Service Center Administration Building Feasibility Study were completed. Major progress milestones were achieved on many other projects, with most of these projects expected to be complete by the end of the calendar year. ADOPTED BUDGET OVERVIEW The Adopted Budget reflects a total City budget of $148.9 million, an increase of $15.6 million or 12% when compared to the FY 2017 Adopted Budget. The City’s General Fund is at $75.1 million, a decrease of $2.2 million or 3% from the FY 2017 Adopted Budget. The General Fund is balanced through the use of General Fund revenue of $80 million and is projected to end FY 2018 with approximately $6.9 million in unassigned fund balance that may be transferred to the 19 Capital Reserve per the Reserve and One Time Use Policy as part of the City’s year-end process. The transfer is not reflected in the Adopted Budget. As shown in the chart below, the Adopted Budget is largely funded by the General Fund (50%): Fund Type Total Adopted Budget Expenditures Total Adopted Budget Revenue 1x Funding Net Balance General $75,051,233 $79,995,647 $2,000,000 $4,944,414 Special Revenue $24,872,591 $16,494,812 $12,772,122 ($8,377,779) Debt Service $3,167,538 $3,167,538 $3,167,538 $0 Capital Projects $23,509,762 $8,325,762 $8,325,762 ($15,184,000) Enterprise $10,576,992 $7,884,000 $400,000 ($2,692,992) Internal Service $11,690,063 $9,824,569 $5,657,077 ($1,865,494) Total 148,868,179 125,692,328 32,322,499 (23,175,851) General 75,051,233 50% Special Revenue 24,872,591 17% Debt Service 3,167,538 2% Capital Projects 23,509,762 16% Enterprise 10,576,992 7% Internal Service 11,690,063 8% FY 2017-18 Adopted Budget by Fund 20 The graph below summarizes the changes in the City’s General Fund for an eight-year period: A total of 197.75 positions are budgeted in FY 2018 including 4.0 new limited-term positions to: (1)improve the City’s disaster preparedness program by filling the void left by the departure of the County Fire District’s Emergency Services Coordinator 5 years ago; (2) continue investing in sustainability; (3) provide better service to Council (Executive Assistant); (4) improve Senior Center operations and (5) enhance City’s transportation planning needs (Senior Planner). Current Authorized Positions 193.75 FY 2018 Adopted Budget Emergency Services Coordinator (3 Year Limited Term) 1.00 Environmental Program Specialist (Extend 1 Year) 0.00 Executive Assistant (with conversion of an existing position to 3 Year Limited Term) 1.00 Recreation Coordinator (3 Year Limited Term) 1.00 Senior Planner -Transportation (3 Year Limited Term) 1.00 Total FY 2018 Benefitted Positions 1 197.75 1 Does not include City Council Members FY10 Actuals FY11 Actuals FY12 Actuals FY13 Actuals FY14 Actuals FY15 Actuals FY16 Actuals FY17 Final Budget FY18 Adopted Budget One-Time Special Projects $0.4 $0.4 $0.4 $0.8 $5.7 $7.0 $9.7 $5.8 $2.8 General Fund Transfers Out $9.4 $7.0 $6.4 $8.2 $22.9 $39.2 $13.2 $13.0 $15.8 General Fund Expenditures $32.6 $33.3 $34.4 $35.7 $35.8 $40.0 $42.2 $58.5 $56.5 General Fund Revenue $36.1 $44.6 $47.6 $54.7 $73.9 $83.5 $77.9 $79.0 $80.0 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 In MillionsGeneral Fund Revenues Expenditures and Transfers Out 21 As in the past, we continue to recommend adding positions only on a limited term basis unless, we are confident that the needed level of service will be permanent, our ongoing revenues can support the position long-term, or we cannot recruit and/or retain the staff resource on a limited term basis. Staff believe that none of these conditions exist to support permanent staff additions at this time. Changes to the Budget and Policies The FY 2018 budget document and process are very similar to those of the past few years. Below are a few highlights from the budget and process: City Sponsorship of Festivals In January 2017, the Recreation & Community Service Department introduced a new Special Event Application and Information Packet for Community and Cultural Festivals at Memorial Park, which outlines event requirements to assist event producers in planning successful events at Memorial Park, including a clearly defined process, how to submit the annual application, an event evaluation, and detailed planning requirements in one place for easy reference. All existing festival producers submitted complete applications in February 2017, which covered the period July 2017-June 2018. Having each event’s facility, park, street closure, and City service requests in advance, including proposed days and times of use, allows staff to more accurately calculate the full City costs to support each festival. In FY 2018, a total of $116,310 is budgeted to cover the cost of 11 festivals as detailed in the Recreation and Community Service’s Cultural Events program. Festival producers are requesting that City Council waive fees associated with these festivals. In addition, the Department will propose Memorial Park festival permit fees in the FY 2017-2018 fee resolution. Revised Fees and Cost Allocation Plan (CAP) Large shifts in the category of cost allocation changes are found almost across the board in this year’s Adopted Budget. These shifts are primarily due to changes in methodology. The City attempted to capture the full cost of providing services to the community in the 2017 CAP and also captured the full cost of providing internal services such as management oversight from City Manager’s Office, legal services, and grounds maintenance within the same fund. Fully allocating internal service costs to internal service divisions within the General Fund required significant staff time and proved to be of little value. The City has revised the model in FY 2018, as recommended by Matrix Consulting, to align with standard industry practice. In addition, the current fiscal year charges were trued up using actual expenditures. In the prior year, budgeted appropriations were used. Both changes resulted in decreased cost allocation charges citywide. Lastly, the City changed the cost spread methodology for Information Services to be on a per device basis rather than on FTEs. 22 Performance Measures In prior years, citywide performance measures have been reported by departments on a quarterly basis. However, starting in FY 2018, they will be reported bi-annually at Mid-Year and at year-end. This will allow departments more time between reports to track their progress, collect their results, and ultimately focus efforts on improving performance. Program Budget Detail at the Account Level The City’s Audit Committee recommended a format change to the City’s budget due to the success of the City’s Financial Transparency Portal. The recommendation was to remove the schedules for the Program Budget Detail at the Account Level from program budget section as this account level detail and more can be found in the portal. The City also complies with the following additional policies and limits not listed in the Financial Policy section but are updated and/or approved annually: 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 16, 2017 City Council agenda packet. GANN Appropriations Limit The City’s appropriations limit for FY 2018 is $96,028,488, $4,161,474, or 4.5% higher than the FY 2017 limit of $91,867,014. For FY 2018, the City’s estimated appropriations of proceeds from taxes, less statutory exclusions, are unchanged as of the Adopted Budget. 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. The appropriations limit is not expected to present a constraint on current or future budget deliberations. Adopted 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. As illustrated in the chart below, the majority of General Fund revenue 23 supports funding for Public Works, Planning and Community Development, and Law Enforcement. General Fund revenue is estimated at $80 million in the FY 2018 Adopted Budget (excluding fund balance). This is an overall increase of $1 million (1%) when compared to the FY 2017 Adopted Budget. Decreases in revenue are related to a one-time sales tax payment from the state to reconcile the “triple-flip” in addition to a change in the methodology for cost allocation. The local economic boom has driven strong gains in sales tax, property tax, and transient occupancy tax revenues, which have partially been offset by decreases in development-related fees and charges given the challenging political climate surrounding development in the City. The following chart shows four years of total revenue, expenditures and changes to fund balance for the General Fund: General Fund Revenue, Expenditures and Changes in Fund Balance The General Fund unassigned fund balance is projected to increase from the current year estimate of $6.6 million to $7 million in FY 2018. As shown in the chart below, the FY 2018 ending fund balance is estimated to be $45.6 million, or 12% higher than the FY 2017 year-end estimate. The increase in unassigned fund balance is due to increases in revenue sources and decreases in expenditures mostly related to salary savings, special projects and other financing uses. $(10.0) $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 FY15 ACTUALS FY16 ACTUALS FY17 ADOPTED BUDGET FY18 ADOPTED BUDGET Revenue $83.5 $77.9 $79.0 $80.0 Expenditures $86.2 $65.0 $77.2 $75.1 Net Rev-Exp $(2.7)$12.9 $1.8 $4.9In Millions24 As shown in the chart below, the majority of city resources are used to support public works (26%), non-de partmental expenses (21%), law enforcement (17%), recreation (13%), and community development (10%). Special Revenue Funds Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds account for 17% of the citywide expenditure budget. The largest Special Revenue Fund is the one for streets, roads, and transportation. Other funds account for storm drain management, affordable housing programs, and park development. The Adopted Budget for Special Revenue Classification FY 14-15 FY 15-16 FY 16-17 FY 17-18 Percent Actual Actual Estimate Proposed Change Unassigned 8,774,966$ 29,869,085$ 6,426,276$ 6,750,090$ 5% All other classifications 30,549,577$ 22,325,755$ 33,964,396$ 38,657,396$ 14% Total Fund Balance 39,324,543$ 52,194,840$ 40,390,672$ 45,407,486$ 12% GENERAL FUND BALANCE Administration 5,467,897 7%Administrative services 3,994,184 5% Community development 7,519,292 10% Council and commissions 924,637 1% Information Services 72,435 0% Law enforcement 12,344,307 17% Non departmental 15,767,734 21% Public works 19,335,776 26% Recreation services 9,624,971 13% Total Expenditures by Department -General Fund 25 Funds for FY 2018 is $24.9 million, an increase of $7.9 million from FY 2017 Adopted Budget. The increase is primarily due costs is capital projects. Budgets within the Special Revenue Funds are funded by $3.7 million in restricted department revenue, and $12.8 million transfers from the General Fund, bringing total funding sources for the fund to $16.5 million. This will result in a projected decrease to fund balance of $8.4 million. The Special Revenue Funds are projected to end the year with fund balances of $53.2 million. Capital Projects Funds The Capital Improvement Project Fund, Stevens Creek Corridor Park, and Capital Reserve 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 2018 is $23.5 million, comprised of $8.3 million in new capital projects and $15.2 million in transfers out to the Special Revenue and Enterprise funds to fund capital projects in addition to a $2 million transfer to the General fund for the CalPERS assigned reserve. The FY 2018 Adopted Budget is $8.4 million higher than FY 2017 budget expenditures based on the cost of the recommended capital projects. 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 2018 is $10.6 million, an increase of $0.9 million from the FY 2017 Adopted Budget. Budgets within the Enterprise Funds are funded by $7.5 million in program revenue and $400,000 in transfers from the General Fund. The Enterprise Funds also rely on $2.7 million of prior year fund balance, bringing total funding sources for the funds to $10.6 million. The Enterprise Funds are projected to begin the fiscal year with $7.6 million in fund balance and are projected to end the year with a fund balance of $4.9 million. 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 26 funds and programs for information technology, City Channel, website, workers’ compensation, equipment, compensated absence, long-term disability, and retiree medical insurance. The Adopted Budget for the Internal Service Fund is $11.7 million, which is $1.2 million higher than the FY 2017 Adopted Budget. This increase is primarily attributed to increased full time staffing and purchase of software and equipment. Budgets within Internal Service Funds are funded by $9.8 million in department revenue, $5 million from the General Fund, and $4.8 from a combination of depreciation reserves and retained earnings. Special Projects The FY 2018 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 below. This list excludes one-time capital outlays and ongoing pavement management costs. Program Budget Project Name Expenditure Funding Source 122 Sustainability Division Climate Action Plan $160,000 General Fund 305 Government Channel Audio Visual Technology Upgrades $225,000 General Fund 612 Park Facilities Acterra Habitat Enhancement $68,000 General Fund 705 Economic Development Economic Strategic Plan Imp. $175,000 General Fund 711 BMR Housing Below Market Rate Affordable Housing Fund Notice of Funding Availability $8,000,000 Special Revenue 804 Plan Review Wireless Facilities Master Plan $100,000 General Fund 804 Plan Review Apple Campus 2 $943,069 Pass Thru 807 Service Center Administration Office Improvements $70,000 General Fund 807 Service Center Administration City Facilities Building Assessment $200,000 General Fund 808 McClellan Ranch Park Fence Replacement $12,000 General Fund 809 Memorial Park Cement Work $50,000 General Fund 812 School Site Maintenance Concrete Work $25,000 General Fund 812 School Site Maintenance Water Supply at Collins School $50,000 General Fund 813 Neighborhood Parks Concrete work and Sports Center Fence $110,000 General Fund 814 Sport Fields Jollyman CRK Cement Pad $28,000 General Fund 825 Street Tree Maintenance Tree Survey/Inventory Update $70,000 General Fund 827 Bldg Maint City Hall AC IT Lab $55,000 General Fund 27 Program Budget Project Name Expenditure Funding Source 828 Bldg Maint Library Window and mirror replacement and floor polish $23,000 General Fund 829 Bldg Maint Service Center Replace locker room floor $15,000 General Fund 830 Bldg Maint Quinlan Center Various Improvement Projects $140,000 General Fund 831 Bldg Maint Senior Center Various Improvement Projects $26,000 General Fund 832 Bldg Maint McClellan Ranch 4H Barn roof and light repairs $18,000 General Fund 833 Bldg Maint Monta Vista Ct New Floor $25,000 General Fund 834 Bldg Maint Wilson Snack Shack Upgrade $8,000 General Fund 835 Bldg Maint Portal Ramp and door removal $25,000 General Fund 836 Bldg Maint Sports Center Various Projects $95,000 General Fund 837 Bldg Maint Creekside Various Projects $78,000 General Fund 838 Comm Hall Bldg Maint Various Projects $45,000 General Fund 839 Teen Center Bldg Maint Repaint Interior $5,000 General Fund 840 Park Bathrooms Various Projects $20,400 General Fund 841 BBF Facilities Maintenance Restroom and Café upgrades $25,000 General Fund 844 Traffic Engineering Senior Mobility Pilot Program $22,000 General Fund 848 Street Lighting Various Projects $118,000 General Fund 852 Franco Traffic Operations Ctr Maintenance and Upgrades $18,000 General Fund 986 GIS Cityworks logins $17,200 General Fund Total $11,064,669 CURRENT ECONOMIC UPDATE National and State Economic Conditions The U.S. economy is continuing to show steady growth. U.S. Gross Domestic Product (GDP) increased by 1.6% in 2016 according to the Bureau of Economic Analysis, compared with an increase of 2.6% in 2015. The increase in real GDP in 2015 primarily reflected positive contributions from personal consumption, residential fixed investment, local and federal government spending, and exports that were partially offset by contractions in private inventory investment and nonresidential fixed assets. Unemployment is falling while jobs are being created. The U.S. unemployment rate stood at 4.5% in March 2017 representing a 0.5% percentage point drop compared to the March 2016 unemployment rate of 5.0%, according to the Bureau of Labor Statistics. The unemployment rate has improved significantly from a high of 9.6% in 2010 and is at the full employment level. 28 Consumer confidence, as reflected by The Conference Board Consumer Confidence Index, hit the highest level since 2000 in March and now stands at 125.6 up from 116.1 last month. This month’s spike was the result of consumers feeling greater optimism regarding the short-term outlook for business, jobs and personal income prospects. The California economy is inching towards a full economic recovery. California’s unemployment rate fell to 4.9% in March 2017, an improvement compared to last year’s unemployment rate of 5.4%. Personal income is forecast at 3.6% in 2017 and 3.8% in 2018 mostly due to faster growth in wages. Growth in the housing market continues with the prices of single family homes up 6.8% and sales up 6.9% compared to March of last year according to the California Association of Realtors (CAR). However, CAR predicts a small 0.8% increase in existing home sales next year. According to the December 2016 UCLA Anderson Business School Forecast, continued job growth, along with wage increases, will power consumption in 2017. Cupertino Economic Conditions Strong economic performance continues in Silicon Valley and Cupertino. Data from the State of California Employment Development Department paints a similar picture. Employment in the San José/Sunnyvale/Santa Clara Metropolitan Statistical Area (MSA) continues to increase. The preliminary estimate of the March 2017 employment level in the MSA was 1.0 million, virtually unchanged from the March 2016 level. The March 2017 unemployment rate of 3.6% has dropped since January and is lower than the 4.1% rate experienced a year ago. Our local unemployment rate is lower than the national unemployment rate of 4.5%. Housing prices remain strong compared to the same period in 2016. In March 2017, single family homes sold from a median home price of $1.8 million, a 0.4% increase over the past year. Property Tax revenue is expected to increase compared to last year given the increase in the median home price, reassessments of development projects, and additional TEA property tax share. Construction activity remains strong in Cupertino with Apple Campus 2 driving development growth. 29 KEY BUDGET ASSUMPTIONS Revenue Assumptions The FY 2018 Adopted Budget assumes moderate economic growth. 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. Revenue assumptions are discussed in detail in the Fund Summary section under Financial Policies and Schedules. Personnel Assumptions Negotiated salary increases are reflected in the FY 2018 Adopted Budget. The Council ratified three-year agreements with its two bargaining units in October 2016, including a 5.75% net salary increase and 10% increase in health benefits over the next three years. The City also conducted a comprehensive classification study resulting in the reclassification of 12 staff, which are also reflected in the budget. In addition, budgeted personnel expenditures factor in salary step increases for approximately 43% 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 2018 funding needs. In addition, one-time projects have been separated out in FY 2018 to ensure that expenditure trends reflect ongoing expenditure needs. Contingency budgets are being reduced from 10% to 8% 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 Revenue Volatility The City’s revenue mix is heavily reliant on volatile business-to-business sales tax, which makes up approximately 29% 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 30 made the City more reliant on a single tax producer, making us more vulnerable to its business volatility. 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. Retirement Benefits Significant investment losses experienced by CalPERS during the great recession resulted in the overall funded status of the retirement system dropping to 60% for public agencies. The funded status is currently estimated at 69%, down from 73% last year due to lower than expected investment returns. The desired goal is 100% funded status, where assets on hand are equal to the desired level of assets needed to pay pension benefits. The CalPERS Board adopted revised actuarial policies that aim to return the system to 100% funded level within 30 years. The new method includes changing the asset smoothing period from 15 years to 5 years and paying gains and losses over a fixed 30 year period with a 5-year ramp up at the beginning of the 30-year period and a 5-year ramp down at the end. In December 2016, CalPERS informed agencies that it would be reducing the discount rate of return for investments by 0.5%. The result of this change is significant and will result in considerable increases in retirement well above what the City had previously forecasted for retirement expenses as noted in the table below. The FY 2018 Adopted Budget includes these additional expenses and proposes an increase to the City’s CalPERS Reserve from $500,000 to $4.8 million to help stabilize the budget through this ramp-up period: The City’s current unfunded accrued liability is $78 million according the most recent actuarial report issued by CalPERS in August of 2016. Fiscal Year FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 5 Year Total Total Rate 29.017% 31.968% 35.764% 38.001% 39.770% Net Rate Increase 10.9% 10.2% 11.9% 6.3% 4.7% 44.00% Increase in $ $617,000 $645,000 $745,000 $439,000 $347,000 $2,793,000 31 However, these estimates are based on 7.5% discount rate, the unfunded accrued liability would be significantly higher at least $106 million and could go higher than $142 million if the City were to attempt to leave CalPERS. The following shows the City’s Hypothetical Termination Liability based on the City’s most recent actuarial report. UNMET NEEDS As the City prepared its FY 2018 Adopted Budget, some issues surfaced for which funding had not yet been identified. These items include: Capital Improvement Projects – Several Capital Projects as listed in the unfunded project section of the Capital Improvement Plan (CIP). CONCLUSION The FY 2018 Adopted Budget is a balanced and fiscally responsible spending plan. I want to take this opportunity to thank the budget team for their enormous effort in preparing the Adopted Budget. I also want to thank the department heads and staff for their work on this year’s Adopted Budget. Lastly, I want to commend the Council for their leadership, guidance and support in making Cupertino the best community to live, work, and enjoy. Respectfully submitted, David Brandt City Manager 32 Budget Guide Mission Statement Budget Guide Glossary Commonly Used Acronyms What is a Revenue, Expenditure and Fund Balance Table City of Cupertino MISSION STATEMENT 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. 33 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. ELEMENTS OF THE BUDGET DOCUMENT The budget document includes the following key elements: 1. Budget Message: The Budget Message is the City Manager’s transmittal letter submitting the budget to the City Council. The Budget Message 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: The Budget Guide includes the City’s Mission Statement and other tools to assist the reader in identify 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 and Personnel Summaries: The Financial Summaries section provides financial information on projected revenues, expenditures, fund balances and reserves. This section includes the Budget Summary of Funds as well as detailed fund descriptions and information on all revenue sources and expenditure projections. This section includes fund balance trends and detailed revenue and expenditure projections for the next five years. 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 34 projects and other taxes are reviewed quarterly and budgets are based on this trend analysis. 7. Departmental Operating Budgets: The Departmental Operating Budgets section details historical and proposed expenditures by operating department. The City is organized into seven key operating functions, including Administration, Law Enforcement, Public and Environmental Affairs, Administrative Services, Recreation and Community Services, 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 project or cost. Departmental expenditures are divided into eight categories, which include the following charges: 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 Appropriations for Contingency represent 10% of total budgeted materials and contract costs and is place 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. 35 Debt Service/Other represents principal and interest payments on outstanding debt and interfund transfers. 8.Non-Departmental Operating Budgets: The Non-Departmental Operating Budgets section details historical and proposed expenditures for the functions of interfund transfers and debt service. 9.Capital Improvements: The Capital Improvements section details the proposed capital projects for 2015-16 through 2019-20. 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 has been included in the document. 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. 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 balance or 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. 36 Capital Outlay - Expenditures relating to the purchase of equipment, land and other fixed assets. 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. 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. Goal - Broad mission statements that define the purpose of a department. 37 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. 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. User Fees - Fees charged to users of a particular service provided by the City. 38 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 Calpers) 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 RWQCB Regional Water Quality Control Board UBC Uniform Building Code YAC Youth Advisory Commission VSP Vision Service Plan 39 WHAT IS A REVENUE, EXPENDITURE AND FUND BALANCE TABLE? Administration - City Manager Category Revenue Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - Charges for Services - - - 138,497 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - TOTAL REVENUE -$ -$ -$ 138,497$ Expenditures Employee Compensation 240,187 253,346 267,696 341,585 Employee Benefits 74,550 83,477 89,514 136,310 Materials 35,838 24,391 51,750 32,203 Contract Services 313 - 10,000 10,000 Appropriations for Contingency - - - 4,220 Cost Allocation 3,000 2,900 22,900 131,050 Capital Outlay - - 14,500 - Special Projects - - - - TOTAL EXPENDITURES 353,888$ 364,114$ 456,360$ 655,368$ Fund Balance (Use of)- - - - General Fund Costs 353,888$ 364,114$ 456,360$ 516,871$ 2010-2011 Actual 2011-2012 Actual 2012-2013 Legal B u dget 2013-2014 Recommended B u dget Taxes – Money received from tax revenue Total Revenue – Total all revenue categories Employee Compensation – Full time and part time salaries Licenses and Permits – Money received from these sources Employee Benefits –Employee benefits including, health insurance and retirement Use of Money and Property – Interest earnings, facility and concession rents Materials – All material, conference and training costs Intergovernmental Revenue – Funds received from Federal, State or Local government such as grants Contract Services – All contracted goods and services Charges for Services – Fees collected for services provided by the department Appropriations for Contingency – Fund for unexpected expenses and emergencies Fines and Forfeitures – Money received from fines and penalties Cost Allocation – Cost of services from other City departments and depreciation expenses Miscellaneous Revenue – Money received from various sources such as donations, salvage and legal settlement Capital Outlay – Land, Buildings, vehicles, infrastructure & assets used in operation beyond 1 yr Interdepartmental Revenue – Interdepartmental service charges and transfers Special Projects – One time projects or costs Total Expenditures – Total all expenditure categories Fund Balance – Revenue not spent in the previous year General Fund Costs – Total Expenditures minus Total Revenue minus fund balance equals General Fund Costs REVENUE TOTALS EXPENDITURE 40 Community Profile History Cupertino owes its name and earliest mention in recorded history to the 1776 expedition led by the Spanish explorer Captain Juan Bautista de Anza. Starting in Sonora, Mexico, Anza led a group up the coast of California, aiming to establish a presidio (fort) on San Francisco Bay. In late March, Anza left the majority of his party of men, women, and children in Monterey to rest and pressed on through the Santa Clara Valley to his San Francisco destination with 18 men and Pedro Font, a diarist, cartographer, and Franciscan priest. With the expedition encamped in what is now Cupertino, Font christened the creek next to the encampment the Arroyo San Joseph Cupertino in honor of his patron, San Guiseppe (San Joseph) of Copertino, Italy. The arroyo is now known as Stevens Creek. The village of Cupertino sprang up at the crossroads of Saratoga-Sunnyvale Road (now DeAnza Boulevard) and Stevens Creek Boulevard. It was first known as West Side, but by 1898, the post office at the Crossroads needed a more unique name. John T. Doyle, a San Francisco lawyer and historian, had given the name Cupertino to his winery in recognition of the name bestowed on the nearby creek – likewise, in 1904, the same name was applied to the Crossroads and to the post office as the Home Union Store in the northeast corner of the Crossroads changed its name to The Cupertino Store. Although Cupertino’s pioneer settlers planted grapes in the late 1800s, many switched to keeping orchards when phylloxera, a root louse, struck the thriving wine industry in 1895. As the orchards flourished, the valley became known for the spring profusion of blossoms. In the late 1940’s Cupertino was swept up in Santa Clara Valley’s postwar population explosion. Concerned by unplanned development, higher taxes, and piecemeal annexation to adjacent cities, Cupertino’s community leaders began a drive for incorporation in 1954. The incorporation was approved in the September 27, 1955 election, and Cupertino officially became Santa Clara County’s 13th City on October 10, 1955. A major milestone in Cupertino’s development was the creation of Vallco Business and Industrial Park by some of the city’s largest landowners in the early 1960’s. Of the 25 property owners, 17 decided to pool their land to form Vallco Park and six sold their land to Varian Associates, a thriving young electronics firm founded by Russell Varian. The name Vallco was derived from the names of the principal developers: Varian Associates and the Leonard, Lester, Craft, and Orlando families. 41 2017 Community Economic Profile Cupertino, with a population of 60,572 and the city limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the San Francisco 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 our success as a partnership is a direct reflection of our success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters business and residential prosperity and strengthens working relationships among all sectors of the community. Cupertino is considered one of the most prestigious cities in which to live and work within Silicon Valley and the San Francisco Bay Area. Because Cupertino is a mature, 90% built-out city, we focus 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. DeAnza 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. Cupertino is excited to have a number of new mixed-use development projects in final construction phases and almost fully leased, which will provide 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, Oren’s Hummus, Lazy Dog, LYFE Kitchen, 85 Degree Bakery, Target Express, Kula Sushi, Vitality Bowls, Fit 36, Doppio Zero, and Icool In2 Ice Cream. Housing, office, and hotel rooms are available to support the area. The AMC Theater, Bowlmore, Ice Rink, and Silicon Valley Bay Club serve as anchors to the downtown area. 42 The construction of new retail and commercial development strengthens existing popular venues in Cupertino, including the Cupertino Marketplace. The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals, including Daiso, Marukai Groceries, Super Cue, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Aloha Fresh, Merlion Restaurant, Wingstop, and Erik’s Deli Café. Cupertino Village is undergoing renovations to upgrade buildings, parking, and open courtyard space. The shopping center is home to 99 Ranch Market, Ten Ren Tea, Fantasia Coffee & Tea, Joy Luck Palace, Kee Wah Bakery, and other Asian restaurants, bakeries, and shops. Cupertino features many other stores, including TJ Maxx and Home Goods, Whole Foods, Target, and over 180 restaurants to serve the local workforce and residents. Cupertino features five hotels: Cupertino Inn, Hilton Garden Inn, Marriott Courtyard, Juniper Hotel operated by Curio, and The Aloft Cupertino Hotel. The Residence Inn by Marriott and Hyatt House are under construction. 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, Michael’s, Rite Aid, FedEx Kinko’s and numerous restaurants, such as Fish’s Wild, 1000 Degrees Neapolitan Pizzeria, and Chipotle, to complement the area. Apple Inc.’s plans for a new corporate campus is almost complete and will include approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. The City of Cupertino continues to provide high-level municipal services to complement the sense of community and quality of life enjoyed by our residents. 43 2017 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 the Community Hall. The meetings can be viewed on the City website. The City has 197.75 authorized full-time benefited employee positions. City departments include Administration (City Council, Commissions, City Clerk, City Manager, City Attorney, Environmental Affairs, Economic Development, Code Enforcement); Administrative Services (Finance, Human Resources); Community Development (Planning, Building, Housing Services); Recreation and Community Services (Neighborhood Watch, Emergency Preparedness); Public Works (Engineering, Maintenance, Transportation, Solid Waste, and Storm Drain Management); and Innovation & Technology (IT, GIS, Communications). Police service is provided by the Santa Clara County Sheriff’s Department, and fire service is provided through the Santa Clara County Fire District. Assisting the City Council are several citizen advisory commissions/committees including housing, telecommunications, fine arts, library, planning, audit, parks and recreation, bicycle and pedestrian, teens, economic development, strategic planning, public safety and sustainability. Members of the volunteer boards are appointed by the City Council and vacancies are announced so that interested residents can apply for the positions. Residents are kept informed about city services and programs through the Cupertino Scene, a monthly newsletter; the City Channel, Cupertino’s government access cable TV channel; and the city’s website. Housing The median sales price for an existing single-family home is $1,635,000 for the time between July and October 2016. 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. 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, 408-725-0420 44 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: $19,395,507,127 (8/1/16) County: $373,922,973 (7/1/16) Retail Sales Tax Grand Total = 9.00%. Breakdown = Cupertino 1.00%, State 6%, County Transportation 0.25%, County General .125%, Local District (Valley Transportation Authority) 1.625%. Transportation Rail: The CalTrain station is four miles north of city. 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 Route 36 East San Jose – Vallco Route 51 Vallco – Moffett/Ames Route 53 Westgate – Sunnyvale Route 54 West Valley – Fair Oaks/ Tasman 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. 45 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 participated in annual student exchange programs. Education ________________________________________________________________________________________________________________ Winner of numerous state and national awards for excellence, our city’s schools are widely 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 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. 46 Building on its tradition of excellence and innovation, DeAnza 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. DeAnza 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 DeAnza 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. High Transfer Rates to 4‐Year Universities and Colleges (2012‐2013): • University of California: 727 • California State Universities: 1,225 • Private Colleges & Universities: 452 47 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. It 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 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 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. 48 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. 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. The Geographic Information System (GIS) Division captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, globes, reports, 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! Cupertino.org/GIS has been redesigned to better showcase our department’s services. Among those services is our new Open Data Portal. This site offers the ability to Search, Filter, Download and use API Access to over 50 GIS layers gis.cupertino.opendata.arcgis.com. 49 The GIS Division also manages and deploys Cupertino’s GIS-centric asset management system, Cityworks. Cupertino Fleet, Trees, Median/ROWs, Storm Drain, Streetlights, Traffic Signals, Streets and Sidewalk/EOP divisions utilize Cityworks to manage, track, and analyze Cupertino’s infrastructure assets in the office and in the field. Cupertino Green Cupertino is committed to maintaining the City as a sustainable place to live, learn, work, and play for all the community members. To achieve this goal of safeguarding the community’s well-being and environmental health, Cupertino is actively working to implement its first Climate Action Plan (CAP) and provide residents, businesses, and schools with clear and easy-to-access programs and services to jumpstart green leadership. More information can be found online at http://www.cupertino.org/green Social Media Sites Facebook Sites City of Cupertino Facebook Cupertino Rec & Comm. Services Cupertino Teen Center Facebook Cupertino Teens & Teen Programs McClellan Ranch Preserve Facebook Cupertino Senior Center Facebook Cupertino Sports Center Facebook Cupertino Block Leader Facebook Twitter Sites City of Cupertino Twitter Cupertino Fields Twitter Cupertino Rec & Comm. Services YouTube Site – City of Cupertino, City Channel Community Statistics Facts and Figures1 Population in City Limits 60,572 Median Household Income $136,940 Median Age 40 Registered Voters 27,489 Democrats 10,291 Republicans 6,256 American Independent 144 Other 256 No Political Party designated 10,209 1 U.S. Census Bureau 50 Top 40 Sales Tax Producers Third Quarter 2016, in Alphabetical Order A2Z Development Goodfellow Top Grade Scandinavian Designs Alamillo Bear Granite Rock Company Seagate Technology Alexander’s Steakhouse Huawei Enterprise Seele Apple Inc. Insight Solutions Inc. Shane Co. Argonaut Window & Door J C Penney Company Shell Service Stn. BJ’s Restaurant & Brewhouse Kamran & Company Superior Air Handling Benihana Lazy Dog Rest. & Bar Target Stores California Dental Arts Mirapath Teknion CEMEX const. materials Mitsubishi Consumer El. TJ Maxx Chevron Service Stations Permasteelisa The Wiremold Co. Columbia Stone Powersecure TJ Maxx De Anza College Campus Ctr. Rosendin Electric Valero Service Stn. Dynasty Chinese Food Rotten Robbie Service Stn. Whole Foods Market Frener & Reifer Safeway 99 Ranch Markets Demographic Information 51 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. 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 52 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 DeAnza 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. Fujitsu Planetarium The Fujitsu Planetarium on the DeAnza 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. Flint Center The cultural life of the Peninsula and South Bay is enhanced by programs presented at the Flint Center for Performing Arts located at 21250 Stevens Creek Boulevard in the DeAnza College campus. The center opened in 1971 and was named in honor of Calvin C. Flint, the first chancellor of the Foothill-DeAnza Community College District. The box office is open 10 a.m. – 4 p.m. Tuesday through Friday and 1.5 hours prior to any performance. Box office: 408-864- 8816; administrative office: 408-864-8820. 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’ Market There are two farmers’ markets located in the City of Cupertino. One is held on Fridays from 9:00 a.m. to 1:00 p.m. at Creekside Park, and the other is held every Sunday from 9:00 a.m. to 1:00 p.m. at the Cupertino Oaks Shopping Center, 21275 Stevens Creek Blvd. 53 California History Center The California History Center and Foundation is located on the DeAnza 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. 54 Financial Policies and Schedules THE ANNUAL BUDGET PROCESS The City’s annual budget is prepared on a July 1 to June 30 fiscal year basis. The budget process is an ongoing process that includes the phases of development, proposal, adoption, monitoring and budget amendments. 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 Managers 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 final budget is adopted by resolution in June and takes effect on July 1. 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 for new revenue sources. 55 STRUCTURE OF CITY FINANCES COST ACCOUNTING The City of Cupertino has six internal service funds that account for innovation & technology, city channel and website, 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 will utilize 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 department in the General Fund will be allocated based on 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 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. 56 The budget is split into nine divisions: City Council and Commissions, Administration, Law Enforcement, Innovation & Technology, Administrative Services, Parks and Recreation, Planning and Community Development, Public Works and Non Departmental (includes budget that are not attributable to any specific division). These divisions are further split into department 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 Maze and Associates 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 citizen 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. 57 FUND STRUCTURE For accounting purposes, a state or local government is not treated as a single, integral 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 2017-18 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 Improvements Fund is utilized for the acquisition or construction of major capital facilities. 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 Projects This fund pays for the acquisition and/or construction of major capital facilities. Stevens Creek Corridor Park Capital Projects This fund pays for the design and construction of the Stevens Creek Corridor Park projects. 58 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, and Environmental Management/ Clean Creeks funds. Special Revenue Funds Purpose Storm Drain Improvement This fund pays for the construction and maintenance of storm 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 Management/Clean Creek/ Storm Drain This fund pays for all activities related to operating the Non-Point Source pollution program. Transportation This fund pays for expenditures related to the maintenance and construction of City streets. Housing & Community Development This fund pays for the Federal Housing and Community Development Grant Program activities administered by the City. This fund also pays for activities related to the Below Market Rate Housing Program. 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 Grant This fund pays for activities related to the Community Development Block Grant (CDBG). 59 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 Recology. Blackberry Farm Golf Course This fund pays for operating costs related to the Blackberry 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. 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, City Channel and Website, Equipment, Workers Compensation, Long-Term Disability/Compensated Absence, and Retiree Medical funds. Internal Service Funds Purpose Information Technology This fund pays for all technology related expenses for the 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. City Channel and Website This fund pays for all operating and equipment costs related to City Channel and the City Website. Workers’ Compensation This fund pays for claims and insurance premiums related to workers’ compensation. 60 Internal Service Funds Purpose Equipment Maintenance and Fixed Asset Acquisition This fund pays for the purchase and maintenance of fleet and 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 like of the asset and using the straight line method. Compensated Absences & Long Term Disability This fund pays for liabilities associated with employees retiring or leaving service and claims and premiums associated with long term disability. Retiree Medical This fund pays for Retiree Medical costs. 61 FISCAL POLICES –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 Ensure that Enterprise activities remain self-supporting in the long term. 62 FISCAL POLICES – 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 and Structure debt financing to provide the necessary capital while minimizing future debt service costs. 63 FISCAL POLICES – 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. 64 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. 65 FISCAL POLICES –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 shall be funded 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. 66 FISCAL POLICES –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. 67 FISCAL POLICIES – Assigned and 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 assigned and unassigned fund balance (general fund only) in each fund for the ability to meet following economic uncertainties: Economic Uncertainty I –$19,000,000 and represents two months of General Fund (GF) operating 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 Economic Fluctuations – $1,400,000 and represents the most recent transfer of local funds to the State. This reserve may change from year to year based on the Consumer Price Index (CPI).  For shifts of City funds to the state to address State budget deficits. PERS– $100,000 and represents the highest retirement rate increase based on the most recent five years of rate increases. This assignment may change from year to year based on retirement rates and citywide budgeted retirement costs.  For pension cost increases 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. 68  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 Priority Reserve Reserve Level Escalator 1 Description GENERAL FUND 1 Economic Uncertainty $19,000,000 GF Budgeted Operating Expenditures 2 GF Budget Revenue 3 For economic downturns and major revenue changes. 2 Economic Fluctuations $1,400,000 CPI For shifts of City funds to the state to address state budget deficits. 3 PERS $100,000 Budgeted Citywide retirement costs For pension cost increases. 4 Unassigned $500,000 Budgeted GF Operating Expenditures 4 For mid-year budget adjustments and redeployment into the five year budget. CAPITAL PROJECT FUNDS 5 Capital Improvement $5,000,000 None Reserves set aside for future capital projects. 1 Rounded to the nearest hundred thousand 2 Excludes Transfers Out 3 Excludes the use of reserves 4 Excludes Transfers Out 69 Changes to Assigned Fund Balance – All reserves listed in this policy are classified as Assigned Fund Balance under Government Accounting Standards Board (GASB) Statement 54. Assigned fund balance is comprised of amounts intended to be used by the government for specific purposes that are neither committed nor restricted. Intent can be expressed by the governing body or by an official body to which the governing body delegates the authority. Changes to assigned 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 assigned fund balances listed in this policy, with the exception of the annual Infrastructure assignment, a plan to replenish the assignment 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) Economic Fluctuations 3) PERS 4) Unassigned 70 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 6, 2014 City Council agenda packet. 71 DEBT LIMIT GANN APPROPRIATIONS LIMIT Fiscal Year 2017-18 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 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 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Appropriations (Gann Limit) Appropriations Limit Appropriation Subject to Limit 72 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. The City’s appropriations limit for FY 2018 is $96,028,488, $4,161,474, or 4.5% higher than the FY 2017 limit of $91,867,014. For FY 2018, the City’s estimated appropriations of proceeds from taxes, less statutory exclusions, are unchanged as of the Final Budget. 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. The appropriations limit is not expected to present a constraint on current or future budget deliberations. 73 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. Technology upgrades are determined by the Information Technology Division (IT) 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 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 Information Services Division (IS), or when parts or support are no longer available from the manufacturer. Replacement needs will be determined by IS 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. 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 74 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. IS 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. Telephone system components (desktop and user equipment) is either repaired or replaced when determined no longer functional; telephone servers may be leased over 5 years and replaced at those times; the replacement period may exceed 5 years if the products are supported by vendors and parts are readily available. Telephone system components shall not be capitalized as they do not meet the minimum criteria for capitalization. Telephone system software is maintained under agreement with vendors and kept within 2 major versions to ensure functionality and vendor support. Enterprise Software replacement shall be determined individually by IS and the end users. Only those large enterprise systems with an expected life of at least 7 years or a cost of over $10,000 shall be capitalized. 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. I&T 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. Replaced 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. 75 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 regards 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. Staff report will reference City rules and regulations. 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 76 FISCAL YEAR 2017‐18 FINAL BUDGET FINANCIAL OVERVIEW BY FUND Revenue Categories General Fund Special Revenue Fund Debt Service Fund Capital Project Funds Enterprise Funds Internal Service Funds 2017‐18 Final Budget Total Sales Tax 22,790,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 22,790,000$ Property Tax 20,757,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 20,757,000$ Transient Occupancy 6,708,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 6,708,000$ Utility Tax 3,200,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 3,200,000$ Franchise Fees 3,040,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 3,040,000$ Other Taxes 2,850,000$ 1,350,000$ ‐$ ‐$ ‐$ ‐$ 4,200,000$ Licenses & Permits 2,145,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 2,145,000$ Use of Money & Property 1,647,790$ 2,000$ ‐$ ‐$ 231,200$ ‐$ 1,880,990$ Intergovernmental 484,000$ 1,980,590$ ‐$ ‐$ 15,000$ ‐$ 2,479,590$ Charges for Services 13,337,897$ 384,100$ ‐$ ‐$ 7,181,800$ 4,167,492$ 25,071,289$ Fines & Forfeitures 600,000$ 6,000$ ‐$ ‐$ ‐$ ‐$ 606,000$ Miscellaneous/Other Financing Uses 435,960$ ‐$ ‐$ ‐$ 56,000$ ‐$ 491,960$ Transfers In 2,000,000$ 12,772,122$ 3,167,538$ 8,325,762$ 400,000$ 5,657,077$ 32,322,499$ TOTAL REVENUE 79,995,647$ 16,494,812$ 3,167,538$ 8,325,762$ 7,884,000$ 9,824,569$ 125,692,328$ Appropriation Categories General Fund Special Revenue Fund Debt Service Fund Capital Project Funds Enterprise Funds Internal Service Funds 2017‐18 Proposed Budget Total Employee Compensation 17,078,787$ 936,733$ ‐$ ‐$ 1,952,091$ 2,336,566$ 22,304,177$ Employee Benefits 7,210,639$ 511,493$ ‐$ ‐$ 603,569$ 1,830,031$ 10,155,732$ Materials 4,784,228$ 742,316$ ‐$ ‐$ 534,167$ 1,387,706$ 7,448,417$ Contract Services 18,165,596$ 796,900$ ‐$ ‐$ 6,135,360$ 2,024,155$ 27,122,011$ Cost Allocation 7,812,849$ 555,816$ ‐$ 125,000$ 759,543$ 733,706$ 9,986,914$ Capital Outlays 85,000$ 5,638,000$ ‐$ 8,200,762$ ‐$ ‐$ 13,923,762$ Special Projects 2,742,469$ 14,872,000$ ‐$ ‐$ 95,000$ 2,371,930$ 20,081,399$ Contingencies 1,253,931$ 39,571$ ‐$ ‐$ 273,496$ 340,418$ 1,907,416$ Transfers Out 12,590,196$ 779,762$ ‐$ 15,184,000$ ‐$ ‐$ 28,553,958$ Debt Service/Other Uses 3,327,538$ ‐$ 3,167,538$ ‐$ 223,766$ 665,551$ 7,384,393$ TOTAL EXPENDITURES 75,051,233$ 24,872,591$ 3,167,538$ 23,509,762$ 10,576,992$ 11,690,063$ 148,868,179$ Net Increase (Decrease) in Fund Balance/Retained Earnings 4,944,414$ (8,377,779)$ ‐$ (15,184,000)$ (2,692,992)$ (1,865,494)$ (23,175,851)$ 77 FISCAL YEAR 2017-18 ADOPTED BUDGET FLOW OF FUNDS CHART Revenue by Fund Expenditures by Department SOURCE OF FUNDS Revenue by Object Expenditures by Object 78 FISCAL YEAR 2017‐18 FINAL BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Final Budget Expenditures Projected Program Revenues Final Budget Fund Balance/ Retained Earnings (Usage) / Final General Fund Contribution General Fund 10 City Council 100 City Council 442,623 535,636 ‐ (93,013) 101 Community Funding 52,811 ‐ ‐ 52,811 110 Sister Cities 43,750 ‐ ‐ 43,750 11 Commissions ‐ 131 Telecommunication Commission 10,925 ‐ ‐ 10,925 140 Library Commission 23,894 ‐ ‐ 23,894 142 Fine Arts Commission 43,037 ‐ ‐ 43,037 150 Public Safety Commission 17,052 ‐ ‐ 17,052 155 Bike/Ped Safety Commission 4,912 ‐ ‐ 4,912 160 Recreation Commission 29,736 ‐ ‐ 29,736 165 Teen Commission 59,018 ‐ ‐ 59,018 170 Planning Commission 135,379 ‐ ‐ 135,379 175 Housing Commission 33,621 ‐ ‐ 33,621 180 Sustainability Commission 27,879 ‐ ‐ 27,879 12 City Manager ‐ 120 City Manager 952,399 319,142 ‐ 633,257 122 Sustainability Division 778,875 31,452 ‐ 747,423 126 Public Affairs 470,946 150,355 ‐ 320,591 13 City Clerk ‐ 130 City Clerk 599,962 80,947 ‐ 519,015 132 Duplicating/Mail Services 85,018 ‐ ‐ 85,018 133 Elections 288 ‐ ‐ 288 14 City Manager Discretion ‐ 123 City Manager Contingency 540,821 ‐ ‐ 540,821 15 City Attorney ‐ 141 City Attorney 2,039,588 263,033 ‐ 1,776,555 20 Law Enforcement ‐ 200 Law Enforcement SC Sherif 11,635,886 450,000 ‐ 11,185,886 201 Interoperability Project 48,813 ‐ ‐ 48,813 202 Code Enforcement 659,608 250,000 ‐ 409,608 31 Government Channel ‐ 307 Public Access Support 72,435 ‐ ‐ 72,435 40 Administrative Services ‐ 400 Admin Services Administration 790,510 67,899 ‐ 722,611 41 Finance ‐ 405 Accounting 1,134,474 906,996 ‐ 227,478 406 Business Licenses 213,935 ‐ ‐ 213,935 44 Human Resources ‐ 412 Human Resources 978,882 708,222 ‐ 270,660 417 Insurance Administration 876,383 718,112 ‐ 158,271 60 Recreation & Community Service ‐ 601 Rec & Comm Svcs Administration 495,907 42,000 ‐ 453,907 634 Park Planning and Restoration 253,235 ‐ ‐ 253,235 636 Library Services 788,892 ‐ ‐ 788,892 61 Business and Community Services ‐ 602 Administration 919,005 ‐ ‐ 919,005 605 Cultural Events 438,337 5,000 ‐ 433,337 630 Facilities 579,747 631,379 ‐ (51,632) 632 Comm Outreach & Neigh Watch 292,247 ‐ ‐ 292,247 62 Recreation and Education ‐ 79 FISCAL YEAR 2017‐18 FINAL BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Final Budget Expenditures Projected Program Revenues Final Budget Fund Balance/ Retained Earnings (Usage) / Final General Fund Contribution 608 Administration 1,082,488 49,125 ‐ 1,033,363 623 Youth, Teen and Senior Adult Rec 2,206,884 735,750 ‐ 1,471,134 63 Sports, Safety & Outdoor Rec ‐ 612 Park Facilities 1,968,178 469,000 ‐ 1,499,178 615 Administration 243,820 ‐ ‐ 243,820 633 Disaster Preparedness 356,231 10,500 ‐ 345,731 70 Planning & Community Development ‐ 700 Community Development Admin 345,677 ‐ ‐ 345,677 71 Planning ‐ 701 Current Planning 2,151,008 2,795,000 ‐ (643,992) 702 Mid Long Term Planning 725,588 1,057,500 ‐ (331,912) 704 Annexations 10,141 ‐ ‐ 10,141 705 Economic Development 508,547 ‐ ‐ 508,547 72 Housing Services ‐ 712 Human Service Grants 41,836 ‐ ‐ 41,836 73 Building ‐ 713 General Building 791,962 721,000 ‐ 70,962 714 Construction Plan Check 1,283,854 335,000 ‐ 948,854 715 Building Code Enforcement 1,349,597 1,225,000 ‐ 124,597 718 Muni‐Bldg Code Enforcement 311,082 ‐ ‐ 311,082 80 PW Admin ‐ 800 Public Works Admin 766,715 ‐ ‐ 766,715 82 Developmental Services ‐ 804 Plan Review 2,117,716 1,374,529 ‐ 743,187 806 CIP Administration 854,429 ‐ ‐ 854,429 83 Service Center ‐ 807 Service Center Administration 1,804,912 69,000 ‐ 1,735,912 84 Grounds ‐ 808 McClellan Ranch Park 82,847 ‐ ‐ 82,847 809 Memorial Park 747,097 14,000 ‐ 733,097 812 School Site Maintenance 996,892 135,000 ‐ 861,892 813 Neighborhood Parks 1,554,798 ‐ ‐ 1,554,798 814 Sport Fields Jollyman CRK 593,604 ‐ ‐ 593,604 815 Civic Center Ground Maint 191,442 175,467 ‐ 15,975 85 Streets ‐ 818 Storm Drain Maintenance 449,950 1,700 ‐ 448,250 848 Street Lighting 605,360 ‐ ‐ 605,360 850 Environmental Materials 185,216 ‐ ‐ 185,216 86 Trees and Right of Way ‐ 824 Overpasses and Medians 1,453,793 ‐ ‐ 1,453,793 825 Street Tree Maintenance 1,251,142 10,000 ‐ 1,241,142 826 Weekend Work Program 441,278 ‐ ‐ 441,278 87 Facilities and Fleet ‐ 827 Bldg Maint City Hall 629,738 382,657 ‐ 247,081 828 Bldg Maint Library 334,605 293,621 ‐ 40,984 829 Bldg Maint Service Center 314,654 429,314 ‐ (114,660) 830 Bldg Maint Quinlan Center 504,647 228,304 ‐ 276,343 831 Bldg Maint Senior Center 248,657 241,641 ‐ 7,016 832 Bldg Maint McClellan Ranch 146,444 ‐ ‐ 146,444 833 Bldg Maint Monta Vista Ct 150,687 151,450 ‐ (763) 834 Bldg Maint Wilson 67,491 ‐ ‐ 67,491 835 Bldg Maint Portal 58,766 ‐ ‐ 58,766 80 FISCAL YEAR 2017‐18 FINAL BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Final Budget Expenditures Projected Program Revenues Final Budget Fund Balance/ Retained Earnings (Usage) / Final General Fund Contribution 837 Bldg Maint Creekside 135,913 81,781 ‐ 54,132 838 Comm Hall Bldg Maint 267,259 250,130 ‐ 17,129 839 Teen Center Bldg Maint 47,033 97,866 ‐ (50,833) 840 Park Bathrooms 154,965 ‐ ‐ 154,965 841 BBF Facilities Maintenance 298,208 568,674 ‐ (270,466) 852 Franco Traffic Operations Center 18,000 ‐ ‐ 18,000 88 Transportation ‐ 844 Traffic Engineering 1,001,024 282,000 ‐ 719,024 845 Traffic Signal Maintenance 713,733 ‐ ‐ 713,733 846 Safe Routes 2 School 146,761 ‐ ‐ 146,761 90 Citywide ‐ Non Departmental ‐ 001 No Department 15,757,734 ‐ ‐ 15,757,734 502 EE Housing Loan 10,000 ‐ ‐ 10,000 GENERAL FUND SUBTOTAL I 75,051,233$ 17,345,182$ ‐$ 57,706,051$ General Fund Revenue/Fund Balance General Fund Revenue ‐ 62,650,465 ‐ (62,650,465) Unassigned Fund Balance ‐ ‐ ‐$ ‐ GENERAL FUND SUBTOTAL II ‐$ 62,650,465$ ‐$ (62,650,465)$ TOTAL GENERAL FUND 75,051,233$ 79,995,647$ ‐$ (4,944,414)$ Special Revenue Fund Minor Storm Drain Improvement ‐ 100,000 300,000 200,000 Non Point Source 761,720 386,000 (291,598) 84,122 HCD General Administration 88,814 62,918 (25,896) ‐ CDBG‐ Capital Grants 284,484 204,484 (80,000) ‐ Public Service Grants 47,188 47,188 ‐ ‐ Below Market Rate Housing 8,610,724 1,000,000 (7,610,724) ‐ Sidewalk, Curb and Gutter Maint 1,085,525 210,800 (24,725) 850,000 Street Pavement Maintenance 6,744,384 1,328,100 583,716 6,000,000 Street Signs/Markings 831,990 133,200 (698,790) ‐ Parkland Fund ‐ 250,000 250,000 ‐ CIP ‐ Storm Drain Impv Orange and Byrne 3,388,000 3,388,000 ‐ ‐ CIP ‐ Bicyle Pedestrian Facility Improvements 779,762 ‐ (779,762) ‐ CIP ‐ Storm Drain Impv Byrne and SCB 1,500,000 1,500,000 ‐ ‐ CIP ‐ Street Median Irrigation Replacement 750,000 750,000 ‐ ‐ TOTAL SPECIAL REVENUE FUNDS 24,872,591$ 9,360,690$ (8,377,779)$ 7,134,122$ Debt Service Public Facilities Corporation 3,167,538 ‐ ‐ 3,167,538 TOTAL DEBT SERVICE 3,167,538$ ‐$ ‐$ 3,167,538$ Capital Funds CIP ‐ McClellan Ranch Community Garden Improvements 70,000 70,000 ‐ ‐ CIP ‐ ADA Improvements 95,000 95,000 ‐ ‐ CIP ‐ SC Bank Repair Concept 100,000 100,000 ‐ ‐ CIP ‐ Tennis Court Resurfacing 515,000 515,000 ‐ ‐ CIP ‐ Traffic Signal Foothill‐I280 SB 100,000 100,000 CIP ‐ McClellan West Parking Lot Improvements 550,000 550,000 ‐ ‐ CIP ‐ Service Center Shed 400,000 400,000 ‐ ‐ CIP ‐ Bike Plan Implementation 4,779,762 4,779,762 ‐ ‐ 81 FISCAL YEAR 2017‐18 FINAL BUDGET GENERAL FUND CONTRIBUTION SCHEDULE Fund Type Final Budget Expenditures Projected Program Revenues Final Budget Fund Balance/ Retained Earnings (Usage) / Final General Fund Contribution CIP ‐ Prelim Planning and Design 125,000 125,000 ‐ ‐ CIP ‐ Capital Project Support 50,000 50,000 ‐ ‐ CIP ‐ Inclusive Play Area 30,000 30,000 ‐ ‐ CIP ‐ Senior Center Walkway 64,000 64,000 ‐ ‐ CIP ‐ Outfall Repair Slope Stblz‐Regnart 400,000 400,000 ‐ ‐ CIP ‐ Annual Street Light Install 30,000 30,000 ‐ ‐ CIP ‐ McClellan Sidewalk ‐RB to Hwy85 430,000 430,000 ‐ ‐ CIP ‐ Retaining Wall Repair Regnart Rd 367,000 367,000 ‐ ‐ CIP ‐ New Admin Building Feasability Study 200,000 200,000 ‐ ‐ CIP ‐ International Cricket Ground Feasability Study 20,000 20,000 Transfer Out 15,184,000 ‐ (15,184,000) ‐ TOTAL CAPITAL FUNDS 23,509,762$ 8,325,762$ (15,184,000)$ ‐$ Enterprise Funds Resources Recovery 3,269,762 2,246,000 (1,023,762) ‐ Golf Course 708,461 403,000 (5,461) 300,000 Sports Center 2,448,037 2,286,200 (61,837) 100,000 Sports Center Maintenance 484,623 ‐ (484,623) ‐ Youth Teen Recreation 2,214,409 1,510,300 (704,109) ‐ Outdoor Recreation 1,451,700 1,038,500 (413,200) ‐ TOTAL ENTERPRISE FUNDS 10,576,992$ 7,484,000$ (2,692,992)$ 400,000$ Internal Service Funds Information Services Admin 515,134 ‐ (515,134) ‐ Information Technology 2,812,304 2,361,792 99,193 549,705 Information Tech Equip Acquisition ‐ ‐ ‐ ‐ GIS 863,088 ‐ (863,088) ‐ Government Channel 1,569,256 ‐ (205,109) 1,364,147 City Web Site 1,664,219 ‐ ‐ 1,664,219 Equipment Maintenance 1,251,239 1,416,325 165,086 ‐ Equipment Fixed Asset Acquisition 1,029,200 305,500 (723,700) ‐ Workersʹ Compensation Claims 498,240 601,003 102,763 ‐ Disability Claims 83,883 83,875 (8) ‐ Leave Payouts 435,014 ‐ 74,503 509,517 Retiree Medical Insurance 968,486 ‐ ‐ 968,486 TOTAL INTERNAL SERVICE FUNDS 11,690,063$ 4,768,495$ (1,865,494)$ 5,056,074$ TOTAL ALL FUNDS 148,868,179$ 109,934,594$ (28,120,265)$ 10,813,320$ 82 FISCAL YEAR 2017‐18 FINAL BUDGET FUND BALANCE REPORT FUND Fund Balance 7/1/2016 Projected Fund Balance 7/1/2017 Projected Program Revenue Final Budget Expenditures Projected Fund Balance 7/1/2018 100 GENERAL FUND 52,233,358 40,575,190 79,995,647 75,051,233 45,519,604 SPECIAL REVENUE 210, 215 Storm Drain Improvement 1,175,023 377,358 1,800,000 1,500,000 677,358 230 Environmental Management/ Clean Creek / Storm Drain 445,753 346,506 470,122 761,720 54,908 260, 261 265 Housing & Community Development 12,840,591 23,316,195 1,314,590 9,031,210 15,599,575 270 Transportation 10,080,754 979,762 12,660,100 13,579,661 60,201 280, 281 Park Dedication 9,091,485 18,658,277 250,000 0 18,908,277 TOTAL SPECIAL REVENUE FUNDS 33,633,606$ 43,678,098$ 16,494,812$ 24,872,591$ 35,300,319$ Debt Service 365 Public Facilities Corporation 1,596,982$ 1,596,982$ 3,167,538$ 3,167,538$ 1,596,982$ Capital Funds 420 Capital Improvement Fund 5,528,752 2,678,899 8,325,762 8,325,762 2,678,899 427 Stevens Creek Corridor Park 264,009 47,882 ‐ ‐ 47,882 429 Capital Reserve 9,546,057 15,841,449 ‐ 15,184,000 657,449 TOTAL CAPITAL FUNDS 15,338,818$ 18,568,230$ 8,325,762$ 23,509,762$ 3,384,230$ Enterprise Funds 520 Resource Recovery 5,454,012 4,129,458 2,246,000 3,269,762 3,105,696 560 Blackberry Farm 572,586 105,116 703,000 708,461 99,655 570 Sports Center 886,843 931,500 2,386,200 2,932,660 385,040 580 Recreation Programs 2,170,187 1,644,921 2,548,800 3,666,109 527,612 TOTAL ENTERPRISE FUNDS 9,083,628$ 6,810,995$ 7,884,000$ 10,576,992$ 4,118,003$ Internal Service Funds 610 Information Technology 2,821,765 1,395,586 2,911,497 4,190,526 116,557 615 City Channel and Website 532,383 396,773 3,028,366 3,233,475 191,664 620 Workersʹ Compensation 1,162,066 1,162,385 601,003 498,240 1,265,148 630 Equipment 3,756,710 2,503,351 1,721,825 2,280,439 1,944,737 641 Compensated Absence & LTD 288,013 3,340 593,392 518,897 77,835 642 Retiree Medical 10,129,806 9,198,471 968,486 968,486 9,198,471 TOTAL INTERNAL SERVICE FUNDS 18,690,743$ 14,659,906$ 9,824,569$ 11,690,063$ 12,794,412$ TOTAL ALL FUNDS 130,577,135$ 125,889,401$ 125,692,328$ 148,868,179$ 102,713,550$ 83 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 also accounts for 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 2017-18, final General Fund revenue estimates (excluding fund balance) total $80 million, representing a 1% increase from the FY 2016-17 adopted budget, mostly due to transfer in of $2 million back to the General Fund from the Capital Reserve to assist in funding the CalPERs assigned reserve. When fund balance carryover is included, General Fund resources total $45.6 million, which is 38% above FY 2016-17 adopted budget. Final General Fund expenditure estimates total $75 million, representing a 3% decrease from FY 2016-17 projections, mostly due to decreases in costs allocation of due to a change in methodology as described in the budget message. The General Fund’s ending fund balance is projected to increase by 1% from FY 2016- 17 adopted budget. This is due to a strong revenue forecast that exceeds budgeted expenditures in FY 2017-18. This section provides information on the FY 2017-18 General Fund budget including, expenditure and revenue highlights, transfers to other funds, reserve funds and the financial forecast. FY 14-15 FY 15-16 FY 16-17 FY 17-18 Percent Actual Actual Adopted Adopted Change Beginning Fund Balance 42,960,443 39,324,543 52,194,840 40,390,672 -23% Operating Revenue 83,505,137 77,932,145 79,004,004 79,995,647 1% Operating Expenditures (86,202,200) (65,023,330) (77,222,454) (75,051,233) -3% Net Revenue/Expenditures (2,697,063) 12,908,815 1,781,550 4,944,414 178% Assigned/Other 30,549,577 22,325,755 28,261,693 38,657,396 37% Unassigned 8,774,966 29,869,085 16,692,979 6,750,090 -60% Total Ending Fund Balance 39,324,543 52,194,840 44,954,672 45,407,486 1% GENERAL FUND OPERATING SUMMARY 84 General Fund Revenue Estimates for the FY 2017-18 beginning fund balance and for the individual General Fund 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. FY 2017-18 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 2017-18 revenue estimates are built on the assumption that the economic recovery continues to positively impact on the City’s tax revenues, while uncertainty surrounding development activities will reduce development-related fees and charges. As shown in the chart below, FY 2017-18 revenues are estimated at $80 million, a 1.3% increase above the FY 2016-17 Adopted Budget. *FY17-18 Adopted to FY 16-17 Adopted Approximately 54% of Cupertino’s General Fund operating revenues are generated by sales and property taxes followed by charges for service and the transient occupancy tax. The chart on the next page illustrates the sources of General Fund revenue by category. FY 15-16 FY 16-17 FY 16-17 FY 17-18 Percent REVENUES Actuals Adopted Estimate Adopted Change* Sales Tax 21,350,056 22,440,000 25,940,000 22,790,000 1.6% Property Tax 18,139,368 18,741,000 20,741,000 20,757,000 10.8% Transient Occupancy 5,852,244 6,708,000 6,708,000 6,708,000 0.0% Utility Tax 3,370,830 3,122,000 3,122,000 3,200,000 2.5% Franchise Fees 3,478,024 2,900,000 2,900,000 3,040,000 4.8% Other Taxes 2,595,773 1,600,000 2,200,000 2,850,000 78.1% Licenses & Permits 3,073,109 2,499,000 2,499,000 2,145,000 -14.2% Use of Money & Property 1,400,899 776,980 896,980 1,647,790 112.1% Intergovernmental 428,991 230,500 230,500 484,000 110.0% Charges for Services 15,454,535 19,003,224 36,024,574 13,337,897 -29.8% Fines & Forfeitures 558,517 600,000 600,000 600,000 0.0% Miscellaneous 2,229,799 383,300 3,205,977 2,435,960 535.5% TOTAL REVENUE 77,932,145 79,004,004 105,068,031 79,995,647 1.3% GENERAL FUND REVENUE SUMMARY 85 The FY 2017-18 General Fund revenue estimates are discussed by category in the material that follows. Sales tax is an excise tax imposed on retailers for the privilege of selling tangible personal property. The Use Tax is an excise tax imposed on a person for the storage use, or other consumption of tangible personal property purchased from any retailer. 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 percent, as shown in the chart to the right. SALES & USE TAX FY 15-16 Actual 21,350,056 FY 16-17 Adopted 22,440,000 FY 16-17 Estimate 25,940,000 FY 17-18 Adopted 22,790,000 % of General Fund 28.5% % Change from FY 16-17 Adopted 1.6% Agency Sales Tax Distribution State 6.250% Valley Transportation Authority 1.125% City of Cupertino 1.000% County Transportation 0.500% County General Purpose 0.125% Total: 9.000% 86 $0 $5 $10 $15 $20 $25 $30 Revenue (in millions)Sales Tax Collection Historical Trend The City’s sales tax revenues are generated from five principal economic categories: business- to-business 67.0% (includes electronic equipment and software manufacturers and distributors), construction 13.2%, general retail 8.2%, food products 8.2%, and transportation 3.0%. 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 growth and increased business technology spending has driven growth in this sector. Sales tax activity has increased across all sectors, particularly business-to-business and construction. Given this trend, the City’s FY 2016-17 sales tax revenue is expected to increase modestly. Sales and Use Tax receipts increased 9.9% in FY 2014-15 and took a slight dip of 1.8% in FY 2015-16. This chart reflects the FY 2016-17 actuals are expected to increase by 21.5% this increase is due to a onetime $3.5 mil payment related to the close out of the triple flip. Sales Tax revenues are estimated to generate $22.8 million in FY 2017-18, which is down 12.1% from the FY 2016-17 estimate due to the close out of the triple flip. PROPERTY TAX FY 15-16 Actual 18,139,368 FY 16-17 Adopted 18,741,000 FY 16-17 Estimate 20,741,000 FY 17-18 Adopted 20,757,000 % of General Fund 25.9% % Change from FY 16-17 Adopted 10.8% 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 $.02 for every $1.00 paid. Subsequent 87 $0 $5 $10 $15 $20 $25 MillionsProperty Tax Historical Trend 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. 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 its 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, Cupertino will keep 6.44% of property tax revenues compared to 6.16% in FY 2016-17. TEA will be fully restored to 7% by FY 19-2020 as shown in the following chart. City of Cupertino 6.5% Santa Clara County 34.6% Cupertino Union Elementary 24.8% Bay Area Air Quality Management 0.0% Foothill DeAnza Community College 6.4% Fremont Union High 16.7% Mid-Pen Regonal Open Space 1.5% Santa Clara Valley Water 1.7% ERAF 7.8% Property Tax Allocation FY 17-18 88 Property Tax receipts increased 15.2% in FY 2015-16. Similar gains are anticipated in FY 2016-17 due in part to the restoration of TEA funds and the changes in valuation for Apple Campus 2. Property Tax revenues are estimated to generate $20.8 million in FY 2017-18, which is up 10.8% from the FY 2016-17 Budget. TRANSIENT OCCUPANCY TAX FY 15-16 Actual 5,852,244 FY 16-17 Adopted 6,708,000 FY 16-17 Estimate 6,708,000 FY 17-18 Adopted 6,708,000 % of General Fund 8.4% % Change from FY 16-17 Adopted 0% FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 All Other Agencies 0.8562 0.8562 0.8562 0.8562 0.8562 0.8562 ERAF 0.0860 0.0832 0.0804 0.0776 0.0748 0.0720 City of Cupertino 0.0560 0.0588 0.0616 0.0644 0.0672 0.0700 0.0000 0.2000 0.4000 0.6000 0.8000 1.0000 1.2000 Changes in Property Tax Rate (TEA Phase-In) All Other Agencies ERAF City of Cupertino 89 $0 $1 $2 $3 $4 $5 $6 $7 $8 MillionsTransient Occupancy Tax Historical Trend Transient occupancy taxes (TOT) are levied on five hotels located in the City at the rate of 12% of room revenues. In November 2011, 83% of voters approved increasing the rate from 10% to 12%. This rate increase contributed to the upwards trend shown in the TOT Tax Historical Trend graph to the right. In addition, the new Hyatt House, which due to open in September 2018, should increase ongoing TOT collections significantly. UTILITY TAX FY 15-16 Actual 3,370,830 FY 16-17 Adopted 3,122,000 FY 16-17 Estimate 3,122,000 FY 17-18 Adopted 3,200,000 % of General Fund 4.0% % Change from FY 16-17 Adopted 2.5% The utility user tax (UUT), approved by voters in 1990, is assessed on gas, electricity and telecommunication service 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. 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. Gas/Electric Cable Water Telecom Sunnyvale 2.00%-- --2.00% Cupertino 2.40%-- --2.40% Mountain View 3.00%-- --3.00% Los Altos 3.50% 3.20% 3.50% 3.20% Palo Alto 5.00%--5.00% 5.00% Gilroy 5.00% 4.50%--4.50% San Jose 5.00%--5.00% 4.50% Utility User Tax Comparison 90 In FY 2015-16, UUT revenues increased by 17.8% compared to FY 2014-15, primarily due to the settlement payout that was taken from UUT receipts. UUT revenues are anticipated to make a slight increase in FY 2017-18 with an 4.1% increase. Further decreases are not anticipated for UUT and budgeted revenues will remain at $3.2 million for FY 2017-18 and beyond. This revenue source will be monitored closely as the fiscal year progresses. FRANCHISE FEES FY 15-16 Actual 3,478,024 FY 16-17 Adopted 2,900,000 FY 16-17 Estimate 2,900,000 FY 17-18 Adopted 3,040,000 % of General Fund 3.8% % Change from FY 16-17 Adopted 4.8% 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 increased by 22% in FY 2015-16 from the previous year and but are expected to decline in FY 2016-17. Budgeted revenues are expected to remain at approximately $3 million for FY 2017-18. This revenue source will be monitored closely as the fiscal year progresses. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 MillionsUtility Tax Historical Trend $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 MillionsFranchise Fee Collection Historical Trend 91 OTHER TAXES FY 15-16 Actual 2,595,773 FY 16-17 Adopted 1,600,000 FY 16-17 Estimate 2,200,000 FY 17-18 Adopted 2,850,000 % of General Fund 3.6% % Change from FY 16-17 Adopted 78.1% Other taxes are comprised mainly of business license taxes, construction taxes, and property transfer taxes. As shown in the graph, business license taxes are relatively steady while construction and property transfer taxes are extremely volatile and sensitive to economic fluctuations. With the influx of several major construction projects beginning in 2012, revenues began increasing. The largest of the projects included the Apple Campus 2 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 2017-18 revenues are expected to be at $2.9 million. CHARGES FOR SERVICES FY 15-16 Actual 15,454,535 FY 16-17 Adopted 19,003,224 FY 16-17 Estimate 36,024,574 FY 17-18 Adopted 13,337,897 % of General Fund 16.7% % Change from FY 16-17 Adopted -29.8% $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 MillionsOther General Fund Taxes Historical Trend CONSTRUCTION TAX BUSINESS LICENSE TAX PROPERTY TRANSFER TAX 92 $0 $5 $10 $15 $20 $25 $30 $35 $40 MillionsCharges for Services Historical Trend 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. The Apple Campus 2 generated large one-time revenues in FY 2013-14 and is expected to continue bringing in healthy revenue in FY 2016-17 though not to the same levels as previously seen. Large development projects attributed to a spike in revenues in this category in FY 2013-14. In addition, beginning in FY 2013-14, enterprise funds, internal service funds, and special funds began charging for overhead services previously subsidized by the General Fund. Some internal strategic support services (HR, Finance, City Clerk, etc.) also began charging internal departments for their services to accurately capture the true cost of providing various programs and services within City operations. After a comprehensive cost allocation plan (CAP) was approved by Council in April 2016, new CAP charges are 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. For FY 2017-18, Charges for Services will decrease to $13.3 million due largely to the removal of charges from strategic support that were added in the prior year. In addition, revised fees approved by Council in June will go into effect beginning in August FY 17-18 and will result in increased revenue estimates. LICENSES & PERMITS FY 15-16 Actual 3,073,109 FY 16-17 Adopted 2,499,000 FY 16-17 Estimate 2,499,000 FY 17-18 Adopted 2,145,000 % of General Fund 2.7% % Change from FY 16-17 Adopted -14.2% 93 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 MillionsLicenses & Permits Historical Trend $0 $500 $1,000 $1,500 $2,000 $2,500 ThousandsUse of Money and Property Historical Trend 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. Past referendums limited the height and density of new construction and building of condominium housing. Some residential developers hesitated to invest in Cupertino for fear that their project will not be approved or will be reversed by voter referendum. However, this trend began to reverse in FY 2011-12 with the economic recovery. The Apple Campus 2 project and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permitting revenues in FY 2013-14. Since then, activity has slowed. FY 2015-16 revenues are tracking lower than projected by $3.2 million as no new large development projects have been approved as previously anticipated. Revenue is anticipated to remain flat in FY 2017-18 as development activity continues to slow. USE OF MONEY AND PROPERTY FY 15-16 Actual 1,400,899 FY 16-17 Adopted 776,980 FY 16-17 Estimate 896,980 FY 17-18 Adopted 1,647,790 % of General Fund 2.1% % Change from FY 16-17 Adopted 112.1 The use of money and property category is comprised of General Fund interest earnings as well as facility and concession rental income of City-owned property. The City’s portfolio is approximately $122.8 million. Fluctuations in this revenue category are a result of investment earnings, as rental income is fairly steady. Investment earnings are a function of the amount of excess cash available for 94 $0 $100 $200 $300 $400 $500 $600 $700 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18ThousandsFines & Forfeitures Historical Trend CITY FINES PARKING FINES ADMIN CITATIONS 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. The unprecedented turmoil in the financial markets and state cash flow problems necessitated a weighting of the portfolio toward safety and lower average yields. In March 2017, the Federal Reserve raised short-term interest rates by a quarter percentage point to a range of 0.75% to 1%. Two more increases are forecasted for 2017, followed by three more in 2018. Investment earnings are expected to remain low as the Federal Reserve remains cautious with interest rates. Economists predicted interest rates would increase in FY 2017-18 when the unemployment rate was projected to fall below 6.5%. The unemployment rate did fall below that threshold but the Federal Reserve did not increase key rates until December 2015 from range of 0%-0.25% to a range of 0.25%-0.5%. Lackluster GDP growth will likely keep rates low. Revenue in this category is estimated to increase slightly in FY 2016-17 as General Fund reserves stabilize and interest rates cautiously ease up. FINES AND FORFEITURES FY 15-16 Actual 558,517 FY 16-17 Adopted 600,000 FY 16-17 Estimate 600,000 FY 17-18 Adopted 600,000 % of General Fund 0.8% % Change from FY 16-17 Adopted 0.0% Fines and forfeiture account for revenues generated from vehicle, parking, and miscellaneous code violations issued by the County Sheriff and the City’s Code Enforcement officers. The recent downtrend in County fines, resulting from lower court assessed fines and forfeitures, have leveled off in recent years as shown on the chart on the next page. Parking fine revenues have also leveled off but are expected to increase with approval of a part-time Code Enforcement Officer expected to begin in May 2016. Fines and Forfeitures revenue is expected to remain flat in FY 2016-17 and remain at this level for FY 2017-18. 95 INTERGOVERMENTAL FY 15-16 Actual 428,991 FY 16-17 Adopted 230,500 FY 16-17 Estimate 230,500 FY 17-18 Adopted 484,000 % of General Fund 0.6% % Change from FY 16-17 Adopted 110% Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue. Current year estimates are up compared to budgeted levels prior year budget levels due to anticipated State mandate reimbursements. In FY 2017-18, revenues of $484,000 are anticipated. MISCELLANEOUS FY 15-16 Actual 2,229,799 FY 16-17 Adopted 383,300 FY 16-17 Estimate 3,205,997 FY 17-18 Adopted 2,435,960 % of General Fund 3.0% % Change from FY 16-17 Adopted 535.5% Miscellaneous revenues account for the sale of land and other miscellaneous revenues such as administrative fees. Staff is recommending the transfer in of fund balance from the Capital Reserve back to the General Fund for an increase in the CalPERS assigned reserve to assist in smoothing out significant increases due to the reduction in the discount rate. 96 General Fund Expenditures Estimates for the FY 2017-18 General Fund expenditures are based upon anticipated personnel and non-personnel cost increases. This year department budgets reflect actual projected costs based on the 2016-17 Final Adopted Budget, removing any one time costs, and accounting for changes in personnel costs and any other anticipated/known increased costs in FY 2017-18. In addition, most budgets were given additional funds for any unexpected expenditures that is accounted for in the contingency account. Lastly, per the City’s Reserve policy and unassigned General Fund balance above the $500,000 maximum balance will be transferred to the Capital Fund for future capital and infrastructure projects, however this transfer will now be completed as part of the year end close and not in the budget. As shown in the chart below, FY 2017-18 expenditures are estimated at $75 million, a 3% decrease below the final budget. This decrease is primarily attributed to changes in charges for services due to decreased information systems costs and changes to the City’s Cost Allocation Plan (CAP). The largest General Fund operating expenditure categories include personnel costs (32%), contract services (24%) and Transfers Out (21%) as illustrated in the FY 2017-18 General Fund Expenditures by Category chart on the next page. 2014-2015 2015-2016 2016-2017 2017-18 Percent EXPENDITURES Actuals Actuals Adopted AdoptedChange Employee Compensation 12,843,889 13,430,658 15,348,029 17,078,787 11% Employee Benefits 5,243,862 5,543,191 6,350,028 7,210,639 14% Total Personnel Costs 18,087,751 18,973,848 21,698,057 24,289,426 12% Non-Personnel Costs Materials 4,020,636 3,323,691 4,173,507 4,784,228 15% Contract Services 14,554,123 16,819,679 17,849,345 18,165,596 2% Cost Allocation 3,336,264 3,078,935 13,262,836 7,812,849 -41% Capital Outlay & Special Projects 7,016,144 9,657,395 5,780,639 2,827,469 -51% Contingencies 9,916 5,010 1,249,396 1,253,931 0% Other Uses 82 827 247,300 160,000 -35% Total Non-Personnel 28,937,166 32,885,537 42,563,023 35,004,073 -18% Transfers 39,177,284 13,163,945 12,961,373 15,757,734 22% TOTAL EXPENDITURES 86,202,200 65,023,330 77,222,454 75,051,233 -3% GENERAL FUND EXPENDITURE SUMMARY 97 Personnel Costs Personnel cost total $24.3 million in FY 2017-18, comprising 32% of General Fund expenditures. These costs are made up of salaries and compensation for benefitted and part time staff (70%), retirement benefits (17%), and other fringe benefits (13%), including health coverage. 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 due primarily to reclassification that occurred as part of the citywide classification study and negotiated increases of 3.5% that are effective at the beginning of the fiscal year, both of which were approved by Council in October 2016. Also as part of labor negotiations the City significantly increased its contribution toward healthcare up from approximately 50-60% to 85% of plan costs as a fixed number. The current fiscal year builds on that increase, providing a 5% escalator over FY 2016-17. Life and Long-Term disability rates are projected to remain flat in FY 2017-18. In addition as part of negotiation the City agreed to add short term disability benefits for employees not currently covered under the State’s plan this resulted in a slight increase this fiscal year. Lastly retirement rates are projected to increase a net 2%. The change to the PERS discount rate will be Employee Compensation 17,078,787 23% Employee Benefits 7,210,639 10% Materials 4,784,228 6% Contract Services 18,165,596 24% Cost Allocation 7,812,849 10% Capital Outlay & Special Projects 2,827,469 4% Contingencies 1,253,931 2% Other Uses 160,000 0% Transfers 15,757,734 21% General Fund Expenditures by Category 98 discussed in General Fund forecast section as the impact of this change will not materialize until FY 2018-19. A total of 197.75 FTEs are budgeted in FY 2017-18, up from 190.75 in FY 2016-17. This increase of 4.0 FTE represents a 4% increase in staffing. The growth in positions is summarized below: FY 2016-17 Adopted Budget 190.75 Deputy City Attorney (Council Item) 1.00 Business System Analyst (Mid-Year Budget) 2.00 FY 2017-18 Adopted Budget Environmental Program Specialist (Extend by 1 year) 0.00 Executive Assistant (with conversion of an existing position to 3-Year Limited Term) 1.00 Recreation Coordinator (3-Year Limited Term) 2.00 Senior Planner-Transportation (3-Year Limited Term) 1.00 Adopted FY 2017-18 Benefitted Positions 197.75 The positions that were added as part of the Adopted Budget are summarized below: Department(s) Classification Salaries Benefits Total Costs Funding Source/Purpose City Council/ Administration Executive Admin $79,176 $34,394 $113,570 General Fund. Admin support for City Council, City Clerk and City Manager Administration Environmental Program Specialist, 1 year extension, limited term $86,404 $36,828 $123,232 General Fund Sustainability and CAP Recreation and Community Services (2) Recreation Coordinator $152,148 $66,844 $218,992 General Fund. Disaster Preparedness & Senior Center Public Works Senior Planner $107,772 $49,171 $156,943 General Fund. Transportation Projects POSITIONS FUNDED BY THE GENERAL FUND $425,500 $187,237 $612,737 Non-Personnel Non-personnel cost total $35 million in FY 2017-18, comprising 47% of General Fund expenditures. These costs are made up of contractual services (24%), cost allocation charges (10%), materials (6%), capital outlays and special projects (4%) and program contingencies (2%). Costs were developed based on FY 2016-17 Adopted budget and actual expenditures in prior 99 years, and then adjusted for FY 2017-18 funding needs. One-time projects were moved to a separate category in FY 13-14 to ensure that expenditure trends reflect ongoing expenditure needs. In the current year a concerted effort was made to differentiate costs related to special projects and capital outlays that are required to be depreciated. A new special projects series was created in contracts section of accounts for any new special projects going forward. Contingencies totaling 2% of the total General Fund and 5% of Material and Contract budgets has been established. This contingency level is within the recommended range by the Government Finance Officers Association. Contingencies have allocated proportionately amongst operating programs based on each program’s share of General Fund budget for contractual services and supplies and materials. The remaining is allocated to the City Manager’s Discretionary Program. Program contingency budgets may be used to cover unanticipated program expenses at the department’s discretion, while the use of the City Manager’s Discretionary Program will require City Manager approval. The 5% is consistent with best practices adopted by the Governmental Accounting Standards Board (GASB) which recommends a 5-15% contingency. 100 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. For Fiscal Year 2017-18, budgets have been established for the following transfers. Transfer Out from General Fund Description Amount Special Revenue Funds Pavement, Sidewalk, Curb and Gutter Maintenance $7,134,122 Debt Service Fund Annual Debt Payment $ 3,167,538 Enterprise Fund General Fund subsidy of several Recreation Enterprise Funds $400,000 Internal Service Funds General Fund Subsidy of Government Channel, City Website, GIS and Compensated Absence Funding $5,056,074 TOTAL GENERAL FUND TRANSFERS OUT $15,757,734 101 GENERAL FUND—RESERVES AND CLASSIFICATION OF FUND BALANCE The Government Accounting Standards Board (GASB) Statement No. 54 establishes five categories for the classification of fund balance: Non-spendable, Restricted, Committed, Assigned and Unassigned. Although only the General Fund is addressed in this section, Statement No. 54 applies to the Special Revenue and Capital Project funds as well. Non-spendable fund balance includes amounts that are not in a spendable form or are legally or contractually required to be maintained intact. Loans receivable or prepaid expenses comprise this category in the City. Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by constitution, external parties (such as creditors, grant providers or contributors) or through enabling legislation. Franchise fees collected for public, educational, and governmental access purposes comprise this classification. Committed fund balance includes 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, such as the City Council. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. The City has no fund balance in this category. Assigned fund balance is comprised of amounts intended to be used by the government for specific purposes that are neither restricted nor committed. Intent can be expressed by the governing body or by an official body to which the governing body delegates the authority. Reserves discussed in the Reserve and Use of One Time Funds Policy are assigned to this classification. General Fund assigned reserves at June 30, 2013 are projected to be at policy levels. Unassigned fund balance is the classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. 102 Actuals Actuals Year End Projection Adopted Budget CLASSIFICATION 2014-15 2015-16 2016-17 2017-18 Non Spendable Loans Receivable 886,148 868,608 1,032,275 1,032,275 Prepaid Items 52,097 68,773 66,428 66,428 Total Non Spendable 938,245 937,381 1,098,703 1,098,703 - - Restricted - - Encumbered Fund Balance Public Access Television 761,653 888,374 761,693 761,693 Total Restricted 761,653 888,374 761,693 761,693 - - Committed - - None in this classification - - - Total Committed - - - - - - Assigned - - Economic Uncertainty I 18,000,000 19,000,000 19,000,000 19,000,000 Economic Uncertainty II - - - Economic Fluctuation 1,400,000 1,400,000 1,400,000 1,400,000 CIP Future Project 8,099,679 PERS 100,000 100,000 100,000 4,793,000 One Time Revnue - - - Equipment Fund Loan for 1A - - - Reserve for Encumbrances - 11,604,000 11,604,000 Revenue Liability - - - - General Building - - - Wolfe Road Transportation Study 1,000,000 - - - I-280 Trail Study 250,000 - - - Total Assigned 28,849,679 20,500,000 32,104,000 36,797,000 Total UnAssigned 8,774,966 29,869,085 6,426,276 6,750,090 TOTAL FUND BALANCE 39,324,543 52,194,840 40,390,672 45,407,486 FISCAL YEAR 2017-18 ADOPTED BUDGET General Fund Classification of Fund Balance 103 Five-Year General Fund Forecast The financial forecast is a planning tool that helps staff identify important trends and anticipate the longer term consequences of budget decisions. The forecast tools can be been instrumental in modeling the effects of such recent issues as rising retirement system costs, increases in employee compensation, and potential scenarios of future revenue performance. 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, future costs projections 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 in the financial markets and the media swing from optimistic to pessimistic on a seemingly daily basis and demonstrate the difficulties of committing to a particular prediction of the future. For this reason the forecast should be updated regularly. A discussion of both the national and local economic outlooks used to develop the revenue estimates for the 2017-18 Forecast is discussed below. Key economic forecasts were reviewed in the development of the revenue estimates, including the national, State and regional economic forecasts produced by 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). The City also uses a sales tax consultant to assist in the development of sales tax revenue estimates. While economic conditions are the primary drivers for economically sensitive revenues like the sales tax and property tax categories, performance is primarily driven by other factors for non- economically sensitive categories such as the utility user tax and franchise fee categories. These revenue categories are more heavily impacted by rate changes, energy prices, and consumption levels. Collections from local, State, and federal agencies are primarily driven by the grant and reimbursement funding available from these agencies. As a result, these General Fund revenues experience no significant net gain or loss in times of an economic expansion or slowdown. All revenue projections 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. National Economic Outlook Both locally and nationally uncertainty is the main theme among forecasts. Most are projecting either moderate economic growth or a mild recession during the next two years, according to several economic forecasts. In the growth scenario Growth will be driven by employment, personal income, and the stock market. Under the recession scenario Economists are expecting a big stock market decline comparable to the dot.com bust of the early 2000s. It’s important to note that national economy has been expanding since June 2009. The expansion has now surpassed 89 months, making it the 4th longest in U.S. history. Expansions commonly end 104 because of imbalances that build up and overheat the economy. These can be driven by major changes in the economy and or public policy changes. Cupertino Economic Outlook The outlook for Cupertino and the Silicon Valley overall has been positive, with steady growth in this Forecast. Sales taxes continue to be very strong, driven by business to business sales in the City’s technology sector. Property taxes have also had a strong performance the last two years but are expected to stabilize as interest rates begin to rise during the forecast period. The limited supply of housing may eventually dampen growth as well. Large construction projects have generated strong development-related revenue for the City’s coffers but have started to level off. The majority of revenues associated with the Apple Campus 2 project have already been collected per the development agreement. No other major projects are anticipated at this time. Development projects that have yet to be approved and permitted are not included in this Forecast out of prudence. It would be risky to rely on these one-time revenues given the political uncertainty around development projects. In summary, the steady recovery from the great recession is expected to continue impacting the City’s revenue performance. The economically sensitive revenues, such as sales tax and property tax receipts, are expected to experience moderate growth over the forecast period. Development-related revenue such as licenses and permits, construction tax, and charges for service are expected to decline from the peak experienced in FY 2013-14 due to one-time projects. As shown in the chart on the next page, operating expenditures are expected to exceed operating revenues in all but the final year of the forecast. In addition, reserve levels are projected to increase as the City proactively prepares for future expenditure liabilities. Per the City’s new Reserve Policy any additional unassigned fund balance above the $500,000 maximum will be transferred out to the Capital Reserve at the end of the year. 105 21,500,000 22,000,000 22,500,000 23,000,000 23,500,000 24,000,000 24,500,000 25,000,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Sales Tax Forecast FIVE-YEAR SALES TAX FORECAST FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Adopted Forecast Forecast Forecast Forecast Sales Tax 25,940,000 22,790,000 23,359,750 23,827,000 23,884,000 24,409,000 The City’s heavy reliance on the volatile business-to-business sector of its sales tax revenue base has made it vulnerable to large swings. Currently, the City’s two largest sales tax generators—both technology companies—account for a large portion of the City’s total sales tax. Moderate growth in base sales tax revenues are anticipated in the range of 2-3% annually in the out years. These increases will be somewhat offset by a reduction of sales tax related to construction once Apple Campus 2 is complete. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actuals Adopted Forecast Forecast Forecast Forecast Assigned/Other 30,549,577 33,964,396 38,657,396 38,657,396 38,657,396 38,657,396 Unassigned 8,774,966 6,426,276 6,750,090 9,515,992 11,481,989 12,142,928 TOTAL BFB 39,324,543 40,390,672 45,407,486 48,173,388 50,139,385 50,800,324 REVENUE Sales Tax 21,350,056 22,790,000 23,359,750 23,827,000 23,884,000 24,409,000 Property Tax 18,139,368 20,757,000 22,418,000 22,866,000 23,323,000 23,789,000 Transient Occupancy 5,852,244 6,708,000 7,580,000 7,656,000 7,694,000 7,732,000 Utility Tax 3,370,830 3,200,000 3,200,000 3,222,000 3,245,000 3,268,000 Franchise Fees 3,478,024 3,040,000 2,853,000 2,902,000 2,957,000 3,013,000 Other Taxes 2,595,773 2,850,000 2,921,000 2,994,000 3,069,000 3,146,000 Licenses & Permits 3,073,109 2,145,000 1,600,000 1,650,000 1,703,000 1,756,000 Use of Money & Property 1,400,899 1,647,790 1,714,000 1,714,000 1,714,000 1,714,000 Intergovernmental 428,991 484,000 265,000 265,000 265,000 265,000 Charges for Services 15,454,535 13,337,897 12,717,164 12,972,000 13,193,000 13,417,000 Fines & Forfeitures 558,517 600,000 600,000 600,000 600,000 600,000 Miscellaneous/Non-Op 2,229,799 2,435,960 0 0 0 0 TOTAL REVENUE 77,932,145 79,995,647 79,227,914 80,668,000 81,647,000 83,109,000 FIVE-YEAR GENERAL FUND FORECAST BEGINNING FUND BALANCE 106 19,000,000 19,500,000 20,000,000 20,500,000 21,000,000 21,500,000 22,000,000 22,500,000 23,000,000 23,500,000 24,000,000 24,500,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Property Tax Forecast Given the volatility of business-to-business revenue, which accounts for 68.3% of the City’s sales tax, a key goal of the City’s long-term fiscal strategic plan is to diversify its sales tax base by building up the general retail and food product sectors. Development projects such as the Rosebowl, Main Street, and Marina Plaza are expected to generate new or replacement retail. When fully operational, these developments should help boost retail sales and reduce the City’s reliance on business-to-business revenues. As the housing recovery experienced in the last few years slows, property taxes in Cupertino are expected to continue experiencing strong growth through FY 2018-19 due to the reassessment of large development projects and additional tax equity allocation (TEA) funds. Assessed values for Cupertino properties are estimated to increase by $708.7 million in FY 2015-16 but only $480.1 million in FY 2016-17. In FY 2017-18, however, the Apple Campus 2 property is expected to be reassessed, increasing property tax revenues by nearly 9%. FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Adopted Forecast Forecast Forecast Forecast Property Tax 20,741,000 20,757,000 22,418,000 22,866,000 23,323,000 23,789,000 FIVE-YEAR PROPERTY TAX FORECAST FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Adopted Forecast Forecast Forecast Forecast Transient Occupancy 6,708,000 6,708,000 7,580,000 7,656,000 7,694,000 7,732,000 FIVE-YEAR TRANSIENT OCCUPANCY TAX FORECAST 107 6,000,000 6,200,000 6,400,000 6,600,000 6,800,000 7,000,000 7,200,000 7,400,000 7,600,000 7,800,000 8,000,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Transient Occupancy Forecast 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Licenses and Permits Forecast Transient occupancy tax (TOT) revenues are projected to continue with moderate growth into FY 2016-17 as occupancy rates are at record levels given our strong local economy. In FY 2018-19, the 148 rooms in the Hyatt House hotel project located at Vallco Park is expected to open for business. These additional rooms are expected to fill unmet demand and increase TOT revenues by $820,000 in FY 2018-19. Beyond FY 2018-19, the forecast assumes that out year growth between 1.5% and 2.0%. Not included in the forecast is the proposed hotel at Marina Plaza, which is still under review. As development activity slows, licenses and permit revenue has declined. Staff is expected to take increases the City’s fee schedule in early June, with the change rate expected to be effective in August 2017. Revenues are expected to decline due to decreased development activity over the next two years and will stabilize by FY 18-19. This forecast does not assume any development activity related to the proposed redevelopment of the Vallco Park Mall or the Oaks Shopping Center. FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Adopted Forecast Forecast Forecast Forecast Licenses & Permits 2,499,000 2,145,000 1,600,000 1,650,000 1,703,000 1,756,000 FIVE-YEAR LICENSES & PERMITS FORECAST FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Adopted Forecast Forecast Forecast Forecast Charges for Services 36,024,574 13,337,897 12,717,164 12,972,000 13,193,000 13,417,000 FIVE-YEAR CHARGES FOR SERVICES FORECAST 108 12,200,000 12,400,000 12,600,000 12,800,000 13,000,000 13,200,000 13,400,000 13,600,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5 Year Charges for Services Forecast FY 2017-18 revenues from charges and services are lower due to the implementation of a revised cost allocation plan (CAP), which aligns with standard industry practice as recommended by Matrix Consulting. In addition, revenues are expected to increase based on the revised fee schedule that goes into effect August 2017. For out years, the revenue stream is expected to decrease then stabilize as development-related activity slows. Utility user taxes are not sensitive to economic fluctuations as they are based on usage and rates. The forecast assumes no growth as declining consumption is offsetting projected rate increases. Franchise fee agreements have escalators based on CPI and the forecast assumes annual growth in collections tracks with CPI. The solid waste management contract was renewed and did not significantly impact projections for this revenue source. Other taxes are made up of construction, property transfer, and business license tax revenue. These revenues have continued to decelerate from a peak in FY 2013-14 driven by construction taxes from large development projects. The forecast assumes collections will return to base levels in FY 2017-18 with minimal growth in the out years. Intergovernmental revenues will decrease in FY 2017-18 assumes new base level is reached, grant revenues are assumed to remain at base levels throughout the forecast period. FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Estimate Adopted Forecast Forecast Forecast Forecast Utility User Tax 3,122,000 3,200,000 3,200,000 3,222,000 3,245,000 3,268,000 Franchise Fees 2,900,000 3,040,000 2,853,000 2,902,000 2,957,000 3,013,000 Other Taxes 2,200,000 2,850,000 2,921,000 2,994,000 3,069,000 3,146,000 Intergovernmental 230,500 484,000 265,000 265,000 265,000 265,000 Use of Money & Property 896,980 1,647,790 1,714,000 1,714,000 1,714,000 1,714,000 Fines & Forfeitures 600,000 600,000 600,000 600,000 600,000 600,000 Miscellaneous/Non-Op 3,205,977 2,435,960 0 0 0 0 TOTAL 13,155,457 14,257,750 11,553,000 11,697,000 11,850,000 12,006,000 FIVE-YEAR FORECAST - OTHER REVENUE 109 Use of money and property is expected to remain relatively flat throughout the forecast period based on the City’s current conservative investment strategy and low interest rates. The Federal Reserve has been hesitant to increase the Fed Funds rate due to mixed economic indicators. Fines and Forfeitures are anticipated to increase in FY 2017-18 will remain flat in the out years. Miscellaneous and non-operational revenues are not assumed in the forecast. An in-depth analysis of the General Fund expenditure categories was completed to develop the FY 2018 expenditure estimates included in this Forecast. As displayed in the chart above, General Fund expenditures are projected to increase from $65.0 million in FY 2015-16 actual to $75 million in FY 2017-18 and increase in all years of the forecast. The swings in expenditures are mostly driven by special projects that can range from development projects to facility improvements. It is important to note that the Forecast is adjusted to eliminate one-time additions/deletions and annualize partial year allocations that were included in the 2016-17 Adopted Budget. Various one-time additions scheduled to expire in June 2016 were eliminated in the out years of the Forecast. The following discussion focuses on the assumptions used for estimating each of the expenditure categories in the General Fund Forecast. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actuals Adopted Forecast Forecast Forecast Forecast Personnel Costs 18,973,848 24,289,426 24,262,157 25,140,004 26,195,928 26,909,942 Non-Personal (ongoing) 20,144,196 23,109,824 24,929,941 26,131,765 27,220,902 27,584,382 Non-Personal (one-time) 9,657,395 2,827,469 9,269,914 9,430,234 9,569,231 9,710,591 Cost Allocation/Contingecies 3,083,945 9,066,780 2,000,000 2,000,000 2,000,000 2,000,000 Total Non-Personnel 51,859,385 59,293,499 60,462,012 62,702,003 64,986,061 66,204,915 Transfers 13,163,945 15,757,734 16,000,000 16,000,000 16,000,000 16,000,000 TOTAL EXPENDITURES 65,023,330 75,051,233 76,462,012 78,702,003 80,986,061 82,204,915 Assigned/Other 22,325,755 38,657,396 38,657,396 38,657,396 38,657,396 38,657,396 Unassigned 29,869,085 6,750,090 9,515,992 11,481,989 12,142,928 13,047,013 TOTAL EFB $52,194,840 $45,407,486 $48,173,388 $50,139,385 $50,800,324 $51,704,409 EXPENDITURES ENDING FUND BALANCE FIVE-YEAR GENERAL FUND FORECAST 110 Personnel Expenditures Personnel costs in FY 2017-18 are increasing due to increases in compensation due to newly negotiated salary increase in October 2016, reclassification changes as part of the City’s classification study and costs related to the progression thru the five salary steps available for each position and the recommendation to add four additional positions. These costs are projected to increase 2.5% in the first year of the forecast based on negotiated contracts and by 1% annually in the out years of the Forecast. In addition, costs related to the implementation of the increases to minimum wage have also been factored into the forecast. As discussed in more detail below, these cost increases are driven mostly by assumed changes in salary and retirement costs. Health Benefits Health benefits account for about 9% of all personnel costs in the General Fund, mostly made up of health insurance costs. Given that the City pays employees a fixed dollar amount for health and dental insurance costs, as opposed to covering a percentage of premiums. In October of 2016 City Council approved labor contracts that resulted in a significant increase in the flat dollar amount the City pays toward health costs. In addition, and escalator to the flat rate costs have also been built in for January 2018 and January 2019 for health only. Cost increases in health above the negotiated flat amount and any increases dental are fully absorbed by employees. While not factored into the forecast, there is uncertainty around how the implementation of the Affordable Care Act (ACA) will affect the City. Beginning in 2018, the so called “Cadillac Tax” 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, CalPERS, has given assurances that coverage plans will fall below the Cadillac Tax threshold. Retirement Benefits The chart below shows the current breakdown of retirement costs borne by the City and employees for the three retirement tiers. Virtually all employees in the City are currently covered under the Tier 1 retirement system. Savings from the Tier 2 and Tier 3 are not expected to be substantial for another 10-15 years. Tier EEs Benefits Employer Share Employer Pickup Total Employer Share Employee Share Total Rate I 114 2.7@ 55 Highest Year 26.169% 0.00% 26.17% 8.00% 34.17% II 13 2% @ 60 Highest 3 Yr Avg 26.169% 0.00% 26.17% 7.00% 33.17% 111 II 67 2% @62 Highest 3 Yr Avg 26.169% 0.00% 26.17% 6.25% 32.42% Significant investment losses experienced by CalPERS during the great recession resulted in overall funded status of the retirement system dropping to 60.8%.1 Given the economic recovery, the funded status of the system has improved to 70%.2 However, the desired goal is 100% funded status, where assets on hand are equal to the desired level of assets needed to pay pension benefits. After a thorough analysis, CalPERS actuaries determined the retirement system was at significant risk of falling to dangerously low funded status levels under existing actuarial policies. In December 2016 CalPERS informed agencies that it would be reducing the discount rate of return for investments by .5%. The result of this change is drastic and will result in significant increases in retirement well above what the City had previously forecasted for retirement expenses. The City anticipates retirement rates increasing by the following in forecast period, these increases will result in costs almost doubling in the forecast period: Fiscal Year FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 5 Year Total Total Rate 29.017% 31.968% 35.764% 38.001% 39.770% Net Rate Increase 10.9% 10.2% 11.9% 6.3% 4.7% 44.00% Increase in $ $617,000 $645,000 $745,000 $439,000 $347,000 $2,793,000 The City’s current unfunded accrued liability is $78 million according the most recent actuarial report issued by CalPERS in August of 2016. However, these estimates are based on 7.5% discount rate, the unfunded accrued liability is would be significantly higher at least $106 million and could go higher than $142 million if the 1 CalPERS Pension & Health Benefits Committee, Agenda Item 9A: Amortization Periods and Smoothing Methods for Retirement Trust Funds. April 16, 2013. 2 See Footnote #1. 112 City were to attempt to leave CalPERS. The following shows the City’s Hypothetical Termination Liability based on the City’s most recent actuarial report. Other Benefits The Forecast assumes an annual 2% cost escalator for life insurance, long-term disability insurance, and the employee assistance program. Workers’ compensation costs vary widely depending on the number and type of claims, which makes these costs very hard to predict. The forecast assumes a 2% annual increase. No increases were forecasted for the following benefits: car allowance, internet allowance, stand by pay and recreation bucks. Non-Personnel Expenditures Non-personnel expenditures in FY 2017-18 were adjusted to remove one-time uses and build forecast projections off of base levels. For the out years of the Forecast, a growth rate based on projected CPI has been assumed from the FY 2017-18 non-personnel base levels in each of the four years. The average growth rate for the non-personnel category is 3% annually. 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 to subsidize enterprises and operations. With the implementation of full cost allocation in FY 2015-16, General Fund expenses will be 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 projected to kick in and remain flat in the forecast in order to maintain those fund balance minimums. General Fund reserves are projected to increase by $2 million over the Forecast period. This driven by the City’s ongoing strong revenues and the City’s conservative approach to ongoing expenditure growth. 113 Although the General Fund unassigned fund balance is expected grow substantially over the forecast period, it is anticipated that any unassigned fund balance over the $500,000 will be transferred to the Capital Reserve or into the assigned reserve for PERS costs or into the City’s Irrevocable Trust should it move forward with this option to assist in smoothing anticipated increases in retirement. As mentioned several times throughout this document any General Fund unassigned fund balances above the $500,000 maximum will be transferred out to the Capital Reserve. FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actuals Adopted Forecast Forecast Forecast Forecast Assigned - - Economic Uncertainty I 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 Economic Uncertainty II - - - - - - Economic Fluctuation 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 CIP Future Project - - - - PERS 100,000 4,793,000 4,793,000 4,793,000 4,793,000 4,793,000 Reserve for Encumbrances - 11,604,000 11,604,000 11,604,000 11,604,000 11,604,000 Total Assigned 20,500,000 36,797,000 36,797,000 36,797,000 36,797,000 36,797,000 FIVE-YEAR GENERAL FUND FORECAST FY 15-16 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actuals Adopted Forecast Forecast Forecast Forecast Unassigned EFB 29,869,085 6,750,090 9,515,992 11,481,989 12,142,928 13,047,013 FIVE-YEAR GENERAL FUND UNASSIGNED FUND BALANCE FORECAST 114 ALL FUNDS SUMMARY This section provides information on the FY 2017-18 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 the FY 2017-18 beginning fund balance and for the 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 2017-18 revenue estimates are built on the assumption that the economy will continue to experience modest growth, which will positively impact the City’s economic performance. 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, 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: Revenues are projected decrease by $28.3 million dollars, largely due to the city not receiving one-time Below Market housing dollars for FY 2017-18 as per the prior year. 2015-16 2016-17 Actuals Final Budget Other Taxes 676,659 33,034,404 1,350,000 Use of Money & Property 287,512 10,000 2,000 Intergovernmental 2,103,033 3,094,741 1,980,590 Charges for Services 400,969 0 384,100 Miscellaneous Revenue 489,424 0 0 Fines and Forfeitures 6,387 502,000 6,000 Transfers In 8,702,676 8,181,679 12,772,122 Total Revenue Sources $12,666,660 $44,822,824 $16,494,812 REVENUE SOURCES 2017-18 Final Budget 115 Expenditures Expenditure uses for special revenue funds are summarized in the table below and discussed in greater detail following the table: Expenditures are projected to increase by $7.9 million dollars, which is primarily due to an increase in costs related to new and existing capital and BMR projects. Fund Balance Fund balance represents a funds 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. Debt Service Fund The Debt Service Fund 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. 2015-16 2016-17 Actuals Final Budget Employee Compensation 837,860 926,579 936,733 Employee Benefits 402,692 442,507 511,493 Materials 812,863 761,606 742,316 Contract Services 311,927 718,400 796,900 Cost Allocation 453,696 379,431 555,816 Capital Outlays 4,397,548 2,863,000 5,638,000 Special Projects 9,045,481 10,850,000 14,872,000 Contingencies 0 39,571 39,571 Transfers Out 0 0 779,762 Total Expenditures Uses $16,262,068 $16,981,094 $24,872,591 2017-18 Final Budget EXPENDITURE USES CHANGES TO FUND BALANCE 2015-16 2016-17 Actuals Final Budget Beginning Balance 37,370,525 33,775,118 61,616,848 Net Increase (Decrease) in Fund Balance (3,595,407) 27,841,730 (8,377,779) Ending Balance $33,775,118 $61,616,848 $53,239,069 2017-18 Final Budget 116 Revenue Revenue sources for Debt Service Funds are summarized in the table below and discussed in greater detail following the table: There is no projected change to revenues. 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 the same. This represents a repayment of debt and payments which are fixed for the life of the loan that is set to be paid off in 2030. Fund Balance Fund balance represents a funds 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. REVENUE SOURCES 2015-16 2016-17 Actuals Final Budget Use of Money & Property 4,795 0 0 Transfers In 3,167,033 3,167,538 3,167,538 Total Revenue Sources $3,171,828 $3,167,538 $3,167,538 2017-18 Final Budget EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Debt Service 3,169,038 3,167,538 3,167,538 Transfers Out 0 0 0 Total Expenditures Uses $3,169,038 $3,167,538 $3,167,538 2017-18 Final Budget CHANGES TO FUND BALANCE 2015-16 2016-17 Actuals Final Budget Beginning Balance 1,594,191 1,596,982 1,596,982 Net Increase (Decrease) in Fund Balance 2,791 0 0 Ending Balance $1,596,982 $1,596,982 $1,596,982 2017-18 Final Budget 117 Capital Project Funds This fund pays for the acquisition and/or construction of major capital facilities. Revenue Revenue sources for Capital Project Funds are summarized in the table below and discussed in greater detail following the table: Revenue is projected to increase by $2.4 million. This increase represents the movement of fund balance between the Capital Reserve and Capital Fund. Expenditures Expenditure uses for Capital Project Funds are summarized in the table below and discussed in greater detail following the table: Expenditures are projected to increase by $8.4 million dollars primarily due to an increase in special project costs and the transfers out of funds to fund capital projects in other funds. Fund Balance Fund balance represents a funds 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. 2015-16 2016-17 Actuals Final Budget Intergovernmental 0 0 0 Transfers In 3,291,725 5,907,000 8,325,762 Total Revenue Sources $3,291,725 $5,907,000 $8,325,762 REVENUE SOURCES 2017-18 Final Budget EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Employee Compensation 20,241 0 0 Employee Benefits 6,291 0 0 Materials 3,726 0 0 Contract Services 8,000 0 125,000 Contingencies 0 0 0 Cost Allocation 0 0 0 Special Projects 3,030,399 5,907,000 8,200,762 Transfers Out 5,549,993 9,165,000 15,184,000 Total Expenditures Uses $8,618,649 $15,072,000 $23,509,762 2017-18 Final Budget 118 *As part of the Final Budget the Capital Fund anticipated using $9.2 million in fund balance, however due to the defunding and closeout of projects and a large transfer in of unassigned fund balance from the General Fund, the City anticipates ending the fiscal year with a net increase of $3.2 million with a total FY 17-18 beginning balance of $18.5 million dollars. 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. Revenue Revenue sources for Enterprise Funds are summarized in the table below and discussed in greater detail following the table: Revenue is projected to decrease by $928,000, this is primarily driven by increased charges for services that are more in line with prior year actuals and a decrease in transfers due to the department using unassigned fund balance to cover operational shortages. As part of the budget process each fund is evaluated, funds that are bringing in less revenue than they are expending require the use of fund balance or a subsidy from the General Fund. CHANGES TO FUND BALANCE 2015-16 2016-17 Actuals Final Budget Beginning Balance 20,671,116 15,344,192 6,179,192 Net Increase (Decrease) in Fund Balance (5,326,924) (9,165,000) (15,184,000) Ending Balance $15,344,192 $6,179,192 ($9,004,808) 2017-18 Final Budget 2015-16 2016-17 Actuals Final Budget Use of Money & Property 107,187 213,200 231,200 Intergovernmental 16,007 0 15,000 Charges for Services 7,577,085 6,834,500 7,181,800 Miscellaneous Revenue 72,804 0 56,000 Transfers In 1,635,000 1,764,091 400,000 Total Revenue Sources $9,408,083 $8,811,791 $7,884,000 REVENUE SOURCES 2017-18 Final Budget 119 Expenditures Expenditure uses for Enterprise Funds are summarized in the table below and discussed in greater detail following the table: Expenditures are projected to increase by $264,000. This increase is driven primarily by an increase in salary and benefits costs, contract services and cost allocation and a decrease in special projects. Fund Balance Fund balance represents a funds 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. EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Employee Compensation 1,423,182 1,599,429 1,952,091 Employee Benefits 387,473 457,858 603,569 Materials 369,073 471,214 534,167 Contract Services 5,553,741 6,032,888 6,135,360 Contingencies 9,458 273,496 273,496 Cost Allocation 592,752 661,972 759,543 Special Projects 284,688 549,000 95,000 Transfers Out 388,228 266,680 223,766 Total Expenditures Uses $9,008,594 $10,312,537 $10,576,992 2017-18 Final Budget CHANGES TO FUND BALANCE 2015-16 2016-17 Actuals Final Budget Beginning Balance 8,684,139 9,083,628 7,582,882 Net Increase (Decrease) in Fund Balance 399,489 (1,500,746) (2,692,992) Ending Balance $9,083,628 $7,582,882 $4,889,890 2017-18 Final Budget 120 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: Revenues are project to increase by $2 million dollars. The increase is primarily due to transfers in from the General Fund to fund Government Channel and website operations. Expenditures Expenditure uses for Internal Service Funds are summarized in the table below and discussed in greater detail following the table: 2015-16 2016-17 Actuals Final Budget Use of Money & Property 74,464 0 0 Intergovernmental 0 0 0 Charges for Services 4,693,577 5,191,403 4,167,492 Miscellaneous Revenue 29,320 0 0 Transfers In 1,917,504 2,645,673 5,056,074 Other Financing Uses 21,944 0 601,003 Total Revenue Sources $6,736,808 $7,837,076 $9,824,569 REVENUE SOURCES 2017-18 Final Budget EXPENDITURE USES 2015-16 2016-17 Actuals Final Budget Employee Compensation 1,334,370 1,539,737 2,336,566 Employee Benefits 1,410,999 1,536,479 1,830,031 Materials 407,652 499,984 1,387,706 Contract Services 1,890,433 2,639,022 2,024,155 Contingencies 0 210,163 340,418 Cost Allocation 210,072 795,737 733,706 Special Projects 235,213 2,490,105 2,371,930 Transfers Out 731,841 765,500 665,551 Total Expenditures Uses $6,220,580 $10,476,727 $11,690,063 2017-18 Final Budget 121 Expenditures are projected to increase by $1.2 million dollars, this is primarily due to salary and benefit costs and costs related equipment purchases. Retained Earnings Internal Service Funds carry retained earning instead of fund balance. Retained earnings represent a funds savings and 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 fund balance. CHANGES TO RETAINED EARNINGS 2015-16 2016-17 Actuals Final Budget Beginning Balance 8,684,139 9,200,368 6,560,717 Net Increase (Decrease) in Fund Balance 516,229 (2,639,651) (1,865,494) Ending Balance $9,200,368 $6,560,717 $4,695,223 2017-18 Final Budget 122 Five Year Budget Forecast FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ GENERAL FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2020‐2021 Sales Tax21,350,056 22,440,000 25,940,000 22,790,000 23,359,750 23,827,000 23,884,000 24,409,000 Property Tax18,139,368 18,741,000 20,741,000 20,757,000 22,418,000 22,866,000 23,323,000 23,789,000 Transient Occupancy5,852,244 6,708,000 6,708,000 6,708,000 7,580,000 7,656,000 7,694,000 7,732,000 Utility Tax3,370,830 3,122,000 3,122,000 3,200,000 3,200,000 3,222,000 3,245,000 3,268,000 Franchise Fees3,478,024 2,900,000 2,900,000 3,040,000 2,853,000 2,902,000 2,957,000 3,013,000 Other Taxes2,595,773 1,600,000 2,200,000 2,850,000 2,921,000 2,994,000 3,069,000 3,146,000Licenses & Permits3,073,109 2,499,000 2,499,000 2,145,000 1,600,000 1,650,000 1,703,000 1,756,000Use of Money & Property1,400,899 776,980 896,980 1,647,790 1,714,000 1,714,000 1,714,000 1,714,000Intergovernmental428,991 230,500 230,500 484,000 265,000 265,000 265,000 265,000Charges for Services15,454,535 19,003,224 36,024,574 13,337,897 12,717,164 12,972,000 13,193,000 13,417,000Fines & Forfeitures558,517 600,000 600,000 600,000 600,000 600,000 600,000 600,000Miscellaneous/Other2,229,799 383,300 3,205,977 2,435,9600000TOTAL REVENUE 77,932,145 79,004,004 105,068,031 79,995,647 79,227,914 80,668,000 81,647,000 83,109,000 5 YEAR FORECASTOBJECT2015‐16Actuals2016‐17Adopted2016‐17Estimate123 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ GENERAL FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2020‐2021Employee Compensation13,430,658 15,348,029 16,141,026 17,078,787 16,726,757 16,894,024 17,062,964 17,233,594 Employee Benefits5,543,191 6,350,028 6,733,844 7,210,639 7,535,400 8,245,980 9,132,963 9,676,348 Personnel Costs18,973,848 21,698,057 22,874,870 24,289,426 24,262,157 25,140,004 26,195,928 26,909,942 Materials3,323,691 4,173,507 4,811,637 4,784,228 4,908,618 5,006,790 5,091,906 5,178,468 Contract Services16,819,679 17,849,345 21,193,475 18,165,596 20,021,323 21,124,975 22,128,996 22,405,914 Appropriations for Contingencies5,010 1,249,396 1,054,818 1,253,931 1,253,931 1,253,931 1,253,931 1,253,931 Cost Allocation3,078,935 13,262,836 13,148,944 7,812,849 8,015,983 8,176,303 8,315,300 8,456,660 Debt Service/Other Uses827 247,300 997,300 160,000 ‐ ‐ ‐ ‐ Capital Outlays & Special Projects9,657,395 5,780,639 23,951,348 2,827,469 2,000,000 2,000,000 2,000,000 2,000,000 Total Non‐Personnel32,885,537 42,563,023 65,157,522 35,004,073 36,199,855 37,561,999 38,790,133 39,294,973 Net Transfers13,163,945 12,961,373 28,693,806 15,757,734 16,000,000 16,000,000 16,000,000 16,000,000 TOTAL EXPENDITURES 65,023,330 77,222,454 116,726,199 75,051,233 76,462,012 78,702,003 80,986,061 82,204,915 OBJECT2015‐16Actuals2016‐17Adopted2016‐17Estimate5 YEAR FORECAST124 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ GENERAL FUND FUND BALANCE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022Beginning Fund Balance 39,324,543 52,194,840 52,194,840 40,390,672 45,407,486 48,173,388 50,139,385 50,800,324 Assigned/Other22,325,755 28,261,693 33,964,396 38,657,396 38,657,396 38,657,396 38,657,396 38,657,396Unassigned29,869,085 16,692,979 6,426,276 6,750,090 9,515,992 11,481,989 12,142,928 13,047,013Total Ending Fund Balance 52,194,840 44,954,672 40,390,672 45,407,486 48,173,388 50,139,385 50,800,324 51,704,409 Classification2015‐16Actuals2016‐17Adopted2016‐17Estimate5 YEAR FORECAST125 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022STORM DRAIN IMPROVEMENT Investment Earnings14,239 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfer in from Capital Reserve /General Fund‐ 1,950,000 1,950,000 1,700,000 210,000 210,000 210,000 210,000 Developer Fees154,698 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Miscellaneous487,009 ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 655,947 2,050,000 2,050,000 1,800,000 310,000 310,000 310,000 310,000 PARK DEDICATION Park Dedication Fee255,918 17,821,125 17,821,125 250,000 250,000 250,000 250,000 250,000 Investment Earnings77,771 ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 333,689 17,821,125 17,821,125 250,000 250,000 250,000 250,000 250,000 ENVIRON. MGMT./CLEAN CREEKS/STORM DRAIN Investment Earnings2,615 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Fees374,519 502,000 502,000 386,000 386,000 386,000 386,000 386,000 Transfer in from Capital Reserve/General Fund128,676 128,679 156,834 84,122 ‐ ‐ ‐ ‐ TOTAL 505,809 630,679 658,834 470,122 386,000 386,000 386,000 386,000 TRANSPORTATION Investment Earnings84,189 10,000 10,000 2,000 2,000 2,000 2,000 2,000 Transfer from Capital Reserve/General Fund8,574,000 6,103,000 6,152,982 10,988,000 6,900,000 7,100,000 7,100,000 5,800,000 Intergovernmental Revenue1,701,151 2,780,151 2,801,255 1,666,000 1,815,000 1,815,000 1,815,000 3,165,000 Charges for Services‐ ‐ ‐ 4,100 ‐ ‐ ‐ ‐ Miscellaneous1,709 ‐ 25,859 ‐ ‐ ‐ ‐ ‐ TOTAL 10,361,048 8,893,151 8,990,096 12,660,100 8,717,000 8,917,000 8,917,000 8,967,000 5 YEAR FORECASTPROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection126 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐20225 YEAR FORECASTPROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17ProjectionHOUSING & COMMUNITY DEVELOPMENT Investment Earnings 108,699 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Intergovernmental Revenue401,882 314,590 314,590 314,590 314,590 314,590 314,590 314,590 Other Taxes299,586 15,113,279 15,113,279 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Transfer from General Fund‐ ‐ 3,614 ‐ ‐ ‐ ‐ ‐ TOTAL 810,167 15,427,869 15,431,483 1,314,590 1,314,590 1,314,590 1,314,590 1,314,590 TOTAL SPECIAL REVENUE FUNDS 12,666,660 44,822,824 44,951,538 16,494,812 10,977,590 11,177,590 11,177,590 11,227,590 127 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ DEBT SERVICE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PUBLIC FACILITIES CORPORATION Investment Earnings4,795 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt Refinancing‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfer from General Fund3,167,033 3,167,538 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488TOTAL 3,171,828 3,167,538 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST128 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022CAPITAL IMPROVEMENT PROJECTS Transfers from Capital Reserves/Enterprise Funds500,000 5,907,000 5,907,000 8,325,762 425,000 905,000 1,105,000 105,000 Grants/Other Income‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 500,000 5,907,000 5,907,000 8,325,762 425,000 905,000 1,105,000 105,000 CAPITAL RESERVES Transfers In2,791,725 ‐ 15,000,000 ‐ ‐ ‐ ‐ ‐ TOTAL 2,791,725 ‐ 15,000,000 ‐ ‐ ‐ ‐ ‐ STEVENS CREEK CORRIDOR PARK Transfers from Park Dedication‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from Capital Reserves‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from Recreation‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Grants‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL CAPITAL FUNDS 3,291,725 5,907,000 20,907,000 8,325,762 425,000 905,000 1,105,000 105,000 PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST129 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ ENTERPRISE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022RESOURCE RECOVERY Investment Earnings/Rentals52,789 7,000 7,000 25,000 25,000 25,000 25,000 25,000 Charges for Services2,576,077 1,917,000 1,917,000 2,150,000 2,150,000 2,150,000 2,150,000 2,150,000 Intergovernmental Revenue ‐ Grants16,007 ‐ ‐ 15,000 ‐ ‐ ‐ ‐ Transfers from General Fund/Capital Reserve‐ ‐ 53,215 ‐ ‐ ‐ ‐ ‐ Miscellaneous ‐ Household Hazardous Waste72,804 ‐ ‐ 56,000 ‐ ‐ ‐ ‐ TOTAL 2,717,676 1,924,000 1,977,215 2,246,000 2,175,000 2,175,000 2,175,000 2,175,000 BLACKBERRY FARM GOLF COURSE Investment Earnings/Rentals29,220 22,000 22,000 22,000 22,000 22,000 22,000 22,000 Charges for Services312,064 381,000 381,000 381,000 381,000 381,000 381,000 381,000 Transfer from General Fund/Capital Reserve262,008 326,929 332,931 300,000 300,000 300,000 300,000 300,000 TOTAL 603,293 729,929 735,931 703,000 703,000 703,000 703,000 703,000 SPORTS CENTER Investment Earnings/Rentals9,490 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Charges for Services2,222,608 2,285,000 2,285,000 2,285,000 2,285,000 2,285,000 2,285,000 2,285,000 Transfer from General Fund657,732 999,054 1,030,662 100,000 100,000 100,000 100,000 100,000 TOTAL 2,889,830 3,285,254 3,316,862 2,386,200 2,386,200 2,386,200 2,386,200 2,386,200 RECREATION PROGRAMS Investment Earnings15,689 183,000 183,000 183,000 ‐ ‐ ‐ ‐ Charges for Services2,466,336 2,251,500 2,251,500 2,365,800 2,365,800 2,365,800 2,365,800 2,365,800 Transfer from General Fund/Capital Reserves/CIP 715,260 438,108 457,312 ‐ 2,796,992 2,796,992 2,796,992 2,796,992 TOTAL 3,197,284 2,872,608 2,891,812 2,548,800 5,162,792 5,162,792 5,162,792 5,162,792 TOTAL ENTERPRISE FUNDS9,408,083 8,811,791 8,921,820 7,884,000 10,426,992 10,426,992 10,426,992 10,426,992 PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST130 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022 Investment Earnings24,168 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Charges for Services1,655,088 2,884,971 2,996,196 2,361,792 2,361,792 2,361,792 2,361,792 2,361,792 Transfers In from General Fund 237,000 647,264 801,267 549,705‐ ‐ ‐ ‐ TOTAL 1,916,256 3,532,235 3,797,463 2,911,497 2,361,792 2,361,792 2,361,792 2,361,792 Investment Earnings5,058 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Charges for Services779,676 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In from General Fund40,000 1,848,409 2,025,624 3,028,366 2,628,366 2,628,366 2,628,366 2,628,366 TOTAL 824,734 1,848,409 2,025,624 3,028,366 2,628,366 2,628,366 2,628,366 2,628,366 Investment Earnings20,724 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Charges for Services958,056.00 500,732.00 500,732.00 ‐ ‐ ‐ ‐ ‐ Other Financing Sources‐ ‐ ‐ 601,003.00 ‐ ‐ ‐ ‐ Transfers In from General Fund‐ ‐ 1,192 ‐ ‐ ‐ ‐ ‐ TOTAL 978,780 500,732 501,924 601,003 ‐ ‐ ‐ ‐ Investment Earnings22,096 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Charges for Services1,219,560 1,721,825 1,721,825 1,721,825 1,290,825 1,290,825 1,290,825 1,290,825 Transfers In‐ ‐ 9,468 ‐ ‐ ‐ ‐ ‐ Other Financing Sources21,944 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous29,320 ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 1,292,920 1,721,825 1,731,293 1,721,825 1,290,825 1,290,825 1,290,825 1,290,825 Investment Earnings1,959 ‐‐ ‐ ‐ ‐ ‐ ‐ Charges for Services81,197 83,875 83,875 83,875 83,875 83,875 83,875 83,875 Transfers In from General Fund 640,004 150,000 150,000 509,517 150,000 150,000 150,000 150,000 TOTAL 723,160 233,875 233,875 593,392 233,875 233,875 233,875 233,875 PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECASTCOMPENSATED ABSENCE & LONG‐TERM DISABILITYINNOVATION & TECHNOLOGYCITY CHANNELWORKERSʹ COMPENSATION VEHICLE/EQUIPMENT REPLACEMENT131 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND REVENUE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST Investment Earnings459 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In from General Fund 1,000,500 ‐ ‐ 968,486 931,335 931,335 931,335 931,335 TOTAL 1,000,959 ‐ ‐ 968,486 931,335 931,335 931,335 931,335 TOTAL ALL PROGRAMS 6,736,808 7,837,076 8,290,179 9,824,569 7,446,193 7,446,193 7,446,193 7,446,193 RETIREE MEDICAL 132 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022STORM DRAIN IMPROVEMENT210‐90‐978 Minor Storm Drain Improvements50,141 75,000 150,829 ‐ ‐ ‐ ‐ ‐ 210‐90‐979 2012‐13 Minor Storm Drain Improvements11,131 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 210‐90‐980 SD Master Plan Update219,247 50,000 160,753 ‐ ‐ ‐ ‐ ‐ 210‐90‐981 Calabazas Creek Outfall Repair‐ ‐ 135,000 ‐ ‐ ‐ ‐ ‐ 210‐99‐042 SD Improvement ‐ Foothill/Cupertino Rd.‐ 1,900,000 1,900,000 ‐ ‐ ‐ ‐ ‐ 210‐99‐060 SD Improvement ‐ Byrne & SCB‐ ‐ ‐ 1,500,000 ‐ ‐ ‐ ‐ 215‐90‐982 Bubb Road/Elm Court SD Improvement1,906,249 ‐ 178,255 ‐ ‐ ‐ ‐ ‐ 215‐90‐983 Monta Vista Storm Drain System1,571,211 ‐ 322,808 ‐ ‐ ‐ ‐ ‐ TOTAL 3,757,979 2,025,000 2,847,645 1,500,000 PARK DEDICATION280‐99‐009 CIP ‐ Lawrence Mitty Park 16,666 ‐ 8,254,327 ‐ ‐ ‐ ‐ ‐ TOTAL 16,666 ‐ 8,254,327 ‐ ‐ ‐ ‐ ‐ ENVIRON. MGMT./CLEAN CREEKS/STORM DRAIN230‐81‐802 Non Point Source497,048 671,613 758,081 761,720 761,720 761,720 761,720 761,720 TOTAL 497,048 671,613 758,081 761,720 761,720 761,720 761,720 761,720 TRANSPORTATION270‐85‐820 Sidewalk, Curb and Gutter Maint992,176 1,001,932 1,028,610 1,085,525 1,085,525 1,085,525 1,085,525 1,085,525 270‐85‐821 Street Pavement Maintenance8,756,565 7,275,167 13,489,369 6,744,384 5,744,384 5,744,384 5,744,384 5,744,384 270‐85‐822 Street Signs/Markings762,709 662,359 707,131 831,990 831,990 831,990 831,990 831,990 270‐90‐954 Monumemt Gateway Sign‐ ‐ 60,859 ‐ ‐ ‐ ‐ ‐ 270‐90‐958 Orange and Byrne Sidewalk Improvements73 ‐ 499,927 3,388,000 ‐ ‐ ‐ ‐ 270‐90‐959 Access Transition Plan Upgrade1,900 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 270‐90‐960 Bridge Rehab Minor31 535,000 699,969 ‐ ‐ ‐ ‐ ‐ 270‐90‐961 Street Median Irrigation Plant Replacement12,406 220,000 647,186 750,000 ‐ ‐ ‐ ‐ 270‐90‐962 Bicycle Pedestrian Facility Improvements282,847 83,000 901,114 779,762 ‐ ‐ ‐ ‐ 270‐90‐974 Fiber Network Interco107,808 ‐ 335 ‐ ‐ ‐ ‐ ‐ 270‐90‐975 Speed Bump Vista Lazaneo9,200 ‐ 1,600 ‐ ‐ ‐ ‐ ‐ 270‐90‐976 Phase 2 McClellan Sidewalk Improvements28,072 ‐ 2,006,928 ‐ ‐ ‐ ‐ ‐ 270‐90‐977 SCB Perimeter Turn Ext.116,876 ‐ ‐ ‐ ‐ ‐ ‐ ‐ PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST133 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ SPECIAL REVENUE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST270‐99‐029 SD Improvements ‐ Homestead65,737 ‐ ‐ ‐ 2,398,000 ‐ ‐ ‐ 270‐99‐044 Traffic Calm Rodrigues/Pacifica‐ ‐ 24,000 ‐ ‐ ‐ ‐ ‐ 270‐99‐946 Sidewalk Renovation SCB‐ ‐ 250,000 ‐ ‐ ‐ ‐ ‐ TOTAL 11,136,398 9,777,458 20,317,028 13,579,661 10,059,899 7,661,899 7,661,899 7,661,899 HOUSING & COMMUNITY DEVELOPMENT260‐72‐707 General Administration56,323 63,768 65,062 88,814 88,814 88,814 88,814 88,814 260‐72‐709 Affordable Housing366,928 284,484 442,379 284,484 284,484 284,484 284,484 284,484 260‐72‐710 Public Service Grants45,982 47,188 47,188 47,188 47,188 47,188 47,188 47,188 265‐72‐711 Below Market Rate Housing384,745 4,111,583 4,401,250 8,610,724 475,000 475,000 475,000 475,000 TOTAL 853,978 4,507,023 4,955,879 9,031,210 895,486 895,486 895,486 895,486 TOTAL ALL SPECIAL REVENUE16,262,068 16,981,094 37,132,960 24,872,591 11,717,105 9,319,105 9,319,105 9,319,105 134 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ DEBT SERVICE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PUBLIC FACILITIES CORPORATION 5301 Principal2,091,500 3,167,538 3,167,538 3,167,538 2,220,000 2,290,000 2,355,000 2,425,000 5301 Interest + Fees1,077,538 ‐ ‐ ‐ 949,438 882,838 814,138 743,488 5301 Debt Refinancing‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 3,169,038 3,167,538 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST135 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022CAPITAL IMPROVEMENT PROJECTS420‐90‐880 McClellan Environmental Ed Facility809,076 ‐ 8,408 ‐ ‐ ‐ ‐ ‐ 420‐90‐897 Sports Center Tennis Ct Retaining Wall‐ ‐ 50,000 420‐90‐898 SCCP Chain MP‐McClellan to SCB106,799 ‐ 128,870 ‐ ‐ ‐ ‐ ‐ 420‐90‐903 McClellan Ranch Ped. Parking Landscape299,744 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420‐90‐904 Sports Center‐Resurface Tennis Courts1,064,554 ‐ 420,017 ‐ ‐ ‐ ‐ ‐ 420‐90‐938 Public Building Solar ‐ Service Center‐ ‐ 34,854 ‐ ‐ ‐ ‐ ‐ 420‐90‐940 Civic Center Parking Structure101,085 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420‐90‐942 Civic Master Plan Implementation3,952 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420‐90‐943 Senior Center Floor Repair71,283 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420‐90‐944 Senior Center/Mary Landscape134,657 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420‐90‐969 DeAnza/McClellan Signal Maintenance‐ ‐ 145,700 ‐ ‐ ‐ ‐ ‐ 420‐90‐971 Stelling.280 Pedestrian Bridge Lighting‐ ‐ 46,500 ‐ ‐ ‐ ‐ ‐ 420‐90‐999 Green Bike Lanes‐ ‐ 95,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐002 Blackberry Farm Splash Pad‐ ‐ 70,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐003 McClellan Ranch Trash Enclosure‐ 154,000 154,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐004 McClellan Ranch ‐ Community Garden Improvements‐ 30,000 30,000 70,000 ‐ ‐ ‐ ‐ 420‐99‐005 Memorial Park MP and Parking ‐ 150,000 150,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐006 Portal Park ‐ Renovation Master Plan‐ ‐ ‐ ‐ 50,000 ‐ ‐ ‐ 420‐99‐007 ADA Improvements‐ 75,000 150,000 95,000 75,000 75,000 75,000 75,000 420‐99‐010 Memorial Park Phase I Concept Design‐ ‐ ‐ ‐ ‐ 250,000 ‐ ‐ 420‐99‐014 Stevens Creek Bank Repair Concept‐ ‐ ‐ 100,000 ‐ ‐ 420‐99‐015 Tennis Court Resurfacing ‐ Various Parks‐ 588,000 588,000 515,000 ‐ ‐ ‐ ‐ 420‐99‐017 Sports Center Upgrades‐ 290,000 290,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐020 McClellan Ranch West ‐ Simms House Removal159,585 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420‐99‐022 Quinlan Cupertino Room Lighting33,819 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420‐99‐023 Quinlan Fire Alarm Control Panel Upgrade2,149 ‐ 132,850 ‐ ‐ ‐ ‐ ‐ 420‐99‐025 Service Center Parking Lot Modifications22,700 ‐ 89,538 ‐ ‐ ‐ ‐ ‐ 420‐99‐026 Bicycle Transportation Plan Update44,750 ‐ 2,211 ‐ ‐ ‐ ‐ ‐ 420‐99‐027 Pasadena Avenue Public Improvements/Granada67,290 ‐ 528,729 ‐ ‐ ‐ ‐ ‐ 420‐99‐028 Traffic Signal Foothill‐I280 SB‐ ‐ ‐ 100,000 420‐99‐030 McClellan West ‐ Parking Lot Improvements‐ 400,000 400,000 550,000 ‐ ‐ ‐ ‐ 420‐99‐031 Recreation Facilities Monument Signs ‐ 385,000 385,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐033 City Hall Turf Reduction ‐ 320,000 420,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐034 Service Center Shed No. 3 Improvement ‐ 100,000 100,000 400,000 ‐ ‐ ‐ ‐ 420‐99‐035 Stocklmeir House ‐ New Sewer Lateral‐ 50,000 50,000 ‐ ‐ ‐ ‐ ‐ PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST136 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST420‐99‐036 2016 Bike Plan Implementation ‐ 2,000,000 2,000,000 4,779,762 ‐ ‐ ‐ ‐ 420‐99‐037 Bikeway Enhancements and Branding Study‐ 60,000 60,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐038 Fiber Network Extension to Service Center ‐ 350,000 350,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐039 Pedestrian Master Plan ‐ 120,000 120,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐040 Retaining Wall Repair ‐ Cordova Road‐ 350,000 350,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐041 Retaining Wall Replacement ‐ Regnart Road‐ 450,000 450,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐043 Service Center New Admin Building Feasibility Study‐ 35,000 35,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐045 Citywide Park and Recreation Master Plan120,823 ‐ 379,176 ‐ ‐ ‐ ‐ ‐ 420‐99‐047 CIP Prelim Planning & Design‐ ‐ ‐ 125,000 ‐ ‐ ‐ ‐ 420‐99‐048 Capital Project Support‐ ‐ ‐ 50,000 ‐ ‐ ‐ ‐ 420‐99‐049 Intʹl Cricket Ground‐Feasibility‐ ‐ ‐ 20,000 ‐ ‐ ‐ ‐ 420‐99‐051 Inclusive Play Area ‐ Planning‐ ‐ ‐ 30,000 ‐ ‐ ‐ ‐ 420‐99‐052 Jollyman Park Pathway Installation‐ ‐ ‐ ‐ 200,000 500,000 ‐ ‐ 420‐99‐053 Linda Vista Park ‐ Renovation Master Plan‐ ‐ ‐ ‐ 70,000 ‐ ‐ ‐ 420‐99‐054 Senior Ctr Walkway Replacement‐ ‐ ‐ 64,000 ‐ ‐ ‐ ‐ 420‐99‐055 Outfall Repair/Slope Stabilization‐Regnart‐ ‐ ‐ 400,000 ‐ ‐ ‐ ‐ 420‐99‐056 St Light Install ‐ Annual Infill‐ ‐ ‐ 30,000 30,000 30,000 30,000 30,000 420‐99‐057 McClellan Sdwlk‐RB to Hwy85 Over‐ ‐ ‐ 430,000 ‐ ‐ ‐ ‐ 420‐99‐058 St Light Install‐Randy & Larry‐ ‐ ‐ 367,000 ‐ ‐ ‐ ‐ 420‐99‐059 Senior Center Repairs‐ ‐ ‐ 200,000 ‐ ‐ ‐ ‐ 420‐99‐885 Golf Irrigation Upgrades‐ ‐ 493,000 ‐ ‐ ‐ ‐ ‐ 420‐99‐XXX Memorial Park Phase I Construction‐ ‐ ‐ ‐ ‐ ‐ 1,000,000 ‐ 420‐99‐XXX Monta Vista Park Master Plan‐ ‐ ‐ ‐ ‐ 50,000 ‐ ‐ Capital Projects 3,042,266 5,907,000 8,706,853 8,325,762 425,000 905,000 1,105,000 105,000 Transfers Out: 0100 Transfer to Recreation Programs‐ ‐ ‐ ‐ ‐ ‐ ‐ 0100 Transfer to Capital Reserves‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0100 Transfer to General Fund‐ ‐ ‐ 2,000,000 ‐ ‐ ‐ ‐ Transfers Out from Current Operations‐ ‐ ‐ 2,000,000 ‐ ‐ ‐ ‐ TOTAL CAPITAL IMPROVEMENT3,042,266 5,907,000 8,706,853 10,325,762 425,000 905,000 1,105,000 105,000 CAPITAL RESERVES 429‐90‐001 Transfer to Capital Improvement5,549,993 9,165,000 8,704,608 13,184,000 425,000 905,000 1,105,000 105,000 TOTAL5,549,993 9,165,000 8,704,608 13,184,000 425,000 905,000 1,105,000 105,000 137 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ CAPITAL PROJECT FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECASTSTEVENS CREEK CORRIDOR PARK427‐90‐870 Stevens Creek Corridor Park‐Phase 12,666 ‐ 41,794 ‐ ‐ ‐ ‐ ‐ 427‐90‐881 Stevens Creek Corridor Park‐Phase 223,723 ‐ 174,333 ‐ ‐ ‐ ‐ ‐ TOTAL 26,390 ‐ 216,127 ‐ ‐ ‐ ‐ ‐ TOTAL ALL CAPITAL PROJECTS 8,618,649 15,072,000 17,627,588 23,509,762 850,000 1,810,000 2,210,000 210,000 138 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ ENTERPRISE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022RESOURCE RECOVERY520‐81‐801 Resource Recovery2,997,198 3,197,464 3,298,769 3,269,762 3,269,762 3,269,762 3,269,762 3,269,762 TOTAL 2,997,198 3,197,464 3,298,769 3,269,762 3,269,762 3,269,762 3,269,762 3,269,762 BLACKBERRY FARM GOLF COURSE560‐63‐616 Golf Course576,176 686,628 733,983 708,461 708,461 708,461 708,461 708,461 560‐90‐885 CIP Golf Irrigation Upgrade ‐ ‐ 469,418 ‐ ‐ ‐ ‐ ‐ TOTAL 576,176 686,628 1,203,401 708,461 708,461 708,461 708,461 708,461 SPORTS CENTER570‐63‐621 Sports and Physical1,905,160 2,329,238 2,375,952 2,448,037 2,448,037 2,448,037 2,448,037 2,448,037 570‐87‐836 Maintenance394,048 395,164 426,253 484,623 484,623 484,623 484,623 484,623 570‐99‐032 Childrenʹs Play Area‐ 470000 470000‐ ‐ ‐ ‐ ‐ TOTAL 2,299,208 2,724,402 2,802,205 2,932,660 2,932,660 2,932,660 2,932,660 2,932,660 RECREATION PROGRAMS580‐62‐613 Youth Teen Recreation1,827,648 1,960,007 1,974,536 2,214,409 2,214,409 2,214,409 2,214,409 2,214,409 580‐63‐620 Sports, Safety and Outdoor Recreation 1,101,007 1,274,036 1,292,550 1,451,700 1,451,700 1,451,700 1,451,700 1,451,700 580‐90‐001 Transfer out to CIP‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 580‐90‐884 Fenced Dog Park‐ ‐ 5,000 ‐ ‐ ‐ ‐ ‐ 580‐90‐896 Sports Center Sport Court143,788 ‐ 20,032 ‐ ‐ ‐ ‐ ‐ 580‐90‐907 Wilson Ball Safety Net Screen8,027 ‐ 268 ‐ ‐ ‐ ‐ ‐ 580‐90‐908 Wilson Bleacher Shade Canopy14,381 ‐ 12,873 ‐ ‐ ‐ ‐ ‐ 580‐90‐909 Wilson Park ‐ Renovation Master Plan‐ ‐ 55,000 ‐ ‐ 50,000 ‐ ‐ 580‐90‐929 Quinlan Interior Upgrades37,482 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 580‐90‐945 Wilson Bldg Landsc Imprv500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 580‐99‐019 Blacksmith Forge Restoration3,180 ‐ 56,819 ‐ ‐ ‐ ‐ ‐ TOTAL 3,136,012 3,234,043 3,417,078 3,666,109 3,666,109 3,716,109 3,666,109 3,666,109 TOTAL ALL ENTERPRISE FUNDS 9,008,594 9,842,537 10,721,453 10,576,992 10,576,992 10,626,992 10,576,992 10,576,992 PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST139 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022INFORMATION TECHNOLOGY610‐30‐300 Administration‐ ‐ 287,169.00 515,134.00 515,134.00 515,134.00 515,134.00 515,134.00 610‐34‐310 Information Technology1,930,718 2,691,744 2,958,443 2,812,304 2,812,304 2,812,304 2,812,304 2,812,304 610‐35‐986 GIS337,780 647,264 784,833 863,088 863,088 863,088 863,088 863,088 610‐90‐986 GIS13,501 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 610‐90‐989 Network Upgrade 92,627 721,500 1,098,309 ‐ ‐ ‐ ‐ ‐ 610‐90‐991 New Project Contingency6,802 ‐ 3,334 ‐ ‐ ‐ ‐ ‐ 610‐90‐992 Video Division2,637 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 610‐90‐995 Planning Software47,371 ‐ 91,554 ‐ ‐ ‐ ‐ ‐ TOTAL 2,431,435 4,060,508 5,223,642 4,190,526 4,190,526 4,190,526 4,190,526 4,190,526 CITY CHANNEL615‐31‐305 Government Channel798,214 1,479,086 1,607,497 1,569,256 1,569,256 1,569,256 1,569,256 1,569,256 615‐32‐308 City Web Site314,268 543,737 369,323 1,664,219 1,664,219 1,664,219 1,664,219 1,664,219 TOTAL 1,112,482 2,022,823 1,976,820 3,233,475 3,233,475 3,233,475 3,233,475 3,233,475 WORKERSʹ COMPENSATION620‐44‐418 Workers Comp Insurance37,016 500,732 501,605 498,240 498,240 498,240 498,240 498,240 TOTAL 37,016 500,732 501,605 498,240 498,240 498,240 498,240 498,240 VEHICLE/EQUIPMENT REPLACEMENT630‐85‐849 Equipment Maintenance1,136,608 1,395,195 1,459,065 1,251,239 1,251,239 1,251,239 1,251,239 1,251,239 630‐90‐985 Fixed Asset Acquisition7,167 1,222,000 1,525,587 1,029,200 1,029,200 1,029,200 1,029,200 1,029,200 TOTAL 1,143,775 2,617,195 2,984,652 2,280,439 2,280,439 2,280,439 2,280,439 2,280,439 641‐44‐419 Long Term Disability82,201 83,875 83,875 83,883 83,883 83,883 83,883 83,883 641‐44‐420 Compensated Absence494,451 434,673 434,673 435,014 435,014 435,014 435,014 435,014 TOTAL 576,652 518,548 518,548 518,897 518,897 518,897 518,897 518,897 RETIREE MEDICAL 642‐44‐414 Retiree Benefits919,219 931,335 931,335 968,486 968,486 968,486 968,486 968,486 TOTAL 919,219 931,335 931,335 968,486 968,486 968,486 968,486 968,486 COMPENSATED ABSENCE & LONG‐TERM DISABILITYPROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST140 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ INTERNAL SERVICE FUND EXPENDITURES2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECASTTOTAL ALL INTERNAL SERVICE 6,220,580 10,651,141 12,136,602 11,690,063 11,690,063 11,690,063 11,690,063 11,690,063 141 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ SPECIAL FUNDS FUND BALANCE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022SPECIAL REVENUEBeginning Fund Balance 14,734,859 33,775,117 33,775,117 41,593,695 33,215,916 32,476,401 34,334,886 36,193,371 Assigned33,775,117 61,616,847 41,593,695 33,215,916 32,476,401 34,334,886 36,193,371 38,101,856 Unassigned‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Ending Fund Balance 33,775,117 61,616,847 41,593,695 33,215,916 32,476,401 34,334,886 36,193,371 38,101,856 DEBT SERVICE Beginning Fund Balance 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 Assigned 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 Unassigned‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Ending Fund Balance 1,681,000 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 1,596,982 CAPITAL PROJECTBeginning Fund Balance 15,338,818 18,568,230 18,568,230 18,568,230 3,384,230 2,959,230 2,054,230 949,230 Assigned 15,338,818 18,568,230 18,568,230 3,384,230 2,959,230 2,054,230 949,230 844,230 Unassigned‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Ending Fund Balance 15,338,818 18,568,230 18,568,230 3,384,230 2,959,230 2,054,230 949,230 844,230 ENTERPRISEBeginning Fund Balance 9,083,628 6,810,995 6,810,995 6,810,995 4,118,003 3,968,003 3,768,003 3,618,003 Assigned 9,089,628 6,810,995 6,810,995 4,118,003 3,968,003 3,768,003 3,618,003 3,468,003 Unassigned‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Ending Fund Balance 9,089,628 6,810,995 6,810,995 4,118,003 3,968,003 3,768,003 3,618,003 3,468,003 INTERNAL SERVICEBeginning Fund Balance 18,690,743 14,659,906 14,659,906 14,659,906 12,794,412 8,550,542 4,306,672 62,802 Assigned 18,690,743 14,659,906 14,659,906 12,794,412 8,550,542 4,306,672 62,802 (4,181,068) Unassigned‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECAST142 FISCAL YEAR 2017‐18 FINAL BUDGETFIVE YEAR FORECAST ‐ SPECIAL FUNDS FUND BALANCE2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022PROGRAM2015‐16Actuals2016‐17Final BudgetFY 2016‐17Projection5 YEAR FORECASTTotal Ending Fund Balance 18,690,743 14,659,906 14,659,906 12,794,412 8,550,542 4,306,672 62,802 (4,181,068) 143 144 Council and Commissions City Council Commissions COUNCIL AND COMMISSIONS Budget Unit 2018 Adopted City Council $ 539,184 100-10-100 City Council 442,623 100-10-101 Community Funding 52,811 100-10-110 Sister Cities 43,750 Commissions $ 385,453 100-11-131 Telecommunication Commission 10,925 100-11-140 Library Commission 23,894 100-11-142 Fine Arts Commission 43,037 100-11-150 Public Safety Commission 17,052 100-11-155 Bicycle and Pedestrian Commission 4,912 100-11-160 Parks and Recreation Commission 29,736 100-11-165 Teen Commission 59,018 100-11-170 Planning Commission 135,379 100-11-175 Housing Commission 33,621 100-11-180 Sustainability Commission 27,879 Total $ 924,637 145 Citizens of Cupertino City Council Teen Commission Technology Information & Communications Commission Parks & Recreation Commission Library Commission Planning Commission Bicycle/Pedestrian Commission Fine Arts Commission Public Safety Commission Audit Committee Economic Development Committee Fiscal Strategic Plan Committee Housing Commission 146 DEPARTMENT SUMMARY Council and Commissions Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 15,654 15,654 Total Expenditures 682,595 719,235 1,280,408 924,637 Fund Balance - - - - General Fund Costs $ 498,561 $ 663,296 $ 500,885 $ 389,001 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $924,637 for the Council and Commissions Budget. This represents a decrease of $355,771 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This decrease is offset by increases in salary and benefits due to a new three year limited term Executive Assistant to better support City Council. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 34,034 31,416 779,523 535,636 Fines and Forfeitures - - - - Miscellaneous Revenue 150,000 24,522 - - Interdepartmental Revenue - - - - Total Revenues 184,034 55,938 779,523 535,636 Expenditures Employee Compensation 201,434 182,893 226,934 271,219 Employee Benefits 127,323 147,952 143,813 190,421 Materials 128,605 126,845 125,956 149,566 Contract Services 62,453 98,765 84,062 120,912 Cost Allocation 162,780 162,780 683,989 176,865 Capital Outlay - - - - Special Projects - - - - 147 ADOPTED EXPENDITURES FY 2017-18 $385,453 (42%) $539,184 (58%) City Council Commissions 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 0.7 0.7 1.3 0.9 148 CITY COUNCIL - CITY COUNCIL Budget Unit 100-10-100 Budget at a Glance Total Revenues 535,636 Total Expenditures 442,623 Fund Balance - General Fund Costs (93,013) % Funded by General Fund 0.0% Total Staffing 6.15 PROGRAM OVERVIEW The Mayor and Council members, acting as the elected representatives of the residents of Cupertino, establish public policies to meet community needs and assure orderly development 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 20, 2017, City Council approved a budget of $442,623 for the City Council Budget. This represents a decrease of $336,695 from the FY 2016-17 Final Adopted Budget. Overall, the budget for City Council has decreased largely due to changes in cost allocation offset by increases in personnel costs. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. To increase staff support for Council and Administration, an Executive Assistant position will be added to support the Mayor, Council, and the City Clerk's Office. This increase will be partially offset by under-filling the Senior Office Assistant with a three-year limited-term Office Assistant and eliminating two part-time Office Assistants currently supporting the Council and Administration. Increased personnel costs in this budget reflect this proposal as well as increases associated with negotiated compensation increases per Council-approved labor agreements. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 149 City Council - City Council Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 9,041 9,041 Total Expenditures 419,943 430,255 779,318 442,623 Fund Balance - - - - General Fund Costs $ 235,909 $ 374,317 $ (205) $ (93,013) STAFFING Total current authorized positions – 5.30 Staffing is increasing to account for additional support staff for the Mayor and Council, including reallocation of existing staff to better reflect time spent to support Council. Total authorized positions – 6.15 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 34,034 31,416 779,523 535,636 Fines and Forfeitures - - - - Miscellaneous Revenue 150,000 24,522 - - Interdepartmental Revenue - - - - Total Revenues 184,034 55,938 779,523 535,636 Expenditures Employee Compensation 83,544 73,688 75,909 123,793 Employee Benefits 82,732 107,545 82,063 128,237 Materials 101,455 96,790 91,000 86,500 Contract Services 473 493 387 387 Cost Allocation 151,740 151,740 520,918 94,665 Capital Outlay - - - - Special Projects - - - - 150 CITY COUNCIL - COMMUNITY FUNDING Budget Unit 100-10-101 Budget at a Glance Total Revenues - Total Expenditures 52,811 Fund Balance - General Fund Costs 52,811 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW This budget 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 Community Funding Policy adopted by City Council on April 2, 2013. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $52,811 for the Community Funding Budget. This represents an increase of $11,658 from the FY 2016-17 Final Adopted Budget. The increase is due to two new funding requests: one from Rotary to fund the Community Academy and another from the Iranian Women's Federated Club to fund a cultural event. The following table shows the requests for the prior fiscal year and the current funding requests that have been received: 151 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Non-Profit Organization Funding FY 2017 Deer Hollow 10,000 Historical Society 10,000 Euphrat Museum 10,000 Iranian Federated Women’s Club 750 TOTAL FY 2016-17 $40,750 FY 2018 Deer Hollow 15,000 Historical Society 15,000 Euphrat Museum 10,000 Cupertino Rotary 12,000 Iranian Federated Women’s Club 400 TOTAL FY 2017-18 $52,400 152 City Council - Community Funding Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 30,000 70,000 41,153 52,811 Fund Balance - - - - General Fund Costs $ 30,000 $ 70,000 $ 41,153 $ 52,811 STAFFING There is no staffing associated with this program. 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 30,000 70,000 40,750 52,400 Cost Allocation - - 403 411 Capital Outlay - - - - Special Projects - - - - 153 CITY COUNCIL - SISTER CITIES Budget Unit 100-10-110 Budget at a Glance Total Revenues - Total Expenditures 43,750 Fund Balance - General Fund Costs 43,750 % Funded by General Fund 100.0% Total Staffing 0.10 PROGRAM OVERVIEW Cupertino has four active sister cities registered with Sister Cities International; Toyokawa, Japan; Hsinchu, Taiwan; Cupertino, 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 20, 2017, City Council approved a budget of $43,750 for the Sister Cities Budget. This represents an increase of $18,309 from the FY 2016-17 Final Adopted Budget. The increase reflects support for an additional student delegation from Bhubaneswar, India as well as increases in personnel costs to accurately reflect staff time spent on managing this program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 154 City Council - Sister Cities Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 12,288 16,392 25,441 43,750 Fund Balance - - - - General Fund Costs $ 12,288 $ 16,392 $ 25,441 $ 43,750 STAFFING Total current authorized positions – 0.05 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.1 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 1,912 3,305 3,397 12,635 Employee Benefits 613 1,423 1,602 5,079 Materials 443 2,344 3,100 3,100 Contract Services 9,320 9,320 15,000 20,000 Cost Allocation - - 2,342 2,936 Capital Outlay - - - - Special Projects - - - - 155 COMMISSIONS - TELECOMMUNICATION COMMISSION Budget Unit 100-11-131 Budget at a Glance Total Revenues - Total Expenditures 10,925 Fund Balance - General Fund Costs 10,925 % Funded by General Fund 100.0% Total Staffing - 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 20, 2017, City Council approved a budget of $10,925 for the Telecommunication Commission Budget. This represents a decrease of $20,568 from the FY 2016-17 Final Adopted Budget. The decrease represents a reduction in staff time allocated in this program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 156 Commissions - Telecommunication Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 2,016 2,016 Total Expenditures 20,790 18,611 31,493 10,925 Fund Balance - - - - General Fund Costs $ 20,790 $ 18,611 $ 31,493 $ 10,925 STAFFING Total current authorized positions – 0.10 Staff time is being reallocated to reflect minimal staff effort in this program. Total authorized positions – 0.00 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 14,376 12,707 14,031 - Employee Benefits 5,358 4,847 5,458 - Materials - - 450 750 Contract Services - - - - Cost Allocation 1,056 1,056 9,538 8,159 Capital Outlay - - - - Special Projects - - - - 157 COMMISSIONS - LIBRARY COMMISSION Budget Unit 100-11-140 Budget at a Glance Total Revenues - Total Expenditures 23,894 Fund Balance - General Fund Costs 23,894 % Funded by General Fund 100.0% Total Staffing 0.05 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 for which the County pays a rental fee. County Library management serves as Commission staff and Recreation and Community Services personnel serves 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.  Initiate and coordinate the Cupertino Poet Laureate program.  Continue emphasis on integrating additional technology into library services. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $23,894 for the Library Commission Budget. This represents an increase of $4,136 from the FY 2016-17 Final Adopted Budget. 158 The increase of $2,700 in contract services will allow the Poet Laureate Steering committee to contract for marketing services, tracking site visitors, and providing technical support. The increased personnel costs due to a change in the staff liaison are offset by decreases in cost allocation. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Commissions - Library Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 216 216 Total Expenditures 9,206 3,844 19,758 23,894 Fund Balance - - - - General Fund Costs $ 9,206 $ 3,844 $ 19,758 $ 23,894 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 5,018 1,284 4,919 7,612 Employee Benefits 1,970 627 2,129 3,413 Materials 176 180 700 700 Contract Services 1,514 1,225 2,000 4,700 Cost Allocation 528 528 9,794 7,253 Capital Outlay - - - - Special Projects - - - - 159 STAFFING Total current authorized positions – 0.05 There are no changes to the current level of staffing. Total authorized positions – 0.05 160 COMMISSIONS - FINE ARTS COMMISSION Budget Unit 100-11-142 Budget at a Glance Total Revenues - Total Expenditures 43,037 Fund Balance - General Fund Costs 43,037 % Funded by General Fund 100.0% Total Staffing 0.15 PROGRAM OVERVIEW The Cupertino Fine Arts Commission is charged with advancing 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; 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 20, 2017, City Council approved a budget of $43,037 for the Fine Arts Commission Budget. This represents a decrease of $5,224 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in the cost allocation program. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. 161 The budget includes additional funds to host receptions to present the Emerging & Distinguished Artist Awards and the Young Artists Awards as well as increase the award amounts for the Emerging and Distinguished Artists. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 162 Commissions - Fine Arts Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 300 300 Total Expenditures 21,120 23,659 48,261 43,037 Fund Balance - - - - General Fund Costs $ 21,120 $ 23,659 $ 48,261 $ 43,037 STAFFING Total current authorized positions – 0.25 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.15 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 12,099 14,509 15,120 16,275 Employee Benefits 4,842 5,615 6,191 6,820 Materials 2,420 1,793 4,550 7,200 Contract Services 187 170 450 950 Cost Allocation 1,572 1,572 21,650 11,492 Capital Outlay - - - - Special Projects - - - - 163 COMMISSIONS - PUBLIC SAFETY COMMISSION Budget Unit 100-11-150 Budget at a Glance Total Revenues - Total Expenditures 17,052 Fund Balance - General Fund Costs 17,052 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Cupertino Public Safety Commission (PSC), a five member board appointed by the City Council, assists the Council by reviewing and recommending public safety services associated with police, fire, emergency planning, and traffic. The Sheriff’s West Valley Patrol Division Commander, who is the City’s Chief of Police, serves as staff liaison. SERVICE OBJECTIVES  Review safety issues and concerns and make recommendations to the City Council.  Promote public education programs concerning safety issues.  Provide assistance in implementing public safety programs approved by the City Council.  Work with various city departments to resolve issues and concerns related to public safety. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $17,052 for the Public Safety Commission Budget. This represents a decrease of $114 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged from last fiscal year and supports the SCC Sheriff Teen/Citizen Academy and public outreach events, such as residential burglary presentations, senior safety presentations, identity protection seminar and transportation forum. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 164 Commissions - Public Safety Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 904 904 Total Expenditures 14,921 10,494 17,166 17,052 Fund Balance - - - - General Fund Costs $ 14,921 $ 10,494 $ 17,166 $ 17,052 STAFFING There is no staffing associated with this program. 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 3,241 65 300 5,000 Contract Services 11,680 10,428 11,000 10,000 Cost Allocation - - 4,962 1,148 Capital Outlay - - - - Special Projects - - - - 165 COMMISSIONS - BICYCLE AND PEDESTRIAN COMMISSION Budget Unit 100-11-155 Budget at a Glance Total Revenues - Total Expenditures 4,912 Fund Balance - General Fund Costs 4,912 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The Cupertino 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 Senior Civil Engineer 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 20, 2017, City Council approved a budget of $4,912 for the Bicycle and Pedestrian Commission Budget. This represents a decrease of $1,031 from the FY 2016-17 Final Adopted Budget. The decrease is attributed to cost allocation plan adjustments, offset by a $300 increase in costs for meeting materials. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 166 Commissions - Bicycle and Pedestrian Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 320 320 Total Expenditures 3,405 9,516 5,943 4,912 Fund Balance - - - - General Fund Costs $ 3,405 $ 9,516 $ 5,943 $ 4,912 STAFFING There is no staffing associated with this program. 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 -6,442 - 300 Contract Services 3,405 3,074 4,000 4,000 Cost Allocation - - 1,623 292 Capital Outlay - - - - Special Projects - - - - 167 COMMISSIONS - PARKS AND RECREATION COMMISSION Budget Unit 100-11-160 Budget at a Glance Total Revenues - Total Expenditures 29,736 Fund Balance - General Fund Costs 29,736 % Funded by General Fund 100.0% Total Staffing 0.10 PROGRAM OVERVIEW The Parks and Recreation Commission is a five-member citizen’s commission appointed by the City Council to make recommendations pertaining to parks, recreation and community services. The Director of Recreation and Community Services 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 Recreation and Community Services facilities. Consider public input regarding the operation of Recreation and Community Services facilities and make recommendations for their improvement. Participate on a number of special committees dealing with Recreation and Community Services. Serve as ambassadors for the Recreation and Community Services Department. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $29,736 for the Parks and Recreation Commission Budget. This represents a decrease of $31,236 from the FY 2016-17 Final Adopted Budget. A significant portion of the decrease is due to changes in staffing costs resulting from a staffing reallocation to support the Recreation Commission. Previously, 10% of the Recreation and Community Services Director was budgeted here. In FY 2018, it is ] that 5% the Director and 5% of the Administrative Assistant be allocated to the Commission to better reflect actual staff effort. In addition, cost allocation costs are down compared to last year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. 168 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Commissions - Parks and Recreation Commission 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 87 87 Total Expenditures 7,149 19,625 60,972 29,736 Fund Balance - - - - General Fund Costs $ 7,149 $ 19,625 $ 60,972 $ 29,736 STAFFING Total current authorized positions – 0.10 There are no changes to the current level of staffing. Total authorized positions – 0.10 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 4,398 13,248 31,491 13,317 Employee Benefits 1,652 4,897 12,357 5,581 Materials 346 646 581 581 Contract Services 225 305 500 500 Cost Allocation 528 528 15,956 9,670 Capital Outlay - - - - Special Projects - - - - 169 COMMISSIONS - TEEN COMMISSION Budget Unit 100-11-165 Budget at a Glance Total Revenues - Total Expenditures 59,018 Fund Balance - General Fund Costs 59,018 % Funded by General Fund 100.0% Total Staffing 0.30 PROGRAM OVERVIEW The Teen Commission is comprised of nine teens representing grades 8-12. The Teen Commission advises the City Council and staff on teen issues. A Recreation Coordinator in Recreation and Community Services serves as the staff liaison. SERVICE OBJECTIVES Engage the public in dialog 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 20, 2017, City Council approved a budget of $59,018 for the Teen Commission Budget. This represents a decrease of $3,824 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges, offset by increases in contract services and staffing costs. In FY 2018, the Teen Commission proposes to develop a teen incubator program. An increase of $10,000 is approved for marketing, supplies, training, and other program needs. Increases in personnel costs are associated with negotiated salary and benefit increases within Council-approved labor contracts. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 170 Commissions - Teen Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 194 194 Total Expenditures 27,537 11,669 62,842 59,018 Fund Balance - - - - General Fund Costs $ 27,537 $ 11,669 $ 62,842 $ 59,018 STAFFING Total current authorized positions – 0.30 There are no changes to the current level of staffing. Total authorized positions – 0.30 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 17,283 1,837 23,542 27,015 Employee Benefits 6,578 830 10,357 11,718 Materials 884 6,374 1,700 1,700 Contract Services 163 - 725 10,725 Cost Allocation 2,628 2,628 26,324 7,666 Capital Outlay - - - - Special Projects - - - - 171 COMMISSIONS - PLANNING COMMISSION Budget Unit 100-11-170 Budget at a Glance Total Revenues - Total Expenditures 135,379 Fund Balance - General Fund Costs 135,379 % Funded by General Fund 100.0% Total Staffing 0.25 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 performance of short-term objectives.  Conduct public hearings for approximately 80 land development applications. 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 20, 2017, City Council approved a budget of $135,379 for the Planning Commission Budget. This represents an increase of $2,617 from the FY 2016-17 Final Adopted Budget. 172 The budget includes additional funds for planning commissioner stipends and required advertisements and legal and display notices. These increases are offset by a decrease due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Commissions - Planning Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 2,572 2,572 Total Expenditures 93,960 83,849 132,762 135,379 Fund Balance - - - - General Fund Costs $ 93,960 $ 83,849 $ 132,762 $ 135,379 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 49,666 48,482 32,440 44,529 Employee Benefits 16,012 16,847 12,974 15,051 Materials 19,640 11,614 22,900 35,260 Contract Services 5,485 3,750 9,250 17,250 Cost Allocation 3,156 3,156 52,626 20,717 Capital Outlay - - - - Special Projects - - - - 173 STAFFING Total current authorized positions – 0.25 There are no changes to the current level of staffing. Total authorized positions – 0.25 174 COMMISSIONS - HOUSING COMMISSION Budget Unit 100-11-175 Budget at a Glance Total Revenues - Total Expenditures 33,621 Fund Balance - General Fund Costs 33,621 % Funded by General Fund 100.0% Total Staffing 0.15 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 Make recommendations to the City Council as follows: Develop housing policies and strategies for implementation of General Plan Housing Element goals. Develop affordable housing proposals, innovative approaches to affordable housing development and number and type of affordable units and the target groups to be served. Identify sources of funds to develop and build affordable housing. Evaluate funding requests from CDBG and the Affordable Housing funds, possible fee waivers or other incentives. Propose CDBG Action Plan. Review Cupertino's Housing Element. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $33,621 for the Housing Commission Budget. This represents a decrease of $5,012 from the FY 2016-17 Final Adopted Budget. The decrease is primarily attributed to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The budget includes additional funds for staff overtime and meeting expenses. 175 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Commissions - Housing Commission Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 4 4 Total Expenditures 22,275 21,321 38,633 33,621 Fund Balance - - - - General Fund Costs $ 22,275 $ 21,321 $ 38,633 $ 33,621 STAFFING Total current authorized positions – 0.10 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.15 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 13,138 13,833 14,146 14,642 Employee Benefits 7,566 5,320 5,955 7,456 Materials - 596 675 975 Contract Services - - - - Cost Allocation 1,572 1,572 17,853 10,544 Capital Outlay - - - - Special Projects - - - - 176 COMMISSIONS - SUSTAINABILITY COMMISSION Budget Unit 100-11-180 Budget at a Glance Total Revenues - Total Expenditures 27,879 Fund Balance - General Fund Costs 27,879 % Funded by General Fund 100.0% Total Staffing 0.10 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 To fulfill their mission, the Commission engages in the following activities:  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 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 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. 177 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. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $27,879 for the Sustainability Commission Budget. This represents an increase of $11,213 from the FY 2016-17 Final Adopted Budget. This increase is due to funding for materials and supplies, which were not previously accounted for in the FY 2016-17 Adopted Budget, in addition to increased personnel costs based on negotiated benefit increases approved by Council. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 178 Commissions - Sustainability Commission 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures - - 16,666 27,879 Fund Balance - - - - General Fund Costs $ - $ - $ 16,666 $ 27,879 STAFFING Total current authorized positions – 0.10 There are no changes to the current level of staffing. Total authorized positions – 0.10 Actual Actual Final 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 - - 11,939 11,401 Employee Benefits - - 4,727 7,066 Materials - - - 7,500 Contract Services - - - - Cost Allocation - - - 1,912 Capital Outlay - - - - Special Projects - - - - 179 180 Administration City Manager City Clerk City Attorney ADMINISTRATION Budget Unit 2018 Adopted City Manager $ 2,202,220 100-12-120 City Manager 952,399 100-12-122 Sustainability Division 778,875 100-12-125 Economic Development - 100-12-126 Public Affairs 470,946 City Clerk $ 685,268 100-13-130 City Clerk 599,962 100-13-132 Duplicating and Mail Services 85,018 100-13-133 Elections 288 City Manager Discretionary Fund $ 540,821 100-14-123 City Manager Contingency Fund 540,821 City Attorney $ 2,039,588 100-15-141 City Attorney 2,039,588 Total $ 5,467,897 181 City ManagerExecutive AssistantDeputy City ManagerCity ClerkAssistant City Manager.17Management Analyst.40Public Information OfficerSustainability ManagerSustainability Program CoordinatorManagement Analyst.60Community Outreach SpecialistDeputy City ClerkExecutive AssistantOffice Assistant.7Office Assistant.3182 City Attorney Deputy City Attorney Assistant City Attorney Legal Services Manager 183 DEPARTMENT SUMMARY Administration Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency 2,353 113 592,628 610,996 Total Expenditures 3,290,920 3,837,931 5,379,564 5,467,897 Fund Balance - - - - General Fund Costs $ 3,011,606 $ 3,482,487 $ 2,545,572 $ 4,622,968 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $5,467,897 for the Administration Budget. This represents an increase of $88,333 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This decrease is offset by increases in salary and benefits due to a new three year limited term Executive Assistant that is split between City Council and Administration and negotiated increases to salary and benefits. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 259,314 338,580 2,833,992 844,929 Fines and Forfeitures - - - - Miscellaneous Revenue 20,000 16,863 - - Interdepartmental Revenue - - - - Total Revenues 279,314 355,444 2,833,992 844,929 Expenditures Employee Compensation 1,433,337 1,391,112 1,409,025 1,976,893 Employee Benefits 465,291 482,995 520,513 782,277 Materials 211,074 165,297 206,520 306,066 Contract Services 787,877 998,653 1,513,000 1,255,568 Cost Allocation 315,180 294,828 922,878 376,097 Capital Outlay - - - - Special Projects 75,809 504,933 215,000 160,000 184 ADOPTED EXPENDITURES FY 2017-18 $540,821 (10%) $685,268 (13%) $2,202,220 (40%) $2,039,588 (37%) City Manager City Attorney City Clerk City Manager Discretionary Fund 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 3.3 3.8 5.4 5.5 185 City of Cupertino FY17/18 Budget Performance Measures City Clerk Division Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Online information and updated records that can be easily accessed in a timely manner. Response to records requests to comply with State law of 10 days. Enabled by… Enabled by… All can fully participate in local government to achieve the community & organizational goals. So that… 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. Enabled by… So that… Residents have access to timely, engaging, and important information. GOAL: Streamline information processing for Council, staff and community members for compliance with State requirements and facilitate independent and transparent access to public information. City of Cupertino FY17/18 Budget Performance Measures Public Affairs Division Measure Ongoing Target City Council minutes for regular meetings presented for Council approval by the following regular meeting 100% Adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed document 100% Public Record Act requests responded to by the Statutory deadline date 100% Measure Ongoing Target Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram accounts 10% annual increase Social media engagement: average number of engagements (reactions, comments, shares) per post on City Hall Facebook account 10% annual increase Access Cupertino: Average response time to customers organization-wide Respond within 2 days Leveraging the communication skills, knowledge, and experience of employees while also utilizing existing and emerging technologies to enhance, improve, and streamline the communication process. 186 City of Cupertino FY17/18 Budget Performance Measures Sustainability Division Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. An agency implementing Council and community sustainability goals to effectively safeguard shared resources. Engaged community partners and volunteers supporting CAP implementation. Enabled by… Enabled by… Cupertino is a healthy, resilient, environmentally -vibrant City for current and future residents to live, work, learn and play. So that… 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. 1 Cupertino’s GHG inventories are conducted roughly every 3-5 years. It is currently being updated in 2017 based on 2015 data. Measure Ongoing Target % community-wide emissions reduced from baseline of 307,288 MT CO2e/yr1 15% reduction by 2020 (261,195 MT CO2e/yr) Initiate and implement all Climate Action Plan near-term measures x% initiated x% complete or ongoing 100% 100% Increase the total number of Certified Green Businesses through the city’s GreenBiz program to improve efficiency and conserve resources 100 187 CITY MANAGER - CITY MANAGER Budget Unit 100-12-120 Budget at a Glance Total Revenues 319,142 Total Expenditures 952,399 Fund Balance - General Fund Costs 633,257 % Funded by General Fund 66.5% Total Staffing 3.37 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 adopted goals and objectives. The City Manager oversees Sustainability and Public Affairs. SERVICE OBJECTIVES Accomplish the City Council’s work program. Manage City operations. Ensures 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 20, 2017, City Council approved a budget of $952,399 for the City Manager Budget. This represents a decrease of $213,873 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to cost allocation changes. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The increase in personnel costs is partially attributed to a reallocation of existing staff to better reflect time spent supporting this program. 188 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: City Manager - City Manager Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency 123 -3,486 3,486 Total Expenditures 713,295 805,105 1,166,272 952,399 Fund Balance - - - - General Fund Costs $ 588,783 $ 680,593 $ 150,207 $ 633,257 STAFFING Total current authorized positions – 3.02 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 3.37 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 124,512 124,512 1,016,065 319,142 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 124,512 124,512 1,016,065 319,142 Expenditures Employee Compensation 423,648 469,105 524,865 622,201 Employee Benefits 125,030 163,567 184,325 235,855 Materials 45,303 38,229 43,880 44,380 Contract Services 11,011 26,024 12,040 14,540 Cost Allocation 108,180 108,180 397,676 31,937 Capital Outlay - - - - Special Projects - - - - 189 CITY MANAGER - SUSTAINABILITY DIVISION Budget Unit 100-12-122 Budget at a Glance Total Revenues 31,452 Total Expenditures 778,875 Fund Balance - General Fund Costs 747,423 % Funded by General Fund 96.0% Total Staffing 1.80 PROGRAM OVERVIEW The Sustainability Division of the City Manager’s Office works to bring environmental awareness across departments and engage staff, students, residents and businesses 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 Division teams with regional partners and adjacent jurisdictions 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 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 utilities management and conservation and adapt these into 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. 190 Work with schools to expand successful municipal programs into educational institutions through effective partnerships that empower students as environmental leaders. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $778,875 for the Sustainability Division Budget. This represents an increase of $16,292 from the FY 2016-17 Final Adopted Budget. Sustainability Division expenses for this year are attributed to continuing program services to implement the Climate Action Plan measures in the near term and reduce overall greenhouse gas emission. The Sustainability Division is proposing to reallocate a portion of a Management Analyst position to the City Manager's Office and extend the current limited-term Environmental Programs Specialist position. Staffing is augmented with college interns, which focus on increasing the number of Green businesses enrolled in the Green Biz program and help with climate action plan related outreach and program support. The current Environmental Programs Specialist was hired in January 2017, to fill what was left of a 1 year limited-term position previously held by the Utility Analyst. The Environmental Programs Specialist position will be extended by one year. This position will be allocated to the Sustainability Division (75%) and Environmental Division Resource Recovery fund (25%). This position has become essential to the Sustainability Division in performing duties related to greenhouse gas inventory data tracking, climate action plan implementation tracking, program coordination, tracking utility expenditures and usage for energy, natural gas, water, fuel; and helping with community outreach and education. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. 191 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Funding Source Description Residential Energy & Water Efficiency Pilot $75,000 General Fund Pilots to promote residential energy and water efficiency in the community Employee Commute Incentives and Program $50,000 General Fund Introduce an internal Employee Commute program to encourage alternative commuting to work Green Zero Waste Events Pilot $11,000 General Fund Pilot to provide reusable dishware and flatware for events and overall outreach on creating Zero Waste Events Citywide Employee Engagement $12,000 General Fund Develop an internal program to encourage employees to adopt sustainable behavior Utility Box Project $12,000 General Fund Utility Box Art contest Total $160,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 192 City Manager - Sustainability Division Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency 2,230 -12,129 12,129 Total Expenditures 252,869 758,671 762,583 778,875 Fund Balance - - - - General Fund Costs $ 201,405 $ 672,821 $ 731,131 $ 747,423 STAFFING Total current authorized positions – 1.55 The current limited-term Environmental Programs Specialist is being extended by one year. Total authorized positions – 1.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 31,464 68,987 31,452 31,452 Fines and Forfeitures - - - - Miscellaneous Revenue 20,000 16,863 - - Interdepartmental Revenue - - - - Total Revenues 51,464 85,850 31,452 31,452 Expenditures Employee Compensation 77,337 137,722 164,097 165,944 Employee Benefits 27,541 51,409 63,252 66,571 Materials 12,058 23,862 35,885 36,225 Contract Services 54,603 18,533 147,000 147,000 Cost Allocation 22,212 22,212 125,220 191,006 Capital Outlay - - - - Special Projects 56,889 504,933 215,000 160,000 193 CITY MANAGER - ECONOMIC DEVELOPMENT Budget Unit 100-12-125 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW The Economic Development program is being transferred to Planning and Community Development – Economic Development. A complete discussion of this program can be found under Budget Unit 100-71-705. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 194 City Manager - Economic Development Category 2015 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 169,706 - - - Fund Balance - - - - General Fund Costs $ 125,702 $ - $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 44,004 - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 44,004 - - - Expenditures Employee Compensation 64,732 - - - Employee Benefits 22,042 - - - Materials 29,829 - - - Contract Services 36,831 - - - Cost Allocation 16,272 - - - Capital Outlay - - - - Special Projects - - - - 195 CITY MANAGER - PUBLIC AFFAIRS Budget Unit 100-12-126 Budget at a Glance Total Revenues 150,355 Total Expenditures 470,946 Fund Balance - General Fund Costs 320,591 % Funded by General Fund 68.1% Total Staffing 1.85 PROGRAM OVERVIEW The Public Affairs Division is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Public Affairs Division 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. Public Affairs 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 The Public Affairs Division was reorganized into the City Manager’s Office in FY 2016-17. It was previously budgeted under the Innovation and Technology Department (formerly known as the Information Services Department). The Public Affairs Division budget is approximately $30,000 less compared to last year, mostly due to salary savings from staff reallocations and savings resulting from bringing graphic design costs for the Scene, the City's monthly newsletter, in-house. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 196 City Manager - Public Affairs Category 2015 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - 18,368 Total Expenditures - - - 470,946 Fund Balance - - - - General Fund Costs $ - $ - $ - $ 320,591 STAFFING Total current authorized positions – 0.00 Staffing is being reallocated to better reflect actual time spent in the program. Total authorized positions – 1.85 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - 150,355 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 150,355 Expenditures Employee Compensation - - - 186,448 Employee Benefits - - - 80,449 Materials - - - 107,374 Contract Services - - - 18,000 Cost Allocation - - - 60,307 Capital Outlay - - - - Special Projects - - - - 197 CITY CLERK - CITY CLERK Budget Unit 100-13-130 Budget at a Glance Total Revenues 80,947 Total Expenditures 599,962 Fund Balance - General Fund Costs 519,015 % Funded by General Fund 86.5% Total Staffing 2.70 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; and compliance with Public Records Act requests. SERVICE OBJECTIVES The division’s goals are to 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. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $599,962 for the City Clerk Budget. This represents a decrease of $123,696 from the FY 2016-17 Final Adopted Budget. To increase staff support for Council and Administration, staff will add an Executive Assistant position which will support the Mayor, Council, and the City Clerk's Office. Costs will be partially offset by under-filling an existing Senior Office Assistant with a three- year limited-term Office Assistant and eliminating two part-time Office Assistants, one of which supports this program. Increased personnel costs in this budget reflect this proposal as well as increases associated with negotiated compensation increases per Council- approved labor agreements. 198 This decrease in cost allocation is primarily due to changes in the cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: City Clerk - City Clerk Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 4,622 4,622 Total Expenditures 512,073 516,494 723,658 599,962 Fund Balance - - - - General Fund Costs $ 497,673 $ 489,218 $ 324,934 $ 519,015 STAFFING Total current authorized positions – 3.00 Staffing is being reallocated to better reflect actual time spent in this program. Total authorized positions – 2.70 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 14,400 27,276 398,724 80,947 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 14,400 27,276 398,724 80,947 Expenditures Employee Compensation 257,360 263,000 286,942 323,903 Employee Benefits 92,194 106,264 121,175 134,875 Materials 32,792 21,478 19,509 25,441 Contract Services 34,087 34,192 54,295 57,531 Cost Allocation 95,640 91,560 237,115 53,590 Capital Outlay - - - - Special Projects - - - - 199 CITY CLERK - DUPLICATING AND MAIL SERVICES Budget Unit 100-13-132 Budget at a Glance Total Revenues - Total Expenditures 85,018 Fund Balance - General Fund Costs 85,018 % Funded by General Fund 100.0% Total Staffing 0.40 PROGRAM OVERVIEW The City Clerk’s office provides mail service for all City Departments. SERVICE OBJECTIVES Administer mail service to each department and satellite facilities in a timely manner. Process and deliver routine incoming and outgoing mail and packages daily to each department and satellite facilities. Provide additional special deliveries as needed. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $85,018 for the Duplicating and Mail Services Budget. This represents an increase of $11,189 from the FY 2016-17 Final Adopted Budget. The increase in personnel costs is attributed to the reallocation of an Office Assistant to support the Mayor, Council, the City Manager's Office, and the City Clerk's Office, offset by the elimination of part-time staff support. This is part of a proposal to increase staff support for Council and Administration, staff will add an Executive Assistant position which will support the Mayor, Council, and the City Clerk's Office. Costs will be partially offset by under-filling the Senior Office Assistant with an Office Assistant and eliminating two part-time Office Assistants, one of which supports this program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 200 City Clerk - Duplicating and Mail Services 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 3,867 3,867 Total Expenditures 104,190 71,364 73,829 85,018 Fund Balance - - - - General Fund Costs $ 104,190 $ 71,364 $ 73,829 $ 85,018 STAFFING Total current authorized positions – 0.00 The increase in staffing is due to the reallocation of an Office Assistant. The position will be allocated 0.40 Duplicating/Mail Services, 0.30 City Council, 0.20 City Manager, and 0.10 Public Affairs. Total authorized positions – 0.40 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 28,929 16,287 23,725 22,953 Employee Benefits 13,739 849 237 11,198 Materials 41,221 33,371 32,000 33,000 Contract Services 14,001 14,557 14,000 14,000 Cost Allocation 6,300 6,300 - - Capital Outlay - - - - Special Projects - - - - 201 CITY CLERK – ELECTIONS Budget Unit 100-13-133 Budget at a Glance Total Revenues - Total Expenditures 288 Fund Balance - General Fund Costs 288 % Funded by General Fund 100.0% Total Staffing - 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 20, 2017, City Council approved a budget of $288 for the Elections Budget. This represents a decrease of $296,580 from the FY 2016-17 Final Adopted Budget. The decrease is due to there being no election in 2017. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 202 City Clerk - Elections Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 63,053 4,594 296,868 288 Fund Balance - - - - General Fund Costs $ 63,053 $ 4,594 $ 296,868 $ 288 STAFFING There is no staffing associated with this program. 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 5,660 22 15,700 100 Contract Services 57,393 4,572 281,168 - Cost Allocation - - - 188 Capital Outlay - - - - Special Projects - - - - 203 CITY MANAGER DISCRETIONARY FUND - CITY MANAGER CONTINGENCY Budget Unit 100-14-123 Budget at a Glance Total Revenues - Total Expenditures 540,821 Fund Balance - General Fund Costs 540,821 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW This fund was established to meet city wide unexpected expenses that may occur during the year. In FY 2013-14, an Appropriations for Contingency expenditure category was added to each General Fund department to serve as a contingency for any unexpected expenditures that might occur. This category is 10% of each program’s budgeted materials and contract services. A second level of contingency was also built in for unexpected expenditures that may occur over the 10% contingency. For all programs within the General Fund, 5% of the total budgeted materials and contract services were placed in this program. This brings total Appropriations for Contingencies for the General Fund to 15% of total 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. Any unspent contingency funds will go to fund balance at the end of the year. It is anticipated that this budget along with appropriations for contingency levels in program budget will decrease over the next few years to somewhere between the 5-10% level based on historical trends. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $540,821 for the City Manager Contingency Budget. This represents an increase of $821 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 204 City Manager Discretionary - City Manager Contingency 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - 505,000 505,000 Total Expenditures 47,845 - 540,000 540,821 Fund Balance - - - - General Fund Costs $ 47,845 $ - $ 540,000 $ 540,821 STAFFING There is no staffing associated with this program. Actual Actual Final 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 1,114 - - - Employee Benefits 20 - - - Materials 1,357 - - - Contract Services 45,354 -35,000 35,000 Cost Allocation - - - 821 Capital Outlay - - - - Special Projects - - - - 205 CITY ATTORNEY - CITY ATTORNEY Budget Unit 100-15-141 Budget at a Glance Total Revenues 263,033 Total Expenditures 2,039,588 Fund Balance - General Fund Costs 1,776,555 % Funded by General Fund 87.1% Total Staffing 4.00 PROGRAM OVERVIEW The City Attorney is the legal counsel to the City Council, City Commissions, City Manager and staff. These legal services include providing legal advice, research and analysis, preparing and reviewing legislation including ordinances and resolutions and drafting or reviewing legal documents, contracts and agreements. The City Attorney also represents the City, its departments and City staff in any litigation, code enforcement, claims or administrative actions involving City business. SERVICE OBJECTIVES Attend City Council meetings and provide the Council with high quality legal advice and services, staff Planning Commission meetings and attend other Commission and staff meetings as requested. Provide legal services to the City Manager and staff necessary to accomplish their objectives in a timely and cost-effective manner. Administer general liability claims filed against the City in a manner that minimizes City exposure and liability. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $2,039,588 for the City Attorney Budget. This represents an increase of $223,234 from the FY 2016-17 Final Adopted Budget. The increased costs in salary and benefits are due to the addition of a Deputy City Attorney position that was added as part of the FY 2016-17 Mid-Year Financial Report. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year , and the Adopted Budget for the current fiscal year: 206 City Attorney - City Attorney Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - 113 63,524 63,524 Total Expenditures 1,427,889 1,681,703 1,816,354 2,039,588 Fund Balance - - - - General Fund Costs $ 1,382,955 $ 1,563,897 $ 428,603 $ 1,776,555 STAFFING Total current authorized positions – 3.00 A Deputy City Attorney position was added as part of the FY 2016-17 Mid-Year Financial report. Total authorized positions – 4.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 44,934 117,805 1,387,751 263,033 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 44,934 117,805 1,387,751 263,033 Expenditures Employee Compensation 580,217 504,998 409,396 655,444 Employee Benefits 184,725 160,906 151,524 253,329 Materials 42,854 48,335 59,546 59,546 Contract Services 534,597 900,775 969,497 969,497 Cost Allocation 66,576 66,576 162,867 38,248 Capital Outlay - - - - Special Projects 18,920 - - - 207 208 Law Enforcement Law Enforcement Interoperability Project Code Enforcement LAW ENFORCEMENT Budget Unit 2018 Adopted Law Enforcement $ 11,635,886 100-20-200 Law Enforcement 11,635,886 Interoperability Project $ 48,813 100-20-201 Interoperability Project 48,813 Code Enforcement $ 659,608 100-20-202 Code Enforcement 659,608 Total $ 12,344,307 209 Senior Code Enforcement Officer Code Enforcement Officer Law Enforcement (Contract) 210 DEPARTMENT SUMMARY Law Enforcement Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - 220 10,000 10,000 Total Expenditures 10,283,772 10,988,736 11,884,384 12,344,307 Fund Balance - - - - General Fund Costs $ 10,166,710 $ 10,772,934 $ 11,184,384 $ 11,644,307 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $12,344,307 for the Law Enforcement Budget. This represents an increase of $459,923 from the FY 2016-17 Final Adopted Budget. The increase is primarily related to increases in the Law Enforcement contract with Santa Clara County as outlined in the agreement. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue 107,062 122,119 100,000 100,000 Charges for Services - - - - Fines and Forfeitures - - 600,000 600,000 Miscellaneous Revenue 10,000 93,682 - - Interdepartmental Revenue - - - - Total Revenues 117,062 215,802 700,000 700,000 Expenditures Employee Compensation 174,863 178,915 215,676 239,683 Employee Benefits 73,415 76,449 79,678 98,809 Materials 42,717 69,190 62,578 62,578 Contract Services 9,927,281 10,623,426 11,342,859 11,770,217 Cost Allocation 65,496 40,536 173,593 163,020 Capital Outlay - - - - Special Projects - - - - 211 ADOPTED EXPENDITURES FY 2017-18 Law Enforcement $12,344,307 (100%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 10.3 11.0 11.9 12.3 212 City of Cupertino FY17/18 Budget Performance Measures LAW ENFORCEMENT Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. All members of the community are safe, informed, empowered and supported. Enabled by … So that … GOAL: Maintain a safe environment to live, work, learn and play. Measu re Ongoing Target % monitor adequate response time for emergency calls  Priority 1  Priority 2  Priority 3 5 minutes 9 minutes 20 minutes % Education programs maintain minimum attendance  Teen Academy  Citizen Academy 80% 80% A Sheriff’s Office that is responsive and engaging. 213 LAW ENFORCEMENT - LAW ENFORCEMENT Budget Unit 100-20-200 Budget at a Glance Total Revenues 450,000 Total Expenditures 11,635,886 Fund Balance - General Fund Costs 11,185,886 % Funded by General Fund 96.1% Total Staffing - PROGRAM OVERVIEW This program provides for law enforcement, emergency communications, School Resource Officers, and Youth Probation Program. Services are provided by the Santa Clara County Sheriff’s Department, while communication services are provided by the Santa Clara County General Services Administration. The County’s Youth Probation Program, also managed by the Sheriff’s Department, 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 for the FY 2016-17 school year. SERVICE OBJECTIVES  Protect life and property through innovative and progressive policing methods.  Respond to Priority 1 emergency situations within an average of less 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 20, 2017, City Council approved a budget of $11,635,886 for the Law Enforcement Budget. This represents an increase of $429,691 from the FY 2016-17 Final Adopted Budget. The increase is primarily due to negotiated increases in the City Law Enforcement contract with Santa Clara County. 214 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Law Enforcement - Law Enforcement Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 9,704,372 10,419,888 11,206,195 11,635,886 Fund Balance - - - - General Fund Costs $ 9,587,310 $ 10,204,087 $ 10,756,195 $ 11,185,886 STAFFING There is no staffing associated with this program. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue 107,062 122,119 100,000 100,000 Charges for Services - - - - Fines and Forfeitures - - 350,000 350,000 Miscellaneous Revenue 10,000 93,682 - - Interdepartmental Revenue - - - - Total Revenues 117,062 215,802 450,000 450,000 Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 32,065 51,633 51,803 51,803 Contract Services 9,672,307 10,368,255 11,086,070 11,513,428 Cost Allocation - - 68,322 70,655 Capital Outlay - - - - Special Projects - - - - 215 LAW ENFORCEMENT - INTEROPERABILITY PROJECT Budget Unit 100-20-201 Budget at a Glance Total Revenues - Total Expenditures 48,813 Fund Balance - General Fund Costs 48,813 % Funded by General Fund 100.0% Total Staffing - 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 20, 2017, City Council approved a budget of $48,813 for the Interoperability Project Budget. This represents an increase of $6 from the FY 2016-17 Final Adopted Budget. The program budget is relatively unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 216 Interoperability - Interoperability Project Category 2015 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 48,359 48,359 48,807 48,813 Fund Balance - - - - General Fund Costs $ 48,359 $ 48,359 $ 48,807 $ 48,813 STAFFING There is no staffing associated with this program. 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 48,359 48,359 48,539 48,539 Cost Allocation - - 268 274 Capital Outlay - - - - Special Projects - - - - 217 LAW ENFORCEMENT - CODE ENFORCEMENT Budget Unit 100-20-202 Budget at a Glance Total Revenues 250,000 Total Expenditures 659,608 Fund Balance - General Fund Costs 409,608 % Funded by General Fund 62.1% Total Staffing 2.00 PROGRAM OVERVIEW The Law Enforcement Code Enforcement Program provides for the enforcement of various provisions of the municipal code relating to parking citations, noise, animal control 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 José. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $659,608 for the Code Enforcement Budget. This represents an increase of $30,226 from the FY 2016-17 Final Adopted Budget. The increases in personnel costs reflect negotiated employee compensation increases based on Council-approved labor contracts and are partially offset by a reduction in cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 218 Code Enforcement - Code Enforcement Category 2015 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - 220 10,000 10,000 Total Expenditures 531,042 520,488 629,382 659,608 Fund Balance - - - - General Fund Costs $ 531,042 $ 520,488 $ 379,382 $ 409,608 STAFFING Total current authorized positions – 2.00 There are no changes to the current level of staffing. Total authorized positions – 2.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - 250,000 250,000 Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 250,000 250,000 Expenditures Employee Compensation 174,863 178,915 215,676 239,683 Employee Benefits 73,415 76,449 79,678 98,809 Materials 10,652 17,557 10,775 10,775 Contract Services 206,615 206,812 208,250 208,250 Cost Allocation 65,496 40,536 105,003 92,091 Capital Outlay - - - - Special Projects - - - - 219 220 Innovation & Technology Administration Video Applications Infrastructure GIS INNOVATION & TECHNOLOGY Budget Unit 2018 Adopted Innovation & Technology $ 515,134 100-30-300 Information Services Administration - 610-30-300 Innovation & Technology Administration 515,134 100-30-304 Cupertino Scene - Video $ 1,641,691 615-31-305 Video 1,569,256 100-31-307 Public Access Support 72,435 Applications $ 1,664,219 615-32-308 Applications 1,664,219 Infrastructure $ 2,812,304 610-34-310 Infrastructure 2,812,304 GIS $ 863,088 610-35-986 GIS 863,088 Citywide - Non Departmental $ 0 610-90-989 Network Upgrade - Total $ 7,496,436 221 Chief Technology Officer Applications Manager Business Systems Analyst (2) GIS Manager GIS Technician (1.5) Infrastructure Manager Network Specialist IT Assistant (2) Media Communications specialist (3) Administrative Assistant 222 DEPARTMENT SUMMARY Innovation & Technology Category 2015 Actual 2016 Actual 2016-17 Final Budget 2018 Adopted Appropriations for Contingency 4,798 - 104,922 220,364 Total Expenditures 3,524,416 3,982,307 6,832,923 7,496,436 Fund Balance (2,723,310) (2,416,930) (3,413,244) (3,845,930) General Fund Costs $ 582,946 $ 816,379 $ 3,210,836 $ 3,650,506 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $7,496,436 for the Innovation & Technology Budget. This represents an increase of $663,513 from the FY 2016-17 Final Adopted Budget. This increase is due to consolidating all hardware and software procurement and services under the governance of Innovation & Technology. Previously these funds were allocated to individual departments. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 218,160 821,028 208,843 - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 218,160 821,028 208,843 - Expenditures Employee Compensation 1,171,517 1,340,171 1,559,028 2,037,051 Employee Benefits 372,125 459,595 605,103 741,122 Materials 277,229 282,078 342,956 1,064,067 Contract Services 896,154 1,295,203 1,781,791 1,072,322 Cost Allocation 566,292 454,040 1,254,518 1,018,780 Capital Outlay - - - - Special Projects 236,301 151,222 1,184,605 1,342,730 223 ADOPTED EXPENDITURES FY 2017-18 $515,134 (7%) $863,088 (12%) $2,812,304 (38%) $1,641,691 (22%) Infrastructure Applications Video GIS Innovation & Technology $1,664,219 (22%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 3.5 4.0 6.8 7.5 224 City of Cupertino FY17/18 Budget Performance Measures Department: Information Technology Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Integrated information services enable customers’ access to the tools and information they need, when and where they need it. So that… Enabled by… GOAL: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement. Measure Ongoing Target GIS: Open Data site visits per month 140 GIS: Number of annual requests (map, data, Web applications, Cityworks, schema, other) completed 400 GIS: Property Information site visits per month 200 GIS: Cityworks utilization - number of assets maintained Number of active users in the system 30 30 Video: Percentage of scheduled projects/Number of projects completed on time 95% Video: Percentage of requests originating outside of Video Dept 95% Infrastructure: Percentage based upon number of scheduled projects/Number of projects completed on time 80% Infrastructure: Percentage based upon number of HelpDesk KACE tickets/SLA measurements 90% Infrastructure: % Customer satisfaction based upon Satisfaction Rate from KACE tickets 85% Infrastructure: % of network uptime (not including planned maintenance) 99.99% Applications: % of citywide-enterprise application project management performed on time and on budget 95% Applications: Number of site visits/Number of site hits 5% annual increase Tools and services leverage existing, emerging and innovative technologies to enhance, improve, and streamline business and communications processes. 225 INNOVATION & TECHNOLOGY – ADMINISTRATION Budget Unit 100-30-300 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2017-18, this program was largely split between Innovation & Technology Administration and the Public Affairs Program within the City Manager's Office as part of a department reorganization. A discussion of the Innovation & Technology Administration program can be found under Budget Unit 610-30-300. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 226 Innovation & Technology - Information Services Administration 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency - - 8,632 - Total Expenditures 419,975 360,844 719,926 - Fund Balance - - - - General Fund Costs $ 378,623 $ 319,492 $ 511,083 $ - STAFFING Total current authorized positions – 2.45 Total authorized positions – 0.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 41,352 41,352 208,843 - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 41,352 41,352 208,843 - Expenditures Employee Compensation 201,362 181,714 290,669 - Employee Benefits 65,617 54,642 108,043 - Materials 55,215 49,535 59,075 - Contract Services 78,868 56,041 94,209 - Cost Allocation 18,912 18,912 159,298 - Capital Outlay - - - - Special Projects - - - - 227 INNOVATION & TECHNOLOGY – ADMINISTRATION Budget Unit 610-30-300 Budget at a Glance Total Revenues - Total Expenditures 515,134 Fund Balance (515,134) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.85 PROGRAM OVERVIEW The Innovation & Technology Department's focus, organizational structure and name has changed for FY 2017-18 to reflect the bimodal nature of this team. The department maintains efficient cost effective, highly resilient technical solutions while, at the same time, exploring leading edge technologies that may yield significant advantages. The Administration Division within I&T is responsible for management, strategic planning, governance, policy setting and leadership in the use of computer, video, radio, GIS, and telecommunications technologies to support the delivery of cost effective services to the City of Cupertino. Additionally, Administration is responsible for budget development, procurement, and administrative services. 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 20, 2017, City Council approved a budget of $515,134 for the Administration Budget. This program was created in FY 2017-18 as part of a department reorganization. Previously, administration of the department was budgeted in the General Fund under the Information Services Administration program 100-30-300. 228 This budget accounts for 25% of the Chief Technology Officer (CTO) and 60% of the Administrative Assistant, along with front desk staffing. As advised by the City Attorney's office, $100,000 is budgeted for legal services. This budget also includes $50,000 in technical consulting services previously budgeted in Infrastructure 610-34-310. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 229 Innovation & Technology - Innovation & Technology Administration 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - - 103,789 Total Expenditures - - - 515,134 Fund Balance - - - (515,134) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.00 Total authorized positions – 0.85 Actual Actual Final 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 - - - 171,763 Employee Benefits - - - 49,401 Materials - - - 17,901 Contract Services - - - 152,200 Cost Allocation - - - 20,080 Capital Outlay - - - - Special Projects - - - - 230 INNOVATION & TECHNOLOGY - CUPERTINO SCENE Budget Unit 100-30-304 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW The Cupertino Scene budget was moved into Public Affairs within the City Manager's Office as part of the department reorganization approved by Council in FY 2016-17. ADOPTED BUDGET The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 231 Innovation & Technology - Cupertino Scene 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 6,181 - Total Expenditures 141,775 120,001 135,103 - Fund Balance - - - - General Fund Costs $ 141,775 $ 120,001 $ 135,103 $ - STAFFING Total current authorized positions – 0.35 Total authorized positions – 0.00 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 37,369 26,743 23,706 - Employee Benefits 14,933 11,705 10,912 - Materials 85,481 77,545 78,263 - Contract Services 321 336 300 - Cost Allocation 3,672 3,672 15,741 - Capital Outlay - - - - Special Projects - - - - 232 VIDEO - VIDEO Budget Unit 615-31-305 Budget at a Glance Total Revenues - Total Expenditures 1,569,256 Fund Balance (205,109) General Fund Costs 1,364,147 % Funded by General Fund 86.9% Total Staffing 3.25 PROGRAM OVERVIEW The Video program operates the City’s government access television station, providing multi- media support services, and overseeing video production for all City departments. SERVICE OBJECTIVES Provide information regarding the activities and decisions of the City Council and the recommendations of its advisory bodies. Expand community awareness of local government and its decision-making processes by providing live and re-broadcast coverage of City meetings. Increase community awareness of City services. Provide information pertinent to City residents from other local, state and federal governmental entities. Provide an additional venue for emergency communications in the event of a disaster. Provide video production and audio/visual services to City departments. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,569,256 for the Video Budget. This represents an increase of $90,170 from the FY 2016-17 Final Adopted Budget. The budget includes increases to personnel costs and maintenance costs in contract services partially offset by a reduction in cost allocation charge. Increases in personnel costs are related to a reallocation of staffing within the department, negotiated increases approved by Council in FY 2016-17, and additional part-time staffing support ($33,000) that will allow the department to hire two video interns to convert videos to digital format and catalog video footage. The increase in contract services costs ($30,000), is due to a greater preventive and service maintenance schedule for newly installed systems and the Community Hall and the video control room completed in FY 2016-17 ($10,000), as well as anticipated preventive maintenance costs for new conference room audiovisual systems to be installed in FY 2017-18. The remaining $20,000 increase is due to the development and ongoing service costs of a new 233 online video hosting platform that will be integrated into the new website design, and later merged with future app development allowing an increased video presence on the City's social media sites. Projects in capital outlay include audiovisual technology upgrades for conference rooms citywide and the EOC ($225,000), field equipment to allow for higher quality outdoor video footage ($45,000), and a back-up battery system for Community Hall and City Hall control rooms ($36,000).These increases are offset by a reduction in cost allocation charges which have decreased this year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 234 Video - Video Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 10,757 10,757 Total Expenditures 833,059 798,214 1,479,086 1,569,256 Fund Balance (693,751) (255,694) -(205,109) General Fund Costs $ - $ - $ 1,479,086 $ 1,364,147 STAFFING Total current authorized positions – 3.40 The 0.15 decrease in staffing is the result of internal reallocations to better reflect staff time spent in this program. Total authorized positions – 3.25 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 139,308 542,520 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 139,308 542,520 - - Expenditures Employee Compensation 288,161 325,174 357,597 507,637 Employee Benefits 111,340 109,555 145,402 175,404 Materials 48,293 69,648 47,950 50,950 Contract Services 68,197 52,585 68,000 108,650 Cost Allocation 284,561 189,176 449,380 409,858 Capital Outlay - - - - Special Projects 32,506 52,076 400,000 306,000 235 VIDEO - PUBLIC ACCESS SUPPORT Budget Unit 100-31-307 Budget at a Glance Total Revenues - Total Expenditures 72,435 Fund Balance - General Fund Costs 72,435 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The City contracts to provide management of Community Access Television Programming. SERVICE OBJECTIVES Encourage Cupertino-based communities of interest to use facilities to express their interests, concerns, and ideas. Provide training in cable communication production for individuals and community groups. Assist individuals and community groups to develop and produce programs for broadcast. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $72,435 for the Public Access Support Budget. This represents an increase of $3,458 from the FY 2016-17 Final Adopted Budget. The City contracts to provide management of Community Access Television programming. The budget reflects an increase of $3,407 for the annual 5% escalation. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 236 Video - Public Access Support Category 2015 Actual 2016 Actual 2016-17 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 62,548 63,871 68,977 72,435 Fund Balance - - - - General Fund Costs $ 62,548 $ 63,871 $ 68,977 $ 72,435 STAFFING There is no staffing associated with this program. 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 62,548 63,871 68,135 71,542 Cost Allocation - - 842 893 Capital Outlay - - - - Special Projects - - - - 237 APPLICATIONS - APPLICATIONS Budget Unit 615-32-308 Budget at a Glance Total Revenues - Total Expenditures 1,664,219 Fund Balance - General Fund Costs 1,664,219 % Funded by General Fund 100.0% Total Staffing 3.20 PROGRAM OVERVIEW The Applications Division is responsible for the development, procurement, project management, implementation and ongoing maintenance of all enterprise level applications, e.g., Financial ERP, Land Based Management System, and Recreation Software. Additionally, the Application Division is responsible for the City's website and all online applications. SERVICE OBJECTIVES Deliver business solutions that meet customer requirements and integrate within the City's application framework. Assist departments in developing streamlined, effective business processes that are easy to understand. Work closely with City staff and members of the community to ensure that the City's enterprise applications are effective and relevant. Collaborate with departments to determine that the City's enterprise applications meet the functions, requirements and long-term 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 20, 2017, City Council approved a budget of $1,664,219 for the Applications Budget. This represents an increase of $1,294,896 from the FY 2016-17 Final Adopted Budget Starting in FY 2017-18 the Applications Division is responsible for all costs ($913,990) associated with the procurement, implementation, development, ongoing maintenance and consulting services for enterprise applications. The costs were previously allocated in other Department/Division budgets. In addition, the budget reflects 2.0 Business Systems Analysts (BSAs) approved by Council at 238 Mid-Year FY 2016-17; this brought the staff count up to 3.0 BSAs. For FY 2017-18, Applications is reclassifying one of the three BSA positions to an Applications Manager position to provide strategic planning, budget and overall supervision for this team. In addition, $12,000 is budgeted for technical training for this Division. Capital outlays in this budget include, purchasing a Community Hall Speaker card application ($20,000), revamping the website intranet for employees ($31,530), licensing Peak Democracy for community engagement ($12,000), and Splunk, the log analyzer application ($10,000) which is a platform that provides operational intelligence on business applications (application monitoring, log analysis, traffic). The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 239 Applications - Applications Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 5,966 5,966 Total Expenditures 224,267 278,253 369,323 1,664,219 Fund Balance (186,767) (37,112) - - General Fund Costs $ - $ 76,015 $ 369,323 $ 1,664,219 STAFFING Total current authorized positions – 0.75 As part of the department reorganization, the staffing allocation in this program budget now includes: 0.15 Chief Technology Officer, 0.05 Administrative Assistant, 1.0 Applications Manager, and 2.0 Business Systems Analysts. Total authorized positions – 3.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 37,500 237,156 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 37,500 237,156 - - Expenditures Employee Compensation 62,008 155,986 123,900 407,623 Employee Benefits 26,476 30,688 37,266 149,570 Materials 3,871 5,172 7,392 718,040 Contract Services 103,244 66,534 86,125 225,250 Cost Allocation 14,928 19,872 57,569 84,240 Capital Outlay - - - - Special Projects 13,740 -51,105 73,530 240 INFRASTRUCTURE - INFRASTRUCTURE Budget Unit 610-34-310 Budget at a Glance Total Revenues - Total Expenditures 2,812,304 Fund Balance (2,262,599) General Fund Costs 549,705 % Funded by General Fund 19.5% Total Staffing 4.60 PROGRAM OVERVIEW This activity provides for all technology related expenses for the citywide management of information technology services. The Information Technology Manager and staff are responsible for Helpdesk, Network LAN/WAN/WiFi 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 contract negotiations. SERVICE OBJECTIVES Maintain standards and procedures for the replacement and maintenance of all City owned computing devices, printers, peripherals and systems defined by City policy. Maintain and service the City’s wide area network among all City facilities. Facilitate technical contracts maintenance and negotiations. Recommend and manage consultant contracts for intermediate technical services. Manage and maintain a Disaster Recovery Plan and Security Program to provide consistent availability and integrity for data and Business Systems. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $2,812,304 for the Infrastructure Budget. This represents an increase of $120,560 from the FY 2016-17 Final Adopted Budget. Increases in personnel costs, materials, and special projects are mostly offset by decreases in contract services, and cost allocation. The increases in personnel costs reflect a proposal to utilize IT Interns to perform a technology refresh that involves asset tagging, inventorying and deploying desktops ($30,000), additional overtime to maintain equipment and access functionality ($10,000), and negotiated employee compensation increases approved by Council in FY 2016-17. Special projects include Storage Phase II Hyper-converged, MFP Refresh citywide and Voice- over IP. This increase is offset by a decrease in contract services is a result of moving maintenance, software and general service agreements to the Innovation & Technology 241 Applications Division. In addition, software costs previously budgeted under contract service were moved to the materials account under software. The decrease in cost allocation charges is primarily due to changes in how the city applies these charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 242 Infrastructure - Infrastructure Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency 4,798 -73,386 83,386 Total Expenditures 1,651,865 1,930,718 2,691,744 2,812,304 Fund Balance (1,651,865) (1,758,218) (2,691,744) (2,262,599) General Fund Costs $ - $ 172,500 $ - $ 549,705 STAFFING Total current authorized positions – 4.70 The decrease in staffing is the result of several internal reallocations to appropriately reflect staff time that will be spent on this program. Total authorized positions – 4.60 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 581,925 461,832 509,774 580,473 Employee Benefits 153,578 182,286 208,001 235,555 Materials 84,370 79,988 134,276 256,116 Contract Services 582,976 984,204 1,276,722 304,600 Cost Allocation 244,219 222,408 489,585 406,174 Capital Outlay - - - - Special Projects - - - 946,000 243 GIS - GIS Budget Unit 610-35-986 Budget at a Glance Total Revenues - Total Expenditures 863,088 Fund Balance (863,088) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 2.65 PROGRAM OVERVIEW The GIS Program captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, globes, applications, reports, and charts we provide tools to view, understand, question, interpret, and visualize our City in ways that reveal relationships, patterns, and trends. The GIS Program works to help 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  Proactive GIS Management, work with each department to improve existing workflows using GIS Systems.  Define standards, improve quality, and establish tools and procedures for perpetual data maintenance and appropriate access.  Improve efficiencies with regional agencies through GIS integration and collaboration.  Improve GIS services both internally and to the public.  Expand the awareness of the GIS technology and integration of geographic information in departments and applications in which GIS use is not common but where substantial benefits may be achieved. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $863,088 for the GIS Budget. This represents an increase of $215,824 from the FY 2016-17 Final Adopted Budget. Each year based on direction from senior management, department requests, and the annual work plan, the GIS program evaluates hardware, software, and professional service needs and adjusts the GIS program budget accordingly. The budget includes $137,000 for software updates, analytics, customization, web design support, aerial photo acquisition and an impervious surface creation (green infrastructure) storm water mandatory permit. 244 Increases in personnel costs reflect utilizing IT Interns to update City asset inventories in the field, negotiated employee compensation increases approved by Council in FY 2016-17, and a reallocation of staffing from the Innovation & Technology Administration program. In addition, Council approved the addition of an Asset Management Technician position at Mid-Year, which is partially budgeted in this program. An increase of $17,200 in capital outlay is budgeted for additional Cityworks logins and storeroom licenses. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 245 GIS - GIS Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - 16,466 Total Expenditures 872 337,780 647,264 863,088 Fund Balance (872) (323,280) - (863,088) General Fund Costs $ - $ 14,500 $ 647,264 $ - STAFFING Total current authorized positions – 2.30 The change in authorized positions reflects the partial transfer of an Asset Management Technician position. Total authorized positions – 2.65 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 691 188,721 253,382 369,555 Employee Benefits 181 70,720 95,479 131,192 Materials - 189 16,000 21,060 Contract Services - 71,631 188,300 210,080 Cost Allocation - - 82,103 97,535 Capital Outlay - - - - Special Projects - 6,519 12,000 17,200 246 CITYWIDE - NON DEPARTMENTAL NETWORK UPGRADE Budget Unit 610-90-989 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0. 0% Total Staffing - PROGRAM OVERVIEW In FY 2017-18, this program was transferred into Infrastructure as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 610- 34-310. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 247 Citywide - Non Departmental - Network Upgrade 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 190,055 92,627 721,500 - Fund Balance (190,055) (42,627) (721,500) - General Fund Costs $ - $ 50,000 $ - $ - STAFFING There is no staffing associated with this program. 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 190,055 92,627 721,500 - 248 Administrative Services Administration Finance Human Resources ADMINISTRATIVE SERVICES Budget Unit 2018 Adopted Administrative Services $ 790,510 100-40-400 Administration 790,510 Finance $ 1,348,409 100-41-405 Accounting 1,134,474 100-41-406 Business Licenses 213,935 Human Resources $ 3,840,888 100-44-412 Human Resources 978,882 642-44-414 Retiree Benefits 968,486 100-44-417 Insurance Administration 876,383 620-44-418 Workers Compensation Insurance 498,240 641-44-419 Long Term Disability 83,883 641-44-420 Compensated Absence 435,014 Total $ 5,979,807 249 Director of Administrative Services/Treasurer Finance Manager/Deputy Treasurer Senior Accountant Accounting Technician Accountant II Account Clerk II Account Clerk II Human Resources Analyst II Human Resources Analyst II Human Resources Technician Senior Management Analyst Administrative Assistant 250 DEPARTMENT SUMMARY Administrative Services Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 146,784 146,784 Total Expenditures 5,242,354 4,849,197 6,632,270 5,979,807 Fund Balance (1,719,561) 107,616 (1,800,615) 93,383 General Fund Costs $ 2,941,618 $ 4,409,339 $ 1,001,625 $ 3,070,958 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $5,979,807 for the Administrative Services Budget. This represents a decrease of $652,463 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This decrease is offset by increases in salary and benefits due to the addition of a part-time intern to assist the Human Resources division with clerical tasks and negotiated increases to salary and benefits. Lastly, Contract Services are up due to increases in consulting services for both the Human Resources and Finance division of this department. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 581,175 359,148 3,830,030 3,002,232 Fines and Forfeitures - - - - Miscellaneous Revenue -188,325 - - Interdepartmental Revenue --- - Total Revenues 581,175 547,473 3,830,030 3,002,232 Expenditures Employee Compensation 1,142,088 1,151,260 1,277,269 1,394,052 Employee Benefits 1,845,241 1,355,605 1,466,008 1,621,692 Materials 89,534 122,740 120,274 130,274 Contract Services 1,522,588 1,928,007 1,932,236 2,409,263 Cost Allocation 176,988 176,988 1,689,699 277,742 Capital Outlay -37,264 - - Special Projects 465,914 77,332 -- 251 ADOPTED EXPENDITURES FY 2017-18 $790,510 (13%) $1,348,409 (23%) $3,840,888 (64%) Human Resources Finance Administrative Services 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 5.2 4.8 6.6 5.9 252 City of Cupertino FY17/18 Budget Performance Measures Department: Administrative Services Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Citizens can enjoy high quality of services that meet community priorities. So that… So that… So that… So that… So that… So that… So that… GOAL: Financial Stability – Provide a sustainable level of core services that are funded from ongoing and stable revenue sources. Finance Human Resources Measure Ongoing Target General fund balance as a % of budgeted appropriations 35% Credit Rating AA+ Funding allocated to high priority services (Public Works, Community Development, Law Enforcement) 63% Actual revenue vs. budget (within x% budget) 10% Actual expenditures (% below budget) 5% Measure Ongoing Target # of Worker’s Compensation Cases 0 Total recordable Injury Rate YTD 0% % absenteeism (% of total annual work hours) 2% % turnover rate 1% % Employee satisfaction 100% % Employee participation in wellness activities 75% Average # of applications received per recruitment 50 Recruitment timeline - # days from hiring request to offer letter 60 days # of Worker’s using the Telework program 17 Utilization of Full-service employee portal 100% The City can ensure a safe working environment for all employees. The agency supports a professional and engaged workforce offering diverse and quality community services. The City is financially responsible. The City can invest in Community priorities. GOAL: To create a thriving organization with meaningful careers in public service. The agency builds a flexible and productive work arrangement. The City attracts and retains a talented workforce. 253 ADMINISTRATIVE SERVICES - ADMINISTRATION Budget Unit - 100-40-400 Budget at a Glance Total Revenues 67,899 Total Expenditures 790,510 Fund Balance - General Fund Costs 722,611 % Funded by General Fund 91.4% Total Staffing 2.80 PROGRAM OVERVIEW Oversees and coordinates the Human Resources/Risk Management, Finance, Budget and Treasury divisions. Staff support is provided to the Fiscal Strategic and Audit Committees. 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. Manages the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office. Manages the City's budget process ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $790,510 for the Administration Budget. This represents an increase of $46,117 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. Increases in this program are due to the increased allocation of the Administrative Services Director from 50% to 80% to better account for time spent in this program. In addition, the budget includes increased costs in contract services due to anticipated consulting services department wide for finance and human resources. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 254 Administrative Services - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 2,401 2,401 Total Expenditures 431,899 521,806 744,393 790,510 Fund Balance - - - - General Fund Costs $ 372,823 $ 462,730 $ 23,156 $ 722,611 STAFFING Total current authorized positions – 2.50 Increase allocation for Director from 50% to 80% to better account for time spent in this program. Total authorized positions – 2.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 59,076 59,076 721,237 67,899 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 59,076 59,076 721,237 67,899 Expenditures Employee Compensation 261,775 241,226 266,904 378,630 Employee Benefits 99,893 94,416 114,152 174,269 Materials 23,057 41,661 31,924 31,924 Contract Services 11,990 26,855 1,550 147,827 Cost Allocation 35,184 35,184 327,462 55,459 Capital Outlay -37,264 - - Special Projects -45,200 -- 255 FINANCE - ACCOUNTING Budget Unit 100-41-405 Budget at a Glance Total Revenues 906,996 Total Expenditures 1,134,474 Fund Balance - General Fund Costs 227,478 % Funded by General Fund 20.1% Total Staffing 5.40 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 20, 2017, City Council approved a budget of $1,134,474 for the Accounting Budget. This represents a decrease of $339,684 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. Salary and benefits are up in this program due to negotiated increases in salary and benefits. In addition, contract services are up due to a change in services providers for both the City's 256 outside auditors and sales tax consultants. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Finance - Accounting Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 7,228 7,228 Total Expenditures 1,402,766 1,136,717 1,474,158 1,134,474 Fund Balance - - - - General Fund Costs $ 1,265,318 $ 999,269 $ 306,777 $ 227,478 STAFFING Total current authorized positions – 5.75 Decrease in staffing is due to the limited term assignment of a management analyst ending. Total authorized positions – 5.40 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 137,448 137,448 1,167,381 906,996 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 137,448 137,448 1,167,381 906,996 Expenditures Employee Compensation 512,598 434,398 567,868 573,535 Employee Benefits 188,672 184,768 242,400 259,004 Materials 14,635 21,813 36,171 36,171 Contract Services 146,051 388,510 51,465 178,215 Cost Allocation 75,096 75,096 569,026 80,321 Capital Outlay - - - - Special Projects 465,715 32,132 -- 257 FINANCE - BUSINESS LICENSES Budget Unit 100-41-406 Budget at a Glance Total Revenues - Total Expenditures 213,935 Fund Balance - General Fund Costs 213,935 % Funded by General Fund 100.0% Total Staffing 0.60 PROGRAM OVERVIEW Monitor 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 20, 2017, City Council approved a budget of $213,935 for the Business Licenses Budget. This represents an increase of $6,962 from the FY 2016-17 Final Adopted Budget. The increase in salary and benefits is due to a 5% increase in allocation of an Accountant II position to business licenses from finance to better account with time spent in this program. This is offset by a slight decrease in the cost allocation plan charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 258 Finance - Business Licenses Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 418 418 Total Expenditures 89,488 159,191 206,973 213,935 Fund Balance - - - - General Fund Costs $ 89,488 $ 159,191 $ 206,973 $ 213,935 STAFFING Total current authorized positions – 0.55 Increase Accountant II allocation by 5% to better account for time spent in this program. Total authorized positions – 0.60 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 58,510 69,802 39,952 47,895 Employee Benefits 22,036 31,194 19,570 25,640 Materials 564 1,324 6,022 6,022 Contract Services 3,122 51,614 34,196 34,196 Cost Allocation 5,256 5,256 106,815 99,764 Capital Outlay - - - - Special Projects - - - - 259 HUMAN RESOURCES - HUMAN RESOURCES Budget Unit 100-44-412 Budget at a Glance Total Revenues 708,222 Total Expenditures 978,882 Fund Balance - General Fund Costs 270,660 % Funded by General Fund 27.6% Total Staffing 2.85 PROGRAM OVERVIEW The Human Resources Division is responsible for the administration of a full range of human resource, employee benefit and labor relations programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee development, benefits and retirement. In addition, Human Resources administer 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 for 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 20, 2017, City Council approved a budget of $978,882 for the Human Resources Budget. This represents a decrease of $406,942 from the FY 2016-17 Final Adopted Budget. 260 This decrease is primarily due to changes in how cost allocation charges were applied this year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This budget includes funding for an employee engagement initiative budgeted for a total of $20,000. The cost to have Gallup perform the survey and compile the results is approximately half of these costs with the other half covering costs associated with implementing changes. In addition, there is funding for a part-time intern at eight hours per week to assist with clerical duties in the division; this increase is offset by decreased allocation for the Director of Administrative Services. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 261 Human Resources - Human Resources Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 11,299 11,299 Total Expenditures 708,299 854,024 1,385,824 978,882 Fund Balance - - - - General Fund Costs $ 545,869 $ 691,400 $ (66,848) $ 270,660 STAFFING Total current authorized positions – 3.15 Decrease allocation for Director from 50% to 20% to better account for time spent in this program. Total authorized positions – 2.85 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 162,429 162,624 1,452,672 708,222 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 162,429 162,624 1,452,672 708,222 Expenditures Employee Compensation 271,162 366,508 364,441 352,907 Employee Benefits 221,392 110,203 153,255 187,257 Materials 51,278 57,911 46,153 56,153 Contract Services 108,588 263,723 153,620 352,620 Cost Allocation 55,680 55,680 657,056 18,646 Capital Outlay - - - - Special Projects 199 - - - 262 HUMAN RESOURCES - RETIREE BENEFITS Budget Unit 642-44-414 Budget at a Glance Total Revenues - Total Expenditures 968,486 Fund Balance - General Fund Costs 968,486 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW Provides administration of 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 20, 2017, City Council approved a budget of $968,486 for the Retiree Benefits Budget. This represents an increase of $37,151 from the FY 2016-17 Final Adopted Budget. The increase is due to a change in the City's unfunded liability based on the October 2016 actuary study. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 263 Human Resources - Retiree Benefits Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 1,298,785 919,219 931,335 968,486 Fund Balance (1,298,785) 81,281 (931,335) - General Fund Costs $ - $ 1,000,500 $ - $ 968,486 STAFFING There is no staffing associated with this program. 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 1,298,785 919,219 920,000 957,466 Materials - - - - Contract Services - - 5,495 5,495 Cost Allocation - - 5,840 5,525 Capital Outlay - - - - Special Projects - - - - 264 HUMAN RESOURCES - INSURANCE ADMINISTRATION Budget Unit 100-44-417 Budget at a Glance Total Revenues 718,112 Total Expenditures 876,383 Fund Balance - General Fund Costs 158,271 % Funded by General Fund 18.1% Total Staffing 0.15 PROGRAM OVERVIEW 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. Promotes work environment that emphasizes safe work practices. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $876,383 for the Insurance Administration Budget. This represents an increase of $6,076 from the FY 2016-17 Final Adopted Budget. Salary and benefits are up in this program due to negotiated increases in salary and benefits. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 265 Human Resources - Insurance Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 37,603 37,603 Total Expenditures 668,119 644,571 870,307 876,383 Fund Balance - - - - General Fund Costs $ 668,119 $ 456,246 $ 381,567 $ 158,271 STAFFING Total current authorized positions – 0.15 There are no changes in staffing levels. Total authorized positions – 0.15 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 488,740 718,112 Fines and Forfeitures - - - - Miscellaneous Revenue -188,325 - - Interdepartmental Revenue --- - Total Revenues -188,325 488,740 718,112 Expenditures Employee Compensation 14,615 15,682 15,468 16,897 Employee Benefits 5,869 6,703 7,099 7,893 Materials -18 4 4 Contract Services 646,063 620,596 808,030 813,030 Cost Allocation 1,572 1,572 2,103 956 Capital Outlay - - - - Special Projects - - - - 266 HUMAN RESOURCES - WORKERS COMPENSATION INSURANCE Budget Unit 620-44-418 Budget at a Glance Total Revenues 601,003 Total Expenditures 498,240 Fund Balance 102,763 General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.20 PROGRAM OVERVIEW Provides oversight of our Workers’ Compensation program, including claims, proactive Risk Management, return to work accommodations and excess workers compensation insurance. SERVICE OBJECTIVES Monitor costs associated with claims. Analyze and implement proactive measures to curtail costs. Implement a return to work policy. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $498,240 for the Workers Compensation Insurance Budget. This represents a decrease of $2,492 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged from the prior year. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 267 Human Resources - Workers Compensation Insurance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 49,667 49,667 Total Expenditures 345,128 37,016 500,732 498,240 Fund Balance (334,160) (37,016) (500,732) 102,763 General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.20 There are no changes in staffing levels. Total authorized positions – 0.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 10,968 - - 601,003 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 10,968 - - 601,003 Expenditures Employee Compensation 23,428 23,644 22,636 24,188 Employee Benefits 8,596 9,102 9,532 10,163 Materials -13 - - Contract Services 308,904 57 400,780 400,780 Cost Allocation 4,200 4,200 18,117 13,442 Capital Outlay - - - - Special Projects - - - - 268 HUMAN RESOURCES - LONG TERM DISABILITY Budget Unit 641-44-419 Budget at a Glance Total Revenues - Total Expenditures 83,883 Fund Balance (83,883) General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW Oversee claims and premiums associated with long term disability. SERVICE OBJECTIVES  Monitor employee injuries and provide proactive risk management for disability avoidance.  Obtain and manage insurance policy. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $83,883 for the Long Term Disability Budget. This represents an increase of $8 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged since last fiscal year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 269 Human Resources - Long Term Disability 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 6,168 6,168 Total Expenditures 51,384 82,201 83,875 83,883 Fund Balance (51,384) (82,201) (83,875) (83,883) General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this program. 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 51,384 82,201 77,100 77,100 Cost Allocation - - 607 615 Capital Outlay - - - - Special Projects - - - - 270 HUMAN RESOURCES - COMPENSATED ABSENCE Budget Unit 641-44-420 Budget at a Glance Total Revenues - Total Expenditures 435,014 Fund Balance 74,503 General Fund Costs 509,517 % Funded by General Fund 117.1% Total Staffing - PROGRAM OVERVIEW Provide 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 20, 2017, City Council approved a budget of $435,014 for the Compensated Absence Budget. This represents an increase of $341 from the FY 2016-17 Final Adopted Budget. This budget is relatively unchanged from the prior fiscal year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 271 Human Resources - Compensated Absence 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 32,000 32,000 Total Expenditures 246,486 494,451 434,673 435,014 Fund Balance (35,232) 145,553 (284,673) 74,503 General Fund Costs $ - $ 640,004 $ 150,000 $ 509,517 STAFFING There is no staffing associated with this program. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 211,254 - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 211,254 - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 246,486 494,451 400,000 400,000 Cost Allocation - - 2,673 3,014 Capital Outlay - - - - Special Projects - - - - 272 Recreation and Community Services Administration Business & Community Programs Recreation & Education Sports, Safety & Outdoor Recreation RECREATION AND COMMUNITY SERVICES Budget Unit 2018 Adopted Administration $ 1,538,034 100-60-600 Leadership 95014 - 100-60-601 Administration 495,907 100-60-634 Park Planning and Restoration 253,235 100-60-636 Library Services 788,892 Business and Community Services $ 2,229,336 100-61-602 Administration 919,005 100-61-603 Blackberry Farm Picnic Area - 100-61-604 Community Hall Operations - 100-61-605 Cultural Events 438,337 100-61-607 Quinlan Center Operations - 100-61-630 Facilities 579,747 100-61-632 Community Outreach and Neighborhood Watch 292,247 Recreation and Education $ 5,503,781 100-62-608 Administration 1,082,488 100-62-609 Youth Program - 100-62-610 Teen Program - 100-62-611 Teen Center - 100-62-612 Park Facilities - 580-62-613 Youth Teen Recreation 2,214,409 100-62-623 Youth, Teen and Senior Adult Recreation 2,206,884 Sports, Safety and Outdoor Recreation $ 7,176,427 100-63-612 Park Facilities 1,968,178 100-63-615 Administration 243,820 560-63-616 Blackberry Farm Golf Course 708,461 100-63-618 Creekside Park Youth Sport - 580-63-620 Outdoor Recreation 1,451,700 570-63-621 Sports Center Operations 2,448,037 100-63-633 Disaster Preparedness 356,231 100-63-637 Monta Vista Recreation Center - Senior Programs $ 0 100-64-622 Senior Adult Supervision - 273 100-64-623 Youth, Teen and Senior Adult Recreation - 100-64-624 Senior Adult Recreation - 100-64-630 Facilities - Community Services $ 0 100-65-632 Community Outreach and Neighborhood Watch - 100-65-633 Disaster Preparedness - 100-65-635 Neighborhood Watch - 100-65-636 Library Services - Total $ 16,447,578 274 Facility Attendant (2) Director Recreation & Community Services Administration Administrative Assistant Recreation Manager Business & Community Services Division Recreation Manager Sports, Safety & Outdoor Recreation Division Assistant Director Recreation & Education Division Recreation Supervisor Office Assistant Recreation Supervisor Senior Office Assistant (2) Recreation Coordinator Community Coordinator - Block Leaders Recreation Coordinator Special Programs Coordinator Recreation Coordinator Recreation Supervisor Special Programs Coordinator Recreation Coordinator (3) Case Manager (2) Sr. Office Assistant Recreation Coordinator (2) Facility Attendant Park Improvement Manager Office Assistant Administrative Assistant Code Enforcement (2) Special Programs Coordinator (2) Recreation Coordinator (3) 275 DEPARTMENT SUMMARY Final Budget Fund Balance (5,044,285) 976,182 (230,193) (1,184,607) General Fund Costs $ 3,978,690 $ 5,652,465 $ 8,931,310 $ 8,082,217 ADOPTED BUDGET On June 20, 2017, City Council approved a budget $16,447,578 for the Recreation and Community Services Budget. This represents a decrease of $286,904 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This decrease is offset by increases in salary and benefits due to two new three year limited term Recreation Coordinators for Disaster Preparedness and Senior Programs and negotiated increases to salary and benefits. Recreation and Community Services 2018 2015 2016 2017 Category Actual Actual Adopted Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 274,906 562,456 571,200 601,325 Intergovernmental Revenue 3,500 (1,387) 10,500 10,500 Charges for Services 1,023,259 5,642,870 6,975,279 6,505,929 Fines and Forfeitures - - - - Miscellaneous Revenue 47,087 58,928 16,000 63,000 Interdepartmental Revenue - - - - Total Revenues 1,348,752 6,262,866 7,572,979 7,180,754 Expenditures Employee Compensation 3,311,995 3,523,471 4,278,926 4,958,694 Employee Benefits 1,017,564 1,120,347 1,275,282 1,580,194 Materials 1,037,949 1,076,671 1,252,336 1,395,942 Contract Services 3,707,956 3,941,287 4,403,536 4,552,277 Cost Allocation 971,151 1,140,589 4,950,320 3,501,914 Capital Outlay -5,848 90,500 - Special Projects 311,760 116,801 108,025 83,000 Appropriations for Contingency 13,352 14,135 375,557 375,557 Total Expenditures 10,371,727 10,939,149 16,734,482 16,447,578 276 ADOPTED EXPENDITURES FY 2017-18 $1,538,034 (9%) $2,229,336 (14%) $7,176,427 (44%) $5,503,781 Sports, Safety & Outdoor Rec Recreation & Education Business & Community Services Administration (33%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 10.4 10.9 16.7 16.4 277 City of Cupertino FY17/18 Budget Performance Measures Department: Recreation and Community Services Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and to support the values of education, innovation and collaboration. Enabled by… Enabled by… So that… GOAL: Create a positive, healthy and connected community. Measure Ongoing Target % Recreation and Community Services Department customers surveyed who rate services as good or excellent 85% % programs maintain minimum registration 80% % Department’s total cost recovery for all (direct and indirect) costs 40% # of new programs or events offered 50 % change in participants +1% City investment in quality recreation and community programs. Improved business processes to improve customer experience Cupertino has an exceptional system of parks & services that align with community values. 278 RECREATION & COMMUNITY SERVICES - LEADERSHIP 95014 Budget Unit 100-60-600 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to the Recreation and Education Division - Administration as part of a department reorganization. A complete discussion of the program can be found under Budget Unit 100-62-608. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 279 Recreation and Community Services - Leadership 95014 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 30,955 36,439 - - Fund Balance - - - - General Fund Costs $ 18,340 $ 20,564 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue 12,615 15,875 - - Interdepartmental Revenue - - - - Total Revenues 12,615 15,875 - - Expenditures Employee Compensation 9,875 10,103 - - Employee Benefits 3,721 4,012 - - Materials 4,242 6,863 - - Contract Services 11,522 13,865 - - Cost Allocation 1,596 1,596 - - Capital Outlay - - - - Special Projects - - - - 280 RECREATION & COMMUNITY SERVICES - ADMINISTRATION Budget Unit 100-60-601 Budget at a Glance Total Revenues 42,000 Total Expenditures 495,907 Fund Balance - General Fund Costs 453,907 % Funded by General Fund 91.5% Total Staffing 1.90 PROGRAM OVERVIEW Provides overall department administration, as well as project management, community outreach and support to the Parks and Recreation Commission. Oversees a national accreditation process for the Department. SERVICE OBJECTIVES Provide overall department administration, budget control, and employee development and evaluation; Support the Planning and Public Works Departments in the development of new parks, including, the Parks and Recreation System Master Plan, Stevens Creek Boulevard to McClellan Ranch Preserve Corridor Master Plan and the renovation of existing parks; Monitor and facilitate partnerships in regards to Library and Emergency Services; Outreach to the community in conjunction with programs and the Parks and Recreation System Master Plan; Promote partnerships with CUSD, FUHSD, and De Anza College with quarterly meetings and joint projects; Continually evaluate the efficiency and effectiveness of the department, working to receive national accreditation. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $495,907 for the Administration Budget. This represents a decrease of $562,436 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The increase of $41,115 represents the cost for the leadership academy program, including instructors and fees. This is offset by projected revenue from participating agencies in the 281 program of $42,000. The budget was also increased by $10,000 (contract services) for additional training opportunities within the department and by $6,000 (materials) to support a national accreditation process and associated program fees. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Recreation and Community Services - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - 4,677 10,000 10,000 Total Expenditures 470,980 562,814 1,058,343 495,907 Fund Balance - - - - General Fund Costs $ 439,300 $ 519,834 $ 953,602 $ 453,907 STAFFING Total current authorized positions – 1.85 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 1.90 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 104,741 - Fines and Forfeitures - - - - Miscellaneous Revenue 31,680 42,980 - 42,000 Interdepartmental Revenue - - - - Total Revenues 31,680 42,980 104,741 42,000 Expenditures Employee Compensation 274,418 250,990 257,701 257,608 Employee Benefits 93,475 94,547 101,439 105,964 Materials 32,540 66,757 27,406 74,521 Contract Services 7,091 82,387 1,000 11,000 Cost Allocation 63,456 63,456 658,797 36,814 Capital Outlay - - - - Special Projects - - 2,000 - 282 RECREATION & COMMUNITY SERVICES – PARK PLANNING AND RESTORATION Budget Unit 100-60-634 Budget at a Glance Total Revenues - Total Expenditures 253,235 Fund Balance - General Fund Costs 253,235 % Funded by General Fund 100.0% Total Staffing 1.00 PROGRAM OVERVIEW Provides for park planning, renovation, outreach, and monitoring of Capital Improvement Projects and grant funding opportunities. Works with other county and open space areas to identify potential partnerships for future park and trail expansion. SERVICE OBJECTIVES Identify and monitor grant funding opportunities; Promote partnerships with Santa Clara County (SCC), SC Valley Water District (SCVWD) and Mid-Peninsula Regional Open Space District (MROSD);Support the Public Works Department in the planning and development of new parks and restoration of existing parks; Assist with the Stevens Creek Boulevard to McClellan Ranch Preserve Creek Corridor Master Plan and oversee the Parks and Recreation System Master Plan and monitoring of the Stevens Creek Corridor Park & Restoration Phase 2 Project. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $253,235 for the Park Planning and Restoration Budget. This represents an increase of $2,946 from the FY 2016-17 Final Adopted Budget. The increases in personnel costs, which reflect negotiated employee compensation increases based on Council-approved labor contracts, are mostly offset by a reduction in cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 283 Recreation and Community Services - Park Planning and Restoration 2018 Category 2015 Actual 2016 Actual 2017 Final Budget ssAdopted Appropriations for Contingency - - - - Total Expenditures 184,334 260,816 250,289 253,235 Fund Balance - - - - General Fund Costs $ 184,334 $ 260,816 $ 250,289 $ 253,235 STAFFING Total current authorized positions – 1.00 There are no changes to the current level of staffing. Total authorized positions – 1.00 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 118,245 141,510 141,565 151,209 Employee Benefits 42,814 51,924 54,255 63,864 Materials 2,266 5,914 9,675 11,500 Contract Services 19,036 55,601 10,000 10,000 Cost Allocation - - 34,794 16,662 Capital Outlay - - - - Special Projects 1,974 5,866 - - 284 RECREATION & COMMUNITY SERVICES - LIBRARY SERVICES Budget Unit 100-60-636 Budget at a Glance Total Revenues - Total Expenditures 788,892 Fund Balance - General Fund Costs 788,892 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW This budget augments the existing hours of library service currently provided to our community through the Santa Clara County (SCC) Library Joint Powers Authority. SERVICE OBJECTIVES Provide 12 extra hours per week of library service for our constituents. Explore partnerships with the SCC Library for recreation and community programs. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $788,892 for the Library Services Budget. This represents a decrease of $374,572 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 285 Recreation and Community Services - Library Services 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures - - 1,163,464 788,892 Fund Balance - - - - General Fund Costs $ - $ - $ 1,163,464 $ 788,892 STAFFING There is no staffing associated with this program. Actual Actual Final 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 - - 447,752 454,871 Cost Allocation - - 715,712 334,021 Capital Outlay - - - - Special Projects - - - - 286 BUSINESS AND COMMUNITY SERVICES - ADMINISTRATION Budget Unit 100-61-602 Budget at a Glance Total Revenues - Total Expenditures 919,005 Fund Balance - General Fund Costs 919,005 % Funded by General Fund 100.0% Total Staffing 6.25 PROGRAM OVERVIEW The Business & Community Services division supports Department programs and services through the provision of customer service, development and administration of policies, as well as managing the Department's marketing and recreation software. The division is also responsible for the Department's community outreach programs, including City Events and Community Festivals at Memorial Park, as well as the Neighborhood Watch and Block Leader programs. This division 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.  Procure and implement a new recreation software system to streamline customer registration, memberships, point of sale, and facility rentals.  Utilize data from customer satisfaction surveys and program and revenue reports to improve programs and services. Enhance program marketing and communications through effective brochures, website, flyers, banners, and social media.  Increase participation at City events including 4th of July, Summer Concert Series, Cinema at Sundown, Breakfast with Santa, and the Tree Lighting Ceremony.  Issue parks and facilities permits for community festivals and events that promote our diverse culture and connected community.  Maintain a positive relationship with neighborhoods adjacent to our facilities and parks.  Facilitate connected, safe neighborhoods through neighborhood activation and mobile recreation programs, leveraging existing Block Leader and Neighborhood Watch participants. 287 ADOPTED BUDGET On June 20, 2017, City Council approved a budget $919,005 for the Administration Budget. This represents an increase of $133,670 from the FY 2016-17 Final Adopted Budget. The increase in salary and benefits is primarily due to the reallocation of 35% of a Recreation Manager and 45% of a Special Programs Coordinator to Administration. This reallocation is offset by the associated savings in the Facilities and Community Outreach programs. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Business and Community Services - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 460 460 Total Expenditures 586,766 634,208 785,335 919,005 Fund Balance - - - - General Fund Costs $ 586,766 $ 634,208 $ 785,335 $ 919,005 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 358,652 394,592 397,930 506,532 Employee Benefits 165,976 178,195 184,949 243,155 Materials 4,382 3,665 29,250 30,170 Contract Services - - 6,000 8,500 Cost Allocation 57,756 57,756 166,746 130,188 Capital Outlay - - - - Special Projects - - - - 288 STAFFING Total current authorized positions – 5.25 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 6.25 289 BUSINESS AND COMMUNITY SERVICES – BLACKBERRY FARM PICNIC AREA Budget Unit 100-61-603 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Sports, Safety, and Outdoor Recreation – Park Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-612. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 290 Business and Community Services - Blackberry Farm Picnic Area 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency 300 - - - Total Expenditures 637,583 606,953 - - Fund Balance - - - - General Fund Costs $ 379,035 $ 331,819 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 36,260 - - Intergovernmental Revenue - - - - Charges for Services 258,548 238,874 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 258,548 275,134 - - Expenditures Employee Compensation 352,393 346,539 - - Employee Benefits 53,505 52,930 - - Materials 77,640 91,714 - - Contract Services 119,064 81,551 - - Cost Allocation 23,976 23,976 - - Capital Outlay - - - - Special Projects 10,706 10,243 - - 291 BUSINESS AND COMMUNITY SERVICES – COMMUNITY HALL OPERATIONS Budget Unit 100-61-604 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-630. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 292 Business and Community Services - Community Hall Operations 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 92,681 95,784 - - Fund Balance - - - - General Fund Costs $ 92,681 $ 67,365 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 28,420 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 28,420 - - Expenditures Employee Compensation 56,972 59,637 - - Employee Benefits 25,828 25,903 - - Materials 293 656 - - Contract Services - - - - Cost Allocation 9,588 9,588 - - Capital Outlay - - - - Special Projects - - - - 293 BUSINESS AND COMMUNITY SERVICES – CULTURAL EVENTS Budget Unit 100-61-605 Budget at a Glance Total Revenues 5,000 Total Expenditures 438,337 Fund Balance - General Fund Costs 433,337 % Funded by General Fund 98.9% Total Staffing 0.80 PROGRAM OVERVIEW The Business and Community Service Division's Events program produces the City's special events at Memorial Park and Quinlan Community Center including the Summer Concert Series, Cinema at Sundown, Shakespeare in the Park, 4th of July, Tree Lighting, and Breakfast with Santa. This program 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, and Diwali Festival. Expanded programs will be developed to activate neighborhoods and build community through mobile recreation activities. SERVICE OBJECTIVES  Provide a summer concert series.  Produce a summer movie series.  Partner with the San Francisco Shakespeare Company to produce Free Shakespeare in the Park in Cupertino.  Organize and facilitate the city-wide July 4th celebration.  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.  Implement the new Neighborhood Activation program, bringing recreation activities to our neighborhoods based on community input. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $438,337 for the Cultural Events Budget. This represents an increase of $61,845 from the FY 2016-17 Final Adopted Budget. This budget increases part-time staffing ($21,000), program materials ($5,000), and contractual services ($14,000) for expanded neighborhood activation. This program activates 294 neighborhoods through a mobile recreation program by bringing outdoor cinema, concerts, pop-up parks, and guest performers to neighborhoods throughout the spring, summer, and fall. In addition, a new mobile climbing wall will also increase part-time staffing ($30,000) to support up to four bookings per week during a 6-month season. Extremely popular in other cities, the climbing wall will be available by request for block parties, festivals, and community events and will also be scheduled in public spaces throughout the spring, summer, and fall. In addition, $40,000 for the purchase of a truck to safely tow the climbing wall is budgeted in the PW Fleet budget. As the City greatly values community and cultural events, the Department will waive costs totaling $116,310 to festival producers as detailed in the table below. Festival Date Festival Producer Recreation Facility/Park/ Road Permits Sheriff Public Works Materials Total Kids 'N Fun Festival Aug. 12, 2017 Taiwanese Cultural and Sports Association $1,642 $5,200 $3,920 $2,823 $13,586 Fall Festival Sept. 9, 2017 Cupertino Rotary $1,385 $4,450 $4,138 $3,030 $13,003 Diwali Sept. 30, 2017 Cupertino Chamber of Commerce $1,385 $3,950 $2,396 $3,004 $10,734 Veteran's Day Nov. 11, 2017 Cupertino Veteran's Memorial $680 $1,000 $18 $1,600 $3,299 Ikebana Flower Show March 3-4, 2018 WAFU Ikebana Society $258 $19,065 $19,323 Egg Hunt March 24, 2018 Home of Christ Church $902 $2,000 $871 $18 $3,791 Holi April 8, 2018 Cupertino Chamber of Commerce $902 $1,000 $871 $18 $2,791 Cherry Blossom April 28-29, 2018 Toyokawa Sister City $3,606 $16,463 $4,356 $5,801 $30,226 World Journal May 12, 2018 World Journal/Cup ertino Chinese School $1,868 $2,960 $4,356 $3,004 $12,188 Tournam ent of Bands October 15, 2017 Cupertino Tournament of Bands $0 $3,000 $0 $176 $3,176 Heroes Run August 26, 2017 County of Santa Clara $0 $4,120 $0 $74 $4,194 Costs for FY 17/18 Events $12,627 $63,208 $20,909 $17,968 $1,600 $116,310 295 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Business and Community Services - Cultural Events 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 12,453 12,453 Total Expenditures 177,671 138,777 376,492 438,337 Fund Balance - - - - General Fund Costs $ 177,671 $ 138,777 $ 376,492 $ 433,337 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - 5,000 Interdepartmental Revenue - - - - Total Revenues - - - 5,000 Expenditures Employee Compensation 44,108 42,757 122,797 160,849 Employee Benefits 11,646 16,136 36,907 37,004 Materials 10,224 8,488 15,850 20,850 Contract Services 108,178 67,880 144,696 164,496 Cost Allocation 3,516 3,516 37,289 42,685 Capital Outlay - - - - Special Projects - - 6,500 - 296 STAFFING Total current authorized positions – 0.75 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.80 297 BUSINESS AND COMMUNITY SERVICES – QUINLAN CENTER OPERATIONS Budget Unit 100-61-607 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-630. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 298 Business and Community Services - Quinlan Center Operations 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 283,197 246,527 - - Fund Balance - - - - General Fund Costs $ 156,783 $ 124,754 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 126,414 121,773 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 126,414 121,773 - - Expenditures Employee Compensation 111,333 105,407 - - Employee Benefits 28,077 29,096 - - Materials 32,302 41,429 - - Contract Services 6,878 7,423 - - Cost Allocation 26,304 22,800 - - Capital Outlay - - - - Special Projects 78,304 40,371 - - 299 BUSINESS AND COMMUNITY SERVICES - FACILITIES Budget Unit 100-61-630 Budget at a Glance Total Revenues 631,379 Total Expenditures 579,747 Fund Balance - General Fund Costs (51,632) % Funded by General Fund 0.0% Total Staffing 2.75 PROGRAM OVERVIEW Community Hall provides space for City Council meetings and various Commission meetings, as well as facility space which can be used for a variety of activities including the Cupertino Library. The Quinlan Community Center is the home office of the Recreation and Community Services Department, and provides the community with facility space for a variety of recreational activities. SERVICE OBJECTIVES  Provide a facility for community meetings, parties, 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 on-line registration for recreation programs.  Schedule facility space for contractual and staff-run classes and camps.  Rent the facility for meetings, birthday parties, wedding receptions, community events, and other similar activities.  House the Cupertino Historical Society.  Serve as the City’s Emergency Operations Shelter in case of disasters.  Develop a master plan for this facility with the rest of the Stevens Creek to McClellan Ranch Corridor that will serve the community’s long-term goals for improvements or changes. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $579,747 for the Facilities Budget. This represents a decrease of $467,386 from the FY 2016-17 Final Adopted Budget. The slight decrease in full-time salary and benefits is related to an internal reallocation of staffing within the department to appropriately reflect staff time spent on this program. The decrease in this program budget is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets 300 due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Business and Community Services - Facilities 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - 5,695 5,695 Total Expenditures -6,580 1,047,133 579,747 Fund Balance - - - - General Fund Costs $ - $ 6,580 $ (203,155) $ (51,632) STAFFING Total current authorized positions – 2.60 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 2.75 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 262,000 142,000 Intergovernmental Revenue - - - - Charges for Services - - 988,288 489,379 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 1,250,288 631,379 Expenditures Employee Compensation -5,126 288,901 301,728 Employee Benefits -1,454 94,253 101,702 Materials --60,015 68,465 Contract Services --36,000 17,000 Cost Allocation --546,269 85,157 Capital Outlay --10,000 - Special Projects --6,000 - 301 BUSINESS AND COMMUNITY SERVICES – COMMUNITY OUTREACH AND NEIGHBORHOOD WATCH Budget Unit 100-61-632 Budget at a Glance Total Revenues - Total Expenditures 292,247 Fund Balance - General Fund Costs 292,247 % Funded by General Fund 100.0% Total Staffing 1.05 PROGRAM OVERVIEW Community Outreach programs facilitate communication and enhance cultural understanding in Cupertino neighborhoods. Block Leaders are instrumental in delivering timely and pertinent information to neighbors and gathering input for 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 City-wide Park and Recreation Master Plan.  Create and implement Neighborhood Watch meetings and groups.  Disseminate important safety information via the Electronic Community Alert Program (E-CAP) and NextDoor.  Organize and conduct annual National Night Out. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $292,247 for the Community Outreach and Neighborhood Watch Budget. This represents a decrease of $29,949 from the FY 2016-17 Final Adopted Budget. 302 Decreased full-time salary and benefits costs are related to an internal reallocation of staffing within the department to appropriately reflect staff time spent on this program. An additional decrease is due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Business and Community Services - Community Outreach and Neighborhood Watch 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - 1,560 1,560 Total Expenditures - - 322,196 292,247 Fund Balance - - - - General Fund Costs $ - $ - $ 322,196 $ 292,247 Actual Actual Final 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 - - 191,606 173,131 Employee Benefits - - 49,555 47,406 Materials - - 18,250 18,250 Contract Services - - 9,500 9,500 Cost Allocation - - 51,725 42,400 Capital Outlay - - - - Special Projects - - - - 303 STAFFING Total current authorized positions – 1.20 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 1.05 304 RECREATION AND EDUCATION - ADMINISTRATION Budget Unit 100-62-608 Budget at a Glance Total Revenues 49,125 Total Expenditures 1,082,488 Fund Balance - General Fund Costs 1,033,363 % Funded by General Fund 95.5% Total Staffing 3.45 PROGRAM OVERVIEW The Recreation and Education Division provides for the administration and coordination of youth, teen, and senior programs throughout the city. Community services focus on youth includes after-school enrichment classes, youth camps, special events, preschool, teen, leadership training opportunities and volunteer coordination. Senior programs focus on enhancing a healthy lifestyle through quality education, recreation, travel, socials and volunteer opportunities. The Leadership 95014 program provides a leadership training opportunity for adults living and working in the Cupertino community. SERVICE OBJECTIVES  Provide management and supervision of all programs, activities, personnel, and facilities within the division.  Establish program goals and priorities.  Educate participants on Cupertino’s City government, schools, businesses and nonprofit sectors.  Expand advertising and marketing in the community.  Enhance executive leadership skills to enable participants to make a positive impact.  Ensure operational hours accommodate community usage.  Provide community outreach to individual neighborhoods throughout the city. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $1,082,488 for the Administration Budget. This represents a decrease of $119,205 from the FY 2016-17 Final Adopted Budget. The decrease is largely due to a reallocation of staffing within the department to better reflect actual time spent on each program. Three Recreation Coordinator positions were reallocated by 0.4 each to other programs within the department. In addition, the decrease in cost allocation is primarily due to changes in how the city applied these charges. Large shifts in cost allocation charges are found in most program budgets due 305 to a change in methodology as explained on page 22. This budget increases contract services for Leadership 95014 ($6,250). The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Recreation and Education - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 3,848 3,848 Total Expenditures 94,591 146,457 1,201,693 1,082,488 Fund Balance - - - - General Fund Costs $ 94,591 $ 146,457 $ 1,182,693 $ 1,033,363 STAFFING Total current authorized positions – 4.93 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 3.45 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 3,000 33,125 Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - 16,000 16,000 Interdepartmental Revenue - - - - Total Revenues - - 19,000 49,125 Expenditures Employee Compensation 61,293 91,979 443,519 401,786 Employee Benefits 24,311 42,068 211,445 148,131 Materials 3,813 7,222 33,141 39,416 Contract Services 374 388 14,950 22,200 Cost Allocation 4,800 4,800 494,790 452,107 Capital Outlay - - - - Special Projects - - - 15,000 306 RECREATION AND EDUCATION - YOUTH PROGRAM Budget Unit 100-62-609 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 307 Recreation and Education - Youth Program 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 48,286 36,819 - - Fund Balance - - - - General Fund Costs $ 11,988 $ 27,740 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 23,160 - - - Intergovernmental Revenue - - - - Charges for Services 13,138 9,079 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 36,298 9,079 - - Expenditures Employee Compensation 35,561 20,843 - - Employee Benefits 7,442 7,823 - - Materials 3,147 6,017 - - Contract Services - - - - Cost Allocation 2,136 2,136 - - Capital Outlay - - - - Special Projects - - - - 308 RECREATION AND EDUCATION - TEEN PROGRAM Budget Unit 100-62-610 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 309 Recreation and Education - Teen Program 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 15,865 23,127 - - Fund Balance - - - - General Fund Costs $ 15,865 $ 23,127 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final 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 8,471 12,950 - - Employee Benefits 2,936 5,664 - - Materials 679 1,169 - - Contract Services 1,643 1,208 - - Cost Allocation 2,136 2,136 - - Capital Outlay - - - - Special Projects - - - - 310 RECREATION AND EDUCATION - TEEN CENTER Budget Unit 100-62-611 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 311 Recreation and Education - Teen Center Category 2015 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 85,162 60,953 - - Fund Balance - - - - General Fund Costs $ 82,014 $ 57,110 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 600 2,000 - - Intergovernmental Revenue - - - - Charges for Services 2,548 1,844 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 3,148 3,844 - - Expenditures Employee Compensation 65,253 40,634 - - Employee Benefits 10,865 2,878 - - Materials 5,324 13,721 - - Contract Services - - - - Cost Allocation 3,720 3,720 - - Capital Outlay - - - - Special Projects - - - - 312 RECREATION AND EDUCATION - PARK FACILITIES Budget Unit 100-62-612 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to the Sports, Safety, and Outdoor Recreation Division as part of a department reorganization. The Nature Classes/Camps were incorporated into Programs and McClellan Ranch Preserve was incorporated into Park Facilities. A complete discussion of this program can be found under Budget Unit 580-63-620. 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 The following table details revenue, total expenditures, changes in fund balance and Genera l Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 313 Recreation and Education - Park Facilities 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 190,995 333,317 - - Fund Balance - - - - General Fund Costs $ 185,586 $ 329,491 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 4,836 3,456 - - Intergovernmental Revenue - - - - Charges for Services 572 370 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 5,408 3,826 - - Expenditures Employee Compensation 95,108 183,282 - - Employee Benefits 35,117 60,206 - - Materials 21,018 46,158 - - Contract Services 244 4,163 - - Cost Allocation 11,508 11,508 - - Capital Outlay - - - - Special Projects 28,000 28,000 - - 314 RECREATION AND EDUCATION – YOUTH TEEN RECREATION Budget Unit 580-62-613 Budget at a Glance Total Revenues 1,510,300 Total Expenditures 2,214,409 Fund Balance (704,109) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 2.25 PROGRAM OVERVIEW Provide fee-based youth/teen programs, including academic and enrichment classes, STEAM and recreational camps, playgrounds, and special events with reduced impact to the General Fund. SERVICE OBJECTIVES  Provide a nine-month preschool program, summer camps, and an extensive variety of contractual classes for youth, teen, 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.  Increase the number of youth and teen Science Technology Engineering Art Math (STEAM) programs offered.  Expand all-day summer camp offerings to meet daycare needs of families in the community. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $2,214,409 for the Youth Teen Recreation Budget. This represents an increase of $254,402 from the FY 2016-17 Final Adopted Budget. The increase is largely due to a reallocation of 0.50 Recreation Coordinator within the department to better reflect actual time spent on each program and increased costs for part- time staffing due to minimum wage salary increases. New program offerings include parent tot preschool and expanded teen excursions. Supply budgets are increasing due to the expansion of programs offered in the areas of parent tot programs, all day camps, and contracted classes. Materials are increasing due to ceramic studio equipment needs: kiln shelving, kiln stilts, and tables and chairs for Portal and Wilson park buildings. The increase for contractual services ($65,000) is due to expanded class offerings for existing contractor program areas as well as bringing on three new contractors in the areas of: 315 communications and debate, youth ceramics, and computer programming. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Recreation and Education - Youth Teen Recreation 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 85,476 85,476 Total Expenditures 1,594,504 1,827,648 1,960,007 2,214,409 Fund Balance (1,594,504) 258,058 (125,899) (704,109) General Fund Costs $ - $ 581,748 $ 438,108 $ - STAFFING Total current authorized positions – 1.75 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 2.25 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 1,503,958 1,396,000 1,510,300 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 1,503,958 1,396,000 1,510,300 Expenditures Employee Compensation 368,918 428,178 402,151 530,720 Employee Benefits 74,445 84,793 67,837 109,842 Materials 63,190 70,134 75,688 87,588 Contract Services 855,773 936,993 1,045,600 1,110,600 Cost Allocation 232,178 307,549 283,255 290,183 Capital Outlay - - - - Special Projects - - - - 316 RECREATION AND EDUCATION – YOUTH, TEEN AND SENIOR ADULT RECREATION Budget Unit 100-62-623 Budget at a Glance Total Revenues 735,750 Total Expenditures 2,206,884 Fund Balance - General Fund Costs 1,471,134 % Funded by General Fund 66.7% Total Staffing 5.00 PROGRAM OVERVIEW Coordinate and provide program services for youth, teen, and seniors at various sites such as elementary school sites, the teen center, the senior center, and Quinlan Community Center. Provide youth enrichment programs, both City sponsored and in conjunction with the Cupertino Union School District (CUSD), to the community. Provide volunteer opportunities for teens in the Cupertino community. Provide a safe, comfortable, and well maintained Teen Center for students in grades 6-12. Provide Case Management services for seniors to continue to remain independent and safe in their own homes. Provide senior adult recreation programs such as trips, memberships, classes, and social events. Senior Center members support programs and services and give over 23,000 hours of volunteer service annually. SERVICE OBJECTIVES  Enhance partnerships with Cupertino Union School District (CUSD), Fremont Union High School District, the SCC Library, YMCA, and other local non-profit agencies.  Provide appreciation events for teen and senior volunteers who support the recreation department throughout the year.  Coordinate the volunteer efforts of teens in the program areas of summer camps, aquatics, and outdoor park improvements through the Leader In Training program and Civically Active Teens.  Maintain maximum operating hours for teens to drop-in during non-school hours to partake in leisure and enrichment activities at the Teen Center in partnership with the Teen Commission.  Continue to provide multi-lingual case management services.  Offer educational courses, group travel, and socialization opportunities to adults aged 50 and over.  Provide volunteer service opportunities for adults aged 50 and over.  Offer a recreation noon-time program at various elementary school sites within CUSD to promote life balance and wellness. 317 ADOPTED BUDGET On June 20, 2017, City Council approved a budget $2,206,884 for the Youth, Teen and Senior Adult Recreation Budget. This represents an increase of $183,957 from the FY 2016-17 Final Adopted Budget. The addition of 1.0 three-year limited-term Recreation Coordinator in this budget will support additional programming such as the reinstatement of the Noontime program at various elementary school sites. In addition, part time staffing expenses have increased to extend operational hours and additional front desk and facility coverage to better meet the needs of seniors in our city. The increase in contract services is due to extended hours at the senior center which allows staff to provide additional class offerings on Saturdays and on weekday evenings. A revenue increase of $20,000 is projected. Materials were increased to support the implementation of the department's new recreation software that includes $16,000 for new membership cards, key tags and required data plans. Lastly, large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 318 Recreation and Education - Youth, Teen and Senior Adult Recreation 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - 61,164 61,164 Total Expenditures - - 2,022,927 2,206,884 Fund Balance - - - - General Fund Costs $ - $ - $ 1,307,177 $ 1,471,134 STAFFING Total current authorized positions – 4.17 The department is adding 1.0 three-year limited-term Recreation Coordinator, which is mostly allocated in this budget (0.90). In addition, staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 5.00 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 1,000 1,000 Intergovernmental Revenue - - - - Charges for Services - - 714,750 734,750 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 715,750 735,750 Expenditures Employee Compensation - - 524,334 649,620 Employee Benefits - - 146,917 213,676 Materials - - 577,843 585,723 Contract Services - - 123,800 143,800 Cost Allocation - - 588,869 552,901 Capital Outlay - - - - Special Projects - - - - 319 SPORTS, SAFETY & OUTDOOR RECREATION - PARK FACILITIES Budget Unit 100-63-612 Budget at a Glance Total Revenues 469,000 Total Expenditures 1,968,178 Fund Balance - General Fund Costs 1,499,178 % Funded by General Fund 76.2% Total Staffing 2.93 PROGRAM OVERVIEW Blackberry Farm provides the community with recreational space to swim, picnic, and enjoy the Stevens Creek Trail. McClellan Ranch Preserve offers environmental education classes/creek tours to school groups, nature programs, and is the location for the Community Garden program and non-profit groups 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.  Offer a Junior Lifeguard course for teens, ages 12-15. Engage and provide the community with annual 4th of July events.  Partner with the Audubon Society to provide Wildlife & Harvest Day at Blackberry Farm. Increase residential usage of the facility.  Implement Park Ranger led activities such as interpretive walks, star-gazing events, and 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. During summer months offer extended drop-in hours on Friday evenings.  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, Nerds for Nature, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs.  Expand programming opportunities for teens. 320 Creekside Park Building: Rent facility for non-profit board meetings, birthday parties, school group picnics, and other similar activities. Provide contractual and staff-run classes and camps. Provide storage space for Farmer’s market Monta Vista Recreation Center: Provide gymnastics classes via Twisters Sports Center. Offer department run pre-school program. Provide contractual and staff-run classes and camps. Make space available for co-sponsored clubs and rentals. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $1,968,178 for the Park Facilities Budget. This represents an increase of $84,827 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to changes in how the City applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22.This budget includes $68,000 to continue a relationship with Grassroots Ecology at the McClellan Ranch. This partnership results in 36 volunteer habitat restoration workdays, monthly water quality monitoring of Stevens Creek, an d support for approximately 50 educational programs for students and community groups while maintaining the restoration of the meadow area. This budget projects $469,000 in Park Facility Revenue of which $120,000 can be attributed to the reallocation of the Blue Pheasant Rental into this account. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the Adopted new special projects for the fiscal year. Special Project Appropriations Funding Source Description Acterra Habitat Enhancement $68,000 General Fund Habitat restoration of Steven's Creek at McClellan Ranch Total $68,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 321 Sports, Safety and Outdoor Recreation - Park Facilities 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - 20,336 20,336 Total Expenditures - - 1,883,351 1,968,178 Fund Balance - - - - General Fund Costs $ - $ (9,650) $ 1,534,351 $ 1,499,178 STAFFING Total current authorized positions – 2.83 The staffing reallocation of 0.10 Recreation Coordinator better reflects staff time spent in this program. Total authorized positions – 2.93 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 9,650 99,000 219,000 Intergovernmental Revenue - - - - Charges for Services - - 250,000 250,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 9,650 349,000 469,000 Expenditures Employee Compensation - - 664,404 623,665 Employee Benefits - - 102,190 128,654 Materials - - 134,664 141,214 Contract Services - - 31,550 31,550 Cost Allocation - - 815,707 954,759 Capital Outlay - - 80,500 - Special Projects - - 34,000 68,000 322 SPORTS, SAFETY & OUTDOOR RECREATION – ADMINISTRATION Budget Unit 100-63-615 Budget at a Glance Total Revenues - Total Expenditures 243,820 Fund Balance - General Fund Costs 243,820 % Funded by General Fund 100.0% Total Staffing 0.95 PROGRAM OVERVIEW This budget supports all facets of the Sports, Safety, and Outdoor Recreation Division. Provides for the supervision and operation of the Cupertino Sports Center and Blackberry Farm Golf Course as enterprise facilities. In addition, provides for the supervision and operation of 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 offerings of recreation programs for all ages including sports leagues, camps/classes, nature programs, volunteer opportunities, drop-in activities, and special events. Aquatics programs, golf, and specialty classes as offered seasonally. 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. Increase City staff’s involvement in disaster preparedness through training, community awareness, and collaboration with local agencies. Consolidate all park facilities and staff within the Stevens Creek Corridor into one division in order to enhance customer service and experience for park visitors. Oversee marketing, budget preparations, and programming plans for all locations. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $243,820 for the Administration Budget. This represents a decrease of $32,900 from the FY 2016-17 Final Adopted Budget. Decreases are primarily due to changes in how the City applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. 323 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Sports, Safety and Outdoor Recreation - Administration 2015 Category 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - 273 273 Total Expenditures 66,686 59,110 276,720 243,820 Fund Balance - - - - General Fund Costs $ 66,686 $ (135,426) $ 276,720 $ 243,820 STAFFING Total current authorized positions – 1.20 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.95 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 194,537 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 194,537 - - Expenditures Employee Compensation 41,896 32,867 108,089 101,931 Employee Benefits 17,492 19,272 51,990 47,714 Materials 914 507 6,955 6,755 Contract Services - 81 4,400 - Cost Allocation 6,384 6,384 105,013 87,147 Capital Outlay - - - - Special Projects - - - - 324 SPORTS, SAFETY & OUTDOOR RECREATION – BLACKBERRY FARM GOLF COURSE Budget Unit 560-63-616 Budget at a Glance Total Revenues 403,000 Total Expenditures 708,461 Fund Balance (5,461) General Fund Costs 300,000 % Funded by General Fund 42.3% Total Staffing 1.10 PROGRAM OVERVIEW Blackberry Farm Golf Course provides a nine-hole golf facility and open space to the community that serves all ages. SERVICE OBJECTIVES  Increase the golfer base through community college classes, junior golf camps, private golf instruction, and marketing such as Groupon and Golf Now.  Provide a concession where our customers can get their golfing accessories and golf instruction. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $708,461 for the Blackberry Farm Golf Course Budget. This represents an increase of $21,833 from the FY 2016-17 Final Adopted Budget. Increases are related to contract services to cover a 3% increase for Professional Turf Management and the Golf Pro ($12,000) as well as for tree care ($25,000). In addition, an increase in the budget for materials is due to a projected increase in water service rates of 8%. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 325 Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency 13,052 2,750 27,653 27,653 Total Expenditures 553,184 576,176 686,628 708,461 Fund Balance (439,532) (99,811) 43,301 (5,461) General Fund Costs $ - $ 262,008 $ 326,929 $ 300,000 STAFFING Total current authorized positions – 1.20 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 1.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 14,650 22,000 22,000 Intergovernmental Revenue - - - - Charges for Services 113,652 199,707 381,000 381,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 113,652 214,357 403,000 403,000 Expenditures Employee Compensation 136,064 116,011 144,388 145,924 Employee Benefits 35,281 32,574 47,072 46,214 Materials 60,670 64,471 87,235 101,015 Contract Services 239,500 258,604 268,200 305,472 Cost Allocation 68,617 84,462 86,080 82,183 Capital Outlay - - - - Special Projects - 17,304 26,000 - 326 SPORTS, SAFETY & OUTDOOR RECREATION – CREEKSIDE PARK YOUTH SPORT Budget Unit 100-63-618 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Sports, Safety and Outdoor Recreation – Park Facilities as part of the department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-612. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 327 Sports, Safety and Outdoor Recreation - Creekside Park Youth Sport 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 8,039 3,831 - - Fund Balance - - - - General Fund Costs $ (2,914) $ (6,769) $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 10,953 10,600 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 10,953 10,600 - - Expenditures Employee Compensation 2,950 3,396 - - Employee Benefits 83 141 - - Materials 5 295 - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects 5,000 - - - 328 SPORTS, SAFETY & OUTDOOR RECREATION – OUTDOOR RECREATION Budget Unit 580-63-620 Budget at a Glance Total Revenues 1,038,500 Total Expenditures 1,451,700 Fund Balance (413,200) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 2.63 PROGRAM OVERVIEW A wide range of sports, fitness, and outdoor activities are offered for youth and adults. SERVICE OBJECTIVES  Operate a summer Red Cross learn-to-swim program for infants, children, teens, and adults.  Run spring, summer, and fall adult softball leagues.  Provide sports, dance, fitness, and wellness classes for youth, teens, and adults.  Offer a 5K, community walk, and kid's fun run in the spring.  Manage user group field rentals under the CUSD/City JUA.  Partner with the SCC Sheriff’s Department for the 2017 Hero’s 5K Run.  Increase nature and environmental classes for teen and adult demographics.  Provide an afternoon summer nature program to provide all-day camp options for families. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $1,451,700 for the Outdoor Recreation Budget. This represents an increase of $177,664 from the FY 2016-17 Final Adopted Budget. The increase is largely due to an internal reallocation of staffing within the department and negotiated employee compensation increases based on Council-approved labor contracts. A fitness/aquatics coordinator was reallocated from Recreation & Education to more accurately reflect duties performed. The BBF Golf Course Recreation Coordinator is now overseeing the adult softball program so 0.10 of his salary was reallocated to this account. An additional 0.12 of the sports/fields Recreation Coordinator's salary was reallocated to this account to more accurately reflect duties performed. 329 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Sports, Safety and Outdoor Recreation - Outdoor Recreation 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency - - 13,080 13,080 Total Expenditures 1,026,532 1,101,007 1,274,036 1,451,700 Fund Balance (1,026,532) (66,428) (235,536) (413,200) General Fund Costs $ - $ 133,512 $ - $ - STAFFING Total current authorized positions – 1.40 A staffing reallocation of 1.23 Recreation Coordinators to this program will better reflect staff time spent in this program. Total authorized positions – 2.63 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - 183,000 183,000 Intergovernmental Revenue - - - - Charges for Services - 901,067 855,500 855,500 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 901,067 1,038,500 1,038,500 Expenditures Employee Compensation 198,333 185,014 267,387 388,966 Employee Benefits 53,208 48,189 53,962 113,583 Materials 66,710 78,161 104,887 90,387 Contract Services 500,998 515,273 651,988 652,188 Cost Allocation 200,619 274,369 182,732 193,496 Capital Outlay - - - - Special Projects 6,663 - - - 330 SPORTS, SAFETY & OUTDOOR RECREATION – SPORTS CENTER OPERATIONS Budget Unit 570-63-621 Budget at a Glance Total Revenues 2,286,200 Total Expenditures 2,448,037 Fund Balance (61,837) General Fund Costs 100,000 % Funded by General Fund 4.1% Total Staffing 2.22 PROGRAM OVERVIEW The Cupertino Sports Center offers a variety of health and wellness activities including a full fitness center, child care, a teen center, a wide assortment of fitness classes and racquet sports. In addition, it houses our City contracted tennis, table tennis, and badminton programs. SERVICE OBJECTIVES  Increase memberships, participation in fitness classes, and contractual camps.  Market all programs through social media, the brochure, new signage on Stevens Creek, 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 20, 2017, City Council approved a budget $2,448,037 for the Sports Center Operations Budget. This represents an increase of $118,799 from the FY 2016-17 Final Adopted Budget. This budget increases material costs by $40,000 due to reallocation of 20% of the department’s brochure printing costs ($25,000) to the Sports Center and a reallocation from fixed assets to small tools and equipment ($15,000) to pay for fitness equipment replacement. Part time staffing and employee benefits increased by $56,055, primarily a result of salary increases and staffing for an additional week of summer camp. 331 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Sports, Safety and Outdoor Recreation - Sports Center Operations 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency - 6,708 131,751 131,751 Total Expenditures 1,983,717 1,905,160 2,329,238 2,448,037 Fund Balance (1,983,717) 884,363 87,941 (61,837) General Fund Costs $ - $ 657,732 $ 130,979 $ 100,000 STAFFING Total current authorized positions – 2.20 A staffing reallocation of .02 Recreation Coordinator to this program will better reflect staff time spent in this program. Total authorized positions – 2.22 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 1,257 1,200 1,200 Intergovernmental Revenue - - - - Charges for Services - 2,130,534 2,285,000 2,285,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 2,131,791 2,286,200 2,286,200 Expenditures Employee Compensation 237,051 234,492 288,104 352,461 Employee Benefits 60,524 60,739 72,511 91,226 Materials 50,542 31,114 46,284 86,600 Contract Services 1,364,477 1,422,146 1,606,100 1,606,100 Cost Allocation 132,260 132,581 169,488 179,899 Capital Outlay - 5,848 - - Special Projects 138,862 11,532 15,000 - 332 SPORTS, SAFETY & OUTDOOR RECREATION – DISASTER PREPAREDNESS Budget Unit 100-63-633 Budget at a Glance Total Revenues 10,500 Total Expenditures 356,231 Fund Balance - General Fund Costs 345,731 % Funded by General Fund 97.1% Total Staffing 1.10 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 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.  Complete second phase of ARK Net system. ADOPTED BUDGET On June 20, 2017, City Council approved a budget $356,231 for the Disaster Preparedness Budget. This represents an increase of $259,601 from the FY 2016-17 Final Adopted Budget. The increase is related to the Adopted creation of an Office of Emergency Services (OES) with dedicated personnel and financial resources, which would support the goals and objectives in the City’s General Plan, and better leverage existing Santa Clara County Fire Department 333 emergency management resources made available to the City. In the past, Santa Clara County Fire funded 1.0 Emergency Coordinator to support the City of Cupertino but eliminated that support in early 2010. As a result, the only ongoing emergency preparedness program was education and training of our volunteer Citizen Corps. Establishing a Cupertino Office of Emergency Service s would fill one of the City’s essential roles, protecting the health and safety of the public. It may save the City money in the long- run as recent studies indicate that for every $1 spent in disaster preparedness, government saves an average of $4 in response and recovery, in addition to FEMA support that will be lent to properly-prepared municipalities. With a strong OES, general preparedness will be integrated into daily decision-making, thus promoting our response capabilities from the ground up. Not only will we engage the full roster of employees, but the entire Cupertino community as well. Residents, businesses, schools, and religious institutions in Cupertino will benefit immensely from an organized, structured OES that will promote collaboration and unity within the City, while empowering community members to be self-sufficient. Our goal is to become the example other cities look to when establishing or revamping their Offices of Emergency Services. The Adopted OES Coordinator would focus on enhancing community resilience through development of the following program areas: Plans/Grants/MOUs, Training & Exercises, Departmental Coordination, Regional Coordination, Community Engagement & Education, and EOC Readiness. Establishment of this office is a FY 2017-18 City work plan objective. The majority of the increased budget ($258,573) is for employee compensation and benefits which funds 1.0 new full time OES Coordinator and allows for both temporary reallocation of existing staff and additional part time support for the program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 334 Sports, Safety and Outdoor Recreation - Disaster Preparedness 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - 1,808 1,808 Total Expenditures - - 96,630 356,231 Fund Balance - - - - General Fund Costs $ - $ - $ 86,130 $ 345,731 STAFFING Total current authorized positions – 0.00 Changes in staffing are due to the addition of 1.0 Emergency Services Coordinator and 0.10 Facility Attendant. Total authorized positions – 1.10 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 10,500 10,500 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 10,500 10,500 Expenditures Employee Compensation - - 36,050 212,564 Employee Benefits - - - 82,059 Materials - - 25,193 33,488 Contract Services - - 2,000 5,000 Cost Allocation - - 13,054 21,312 Capital Outlay - - - - Special Projects - - 18,525 - 335 SPORTS, SAFETY & OUTDOOR RECREATION – MONTA VISTA RECREATION CENTER Budget Unit 100-63-637 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Sports, Safety, and Outdoor Recreation – Park Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-612. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 336 Sports, Safety and Outdoor Recreation - Monta Vista Recreation Center 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 6,880 5,018 - - Fund Balance - - - - General Fund Costs $ 6,880 $ (17,722) $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - 22,740 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 22,740 - - Expenditures Employee Compensation 2,276 2,141 - - Employee Benefits 62 84 - - Materials 117 2,793 - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects 4,425 - - - 337 SENIOR PROGRAMS - SENIOR ADULT SUPERVISION Budget Unit 100-64-622 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Administration as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-608. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 338 Senior Programs - Senior Adult Supervision 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 585,569 610,297 - - Fund Balance - - - - General Fund Costs $ 435,848 $ 605,504 $ - $ - STAFFING Total current authorized positions – 1.00 Total authorized positions – 0.00 Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 280 1,160 - - Intergovernmental Revenue - - - - Charges for Services 149,441 3,634 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 149,721 4,794 - - Expenditures Employee Compensation 360,950 377,893 - - Employee Benefits 156,388 164,475 - - Materials 16,574 16,194 - - Contract Services 200 278 - - Cost Allocation 51,456 51,456 - - Capital Outlay - - - - Special Projects - - - - 339 SENIOR PROGRAMS – YOUTH, TEEN AND SENIOR ADULT RECREATION Budget Unit 100-64-623 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 340 Senior Programs - Youth, Teen and Senior Adult Recreation 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 114,638 202,716 - - Fund Balance - - - - General Fund Costs $ 112,012 $ 193,879 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 2,627 8,837 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 2,627 8,837 - - Expenditures Employee Compensation 66,024 117,381 - - Employee Benefits 27,581 49,147 - - Materials 4,964 9,826 - - Contract Services 1,357 3,994 - - Cost Allocation 14,712 22,368 - - Capital Outlay - - - - Special Projects - - - - 341 SENIOR PROGRAMS - SENIOR ADULT RECREATION Budget Unit 100-64-624 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Education – Youth, Teen, and Senior Adult Recreation as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-62-623. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 342 Senior Programs - Senior Adult Recreation 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 909,014 829,810 - - Fund Balance - - - - General Fund Costs $ 431,097 $ 193,902 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 475,126 635,835 - - Fines and Forfeitures - - - - Miscellaneous Revenue 2,792 73 - - Interdepartmental Revenue - - - - Total Revenues 477,918 635,908 - - Expenditures Employee Compensation 181,255 199,129 - - Employee Benefits 58,275 58,177 - - Materials 543,988 454,755 - - Contract Services 52,629 71,308 - - Cost Allocation 46,440 46,440 - - Capital Outlay - - - - Special Projects 26,428 - - - 343 SENIOR PROGRAMS - FACILITIES Budget Unit 100-64-630 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Facilities as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-630. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 344 Senior Programs - Facilities Category 2015 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 33,842 2,582 - - Fund Balance - - - - General Fund Costs $ (74,821) $ (113,372) $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 108,663 115,954 - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 108,663 115,954 - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 7,896 2,582 - - Contract Services 25,946 - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 345 COMMUNITY SERVICES – COMMUNITY OUTREACH AND NEIGHBORHOOD WATCH Budget Unit 100-65-632 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Community Outreach and Neighborhood Watch as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-632. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 346 Community Services - Community Outreach and Neighborhood Watch 2018 Category 2015 2016 2017 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 113,123 116,005 - - Fund Balance - - - - General Fund Costs $ 113,123 $ 116,005 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final 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 64,998 62,983 - - Employee Benefits 26,786 28,345 - - Materials 9,105 7,648 - - Contract Services 4,242 9,037 - - Cost Allocation 7,992 7,992 - - Capital Outlay - - - - Special Projects - - - - 347 COMMUNITY SERVICES - DISASTER PREPAREDNESS Budget Unit 100-65-633 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was added to the Sports, Safety, and Outdoor Recreation – Disaster Preparedness as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-63-633. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 348 Community Services - Disaster Preparedness 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 50,895 71,599 - - Fund Balance - - - - General Fund Costs $ 39,787 $ 63,854 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue 3,500 (1,387) - - Charges for Services 7,608 9,132 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 11,108 7,745 - - Expenditures Employee Compensation 32,786 31,577 - - Employee Benefits 953 863 - - Materials 5,756 35,536 - - Contract Services - 138 - - Cost Allocation - - - - Capital Outlay - - - - Special Projects 11,400 3,484 - - 349 COMMUNITY SERVICES - NEIGHBORHOOD WATCH Budget Unit 100-65-635 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Business and Community Services – Community Outreach and Neighborhood Watch as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-61-632. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 350 Community Services - Neighborhood Watch 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 32,027 29,730 - - Fund Balance - - - - General Fund Costs $ 32,027 $ 29,730 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final 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 26,812 26,056 - - Employee Benefits 774 713 - - Materials 4,143 2,882 - - Contract Services 297 79 - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 351 COMMUNITY SERVICES - LIBRARY SERVICES Budget Unit 100-65-636 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW In FY 2015-16, this program was transferred to Recreation and Community Services – Library Services as part of a department reorganization. A complete discussion of the program can be found under Budget Unit 100-60-636. 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 352 Community Services - Library Services Category 2015 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures 394,009 408,888 - - Fund Balance - - - - General Fund Costs $ 394,009 $ 408,888 $ - $ - STAFFING There is no staffing associated with this program. Actual Actual Final 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 5,502 - - - Contract Services 388,507 408,888 - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 353 354 Planning and Community Development Administration Planning Housing Services Building PLANNING AND COMMUNITY DEVELOPMENT Budget Unit 2018 Adopted Planning & Community Development $ 345,677 100-70-700 Administration 345,677 Planning $ 3,395,284 100-71-701 Current Planning 2,151,008 100-71-702 Mid and Long Term Planning 725,588 100-71-704 Annexations 10,141 100-71-705 Economic Development 508,547 Housing Services $ 9,073,046 260-72-707 CDBG General Administration 88,814 260-72-709 Affordable Housing 284,484 260-72-710 Public Service Grants 47,188 265-72-711 BMR Housing 8,610,724 100-72-712 Human Service Grants 41,836 Building $ 3,736,495 100-73-713 General Building 791,962 100-73-714 Building Plan Review 1,283,854 100-73-715 Building Code Enforcement 1,349,597 100-73-718 Municipal Code Enforcement 311,082 Total $ 16,550,502 355 356 DEPARTMENT SUMMARY Planning and Community Development 2018 Fund Balance (1,114,084) (853,978) 10,920,846 (7,716,620) General Fund Costs $ 8,858,038 $ (3,696,759) $ 3,346,023 $ 1,385,792 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $16,550,502 for the Planning and Community Development Budget. This represents an increase of $1,770,156 from the FY 2016-17 Final Adopted Budget. The most significant expense increase in the Community Development budget is the $4,500,000 increase in the Special Projects account for the Below Market Rate Housing program. Increases in salary and benefits are due to reclassifications, promotions and negotiated increases to salary and benefits. Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Budget Revenues Taxes - - 15,113,279 1,000,000 Licenses and Permits 674,917 3,051,462 2,475,000 2,121,000 Use of Money and Property - - - - Intergovernmental Revenue - - 314,590 314,590 Charges for Services (726,767) 11,231,682 4,452,300 4,005,000 Fines and Forfeitures - - - - Miscellaneous Revenue 6,419 613,461 - 7,500 Interdepartmental Revenue - - - - Total Revenues (45,431) 14,896,605 22,355,169 7,448,090 Expenditures Employee Compensation 2,457,586 2,611,412 3,073,142 3,481,608 Employee Benefits 926,864 1,003,679 1,188,909 1,420,103 Materials 922,727 764,944 781,089 771,912 Contract Services 434,357 1,240,920 831,556 668,151 Cost Allocation 431,856 481,860 1,942,249 1,926,627 Capital Outlay - - - - Special Projects 4,746,037 5,951,008 6,856,300 8,175,000 Appropriations for Contingency 7,264 - 107,101 107,101 Total Expenditures 9,926,690 12,053,824 14,780,346 16,550,502 357 ADOPTED EXPENDITURES FY 2017-18 $345,677 (2%) $3,395,284 (21%) $9,073,046 (55%) $3,736,495 (23%) Housing Services Building Planning Planning & Community Development 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 9.9 12.1 14.8 16.6 358 City of Cupertino FY17/18 Budget Performance Measures Community Development Department Mission statement: provide exceptional service, encourage all members of the community to take responsibility for one another, and support the values of education, innovation and collaboration. Efficient planning and building services and enhanced customer service. Enabled by… Effective code enforcement services. Enabled by… Enabled by… Enabled by… So that… Cupertino is a thriving City to live, work, learn and play. Affordable and Below Market Rate Housing programs and public service grants. Enabled by… Proactive Economic Development programs to support local business. Enabled by… Enabled by… 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. Measure Ongoing Target Department cost recovery 96% Website Updates Completed on Schedule 100% Planning application reviews completed 5 days before 30 day deadline 50% Building permit applications reviewed over-the- counter (OTC) 80% Building permit application reviews completed within 15 business days 90% Building Inspections Requested Online 75% Average number of days to initiate investigation of code complaints <7 Code enforcement cases resolved without issuance of citations 80% Landlord-tenant counseling and dispute resolution cases provided 100 per year Below market rate rental and purchase vacancies filled 15 per year, given availability Housing resources and referrals provided 400 per year Economic Development Business Buzz Readers 700 in FY 17-18 Economic Development Business Workshops & Events 12 per year 359 PLANNING & COMMUNITY DEVELOPMENT - ADMINISTRATION Budget Unit 100-70-700 Budget at a Glance Total Revenues - Total Expenditures 345,677 Fund Balance - General Fund Costs 345,677 % Funded by General Fund 100.0% Total Staffing 0.55 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 20, 2017, City Council approved a budget of $345,677 for the Administration Budget. This represents an increase of $105,132 from the FY 2016-17 Final Adopted Budget. The increase is attributed primarily to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 360 Planning & Community Development - Administration 2015 Category 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - 3,505 3,505 Total Expenditures 221,885 231,040 240,545 345,677 Fund Balance - - - - General Fund Costs $ 221,885 $ 231,040 $ 240,545 $ 345,677 STAFFING Total current authorized positions – 0.55 There are no changes to the current level of staffing. Total authorized positions – 0.55 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 147,221 150,060 91,358 99,243 Employee Benefits 50,123 53,687 34,131 38,749 Materials 12,359 14,572 15,755 26,450 Contract Services 1,562 2,100 30,219 31,144 Cost Allocation 10,620 10,620 65,577 146,586 Capital Outlay - - - - Special Projects - - - - 361 PLANNING - CURRENT PLANNING Budget Unit 100-71-701 Budget at a Glance Total Revenues 2,795,000 Total Expenditures 2,151,008 Fund Balance - General Fund Costs (643,992) % Funded by General Fund 0.0% Total Staffing 8.13 PROGRAM OVERVIEW The current planning program serves to review projects and implement City ordinances and the General Plan goals and objectives through the permitting process. 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 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. Administer the review of projects including finalizing building permits related to Planning requirements. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $2,151,008 for the Current Planning Budget. This represents a decrease of $2,514,935 from the FY 2016-17 Final Adopted Budget. The decrease is attributed primarily to a conservative estimate in revenues and expenditures from development. Changes to cost allocation and contract services methods also resulted in decreases. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. 362 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Planning - Current Planning Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency 6,642 - 24,356 24,356 Total Expenditures 1,847,892 1,634,558 4,665,943 2,151,008 Fund Balance - - - - General Fund Costs $ 5,173,935 $ (4,083,029) $ 1,623,643 $ (643,992) STAFFING Total current authorized positions – 8.63 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 8.13 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services (3,332,463) 5,610,192 3,042,300 2,795,000 Fines and Forfeitures - - - - Miscellaneous Revenue 6,419 107,395 - - Interdepartmental Revenue - - - - Total Revenues (3,326,044) 5,717,587 3,042,300 2,795,000 Expenditures Employee Compensation 660,094 620,399 941,579 1,057,462 Employee Benefits 223,512 228,977 346,161 410,435 Materials 14,882 16,774 32,730 41,830 Contract Services 29,886 58,346 212,548 15,098 Cost Allocation 105,528 114,708 901,769 601,827 Capital Outlay - - - - Special Projects 807,347 595,353 2,206,800 - 363 PLANNING - MID AND LONG TERM PLANNING Budget Unit 100-71-702 Budget at a Glance Total Revenues 1,057,500 Total Expenditures 725,588 Fund Balance - General Fund Costs (331,912) % Funded by General Fund 0.0% Total Staffing 2.50 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 that City processes and regulations are in compliance with State and Federal regulations. Review and implement policies in the General Plan, Housing Element, Zoning Ordinance, Specific, Conceptual and Master Plans. Coordinate with various regional, State and Federal agencies on projects. Facilitate the planning and implementation of the City Councils annual community development goals and objectives. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $725,588 for the Mid and Long Term Planning Budget. This represents a decrease of $99,970 from the FY 2016-17 Final Adopted Budget. The decrease is primarily attributable to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The decrease in special projects is due to the costs and scope of projects in the current year being less than in the prior year. Funds for uncompleted special projects will be carried over from FY 2016-17. 364 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Planning - Mid and Long Term Planning Category 2015 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - 3,976 3,976 Total Expenditures 1,096,867 1,220,946 825,558 725,588 Fund Balance - - - - General Fund Costs $ 1,096,867 $ 1,220,946 $ 825,558 $ (331,912) STAFFING Total current authorized positions – 2.90 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 2.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - 1,050,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - 7,500 Interdepartmental Revenue - - - - Total Revenues - - - 1,057,500 Expenditures Employee Compensation 229,362 239,185 300,821 325,830 Employee Benefits 81,612 90,909 115,921 133,055 Materials 6,340 4,576 8,435 8,110 Contract Services 6,018 238,141 51,800 103,350 Cost Allocation 39,876 39,876 194,605 151,267 Capital Outlay - - - - Special Projects 733,659 608,259 150,000 - 365 PLANNING – ANNEXATIONS Budget Unit 100-71-704 Budget at a Glance Total Revenues - Total Expenditures 10,141 Fund Balance - General Fund Costs 10,141 % Funded by General Fund 100.0% Total Staffing - 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 20, 2017, City Council approved a budget of $10,141 for the Annexations Budget. This represents a decrease of $696 from the FY 2016-17 Final Adopted Budget. Dedicated funds set aside for the Lawrence Mitty annexation will be carried over from FY 2016-17 to FY 2016-17. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 366 Planning - Annexations Category 2015 2016 2017 2018 Adopted Budget Appropriations for Contingency - - 10,000 10,000 Total Expenditures - - 10,837 10,141 Fund Balance - - - - General Fund Costs $ - $ - $ 10,837 $ 10,141 STAFFING There is no staffing associated with this program. Actual Actual Final 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 - - 837 141 Capital Outlay - - - - Special Projects - - - - 367 PLANNING - ECONOMIC DEVELOPMENT Budget Unit 100-71-705 Budget at a Glance Total Revenues - Total Expenditures 508,547 Fund Balance - General Fund Costs 508,547 % Funded by General Fund 100.0% Total Staffing 1.00 PROGRAM OVERVIEW The Economic Development program specifically targets business retention, expansion, and attraction with a focus on small business development. The Economic Development program was transferred to the City Manager Department in Fiscal Year 2013-14, but was transferred back to the Community Development Department in FY 16-17 to allow for greater alignment and collaboration with relevant citywide planning and development activities. 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 and agencies to create a strong and cohesive network offering business 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 20, 2017, City Council approved a budget of $508,547 for the Economic Development Budget. This represents an increase of $385,265 from the FY 2016-17 Final Adopted Budget. The increase is primarily attributable to more accurately budgeting staff compensation and benefits, as well as a budget of $175,000 for the implementation of priority strategies from the Economic Development Strategic Plan. The Adopted budget also includes additional funds for Small Business Saturday, printing informational materials, and $5,000 for one letter mailing and one postcard mailing to all business license holders in the City to notify them of annual Minimum Wage increases. 368 Council adopted the Minimum Wage Ordinance on October 4, 2016. The ordinance became effective on January 1, 2017. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the Adopted new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Economic Development Strategic Plan Implementation $175,000 General Fund The Cupertino City Council adopted the 2016 Economic Development Strategic Plan to ensure the continued economic prosperity of the City. Recommendations include facilitating the development of office space for small and mid- size businesses, improving pedestrian, cyclist and transit connectivity, upgrading retail centers, meeting hospitality need, and expanding marketing. Total $175,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 369 Planning - Economic Development Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 11,852 11,852 Total Expenditures 652 215,934 123,282 508,547 Fund Balance - - - - General Fund Costs $ 652 $ 186,330 $ 123,282 $ 508,547 STAFFING Total current authorized positions – 1.00 There are no changes to the current level of staffing. Total authorized positions – 1.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 29,604 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 29,604 - - Expenditures Employee Compensation 517 74,722 61,800 150,693 Employee Benefits 135 22,257 2,135 63,082 Materials - 35,862 45,150 30,650 Contract Services - 66,822 - 49,000 Cost Allocation - 16,272 2,345 28,270 Capital Outlay - - - - Special Projects - - - 175,000 370 HOUSING SERVICES - CDBG GENERAL ADMINISTRATION Budget Unit 260-72-707 Budget at a Glance Total Revenues 62,918 Total Expenditures 88,814 Fund Balance (25,896) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.53 PROGRAM OVERVIEW The General Administration of the Community Development Block Grant (CDBG) federal entitlement program consists of the overall program administration costs, including staff time and employee benefits. The CDBG program is a federal entitlement program which serves low and very-low income Cupertino residents. SERVICE OBJECTIVES  Prepare and submit an Annual Plan yearly to the Department of Housing and Urban Development (HUD).  Prepare and submit CAPER on annual basis to HUD.  Prepare and submit to HUD a Consolidated Plan every 5-7 years.  Meet quarterly with Santa Clara County CDBG Coordinators.  Conduct two public hearings per year to allocate CDBG funding. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $88,814 for the CDBG General Administration Budget. This represents an increase of $25,046 from the FY 2016-17 Final Adopted Budget. The Adopted budget covers staff time and benefits to administer CDBG grants and is determined by a percentage of total CDBG funding. The increase is due to increases in staff allocation. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 371 Housing Services - CDBG General Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 61,564 56,323 63,768 88,814 Fund Balance (61,564) (56,323) (850) (25,896) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.43 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.53 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 62,918 62,918 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 62,918 62,918 Expenditures Employee Compensation 43,213 39,957 44,820 54,531 Employee Benefits 18,018 16,071 18,948 29,215 Materials - - - - Contract Services 334 295 - - Cost Allocation - - - 5,068 Capital Outlay - - - - Special Projects - - - - 372 HOUSING SERVICES - AFFORDABLE HOUSING Budget Unit 260-72-709 Budget at a Glance Total Revenues 204,484 Total Expenditures 284,484 Fund Balance (80,000) General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW This portion of the CDBG program encompasses grants and loans to non-profit developers and agencies to purchase land and units for affordable housing. SERVICE OBJECTIVES  Issue RFPs on an annual basis for affordable housing development projects.  Make funding recommendations to Housing Commission and City Council.  Coordinate entitlement process with the Planning Division for affordable development projects.  Monitor project progress of grantees through construction phase.  Coordinate CEQA/NEPA process for all affordable developments.  Review quarterly reports from developers and enter data into HUD IDIS program.  Coordinate preparation of all grant and loan agreements, Deeds of Trust, Promissory Notes and Regulatory Agreements. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $284,484 for the Affordable Housing Budget. This represents a decrease of $0 from the FY 2016-17 Final Adopted Budget. The budget is determined by federal CDBG funding. This budget is funded from $204,484 in grant revenue and $80,000 in fund balance. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 373 Housing Services - Affordable Housing Category 2015 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 532,077 366,928 284,484 284,484 Fund Balance (532,077) (366,928) (80,000) (80,000) General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this program. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 204,484 204,484 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 204,484 204,484 Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 532,077 366,928 284,484 284,484 Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 374 HOUSING SERVICES - PUBLIC SERVICE GRANTS Budget Unit 260-72-710 Budget at a Glance Total Revenues 47,188 Total Expenditures 47,188 Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - PROGRAM OVERVIEW Fifteen percent of the City of Cupertino’s CDBG entitlement is reserved for grants to nonprofit agencies serving low and very low income Cupertino residents. The agencies provide services such as food assistance, job training, emergency housing, legal assistance, etc. SERVICE OBJECTIVES  On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each sub-recipient awarded funding through this program.  On a bi-annual basis, issue RFP for grants, review grant applications, and make funding recommendations.  Make presentation to City Council on funding recommendations.  On an annual basis, prepare grant agreement or amend grant agreement for each grantee. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $47,188 for the Public Service Grants Budget. This represents a decrease of $0 from the FY 2016-17 Final Adopted Budget. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 375 Housing Services - Public Service Grants Category 2015 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 48,141 45,982 47,188 47,188 Fund Balance (48,141) (45,982) - - General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this program. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - 47,188 47,188 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 47,188 47,188 Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials 48,141 45,982 47,188 47,188 Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - 376 HOUSING SERVICES - BMR HOUSING Budget Unit 265-72-711 Budget at a Glance Total Revenues 1,000,000 Total Expenditures 8,610,724 Fund Balance (7,610,724) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.27 PROGRAM OVERVIEW This program covers administration of the Below Market Rate (BMR) Housing program. SERVICE OBJECTIVES  Contract with BMR Housing administrator on an annual basis.  Prepare and monitor agreement for services between the City of Cupertino and administrator.  Review quarterly reports submitted by administrator.  Process quarterly reimbursement requests from administrator.  Provide technical assistance to administrator in the administration of the BMR program.  Review lot book reports prepared by independent contractor for each of the ownership BMR units in the BMR program.  Review and maintain “Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units.”  Review and maintain Inclusionary Housing Program Manual.  MidPeninsula below market rate (BMR) housing project. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $8,610,724 for the BMR Housing Budget. This represents an increase of $4,499,141 from the FY 2016-17 Final Adopted Budget. The Adopted increase is attributed primarily to the $8,000,000 for Below Market Rate Affordable Housing Fund capital and housing projects, compared to the $3,500,000 budgeted in FY 2016-17. The Adopted budget also includes legal consultation and maintains funding levels for grants. 377 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the Adopted new special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Below Market Rate Affordable Housing Fund Notice of Funding Availability $8,000,000 3% interest over 30 year loan term. All outstanding interest and principal will be due in full and payable on or by the maturity date BMH Housing Fund BMR AHF funds must be used for eligible housing projects that will serve low and/or moderate-income households located within the City of Cupertino jurisdiction limits. The City may award and appropriate funds to one or more eligible projects. Project Requirements: BMR AHF housing project funds will not be granted or issued as forgivable loans. The City invites eligible non-profit and for profit Development Entities (DEs) to submit proposals for eligible funding activities which include, but are not limited to:  Land acquisition  New construction  Acquisition and/or rehabilitation of buildings for permanent affordability  Substantial rehabilitation Project Affordability Requirements: BMR AHF affordable rental and/or ownership housing proposals must meet the City BMR requirements and offer 99 years of affordability. An affordable regulatory agreement will be recorded against the property to ensure affordability. Total $8,000,000 378 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Housing Services - BMR Housing Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 472,301 384,745 4,111,583 8,610,724 Fund Balance (472,301) (384,745) 11,001,696 (7,610,724) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 0.37 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.27 Budget Revenues Taxes - - 15,113,279 1,000,000 Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 15,113,279 1,000,000 Expenditures Employee Compensation 32,004 34,382 41,566 28,779 Employee Benefits 12,539 13,522 16,047 14,883 Materials 269,911 239,411 281,070 227,580 Contract Services 41,357 96,279 272,900 336,900 Cost Allocation - 1,152 - 2,582 Capital Outlay - - - - Special Projects 116,491 - 3,500,000 8,000,000 379 HOUSING SERVICES - HUMAN SERVICE GRANTS Budget Unit 100-72-712 Budget at a Glance Total Revenues - Total Expenditures 41,836 Fund Balance - General Fund Costs 41,836 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The City of Cupertino sets aside $40,000 from its General Fund for non-profit agencies providing services to Cupertino low and very-low income. SERVICE OBJECTIVES On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each sub-recipient of this program. On a bi-annual basis, issue RFP for grants, review grant applications, and make funding recommendations. Present funding recommendations to City Council. On an annual basis, prepare or amend grant agreement for each grantee. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $41,836 for the Human Service Grants Budget. This represents a decrease of $74 from the FY 2016-17 Final Adopted Budget. The budget maintains $40,000 in grant funding for services to low income Cupertino residents. The decrease is due to changes in the cost allocation program. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 380 Housing Services - Human Service Grants 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 40,000 39,882 41,910 41,836 Fund Balance - - - - General Fund Costs $ 40,000 $ 39,882 $ 41,910 $ 41,836 STAFFING There is no staffing associated with this program. 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 - - - 40,000 Contract Services 40,000 39,882 40,000 - Cost Allocation - - 1,910 1,836 Capital Outlay - - - - Special Projects - - - - 381 BUILDING - GENERAL BUILDING Budget Unit 100-73-713 Budget at a Glance Total Revenues 721,000 Total Expenditures 791,962 Fund Balance - General Fund Costs 70,962 % Funded by General Fund 9.0% Total Staffing 2.70 PROGRAM OVERVIEW The General Building program protects residents of Cupertino by enforcing standards to safeguard life, health, safety and welfare of residents, workers, and visitors to Cupertino through effective administration and enforcement of adopted codes and ordinances, which regulate the design, construction, use, occupancy, location and maintenance of all buildings and structures. 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 20, 2017, City Council approved a budget of $791,962 for the General Building Budget. This represents an increase of $33,017 from the FY 2016-17 Final Adopted Budget. The increase is primarily attributed to changes in how the city applied these charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. There is a decrease in special projects charges due to the fact that the budget for special projects, such as digitizing historical building records, are anticipated to be completed. 382 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Building - General Building Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 2,976 2,976 Total Expenditures 540,000 611,345 758,945 791,962 Fund Balance - - - - General Fund Costs $ 111,246 $ (1,367,858) $ 37,945 $ 70,962 STAFFING Total current authorized positions – 2.75 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 2.70 Budget Revenues Taxes - - - - Licenses and Permits 428,753 1,978,792 721,000 721,000 Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 286 - - Fines and Forfeitures - - - - Miscellaneous Revenue - 125 - - Interdepartmental Revenue - - - - Total Revenues 428,753 1,979,203 721,000 721,000 Expenditures Employee Compensation 275,438 299,039 338,810 375,719 Employee Benefits 110,045 114,572 130,443 145,524 Materials 14,405 16,649 17,692 24,895 Contract Services 19,323 35,302 7,886 6,736 Cost Allocation 84,960 70,224 193,138 236,112 Capital Outlay - - - - Special Projects 35,828 75,559 68,000 - 383 BUILDING - BUILDING PLAN REVIEW Budget Unit 100-73-714 Budget at a Glance Total Revenues 335,000 Total Expenditures 1,283,854 Fund Balance - General Fund Costs 948,854 % Funded by General Fund 73.9% Total Staffing 5.90 PROGRAM OVERVIEW The Building Plan Review program is responsible for the timely and accurate review and approval of plans and specifications for all residential, commercial and industrial permit applications for buildings and structures to ensure the Adopted design meets or exceeds the minimum life safety, plumbing, mechanical, electrical, accessibility, energy and structural safety standards of all governing codes. 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 20, 2017, City Council approved a budget of $1,283,854 for the Building Plan Review Budget. This represents a decrease of $200,435 from the FY 2016-17 Final Adopted Budget. The decrease is primarily attributed to carrying over special projects and contract services, and more accurately anticipating material expenses. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. 384 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Building - Building Plan Review Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 41,663 41,663 Total Expenditures 1,442,548 1,950,512 1,484,289 1,283,854 Fund Balance - - - - General Fund Costs $ (511,429) $ 786,586 $ 74,289 $ 948,854 STAFFING Total current authorized positions – 5.40 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 5.90 Budget Revenues Taxes - - - - Licenses and Permits (5,500) - - 200,000 Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 1,959,477 1,064,615 1,410,000 135,000 Fines and Forfeitures - - - - Miscellaneous Revenue - 99,311 - - Interdepartmental Revenue - - - - Total Revenues 1,953,977 1,163,926 1,410,000 335,000 Expenditures Employee Compensation 389,113 510,584 560,105 631,006 Employee Benefits 156,137 196,911 228,532 269,478 Materials 4,417 8,960 14,230 10,475 Contract Services 118,200 136,128 160,767 9,167 Cost Allocation 54,312 54,312 231,492 322,065 Capital Outlay - - - - Special Projects 720,369 1,043,616 247,500 - 385 BUILDING - BUILDING CODE ENFORCEMENT Budget Unit 100-73-715 Budget at a Glance Total Revenues 1,225,000 Total Expenditures 1,349,597 Fund Balance - General Fund Costs 124,597 % Funded by General Fund 9.2% Total Staffing 5.25 PROGRAM OVERVIEW The Building Inspection program is responsible for the construction inspection of all new and existing buildings and structures for conformity with approved plans and permits, and for compliance with state and local building code requirements. The program also responds to 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. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,349,597 for the Building Code Enforcement Budget. This represents a decrease of $496,243 from the FY 2016-17 Final Adopted Budget. 386 The decrease is primarily attributed to the fact that special projects are expected to be completed. Increase in contract services reflects an increase in credit card fees. This covers credit card fees for all transactions for Public Works, Planning and all Building divisions. The budget allocates more money to pay these fees and explore mobile payment options to improve customer service and convenience. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Building - Building Code Enforcement Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency 622 - 7,464 7,464 Total Expenditures 3,326,227 5,046,460 1,845,840 1,349,597 Fund Balance - - - - General Fund Costs $ 2,441,083 $ (959,824) $ 91,840 $ 124,597 Budget Revenues Taxes - - - - Licenses and Permits 238,925 1,072,670 1,754,000 1,200,000 Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 646,219 4,526,986 - 25,000 Fines and Forfeitures - - - - Miscellaneous Revenue - 406,630 - - Interdepartmental Revenue - - - - Total Revenues 885,145 6,006,285 1,754,000 1,225,000 Expenditures Employee Compensation 525,460 535,388 570,342 628,356 Employee Benefits 211,444 221,719 246,537 259,949 Materials 11,953 13,584 24,936 22,500 Contract Services 172,981 537,990 49,906 109,456 Cost Allocation 71,424 109,560 262,655 321,872 Capital Outlay - - - - Special Projects 2,332,343 3,628,220 684,000 - 387 STAFFING Total current authorized positions – 5.85 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 5.25 388 BUILDING - MUNICIPAL CODE ENFORCEMENT Budget Unit 100-73-718 Budget at a Glance Total Revenues - Total Expenditures 311,082 Fund Balance - General Fund Costs 311,082 % Funded by General Fund 100.0% Total Staffing 1.25 PROGRAM OVERVIEW The Community Development Code Enforcement Program provides for the 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 20, 2017, City Council approved a budget of $311,082 for the Municipal Code Enforcement Budget. This represents an increase of $34,908 from the FY 2016-17 Final Adopted Budget. This increase is primarily attributed to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 389 Building - Municipal Code Enforcement Category 2015 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - 1,309 1,309 Total Expenditures 296,537 249,168 276,174 311,082 Fund Balance - - - - General Fund Costs $ 283,799 $ 249,168 $ 276,174 $ 311,082 STAFFING Total current authorized positions – 1.25 There are no changes to the current level of staffing. Total authorized positions – 1.25 Budget Revenues Taxes - - - - Licenses and Permits 12,738 - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 12,738 - - - Expenditures Employee Compensation 155,164 107,697 121,941 129,989 Employee Benefits 63,299 45,053 50,054 55,733 Materials 8,241 1,647 9,419 7,750 Contract Services 4,697 29,636 5,530 7,300 Cost Allocation 65,136 65,136 87,921 109,001 Capital Outlay - - - - Special Projects - - - - 390 Public Works Administration Environmental Programs Developmental Services Service Center Grounds Streets Trees and Right ofWay Facilities and Fleet Transportation Fixed Assets Acquisition PUBLIC WORKS Budget Unit 2018 Adopted Public Works Administration $ 766,715 100-80-800 Administration 766,715 Environmental Programs $ 4,031,482 520-81-801 Resource Recovery 3,269,762 230-81-802 Non Point Source 761,720 Developmental Services $ 2,972,145 100-82-804 Plan Review 2,117,716 100-82-806 CIP Administration 854,429 Service Center $ 1,804,912 100-83-807 Service Center Administration 1,804,912 Grounds $ 4,166,680 100-84-808 McClellan Ranch Park 82,847 100-84-809 Memorial Park 747,097 100-84-812 School Site Maintenance 996,892 100-84-813 Neighborhood Parks 1,554,798 100-84-814 Sport Fields Jollyman, Creekside 593,604 100-84-815 Civic Center Ground Maintenance 191,442 Streets $ 11,153,664 100-85-818 Storm Drain Maintenance 449,950 270-85-820 Sidewalk Curb and Gutter 1,085,525 270-85-821 Street Pavement Maintenance 6,744,384 270-85-822 Street Sign Marking 831,990 100-85-848 Street Lighting 605,360 630-85-849 Equipment Maintenance 1,251,239 100-85-850 Environmental Materials 185,216 Trees and Right of Way $ 3,146,213 100-86-824 Overpasses and Medians 1,453,793 100-86-825 Street Tree Maintenance 1,251,142 100-86-826 Weekend Work Program 441,278 391 Facilities and Fleet $ 3,861,690 100-87-827 City Hall 629,738 100-87-828 Library 334,605 100-87-829 Service Center 314,654 100-87-830 Quinlan Center 504,647 100-87-831 Senior Center 248,657 100-87-832 McClellan Ranch 146,444 100-87-833 Monta Vista Community Center 150,687 100-87-834 Wilson Park 67,491 100-87-835 Portal Park 58,766 570-87-836 Sports Center 484,623 100-87-837 Creekside Park 135,913 100-87-838 Community Hall 267,259 100-87-839 Teen Center 47,033 100-87-840 Park Bathrooms 154,965 100-87-841 Blackberry Farm Facilities Maintenance 298,208 100-87-852 Franco Traffic Operations Center 18,000 Transportation $ 1,861,518 100-88-844 Traffic Engineering 1,001,024 100-88-845 Traffic Signal Maintenance 713,733 100-88-846 Safe Routes 2 School 146,761 Citywide - Non Departmental $ 1,029,200 210-90-978 Minor Storm Drain Improvement - 630-90-985 Fixed Assets Acquisition 1,029,200 Total $ 34,794,219 393 Director of Public Works Assistant Director of Public Works Environmental Programs Manager Enviromental Programs Assistant (2) Environmental Compliance Technician Environmental Specialist Utility & Efficiency Analyst 2-year limited term Service Center Superintendent Streets Supervisor Administrative Assistant Service Center Facilities & Fleet Supervisor Grounds Supervisor Asset Management Technician Trees & ROW Supervisor Capital Improvement Program Manager Public Works Project Manager (2) Development Services Senior Civil Engineer Associate Civil Engineer- Development Public Works Inspector Senior Engineering Technician Management Analyst Administrative Assistant City Hall Transportation Senior Civil Engineer Traffic Signal Technician (2) Associate Civil Engineer- Transportation Associate Civil Engineer 2-year limited term Safe Routes to School Community Coordinator 392 DEPARTMENT SUMMARY Final Budget Fund Balance (7,467,949) (6,913,651) (9,067,140) (4,220,221) General Fund Costs $ 13,085,066 $ 18,581,662 $ 20,821,164 $ 21,482,764 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $34,794,219 for the Public Works Budget. This represents a decrease of $444,842 from the FY 2016-17 Final Adopted Budget. The decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This decrease is offset by increases in salary and benefits due to one new three year limited term Senior Planner to assist with transportation projects and negotiated increases to salary and benefits. Public Works 2018 2015 2016 2017 Category Actual Actual Adopted Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 138,921 177,122 140,700 236,700 Intergovernmental Revenue 294,079 - - 1,816,000 Charges for Services 9,884,936 5,853,628 4,588,057 6,821,074 Fines and Forfeitures 2,724 6,387 502,000 6,000 Miscellaneous Revenue 19,148 167,843 120,000 211,460 Interdepartmental Revenue - - - - Total Revenues 10,339,808 6,204,979 5,350,757 9,091,234 Expenditures Employee Compensation 6,180,282 6,638,218 7,373,774 7,944,977 Employee Benefits 2,813,617 3,096,342 3,507,566 3,721,114 Materials 2,626,250 2,689,509 3,004,602 3,558,012 Contract Services 3,987,371 4,436,018 5,350,615 5,273,301 Cost Allocation 2,765,505 2,667,888 4,762,210 3,470,186 Capital Outlay 280,163 76,197 190,000 85,000 Special Projects 12,239,635 12,096,121 10,630,314 10,320,669 Appropriations for Contingency - - 419,980 420,960 Total Expenditures 30,892,822 31,700,292 35,239,061 34,794,219 394 ADOPTED EXPENDITURES FY 2017-2018 $766,715 (2%) $1,029,200 (3%) $1,804,912 (5%) $1,861,518 (5%) $2,972,145 (9%) $3,146,213 (9%) $3,861,690 (11%) $11,153,664 (32%) $4,166,680 (12%) Streets Grounds Environmental Programs Facilities and Fleet Trees and Right of Way Developmental Services Transportation Service Center Citywide - Non Departmental Administration $4,031,482 (12%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 30.9 31.7 35.2 34.7 395 So that… So that… So that… So that… So that… So that… CAPITAL PROJECT DELIVERY GOAL: Deliver capital projects on time and within budget. DEVELOPMENT SERVICES GOAL: Provide timely review and permitting of privately completed improvements within the public right of way. Measure Ongoing Target Respond to complete plan submittals or applications within two (2) weeks 90% Respond to public inquiries at the Public Works counter in City Hall within 15 minutes. 95% Measure Ongoing Target Projects are on budget 80% Projects are on time 80% Residents and businesses are assured their community is being improved by efficient use of taxes and fees. Customers expect quality reviews and permitting on a defined schedule. Public Works Department reviews improvements within the public right of way. Projects are constructed to an approved standard by a well-trained staff. Projects are utilized by the community. City funds capital improvement projects. 396 So that… DEPENDABLE INFRASTRUCTURE GOAL: Timely maintain levels of service to meet community and environment requirements at optimal life-cycle costs. Measure Ongoing Target Pavement condition index (PCI) > or equal to 82* 82 Respond to reported issues within one (1) business day: Storm drain system Street markings & signs Sidewalk and pathway Playground equipment 100% 100% 100% 100% Respond to reported issues within two (2) business days: Remove graffiti Streetlight outages 100% 100% Respond within one (1) hour on any reported safety issue regarding traffic signals 100% The City consistently funds infrastructure maintenance and safety improvement programs. So that… Infrastructure indicates good condition; safety programs are effective. So that… Cupertino has well maintained infrastructure and programs that meets the needs of the community. 397 So that… So that… So that… So that… So that… ENVIRONMENT GOAL: Protect our natural environment for current and future generations. Measure Ongoing Target Respond to reports of actual or potential discharge the same business day 80% Percent of businesses in compliance during annual proactive inspections 75% Tons of waste entering landfill (does not include self-haul or material to landfills other than Newby Island) =< 27,000 Diversion Rates rate By employment1: By population1: Commercial only2: 75% 75% 60% Number of all business and multifamily accounts separating organics out of 496 50% Number of outreach site visits, workshops, events and activities to inform residents and businesses 150 % of street, median, and park trees maintained according to the Urban Forest Workplan 3 100% Number of trees planted compared to number of trees removed 110% All new vehicle purchases are to be hybrid and/or electric only models 90% 1 CalRecycle has a 12 month lag in reporting. Data is for calendar year 2016. 2 Does not include business donations, back haul, or other source reduction, etc. 3 Urban Forest Workplan Updated November 2016 City is responsible for a comprehensive storm water pollution prevention program. Potential pollutants are stopped before entering the storm drain system. City implements solid waste collection services that encourage diversion of waste from landfills. City is responsible for the maintenance and enhancement of the urban forest. Cupertino’s urban forest is resilient, healthy and safe. Vehicles purchased have the least environmental impact possible. Diversion of solid waste from landfill is maximized, compost is produced for community use, recyclable material is sold to help offset collection costs and methane gas emissions at landfills are reduced. So that… Current and future residents enjoy a healthy, sustainable environment. So that… 398 ADMINISTRATION – PUBLIC WORKS ADMINISTRATION Budget Unit 100-80-800 Budget at a Glance Total Revenues - Total Expenditures 766,715 Fund Balance - General Fund Costs 766,715 % Funded by General Fund 100.0% Total Staffing 3.25 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, storm water 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 response within 24 hours to the community on complaints and requests for services. Plan and program maintenance of the City’s public facilities a nd 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. 399 Manage and adapt traffic operations to efficiently move traffic and protect neighborhoods. Oversee and manage stormwater, solid waste and recycling programs. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $766,715 for the Administration Budget. This represents a decrease of $765,136 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is adding two part-time Office Assistant positions for records conversion. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 400 Public Works Administration - Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 1,673 1,673 Total Expenditures 573,428 738,804 1,531,851 766,715 Fund Balance - - - - General Fund Costs $ 573,428 $ 738,804 $ 1,265,613 $ 766,715 STAFFING Total current authorized positions – 3.25 There are no changes to the current level of staffing. Total authorized positions – 3.25 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 266,238 - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 266,238 - Expenditures Employee Compensation 357,831 390,476 422,641 496,848 Employee Benefits 144,116 158,765 170,796 177,553 Materials 13,131 14,438 17,839 18,839 Contract Services 521 2,297 2,000 2,000 Cost Allocation 57,828 57,828 801,902 69,802 Capital Outlay - - - - Special Projects -115,000 115,000 - 401 ENVIRONMENTAL PROGRAMS - RESOURCE RECOVERY Budget Unit 520-81-801 Budget at a Glance Total Revenues 2,246,000 Total Expenditures 3,269,762 Fund Balance (1,023,762) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 4.30 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; manages the City’s state-permitted residential household hazardous waste (HHW) door-to-door collection and disposal service; 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 (garbage generators of 4 cubic yards or more per week) with preparations to comply with mandatory organics recycling by July 1, 2018. Provide landlords and property owners with support and educational materials for their tenants. Visit the management of each multi-family complex to encourage participation in a knock and talk campaign whereby City staff distribute free kitchen pails and tips to help residents separate kitchen food waste prior to taking it to a central garbage and recycling area. 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 402 summer free compost give-away 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. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $3,269,762 for the Resource Recovery Budget. This represents an increase of $72,298 from the FY 2016-17 Final Adopted Budget. This program is adding a 0.5 FTE environmental programs intern, materials for direct outreach items for the organics roll-out to multi-family homes and telephone and data plan expenses for devices supported. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 403 Environmental Programs - Resource Recovery 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 2,548,461 2,997,198 3,197,464 3,269,762 Fund Balance (1,769,833) (482,262) (3,197,464) (1,023,762) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 4.35 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 4.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - 25,000 Intergovernmental Revenue - - - 15,000 Charges for Services 778,628 2,514,936 -2,150,000 Fines and Forfeitures - - -- Miscellaneous Revenue - - - 56,000 Interdepartmental Revenue - - -- Total Revenues 778,628 2,514,936 -2,246,000 Expenditures Employee Compensation 364,001 391,163 433,953 470,408 Employee Benefits 108,174 133,047 184,838 208,450 Materials 14,664 23,280 21,760 23,410 Contract Services 1,982,445 2,368,232 2,401,000 2,401,000 Cost Allocation 79,177 81,476 155,913 166,494 Capital Outlay - - - - Special Projects - - - - 404 ENVIRONMENTAL PROGRAMS - NON POINT SOURCE Budget Unit 230-81-802 Budget at a Glance Total Revenues 386,000 Total Expenditures 761,720 Fund Balance (291,598) General Fund Costs 84,122 % Funded by General Fund 11.0% Total Staffing 1.97 PROGRAM OVERVIEW The Non-Point Source program manages the City’s compliance with its State -mandated Municipal Regional Stormwater NPDES Permit (MRP 2.0, reissued with changes effective January 1, 2016); 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 (approved by Council in January 2014) 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; postconstruction 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 405 investigation to protect water quality; and education of staff and local businesses on best management practices for outdoor storage and activities.  Represent the City on county and regional committees to prevent creek and San Francisco Bay pollution, erosion and illegal dumping. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $761,720 for the Non Point Source Budget. This represents an increase of $90,107 from the FY 2016-17 Final Adopted Budget. This increases in salary and benefits are due to staffing reallocation among department budgets to more accurately reflect the work performed. The increase in special projects is described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Storm Water Rate Study $13,000 $13,000 General Fund City Council Work Program Item Total $13,000 $13,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 406 Environmental Programs - Non Point Source 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 19,610 19,610 Total Expenditures 456,935 497,048 671,613 761,720 Fund Balance (454,111) (361,985) (40,934) (291,598) General Fund Costs $ - $ 128,676 $ 128,679 $ 84,122 STAFFING Total current authorized positions – 1.87 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 1.97 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 100 - - 380,000 Fines and Forfeitures 2,724 6,387 502,000 6,000 Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 2,824 6,387 502,000 386,000 Expenditures Employee Compensation 144,101 164,321 196,130 225,172 Employee Benefits 60,092 72,062 86,691 135,524 Materials 3,885 6,119 8,027 8,027 Contract Services 195,842 201,567 292,500 307,000 Cost Allocation 53,015 52,980 68,655 66,387 Capital Outlay - - - - Special Projects - - - - 407 DEVELOPMENTAL SERVICES - PLAN REVIEW Budget Unit 100-82-804 Budget at a Glance Total Revenues 1,374,529 Total Expenditures 2,117,716 Fund Balance - General Fund Costs 743,187 % Funded by General Fund 35.1% Total Staffing 4.50 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 that 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 permit and prevent runoff from polluting nearby watersheds. Work closely with the Environmental Programs Division to continue inspecting jobsites 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, Service Center and Recreation and Community Services, as needed to facilitate private developments and public infrastructure projects. 408 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $2,117,716 for the Plan Review Budget. This represents an increase of $1,105,492 from the FY 2016-17 Final Adopted Budget. There are increases in salary and benefits due to the reallocation of the Associate Civil Engineer position and the reclassification costs associated with the change from Senior Civil Engineer to Transportation Manager. The position currently classified as a Senior Civil Engineer has grown in scope, breadth of responsibilities, organizational hierarchy, and subject matter specificity (transportation). The Transportation Manager classification is similar to classifications in other cities in the county, and much more closely captures the current and near-future duties and responsibilities of the position. The scope of this position has grown to include an active and growing Safe Routes to School Program, a significantly increased emphasis to manage and implement the Bicycle Transportation Plan, the Pedestrian Transportation Plan, and the ADA Accessibility Transition Plan. This position also serves as the City’s ADA Coordinator and liaison to the Bicycle and Pedestrian Commission. In 2017-18, this position will also supervise a Transportation Planner that will focus on transit issues, including school and senior bus and ride-share programs, as well as corporate bus issues and transit funding programs through the VTA’s Measure B program. Organizationally, this position formerly reported to the Assistant Director of Public Works, however for the past four years has reported directly to the Director. The increases in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Wireless Facilities Master Plan $100,000 $100,000 General Fund City Council Work Program Item Apple 2 Phase 2 Public Works Inspections $943,069 $943,069 Pass through revenues* Apple 2 Phase 2 Total $1,043,069 $1,043,069 * Cost recovered The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 409 Developmental Services - Plan Review Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 5,284 5,284 Total Expenditures 1,867,742 2,085,742 1,012,224 2,117,716 Fund Balance - - - - General Fund Costs $ 679,687 $ (89,815) $ (197,776) $ 743,187 STAFFING Total current authorized positions – 4.60 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 4.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 1,188,055 2,046,228 1,090,000 1,233,069 Fines and Forfeitures - - - - Miscellaneous Revenue - 129,330 120,000 141,460 Interdepartmental Revenue - - - - Total Revenues 1,188,055 2,175,557 1,210,000 1,374,529 Expenditures Employee Compensation 492,876 514,173 512,928 566,226 Employee Benefits 210,885 235,705 245,073 247,636 Materials 13,724 14,342 25,918 13,768 Contract Services 40,490 102,565 61,000 62,000 Cost Allocation 55,608 60,408 162,021 179,733 Capital Outlay - - - - Special Projects 1,054,160 1,158,550 - 1,043,069 410 DEVELOPMENTAL SERVICES - CIP ADMINISTRATION Budget Unit 100-82-806 Budget at a Glance Total Revenues - Total Expenditures 854,429 Fund Balance - General Fund Costs 854,429 % Funded by General Fund 100.0% Total Staffing 3.00 PROGRAM OVERVIEW The Capital Improvement Program (CIP) provides design and construction administration for all capital improvement projects including streets, storm drainage, buildings, parks, and other public facilities. SERVICE OBJECTIVES Ensure that all public improvements are designed and constructed in accordance with community expectations and City standards. Provide quarterly CIP status reports to Council and the community. 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 20, 2017, City Council approved a budget of $854,429 for the CIP Administration Budget. This represents a decrease of $320,892 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The decrease in contract services is attributed to reallocating budget for preliminary planning and design to the Capital Improvement Program. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 411 Developmental Services - CIP Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 18,031 18,031 Total Expenditures 548,835 766,779 1,175,321 854,429 Fund Balance - - - - General Fund Costs $ 548,835 $ 760,029 $ 1,175,321 $ 854,429 STAFFING Total current authorized positions – 3.00 There are no changes to the current level of staffing. Total authorized positions – 3.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue -6,750 - - Interdepartmental Revenue --- - Total Revenues -6,750 - - Expenditures Employee Compensation 337,302 383,109 452,764 476,833 Employee Benefits 114,293 131,209 142,053 155,321 Materials 6,564 8,365 12,500 13,300 Contract Services 57,328 199,300 203,000 103,000 Cost Allocation 33,348 44,796 306,973 87,944 Capital Outlay - - - - Special Projects - - 40,000 - 412 SERVICE CENTER - SERVICE CENTER ADMINISTRATION Budget Unit 100-83-807 Budget at a Glance Total Revenues 69,000 Total Expenditures 1,804,912 Fund Balance - General Fund Costs 1,735,912 % Funded by General Fund 96.2% Total Staffing 3.05 PROGRAM OVERVIEW This program manages Public Works maintenance operations that include the major divisions of streets, grounds, trees, medians, facilities and fleet, as well as the minor divisions of signs/markings, storm drain, sidewalk, curb and gutter, overpasses and storm water; provides administrative support for personnel timesheets, general training prioritization and assignment of service calls; provides oversight of various contracted services including street sweeping, janitorial and crossing guard in addition to the weekend work furlough program; 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 for trees, sidewalk repair, striping and legends, street signs, vehicle and equipment, streetlights and storm water pollution. Maintain records of all complaints and requests for services by tracking responses through computer programs and written service request forms. 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. 413 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,804,912 for the Service Center Administration Budget. This represents an increase of $144,585 from the FY 2016-17 Final Adopted Budget. The increase is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. In addition, this program is increasing contract services for special projects as described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description City Facilities Building Assessment $200,000 $200,000 General Fund City Council Work Program Item Office Improvements $70,000 $70,000 General Fund City-wide work area improvements Total $270,000 $270,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 414 Service Center - Service Center Administration 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 23,340 23,340 Total Expenditures 867,146 816,665 1,660,327 1,804,912 Fund Balance - - - - General Fund Costs $ 854,246 $ 785,812 $ 1,660,327 $ 1,735,912 STAFFING Total current authorized positions – 4.70 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 3.05 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 12,900 30,853 -69,000 Intergovernmental Revenue - - -- Charges for Services - - -- Fines and Forfeitures - - -- Miscellaneous Revenue - - -- Interdepartmental Revenue - - -- Total Revenues 12,900 30,853 -69,000 Expenditures Employee Compensation 287,015 319,502 442,389 406,163 Employee Benefits 123,428 128,424 172,253 168,973 Materials 59,738 56,236 75,745 74,845 Contract Services 141,136 161,961 217,500 217,500 Cost Allocation 200,196 150,276 554,100 644,091 Capital Outlay 55,633 - - - Special Projects - 266 175,000 270,000 415 GROUNDS - MCCLELLAN RANCH PARK Budget Unit 100-84-808 Budget at a Glance Total Revenues - Total Expenditures 82,847 Fund Balance - General Fund Costs 82,847 % Funded by General Fund 100.0% Total Staffing 0.30 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 Recreation and Community Services Department for all of the City’s special events. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $82,847 for the McClellan Ranch Park Budget. This represents an increase of $17,307 from the FY 2016-17 Final Adopted Budget. This program is increasing general supplies and materials for water costs to reflect actual usage and rate increases. The increases in special projects are described in the table below. 416 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Fence Replacement $12,000 $12,000 General Fund Fence replacement Total $12,000 $12,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 417 Grounds - McClellan Ranch Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 1,586 1,586 Total Expenditures 59,830 56,875 65,540 82,847 Fund Balance - - - - General Fund Costs $ 59,830 $ 56,875 $ 65,540 $ 82,847 STAFFING Total current authorized positions – 0.30 There are no changes to the current level of staffing. Total authorized positions – 0.30 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 25,725 23,472 24,956 28,466 Employee Benefits 11,786 11,499 13,173 15,262 Materials 13,007 12,038 13,597 16,577 Contract Services 5,975 6,530 8,000 8,000 Cost Allocation 3,336 3,336 4,228 956 Capital Outlay - - - - Special Projects - - - 12,000 418 GROUNDS - MEMORIAL PARK Budget Unit 100-84-809 Budget at a Glance Total Revenues 14,000 Total Expenditures 747,097 Fund Balance - General Fund Costs 733,097 % Funded by General Fund 98.1% Total Staffing 3.80 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, spraying of pesticides, tennis court cleaning and general maintenance, basketball court maintenance and programmed play structure inspections and maintenance.  Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding 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 programs of garden plots.  Provide logistical support to the Recreation and Community Development Department for all the City’s special events.  Oversight of contracted tree trimming and fence repairs. 419 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $747,097 for the Memorial Park Budget. This represents an increase of $168,464 from the FY 2016-17 Final Adopted Budget. This program is increasing salary and benefits due to the reallocation of staff and overtime, general supplies for engineering chip for playgrounds and general services for goose abatement and tree work. The decrease in materials is attributed to the pond shut off and therefore no water is needed to service to the ponds. The increases in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description Cement work $50,000 $50,000 General Fund Ramp for lift, mow band, tennis court swale Tennis court light upgrade $85,000 $71,000 $14,000 General Fund Rebate Replace lights for 6 tennis courts with LED Total $135,000 $135,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 420 Grounds - Memorial Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 14,096 14,096 Total Expenditures 564,027 492,515 578,633 747,097 Fund Balance - - - - General Fund Costs $ 564,027 $ 492,515 $ 578,633 $ 733,097 STAFFING Total current authorized positions – 3.05 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 3.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - 14,000 Interdepartmental Revenue - - - - Total Revenues - - - 14,000 Expenditures Employee Compensation 210,661 201,483 215,798 238,386 Employee Benefits 104,212 98,722 120,422 126,360 Materials 130,184 134,821 152,791 166,231 Contract Services 37,526 7,821 32,550 37,550 Cost Allocation 62,328 49,668 42,976 29,474 Capital Outlay - - - 85,000 Special Projects 19,116 - - 50,000 421 GROUNDS - SCHOOL SITE MAINTENANCE Budget Unit 100-84-812 Budget at a Glance Total Revenues 135,000 Total Expenditures 996,892 Fund Balance - General Fund Costs 861,892 % Funded by General Fund 86.5% Total Staffing 4.10 PROGRAM OVERVIEW Under a joint use agreement with the 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, spraying of pesticides and other maintenance. Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding 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 programs of garden plots. Provide logistical support to the Park and Recreation Department for all the City’s special events. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $996,892 for the School Site Maintenance Budget. This represents an increase of $227,520 from the FY 2016-17 Final Adopted Budget. This program is increasing overtime, materials for field maintenance, and general services for 422 gopher abatement and tree work. This budget includes an increase for water costs due to properly attributing school field irrigation to this budget and to cover rate increases. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Concrete work at Faria School $25,000 $25,000 General Fund Repair raised/cracked cement in dugout- trip hazard Water Supply at Collins School $50,000 $50,000 General Fund Replace water supply equipment Total $75,000 $75,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 423 Grounds - School Site Maintenance Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 11,816 11,816 Total Expenditures 659,063 711,075 769,372 996,892 Fund Balance - - - - General Fund Costs $ 659,063 $ 711,075 $ 769,372 $ 861,892 STAFFING Total current authorized positions – 4.30 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 4.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - 135,000 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 135,000 Expenditures Employee Compensation 250,959 275,904 294,883 319,050 Employee Benefits 131,476 144,726 160,746 170,335 Materials 116,855 149,970 145,890 314,458 Contract Services 13,266 8,087 15,500 20,500 Cost Allocation 146,508 122,388 60,537 85,733 Capital Outlay - - - - Special Projects - 10,000 80,000 75,000 424 GROUNDS - NEIGHBORHOOD PARKS Budget Unit 100-84-813 Budget at a Glance Total Revenues - Total Expenditures 1,554,798 Fund Balance - General Fund Costs 1,554,798 % Funded by General Fund 100.0% Total Staffing 7.80 PROGRAM OVERVIEW Neighborhood Parks include 14 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 Ave. Dog Park, Monta Vista, Portal, Somerset, Varian, Wilson, Three Oaks, Hoover, Canyon Oak (Little Rancho), Franco Park, Sterling/Barnhart, Oak Valley and Blackberry Farms. 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, spraying of pesticides, tennis court cleaning and general maintenance, basketball court maintenance and programmed play structure inspections and maintenance.  Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding 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 to California playground safety requirements.  Reduce water consumption wherever practicable.  Utilize Weekend Work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots.  Provide logistical support to the Recreation and Community Services Department for all the City’s special events. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,554,798 for the Neighborhood Parks 425 Budget. This represents a decrease of $5,235 from the FY 2016-17 Final Adopted Budget. This program is increasing overtime and general supplies due to the purchase of engineering chip. The decrease in general services is due to the costs and scope of project in the current year being less than the prior year. Special projects are described in the following table. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Monta Vista concrete work $35,000 $35,000 General Fund Repair raised/cracked cement by playground - trip hazard Portal Park concrete work $50,000 $50,000 General Fund Repair raised/cracked cement - trip hazard Sport Center Fence $25,000 $25,000 General Fund Replace gates and restretch fencing Total $110,000 $110,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 426 Grounds - Neighborhood Parks Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 28,720 28,720 Total Expenditures 1,515,713 1,460,938 1,560,033 1,554,798 Fund Balance - - - - General Fund Costs $ 1,515,713 $ 1,459,184 $ 1,560,033 $ 1,554,798 STAFFING Total current authorized positions – 8.20 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 7.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - 1,755 - - Interdepartmental Revenue - - - - Total Revenues - 1,755 - - Expenditures Employee Compensation 548,775 540,786 562,946 577,040 Employee Benefits 279,558 296,827 324,927 304,154 Materials 271,060 294,425 295,900 357,671 Contract Services 164,860 130,361 157,000 72,000 Cost Allocation 251,460 198,540 115,540 105,213 Capital Outlay - - - - Special Projects - - 75,000 110,000 427 GROUNDS - SPORT FIELDS JOLLYMAN, CREEKSIDE Budget Unit 100-84-814 Budget at a Glance Total Revenues - Total Expenditures 593,604 Fund Balance - General Fund Costs 593,604 % Funded by General Fund 100.0% Total Staffing 2.70 PROGRAM OVERVIEW The sport 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. Sport 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 / 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, spraying of pesticides, programmed play structure inspections and other maintenance.  Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding and pruning of trees and shrubs.  Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications and preparing sport fields for seasonal use.  Maintain sport fields for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports.  Maintain all playgrounds in accordance to California playground safety requirements.  Reduce water consumption wherever practicable.  Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots.  Provide logistical support to the Recreation and Community Services Department for all the City’s special events. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $593,604 for the Sport Fields Jollyman, Creekside Budget. This represents an increase of $79,023 from the FY 2016-17 Final Adopted 428 Budget. This program is increasing overtime, general supplies, and materials for water costs to better reflect actual expenditures. This budget also includes increases for general services for tree work and one special project described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Cement pad at Creekside Park $28,000 $28,000 General Fund Base for ARK emergency supply shed/container Total $28,000 $28,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 429 Grounds - Sport Fields Jollyman, Creekside 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 11,918 11,918 Total Expenditures 598,282 587,088 514,581 593,604 Fund Balance - - - - General Fund Costs $ 598,282 $ 587,088 $ 514,581 $ 593,604 STAFFING Total current authorized positions – 2.90 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 2.70 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 193,123 197,408 195,263 213,745 Employee Benefits 96,102 103,371 111,806 107,631 Materials 132,286 159,866 142,709 174,238 Contract Services 1,475 12,774 12,000 16,000 Cost Allocation 84,468 71,292 40,885 42,072 Capital Outlay - - - - Special Projects 90,828 42,378 -28,000 430 GROUNDS - CIVIC CENTER MAINTENANCE Budget Unit 100-84-815 Budget at a Glance Total Revenues 175,467 Total Expenditures 191,442 Fund Balance - General Fund Costs 15,975 % Funded by General Fund 8.3% Total Staffing 0.90 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, spraying of pesticides and general maintenance. Provide quarterly maintenance that may include turf spraying, fertilization applications, aerating, over-seeding 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 20, 2017, City Council approved a budget of $191,442 for the Civic Center Ground Maintenance Budget. This represents a decrease of $335,246 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. 431 This program is requesting increases in overtime, general supplies to plant trees in the back of Community Hall and materials to cover anticipated water costs. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 432 Grounds - Civic Center Ground Maintenance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 2,860 2,860 Total Expenditures 155,002 160,573 526,688 191,442 - - - - Fund Balance General Fund Costs $ 155,002 $ 160,573 $ 343,703 $ 15,975 Budget Revenues - - - - - - - - - - - - - - - - - - 182,985 175,467 - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - Total Revenues - - 182,985 175,467 Expenditures 68,954 74,304 75,908 82,966 34,015 39,124 41,675 46,850 31,549 31,089 34,298 48,760 - - 3,000 3,000 20,484 16,056 368,947 7,006 - - - - - - - - STAFFING Total current authorized positions – 1.00 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.90 433 STREETS - STORM DRAIN MAINTENANCE Budget Unit 100-85-818 Budget at a Glance Total Revenues 1,700 Total Expenditures 449,950 Fund Balance - General Fund Costs 448,250 % Funded by General Fund 99.6% Total Staffing 1.20 PROGRAM OVERVIEW Maintenance of storm drain system to provide the efficient flow of storm water and to comply with storm water 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 20, 2017, City Council approved a budget of $449,950 for the Storm Drain Maintenance Budget. This represents a decrease of $12,441 from the FY 2016-17 Final Adopted Budget. This program is requesting increases for one part-time staff, overtime and telephone and data services for devices supported. The decrease for general services is attributed to completion of special projects. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 434 Streets - Storm Drain Maintenance Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 4,080 4,080 Total Expenditures 198,002 303,568 462,391 449,950 Fund Balance - - - - General Fund Costs $ 198,002 $ 303,568 $ 462,391 $ 448,250 STAFFING Total current authorized positions – 1.40 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 1.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - 1,700 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 1,700 Expenditures Employee Compensation 87,418 112,993 131,373 121,029 Employee Benefits 34,889 46,263 55,319 50,051 Materials 6,629 7,441 15,260 16,260 Contract Services 54,618 122,423 225,000 225,000 Cost Allocation 14,448 14,448 31,359 33,530 Capital Outlay - - - - Special Projects - - - - 435 STREETS - SIDEWALK CURB AND GUTTER Budget Unit 270-85-820 Budget at a Glance Total Revenues 210,800 Total Expenditures 1,085,525 Fund Balance (24,725) General Fund Costs 850,000 % Funded by General Fund 78.3% Total Staffing 1.30 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 20, 2017, City Council approved a budget of $1,085,525 for the Sidewalk Curb and Gutter Budget. This represents an increase of $83,593 from the FY 2016-17 Final Adopted Budget. This program is requesting increases in overtime, telephone and data services to support budgeted devices and one special project described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Annual Curb, Gutter Sidewalk Project $850,000 $850,000 General Fund Annual Curb, Gutter, Sidewalk Maintenance Total $850,000 $850,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 436 Streets - Sidewalk Curb and Gutter Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 270 270 Total Expenditures 1,151,135 992,176 1,001,932 1,085,525 Fund Balance (660,275) (992,176) (201,932) (24,725) General Fund Costs $ - $ - $ 800,000 $ 850,000 STAFFING Total current authorized positions – 0.90 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 1.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - 1,200 Intergovernmental Revenue - - - 209,600 Charges for Services 490,860 - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 490,860 - - 210,800 Expenditures Employee Compensation 64,395 69,900 67,576 104,240 Employee Benefits 31,590 34,970 35,922 59,175 Materials 3,455 4,935 3,729 3,729 Contract Services 269 - - - Cost Allocation 51,090 66,816 44,435 68,111 Capital Outlay - - - - Special Projects 1,000,336 815,555 850,000 850,000 437 STREETS - STREET PAVEMENT MAINTENANCE Budget Unit 270-85-821 Budget at a Glance Total Revenues 1,328,100 Total Expenditures 6,744,384 Fund Balance 583,716 General Fund Costs 6,000,000 % Funded by General Fund 89.0% Total Staffing 3.35 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 20, 2017, City Council approved a budget of $6,744,384 for the Street Pavement Maintenance Budget. This represents a decrease of $530,783 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to the decrease in special projects. The budget for the annual asphalt project has decreased due to more area being completed each year. This program is requesting increases in overtime, general supplies to purchase pedestrian barricades, telephone and data services to support budgeted devices and one special project described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Annual Asphalt Project $6,000,000 $6,000,000 General Fund City Council Work Program Item Total $6,000,000 $6,000,000 The following table details revenue, total expenditures, changes in fund balance and General 438 Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 439 Category Streets - Street Pavement Maintenance 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 11,560 11,560 Total Expenditures 10,281,775 8,756,565 7,275,167 6,744,384 (2,546,056) (2,754,856) (2,275,167) 583,716 Fund Balance General Fund Costs $ - $ 6,000,000 $ 5,000,000 $ 6,000,000 Budget Revenues - - - - - - - - - - - - 294,079 - - 1,324,000 7,422,492 - - 4,100 - - - - 19,148 1,709 - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - Total Revenues 7,735,719 1,709 - 1,328,100 Expenditures 217,204 254,714 289,405 254,727 109,078 126,995 137,473 134,377 35,818 46,648 50,880 62,080 90,649 8,916 136,000 136,000 95,362 89,364 149,849 145,640 - - - - 9,733,664 8,229,926 6,500,000 6,000,000 STAFFING Total current authorized positions – 3.65 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 3.35 440 STREETS - STREET SIGN MARKING Budget Unit 270-85-822 Budget at a Glance Total Revenues 133,200 Total Expenditures 831,990 Fund Balance (698,790) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 3.50 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 20, 2017, City Council approved a budget of $831,990 for the Street Sign Marking Budget. This represents an increase of $169,631 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting increases in overtime for festival support, telephone and data services to support budgeted devices and a special project described in the table below. 441 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Lamination Table $22,000 $22,000 General Fund Upgrade lamination equipment to more efficient model. Total $22,000 $22,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 442 Streets - Street Sign Marking Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 8,131 8,131 Total Expenditures 721,333 762,709 662,359 831,990 Fund Balance (721,333) (762,709) (662,359) (698,790) General Fund Costs $ - $ - $ - $ - STAFFING Total current authorized positions – 3.90 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 3.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - 800 Intergovernmental Revenue - - - 132,400 Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - 133,200 Expenditures Employee Compensation 258,174 273,014 287,082 269,284 Employee Benefits 130,344 138,601 147,426 138,319 Materials 94,303 102,840 86,228 109,228 Contract Services 1,896 4,870 17,000 17,000 Cost Allocation 236,616 243,384 116,492 268,028 Capital Outlay - - - - Special Projects - - - 22,000 443 STREETS - STREET LIGHTING Budget Unit 100-85-848 Budget at a Glance Total Revenues - Total Expenditures 605,360 Fund Balance - General Fund Costs 605,360 % Funded by General Fund 100.0% Total Staffing 0.95 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 20, 2017, City Council approved a budget of $605,360 for the Street Lighting Budget. This represents an increase of $54,702 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is increasing telephone and data services to support budgeted devices. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description City Hall parking lot light upgrade $48,000 $48,000 General Fund Upgrade parking lot lights to LED Street pole replacements $70,000 $70,000 General Fund Replace poles too close to equipment and trees Total $118,000 $118,000 444 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 445 Streets - Street Lighting Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 20,199 20,199 Total Expenditures 319,647 422,620 550,658 605,360 - - - - Fund Balance General Fund Costs $ 319,647 $ 422,620 $ 550,658 $ 605,360 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 26,743 29,014 39,069 92,841 12,864 14,907 15,485 44,907 227,734 218,774 242,146 256,476 2,235 19,928 50,500 50,500 21,792 12,108 19,259 22,437 - - - - 28,279 127,890 164,000 118,000 STAFFING Total current authorized positions – 0.35 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.95 446 STREETS - EQUIPMENT MAINTENANCE Budget Unit 630-85-849 Budget at a Glance Total Revenues - Total Expenditures 1,251,239 Fund Balance (1,251,239) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 3.00 PROGRAM OVERVIEW The Fleet Division maintains all fleet equipment, including small power equipment. Equipment includes vehicles (102), rolling stock (55), trailers (19), riding mowers (12), and all power equipment (234). 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 for the equipment mechanics and welding. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,251,239 for the Equipment Maintenance Budget. This represents a decrease of $143,956 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting increases for one part-time staff, overtime based on FY 2016-17 447 actuals, and training for new staff. The program is requesting an increase in materials for a scanner purchase and deferred maintenance. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 448 Streets - Equipment Maintenance Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 32,219 32,219 Total Expenditures 919,606 1,136,608 1,395,195 1,251,239 (919,606) (1,136,608) (1,395,195) (1,251,239) Fund Balance General Fund Costs $ - $ - $ - $ - 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 147,322 174,354 272,448 275,327 79,310 89,303 120,799 121,280 230,531 252,632 294,366 323,639 93,096 125,268 136,500 140,000 327,715 470,242 455,363 358,774 - - - - 41,632 24,809 83,500 - STAFFING Total current authorized positions – 2.90 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 3.00 449 TREES AND RIGHT OF WAY - OVERPASSES AND MEDIANS Budget Unit 100-86-824 Budget at a Glance Total Revenues - Total Expenditures 1,453,793 Fund Balance - General Fund Costs 1,453,793 % Funded by General Fund 100.0% Total Staffing 6.30 PROGRAM OVERVIEW The Overpasses and Medians program maintains 31.54 developed areas of median island hardscapes and softscapes as well as 21.69 undeveloped acres of city right-of-way and the landscaped are 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 planting of appropriate plant stock. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,453,793 for the Overpasses and Medians Budget. This represents an increase of $87,905 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting increases for overtime and general services for janitorial contract minimum wage adjustment, bus stop maintenance and dirt haul-off on Stevens Creek Boulevard. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 450 Trees and Right of Way - Overpasses and Medians 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 26,643 26,643 Total Expenditures 1,367,935 1,150,779 1,365,888 1,453,793 Fund Balance - - - - General Fund Costs $ 1,367,935 $ 1,127,672 $ 1,365,888 $ 1,453,793 STAFFING Total current authorized positions – 6.30 There are no changes to the current level of staffing. Total authorized positions – 6.30 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services -23,107 - - Fines and Forfeitures --- - Miscellaneous Revenue --- - Interdepartmental Revenue --- - Total Revenues -23,107 - - Expenditures Employee Compensation 539,485 472,409 453,243 492,530 Employee Benefits 291,714 248,076 243,919 249,277 Materials 289,907 233,581 310,800 353,920 Contract Services 29,737 14,841 33,000 83,000 Cost Allocation 217,092 181,872 298,283 248,423 Capital Outlay - - - - Special Projects - - - - 451 TREES AND RIGHT OF WAY - STREET TREE MAINTENANCE Budget Unit 100-86-825 Budget at a Glance Total Revenues 10,000 Total Expenditures 1,251,142 Fund Balance - General Fund Costs 1,241,142 % Funded by General Fund 99.2% Total Staffing 7.40 PROGRAM OVERVIEW The Trees Division maintains the safety, health and appearance of approximately 14,000 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 for the care and planting of trees. Affix and maintain tree identification badges on all City-owned and maintained street trees. Provide educational flyers to all residents with street trees adjacent to their property. Oversees stump grinding contracts. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,251,142 for the Street Tree Maintenance Budget. This represents an increase of $303,412 from the FY 2016-17 Final Adopted Budget. This increase is partially due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting increases for overtime, general supplies for annual pesticide treatment and telephone and data services to support 452 budgeted devices. The increase in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Tree survey and inventory updates $70,000 $30,000 $40,000 General Fund Possible ABAG Grant Tree survey and inventory updates Total $70,000 $70,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 453 Trees and Right of Way - Street Tree Maintenance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 8,800 8,800 Total Expenditures 851,373 919,200 947,730 1,251,142 Fund Balance - - - - General Fund Costs $ 846,572 $ 913,320 $ 947,730 $ 1,241,142 STAFFING Total current authorized positions – 7.40 There are no changes Adopted to the current level of staffing. Total authorized positions – 7.40 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services 4,801 5,880 -10,000 Fines and Forfeitures - - -- Miscellaneous Revenue - - -- Interdepartmental Revenue - - -- Total Revenues 4,801 5,880 -10,000 Expenditures Employee Compensation 308,658 388,394 463,685 510,300 Employee Benefits 145,784 195,900 267,037 265,583 Materials 52,434 57,596 53,400 123,000 Contract Services 47,127 23,673 20,000 20,000 Cost Allocation 273,468 244,584 104,808 253,459 Capital Outlay 7,000 3,000 - - Special Projects 16,902 6,053 30,000 70,000 454 TREES AND RIGHT OF WAY - WEEKEND WORK PROGRAM Budget Unit 100-86-826 Budget at a Glance Total Revenues - Total Expenditures 441,278 Fund Balance - General Fund Costs 441,278 % Funded by General Fund 100.0% Total Staffing 2.70 PROGRAM OVERVIEW The Weekend 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 Weekend Work Program for a variety of nonskilled activities, including trash pick-up, weed control, right-of-way maintenance and sand bag filling. Offset manual work currently performed by skilled labor so as to increase overall productivity at the Service Center. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $441,278 for the Weekend Work Program Budget. This represents a decrease of $14,804 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to an adjustment of overtime based on FY 16-17 actuals. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 455 Trees and Right of Way - Weekend Work Program 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 780 780 Total Expenditures 376,961 399,971 456,082 441,278 Fund Balance - - - - General Fund Costs $ 376,961 $ 399,971 $ 456,082 $ 441,278 STAFFING Total current authorized positions – 2.70 There are no changes to the current level of staffing. Total authorized positions – 2.70 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 221,012 217,292 260,349 249,050 Employee Benefits 101,863 109,488 109,333 103,848 Materials 11,126 9,674 10,760 10,760 Contract Services - - - - Cost Allocation 42,960 63,516 74,860 76,840 Capital Outlay - - - - Special Projects - - - - 456 FACILITIES AND FLEET - CITY HALL Budget Unit 100-87-827 Budget at a Glance Total Revenues 382,657 Total Expenditures 629,738 Fund Balance - General Fund Costs 247,081 % Funded by General Fund 39.2% Total Staffing 1.00 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 20, 2017, City Council approved a budget of $629,738 for the City Hall Budget. This represents an increase of $34,706 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting an increase for new employee training. The increases in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 457 Special Project Appropriations Revenue Funding Source Description AC in IT Lab $25,000 $25,000 General Fund AC in IT Lab HVAC in Video Room $25,000 $25,000 General Fund HVAC in Video Room Paint handrails $ 5,000 $ 5,000 General Fund Paint handrails Total $55,000 $55,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 458 Facilities and Fleet - City Hall Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 26,960 26,960 Total Expenditures 471,698 530,859 595,032 629,738 Fund Balance - - - - General Fund Costs $ 471,698 $ 530,859 $ (58,190) $ 247,081 STAFFING Total current authorized positions – 1.00 There are no changes to the current level of staffing. Total authorized positions – 1.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 653,222 382,657 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 653,222 382,657 Expenditures Employee Compensation 91,605 91,678 88,320 92,691 Employee Benefits 43,319 45,063 45,855 47,282 Materials 160,235 186,787 207,820 216,670 Contract Services 145,646 182,624 154,000 157,000 Cost Allocation 28,128 23,472 58,577 34,135 Capital Outlay 2,765 1,235 - - Special Projects - - 13,500 55,000 459 FACILITIES AND FLEET - LIBRARY Budget Unit 100-87-828 Budget at a Glance Total Revenues 293,621 Total Expenditures 334,605 Fund Balance - General Fund Costs 40,984 % Funded by General Fund 12.2% Total Staffing 0.80 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. Timely response 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 20, 2017, City Council approved a budget of $334,605 for the Library Budget. This represents a decrease of $288,230 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The decrease in special projects is due to the costs and scope of project in current year being less than in the prior year. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 460 Special Projects Appropriations Revenue Funding Source Description Window Replacements $10,000 $10,000 General Fund Window Replacements Mirror Replacements $ 7,000 $ 7,000 General Fund Mirror Replacements Granite Floor Polish $ 6,000 $ 6,000 General Fund Granite Floor Polish Total $23,000 $23,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 461 Facilities and Fleet - Library Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 12,727 12,727 Total Expenditures 317,345 138,349 622,835 334,605 Fund Balance - - - - General Fund Costs $ 239,220 $ (10,620) $ (104,324) $ 40,984 STAFFING Total current authorized positions – 0.80 There are no changes to the current level of staffing. Total authorized positions – 0.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 78,125 146,269 140,700 140,700 Intergovernmental Revenue - - - - Charges for Services -2,700 586,459 152,921 Fines and Forfeitures --- - Miscellaneous Revenue --- - Interdepartmental Revenue --- - Total Revenues 78,125 148,969 727,159 293,621 Expenditures Employee Compensation 71,973 57,107 56,742 63,430 Employee Benefits 34,692 32,229 32,078 34,551 Materials 6,290 12,307 14,356 14,356 Contract Services 162,674 5,965 175,000 175,000 Cost Allocation 12,972 12,972 263,432 11,541 Capital Outlay 4,049 - - - Special Projects 24,695 17,770 68,500 23,000 462 FACILITIES AND FLEET - SERVICE CENTER Budget Unit 100-87-829 Budget at a Glance Total Revenues 429,314 Total Expenditures 314,654 Fund Balance - General Fund Costs (114,660) % Funded by General Fund 0.0% Total Staffing 0.70 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. Timely response 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 20, 2017, City Council approved a budget of $314,654 for the Service Center Budget. This represents a decrease of $20,913 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to the cost and scope of special projects this year being less than in the prior year. Staffing costs have also decreased due to the reallocation of existing staff. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Replace locker room floor $15,000 $15,000 General Fund Replace locker room floor Total $15,000 $15,000 463 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 464 Facilities and Fleet - Service Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 9,113 9,113 Total Expenditures 261,308 388,404 335,567 314,654 - - - - Fund Balance General Fund Costs $ 261,308 $ 388,404 $ (129,614) $ (114,660) Budget Revenues - - - - - - - - - - - - - - - - - - 465,181 429,314 - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - Total Revenues - - 465,181 429,314 Expenditures 54,710 58,748 61,081 58,102 27,283 31,788 33,971 30,932 65,009 52,383 86,780 98,215 28,296 31,522 40,000 40,000 76,584 63,624 65,008 63,292 9,425 6,100 - - - 144,239 39,614 15,000 STAFFING Total current authorized positions – 0.80 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.70 465 FACILITIES AND FLEET - QUINLAN CENTER Budget Unit 100-87-830 Budget at a Glance Total Revenues 228,304 Total Expenditures 504,647 Fund Balance - General Fund Costs 276,343 % Funded by General Fund 54.8% Total Staffing 0.80 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. Timely 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 20, 2017, City Council approved a budget of $504,647 for the Quinlan Center Budget. This represents an increase of $56,009 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to requested increases in special projects described in the table below. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 466 Special Projects Appropriations Revenue Funding Source Description Replace skylight $45,000 $45,000 General Fund Replace skylight New laminate floor $45,000 $45,000 General Fund Replace laminate floor Paint offices $25,000 $25,000 General Fund Repainting Social Room lights $25,000 $25,000 General Fund Upgrade to LED Total $140,000 $140,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 467 Facilities and Fleet - Quinlan Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 17,237 17,237 Total Expenditures 380,072 361,901 448,638 504,647 Fund Balance - - - - General Fund Costs $ 380,072 $ 361,901 $ 220,334 $ 276,343 STAFFING Total current authorized positions – 0.80 There are no changes to the current level of staffing. Total authorized positions – 0.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 228,304 228,304 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 228,304 228,304 Expenditures Employee Compensation 55,895 61,616 62,120 64,479 Employee Benefits 26,257 31,274 32,057 31,176 Materials 126,029 130,898 135,722 142,962 Contract Services 95,110 96,777 100,000 100,000 Cost Allocation 10,980 10,872 19,502 8,793 Capital Outlay 65,801 - - - Special Projects -30,464 82,000 140,000 468 FACILITIES AND FLEET - SENIOR CENTER Budget Unit 100-87-831 Budget at a Glance Total Revenues 241,641 Total Expenditures 248,657 Fund Balance - General Fund Costs 7,016 % Funded by General Fund 2.8% Total Staffing 0.80 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. 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 20, 2017, City Council approved a budget of $248,657 for the Senior Center Budget. This represents a decrease of $108,781 from the FY 2016-17 Final Adopted Budget. This decrease is partially due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 469 Special Projects Appropriations Revenue Funding Source Description Shelving in work room $10,000 $10,000 General Fund Add shelving in work room for storage Power to trash enclosure $ 6,000 $ 6,000 General Fund Power to charge golf cart and lighting Upgrade panic buttons & emergency lights $ 5,000 $ 5,000 General Fund Upgrade to match standard for city facilities Resurface dance floor $ 5,000 $ 5,000 General Fund Maintenance to prolong life of floor Total $26,000 $26,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 470 Facilities and Fleet - Senior Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 8,782 8,782 Total Expenditures 236,059 214,515 357,438 248,657 Fund Balance - - - - General Fund Costs $ 236,059 $ 214,515 $ 111,343 $ 7,016 STAFFING Total current authorized positions – 0.80 There are no changes to the current level of staffing. Total authorized positions – 0.80 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 246,095 241,641 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 246,095 241,641 Expenditures Employee Compensation 56,165 57,197 57,574 58,731 Employee Benefits 28,033 29,359 30,286 32,192 Materials 52,266 54,039 57,635 61,040 Contract Services 56,217 55,048 60,000 60,000 Cost Allocation 9,888 9,888 39,661 1,912 Capital Outlay 33,490 3,938 - - Special Projects -5,046 103,500 26,000 471 FACILITIES AND FLEET - MCCLELLAN RANCH Budget Unit 100-87-832 Budget at a Glance Total Revenues - Total Expenditures 146,444 Fund Balance - General Fund Costs 146,444 % Funded by General Fund 100.0% Total Staffing 0.60 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. Timely respond 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 20, 2017, City Council approved a budget of $146,444 for the McClellan Ranch Budget. This represents an increase of $11,590 from the FY 2016-17 Final Adopted Budget. This program is requesting an increase for overtime and special projects. The increases to special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description 4H roof repair $10,000 $10,000 General Fund Roof repair 4H barn lights $ 8,000 $ 8,000 General Fund Upgrade to LED Total $18,000 $18,000 472 473 Facilities and Fleet - McClellan Ranch Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 3,600 3,600 Total Expenditures 85,271 121,116 134,854 146,444 - - - - Fund Balance General Fund Costs $ 54,691 $ 121,116 $ 134,854 $ 146,444 Budget Revenues - - - - - - - - 30,580 - - - - - - - - - - - - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - Total Revenues 30,580 - - - Expenditures 35,531 43,541 43,882 47,945 17,031 21,454 21,764 24,296 16,386 12,762 19,676 20,867 7,022 30,501 26,000 26,000 5,448 5,448 8,432 5,736 - - - - 3,853 7,410 11,500 18,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: STAFFING Total current authorized positions – 0.60 There are no changes to the current level of staffing. Total authorized positions – 0.60 474 FACILITIES AND FLEET - MONTA VISTA COMMUNITY CENTER Budget Unit 100-87-833 Budget at a Glance Total Revenues 151,450 Total Expenditures 150,687 Fund Balance - General Fund Costs (763) % Funded by General Fund 0.0% Total Staffing 0.40 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. Timely respond 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 20, 2017, City Council approved a budget of $150,687 for the Monta Vista Community Center Budget. This represents a decrease of $2,510 from the FY 2016-17 Final Adopted Budget. This decrease is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. Special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 475 Special Projects Appropriations Revenue Funding Source Description New VCT composite floor in karate room $25,000 $25,000 General Fund Floor replacement Total $25,000 $25,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 476 Facilities and Fleet - Monta Vista Community Center 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 5,040 5,040 Total Expenditures 104,077 117,527 153,197 150,687 - - - - Fund Balance General Fund Costs $ 104,077 $ 117,527 $ 1,747 $ (763) Budget Revenues - - - - - - - - - - - - - - - - - - 151,450 151,450 - - - - - - - - Taxes Licenses and Permits Use of Money and Property Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenue Interdepartmental Revenue - - - - Total Revenues - - 151,450 151,450 Expenditures 32,824 32,121 31,769 34,502 15,174 16,886 17,169 17,318 24,689 24,796 29,120 30,959 22,823 31,236 35,000 35,000 5,448 5,448 23,099 2,868 3,120 7,040 - - - - 12,000 25,000 STAFFING Total current authorized positions – 0.40 There are no changes to the current level of staffing. Total authorized positions – 0.40 477 FACILITIES AND FLEET - WILSON PARK Budget Unit 100-87-834 Budget at a Glance Total Revenues - Total Expenditures 67,491 Fund Balance - General Fund Costs 67,491 % Funded by General Fund 100.0% Total Staffing 0.20 PROGRAM OVERVIEW This program maintains Wilson Park pottery 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. Timely respond 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 20, 2017, City Council approved a budget of $67,491 for the Wilson Park Budget. This represents a decrease of $1,746 from the FY 2016-17 Final Adopted Budget. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. The special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 478 Special Projects Appropriations Revenue Funding Source Description Snack Shack upgrades $8,000 $8,000 General Fund LED lights and restrooms Total $8,000 $8,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 479 Facilities and Fleet - Wilson Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 1,796 1,796 Total Expenditures 51,446 64,199 69,237 67,491 - - - - Fund Balance General Fund Costs $ 51,446 $ 64,199 $ 69,237 $ 67,491 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 15,027 18,104 16,984 17,831 7,320 8,768 8,893 10,168 10,367 11,533 13,050 13,959 15,505 22,565 10,000 10,000 3,228 3,228 2,814 5,737 - - - - - - 15,700 8,000 STAFFING Total current authorized positions – 0.20 There are no changes to the current level of staffing. Total authorized positions – 0.20 480 FACILITIES AND FLEET - PORTAL PARK Budget Unit 100-87-835 Budget at a Glance Total Revenues - Total Expenditures 58,766 Fund Balance - General Fund Costs 58,766 % Funded by General Fund 100.0% Total Staffing 0.10 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. Timely respond 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 20, 2017, City Council approved a budget of $58,766 for the Portal Park Budget. This represents an increase of $9,879 from the FY 2016-17 Final Adopted Budget. This program is requesting increases for telephone and data service increase to support devices budgeted and special projects. The increases in special projects are described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 481 Special Projects Appropriations Revenue Funding Source Description Back patio ramp & door removal $25,000 $25,000 General Fund Back patio ramp & door removal Total $25,000 $25,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 482 Facilities and Fleet - Portal Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Employee Compensation Employee Benefits Materials Contract Services Cost Allocation Capital Outlay Special Projects Appropriations for Contingency - - 1,134 1,134 Total Expenditures 27,570 22,713 48,887 58,766 - - - - Fund Balance General Fund Costs $ 27,570 $ 22,713 $ 48,887 $ 58,766 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 8,651 8,887 8,242 8,815 4,077 4,336 4,449 5,084 5,149 4,424 6,391 7,613 7,581 2,955 8,251 8,251 2,112 2,112 1,420 2,869 - - - - - - 19,000 25,000 STAFFING Total current authorized positions – 0.10 There are no changes to the current level of staffing. Total authorized positions – 0.10 483 FACILITIES AND FLEET - SPORTS CENTER Budget Unit 570-87-836 Budget at a Glance Total Revenues - Total Expenditures 484,623 Fund Balance (484,623) General Fund Costs - % Funded by General Fund 0.0% Total Staffing 0.70 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. Timely respond 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 20, 2017, City Council approved a budget of $484,623 for the Sports Center Budget. This represents an increase of $89,459 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to the requested special projects described in the table below. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 484 Special Projects Appropriations Revenue Funding Source Description Replace front counter $25,000 $25,000 General Fund Replace front counter Replace restroom floors $30,000 $30,000 General Fund Replace restroom floors Upgrade building lights to LED $15,000 $15,000 General Fund Upgrade building lights to LED New AC Unit $25,000 $25,000 General Fund New AC Unit Total $95,000 $95,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 485 Facilities and Fleet - Sports Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 15,536 15,536 Total Expenditures 285,781 394,048 395,164 484,623 Fund Balance (285,781) (394,048) 2,911 (484,623) General Fund Costs $ - $ - $ 398,075 $ - STAFFING Total current authorized positions – 0.75 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.70 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 62,220 65,935 63,446 63,612 Employee Benefits 26,021 27,338 31,638 34,254 Materials 104,456 101,913 135,360 145,167 Contract Services 42,166 52,493 60,000 60,000 Cost Allocation 94,426 100,543 51,184 71,054 Capital Outlay 14,380 - - - Special Projects (57,887) 45,826 38,000 95,000 486 FACILITIES AND FLEET - CREEKSIDE PARK Budget Unit 100-87-837 Budget at a Glance Total Revenues 81,781 Total Expenditures 135,913 Fund Balance - General Fund Costs 54,132 % Funded by General Fund 39.8% Total Staffing 0.20 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. Timely respond 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 20, 2017, City Council approved a budget of $135,913 for the Creekside Park Budget. This represents an increase of $68,128 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to the requested special projects described in the table below. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. 487 Special Projects Appropriations Revenue Funding Source Description Plumbing upgrades $12,000 $12,000 General Fund Plumbing upgrades Window replacement $ 8,000 $ 8,000 General Fund Window replacement Upgrade lights to LED $ 8,000 $ 8,000 General Fund Upgrade lights to LED Breezeway rain/sun screen $50,000 $50,000 General Fund Breezeway rain/sun screen (Budget study session request- SV) Total $78,000 $78,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 488 Facilities and Fleet - Creekside Park Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 1,759 1,759 Total Expenditures 47,661 64,481 67,785 135,913 Fund Balance - - - - General Fund Costs $ 47,661 $ 64,481 $ (13,996) $ 54,132 STAFFING Total current authorized positions – 0.20 There are no changes to the current level of staffing. Total authorized positions – 0.20 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 81,781 81,781 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 81,781 81,781 Expenditures Employee Compensation 16,609 17,574 17,348 19,509 Employee Benefits 7,752 8,784 8,723 10,022 Materials 10,251 9,688 12,665 13,755 Contract Services 5,559 10,483 10,000 10,000 Cost Allocation 3,336 3,336 12,290 2,868 Capital Outlay 4,154 2,743 - - Special Projects -11,874 5,000 78,000 489 FACILITIES AND FLEET - COMMUNITY HALL Budget Unit 100-87-838 Budget at a Glance Total Revenues 250,130 Total Expenditures 267,259 Fund Balance - General Fund Costs 17,129 % Funded by General Fund 6.4% Total Staffing 0.50 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. Timely 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 20, 2017, City Council approved a budget of $267,259 for the Community Hall Budget. This represents a decrease of $44,463 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting increases for overtime, general services contract for water quality testing and analysis for Civic Center Fountains, and special projects. The increases in special projects are described in the table below. 490 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description New AC unit by video rack $25,000 $25,000 General Fund New AC unit by video rack New counters in restrooms $10,000 $10,000 General fund New counters in restrooms Placeholder for fountains $10,000 $10,000 General Fund Placeholder for fountains Total $45,000 $45,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 491 Facilities and Fleet - Community Hall Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 6,080 6,080 Total Expenditures 123,725 126,424 311,722 267,259 Fund Balance - - - - General Fund Costs $ 106,409 $ 126,424 $ 61,592 $ 17,129 STAFFING Total current authorized positions – 0.50 There are no changes to the current level of staffing. Total authorized positions – 0.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property 17,316 - - - Intergovernmental Revenue - - - - Charges for Services - - 250,130 250,130 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues 17,316 - 250,130 250,130 Expenditures Employee Compensation 34,317 35,133 33,897 36,837 Employee Benefits 17,534 19,576 19,775 20,717 Materials 43,839 41,646 54,950 59,800 Contract Services 22,479 23,102 75,000 95,000 Cost Allocation 5,556 5,556 7,020 3,825 Capital Outlay - - 115,000 - Special Projects - 1,410 - 45,000 492 FACILITIES AND FLEET - TEEN CENTER Budget Unit 100-87-839 Budget at a Glance Total Revenues 97,866 Total Expenditures 47,033 Fund Balance - General Fund Costs (50,833) % Funded by General Fund 0.0% Total Staffing 0.10 PROGRAM OVERVIEW This program maintains 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. Timely respond 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 20, 2017, City Council approved a budget of $47,033 for the Teen Center Budget. This represents an increase of $3,484 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting an increase for the special project described in the table below. 493 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Funding Source Description Repaint interior $5,000 $5,000 General Funds Repaint interior Total $5,000 $5,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 494 Facilities and Fleet - Teen Center Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 1,619 1,619 Total Expenditures 27,623 46,748 43,549 47,033 Fund Balance - - - - General Fund Costs $ 27,623 $ 46,748 $ 3,262 $ (50,833) STAFFING Total current authorized positions – 0.10 There are no changes to the current level of staffing. Total authorized positions – 0.10 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 40,287 97,866 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 40,287 97,866 Expenditures Employee Compensation 7,124 8,887 8,442 9,015 Employee Benefits 3,568 4,319 4,449 5,084 Materials 6,210 11,513 8,957 9,446 Contract Services 9,606 20,914 14,000 14,000 Cost Allocation 1,116 1,116 6,082 2,869 Capital Outlay - - - - Special Projects - - - 5,000 495 FACILITIES AND FLEET - PARK BATHROOMS Budget Unit 100-87-840 Budget at a Glance Total Revenues - Total Expenditures 154,965 Fund Balance - General Fund Costs 154,965 % Funded by General Fund 100.0% Total Staffing 0.20 PROGRAM OVERVIEW This program maintains park restrooms to ensure efficient operations, user satisfaction and community pride. SERVICE OBJECTIVES  Provide for clean and functioning restrooms at various park locations.  Timely response 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 20, 2017, City Council approved a budget of $154,965 for the Park Bathrooms Budget. This represents a decrease of $2,968 from the FY 2016-17 Final Adopted Budget. The decrease in special projects is due to the costs and scope of projects in current year being less than in the prior year. Special projects are described in the table below. 496 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description New roof at Linda Vista $4,000 $4,000 General Fund New roof at Linda Vista Restroom sink at Linda Vista $6,000 $6,000 General Fund Restroom sink at Linda Vista Skylights at Wilson $5,000 $5,000 General Fund Skylights at Wilson Paint at Memorial Park $5,400 $5,400 General Fund Paint at Memorial Park Total $20,400 $20,400 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 497 Facilities and Fleet - Park Bathrooms Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 8,000 8,000 Total Expenditures 79,276 63,889 157,933 154,965 Fund Balance - - - - General Fund Costs $ 79,276 $ 63,889 $ 157,933 $ 154,965 STAFFING Total current authorized positions – 0.20 There are no changes to the current level of staffing. Total authorized positions – 0.20 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 518 14,108 14,527 16,290 Employee Benefits 48 6,402 6,394 8,283 Materials 8,094 18,743 25,080 25,080 Contract Services 64,041 22,637 75,000 75,000 Cost Allocation - - 2,932 1,912 Capital Outlay 6,000 2,000 - - Special Projects 575 - 26,000 20,400 498 FACILITIES AND FLEET – BLACKBERRY FARM FACILITIES MAINTENANCE Budget Unit 100-87-841 Budget at a Glance Total Revenues 568,674 Total Expenditures 298,208 Fund Balance - General Fund Costs (270,466) % Funded by General Fund 0.0% Total Staffing 0.90 PROGRAM OVERVIEW This program maintains Blackberry Farm buildings and facilities to ensure efficient operations, employee satisfaction, user satisfactions 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 20, 2017, City Council approved a budget of $298,208 for the Blackberry Farm Facilities Maintenance Budget. This represents an increase of $426 from the FY 2016-17 Final Adopted Budget. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page 22. This program is requesting an increase for overtime and special projects. The increases in special projects are described in the table below. 499 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Special Projects Appropriations Revenue Funding Source Description Trail restroom upgrades $10,000 $10,000 General Fund Add power source & replace roof Cafe upgrades $15,000 $15,000 General Fund Health department compliance Total $25,000 $25,000 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 500 Facilities and Fleet - Blackberry Farm Facilities Maintenance 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency - - 11,315 11,315 Total Expenditures 341,187 303,273 297,782 298,208 Fund Balance - - - - General Fund Costs $ 341,187 $ 303,273 $ (48,143) $ (270,466) STAFFING Total current authorized positions – 0.90 There are no changes to the current level of staffing. Total authorized positions – 0.90 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - 345,925 568,674 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - 345,925 568,674 Expenditures Employee Compensation 26,464 52,402 51,601 64,595 Employee Benefits 12,347 27,040 26,345 37,810 Materials 160,608 100,054 89,297 95,882 Contract Services 21,418 63,569 55,000 55,000 Cost Allocation 2,220 2,220 52,724 8,606 Capital Outlay 71,368 - - - Special Projects 46,762 57,988 11,500 25,000 501 FACILITIES AND FLEET - ENVIRONMENTAL MATERIALS Budget Unit 100-85-850 Budget at a Glance Total Revenues - Total Expenditures 185,216 Fund Balance - General Fund Costs 185,216 % Funded by General Fund 100.0% Total Staffing 0.65 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 collection.  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 20, 2017, City Council approved a budget of $185,216 for the Environmental Materials Budget. This represents an increase of $57,535 from the FY 2016-17 Final Adopted Budget. This program is requesting increases for overtime, Hazmat Material disposal, telephone and data services to support budgeted devices and Hazmat reporting training for staff. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 502 Facilities and Fleet - Environmental Materials 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 3,009 3,009 Total Expenditures 112,286 126,918 127,681 185,216 Fund Balance - - - - General Fund Costs $ 112,286 $ 126,918 $ 127,681 $ 185,216 STAFFING Total current authorized positions – 0.55 Staff time is being reallocated to better reflect actual time spent in this program. Total authorized positions – 0.65 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 28,787 46,032 43,718 52,920 Employee Benefits 14,448 20,306 20,934 28,170 Materials 22,699 24,545 34,220 44,480 Contract Services 4,029 4,474 3,814 4,500 Cost Allocation 42,324 31,560 21,986 52,137 Capital Outlay - - - - Special Projects - - - - 503 FACILITIES AND FLEET - FRANCO TRAFFIC OPERATIONS CENTER Budget Unit 100-87-852 Budget at a Glance Total Revenues - Total Expenditures 18,000 Fund Balance - General Fund Costs 18,000 % Funded by General Fund 100.0% Total Staffing - 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 This program is requesting building maintenance and upgrades for Franco Traffic Operations Center. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 504 Facilities and Fleet - Franco Traffic Operations Center 2015 Category 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - - Total Expenditures - - - 18,000 Fund Balance - - - - General Fund Costs $ - $ - $ - $ 18,000 STAFFING There is no staffing associated with this program. Actual Actual Final 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 - - - 18,000 505 TRANSPORTATION - TRAFFIC ENGINEERING Budget Unit 100-88-844 Budget at a Glance Total Revenues 282,000 Total Expenditures 1,001,024 Fund Balance - General Fund Costs 719,024 % Funded by General Fund 71.8% Total Staffing 3.50 PROGRAM OVERVIEW The Transportation Division oversees traffic operations, traffic studies, transportation planning, and transportation capital improvements to safely and efficiently manage vehicular, bicycle and pedestrian traffic 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.  Develop partnerships and coordinate with schools, school districts, and parents on Safe Routes to School Program. ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $1,001,024 for the Traffic Engineering 506 Budget. This represents a decrease of $757,377 from the FY 2016-17 Final Adopted Budget. This is an increase in overtime, telephone and data plan based on devices supported and conference and training for new staff. The decrease in special projects is due to the costs and scope of projects in current year being less than the prior year. To support the 2017 Work Program, a new 3-year limited term Senior Transportation/Mobility Planner position will act as a transportation planner who will focus on transit issues, including school and senior bus and ride-share programs, corporate bus issues and transit funding programs through the VTA’s Measure B program. In addition, the position currently classified as a Senior Civil Engineer will be reclassified to Transportation Manager as the position has grown in scope, breadth of responsibilities, organizational hierarchy, and subject matter specificity (transportation). The Transportation Manager classification is similar to classifications in other cities in the county, and much more closely captures the current and near-future duties and responsibilities of the position. The scope of this position has grown to include an active and growing Safe Routes to School Program, a significantly increased program to manage and implement the Bicycle Transportation Plan, the Pedestrian Transportation Plan and the ADA Accessibility Transition Plan. This position also serves as the City’s ADA Coordinator and liaison to the Bicycle and Pedestrian Commission. This position formerly reported to the Assistant Director of Public Works, however for the past four years has reported directly to the Director of Public Works. This position will also supervise the requested Transportation/Mobility Planner. These increases are partially offset due to a reorganization which moved the Safe Routes to School budget, including the Safe Routes to School Coordinator, to program 846. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 507 Transportation - Traffic Engineering Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 14,453 13,653 Total Expenditures 472,445 1,797,024 1,758,401 1,001,024 Fund Balance - - - - General Fund Costs $ 472,445 $ 566,563 $ 1,758,401 $ 719,024 STAFFING Total current authorized positions – 3.40 Staff time is being reallocated to better reflect actual time spent in this program. To support the 2017 Work Program, a new 3-year limited term Senior Transportation/Mobility Planner position is budgeted. The Safe Routes to School Coordinator was moved to program 846. Total authorized positions – 3.50 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 1,230,461 - 282,000 Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 1,230,461 - 282,000 Expenditures Employee Compensation 227,700 297,999 416,555 462,698 Employee Benefits 90,095 114,510 164,030 183,851 Materials 4,092 8,512 5,230 9,655 Contract Services 112,777 153,013 225,500 216,700 Cost Allocation 25,320 22,991 82,633 92,467 Capital Outlay - - - - Special Projects 12,461 1,200,000 850,000 22,000 508 TRANSPORTATION - TRAFFIC SIGNAL MAINTENANCE Budget Unit 100-88-845 Budget at a Glance Total Revenues - Total Expenditures 713,733 Fund Balance - General Fund Costs 713,733 % Funded by General Fund 100.0% Total Staffing 2.00 PROGRAM OVERVIEW The Traffic Signal Maintenance Division oversees the operation and maintenance of the City’s 56 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 20, 2017, City Council approved a budget of $713,733 for the Traffic Signal Maintenance Budget. This represents an increase of $78,423 from the FY 2016-17 Final Adopted Budget. This increase is primarily due to changes in how the city applied cost allocation charges. Large shifts in cost allocation charges are found in most program budgets due to a change in methodology as explained on page This program is requesting increases for standby pay and overtime to better account for actual expenditures. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 509 Transportation - Traffic Signal Maintenance 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - 20,204 20,204 Total Expenditures 754,809 545,100 635,310 713,733 Fund Balance - - - - General Fund Costs $ 754,809 $ 514,784 $ 635,310 $ 713,733 STAFFING Total current authorized positions – 2.00 There are no changes to the current level of staffing. Total authorized positions – 2.00 Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - 30,316 - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - 30,316 - - Expenditures Employee Compensation 202,429 202,968 202,737 215,420 Employee Benefits 83,047 88,927 91,590 92,563 Materials 40,999 43,855 53,750 56,690 Contract Services 202,011 104,728 201,000 201,000 Cost Allocation 108,120 68,124 66,029 127,856 Capital Outlay - - - - Special Projects 118,203 36,499 - - 510 TRANSPORTATION - SAFE ROUTES 2 SCHOOL Budget Unit 100-88-846 Budget at a Glance Total Revenues - Total Expenditures 146,761 Fund Balance - General Fund Costs 146,761 % Funded by General Fund 100.0% Total Staffing 1.00 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, etc.  Minimize gaps in communication between City, School Districts, and Schools and collaborate on efforts to increase student safety ADOPTED BUDGET Safe Routes 2 School budget moved from Budget Unit 100-88-844 to Budget Unit 100-88-846. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 511 Transportation - Safe Routes 2 School Category 2015 2016 2017 2018 Adopted Budget Appropriations for Contingency - - - 1,780 Total Expenditures - - - 146,761 Fund Balance - - - - General Fund Costs $ - $ - $ - $ 146,761 STAFFING Total current authorized positions – 0.00 The Safe Routes 2 School program coordinator position was moved from Budget Unit 100-88- 844 to Budget Unit 100-88-846. Total authorized positions – 1.00 Actual Actual Final 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 - - - 86,924 Employee Benefits - - - 36,495 Materials - - - 2,200 Contract Services - - - 9,800 Cost Allocation - - - 9,562 Capital Outlay - - - - Special Projects - - - - 512 CITYWIDE - NON DEPARTMENTAL – MINOR STORM DRAIN IMPROVEMENT Budget Unit 210-90-978 Budget at a Glance Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund 0.0% Total Staffing - 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 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 513 Citywide - Non Departmental - Minor Storm Drain Improvement 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency - - - - Total Expenditures 4,898 50,141 75,000 - Fund Balance (4,898) (21,841) (75,000) - General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this program. Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - 28,300 - - Interdepartmental Revenue - - - - Total Revenues - 28,300 - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services 1,920 - - - Cost Allocation - - - - Capital Outlay 2,978 50,141 75,000 - Special Projects - - - - 514 CITYWIDE - NON DEPARTMENTAL - FIXED ASSETS ACQUISITION Budget Unit 630-90-985 Budget at a Glance Total Revenues - Total Expenditures 1,029,200 Fund Balance (1,029,200) General Fund Costs - % Funded by General Fund 0.0% Total Staffing - 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 20, 2017, City Council approved a budget of $1,029,200 for the Fixed Assets Acquisition Budget. This represents a decrease of $192,800 from the FY 2016-17 Final Adopted Budget. The decrease is attributed to replacement of several vehicles in past fiscal years. Replacement vehicles and equipment are described in the table below. 515 SPECIAL PROJECTS Special projects are budgeted each year and may result in changes to the program budget. The following table shows the special projects for the fiscal year. Replacement Vehicles/Equipment Cost Replace #99 EOC box truck $185,000 Replace #66 TROW chipper truck $125,000 Replace #10 dump truck $ 70,000 Replace #86 Facilities utility bed truck $ 52,000 Replace #35 Grounds utility bed truck $ 48,000 Replace #40 Grounds utility bed truck $ 48,000 Replace #93 Elmwood van $ 45,000 Replace #88 Pool car $ 35,000 Replace #65 Ranger pickup truck $ 35,000 Replace #51 Building Inspector vehicle $ 35,000 Replace #5 pool van $ 33,000 Recreation & Community Services Rock Wall Truck $ 40,000 Total Replacement Vehicle $751,000 Equipment Replace chipper $ 85,000 Replace portable generator $ 74,000 Replace 2 gator field rakes $ 50,000 Tilt bed trailer for Bobcat tractor $ 15,000 Replace walker mower with Toro mower $ 20,000 Ride on spreader $ 10,000 Portable air compressor $ 20,000 72" box sweeper attachment for Bobcat $ 4,200 Total Equipment $278,200 Grand Total $1,029,200 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for the two prior fiscal years, and the Adopted Budget for the current and prior fiscal years: 516 Citywide - Non Departmental - Fixed Assets Acquisition 2015 Category 2016 2017 2018 Adopted Actual Actual Final Budget Appropriations for Contingency - - - - Total Expenditures 106,056 7,167 1,222,000 1,029,200 Fund Balance (106,056) (7,167) (1,222,000) (1,029,200) General Fund Costs $ - $ - $ - $ - STAFFING There is no staffing associated with this program. 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 106,056 7,167 1,222,000 1,029,200 517 518 Non- Departmental Debt Service Employee Housing Assistance Transfers Out NON-DEPARTMENTAL Budget Unit 2018 Adopted Non Departmental $ 34,119,272 100-90-001 Transfers Out 30,941,734 365-90-500 Public Facilities Corporation 3,167,538 100-90-502 Employee Housing Assistance 10,000 Total $ 34,119,272 519 DEPARTMENT SUMMARY Non-Departmental Category 2015 Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 43,346,514 21,927,237 25,303,911 34,119,272 Fund Balance - (5,549,993) (9,165,000) (15,184,000) General Fund Costs $ 43,346,514 $ 16,377,244 $ 16,138,911 $ 18,935,272 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $34,119,272 for the Non-Departmental Budget. This represents an increase of $8,815,361 from the FY 2016-17 Final Adopted 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 8,018 7,419 10,000 10,000 Contract Services - - - - Cost Allocation 43,338,496 21,919,818 25,293,111 34,109,272 Capital Outlay - - - - Special Projects - - - - 520 ADOPTED EXPENDITURES FY 2017-18 Non Departmental $34,119,272 (100%) 4 YEAR EXPENDITURE HISTORY (IN MILLIONS) 2015 Actual 2016 Actual 2017 Final 2018 Adopted 43.3 21.9 25.3 34.1 521 NON DEPARTMENTAL - TRANSFERS OUT Budget Unit 100-90-001, 429-90-001 Budget at a Glance Total Revenues - Total Expenditures 30,941,734 Fund Balance (15,184,000) General Fund Costs 15,757,734 % Funded by General Fund 50.9% Total Staffing - PROGRAM OVERVIEW Transfers represent transfers of monies between various funds. These transfers provide subsidies and resources 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 20, 2017, City Council approved a budget of $30,941,734 for the Transfers Out Budget. This represents an increase of $8,815,361 from the FY 2016-17 Final Adopted Budget. The increase is attributed primarily to new capital projects and a $2 million transfer of cash from the Capital Reserve to the General Fund to fund a CalPERS assigned reserve. The transfers for FY 2017-18 are as follows: 522 Transfer Out from General Fund Description Amount Special Revenue Pavement, Sidewalk, Curb and Gutter Maintenance $7,134,122 Debt Service Annual Debt Payment $3,167,538 Enterprise General Fund subsidy of several Recreation Enterprise Funds $400,000 Internal Service General Fund Subsidy of Government Channel, City Website, GIS and Compensated Absence Funding $5,056,074 Total General Fund Transfers Out $15,757,734 Transfer Out from the Capital Reserve General CalPERS Reserve $2,000,000 Special Revenue Fund Capital Improvement Projects $5,638,000 Capital Fund Capital Improvement Projects $7,546,000 Total Capital Reserve Transfers Out $15,184,000 Total All Funds Transfers Out $30,941,734 The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 523 Non Departmental – Transfers Out 2015 Category Actual 2016 Actual 2017 Final Budget 2018 Adopted Appropriations for Contingency - - - - Total Expenditures 40,163,276 18,749,953 22,126,373 30,941,734 Fund Balance - (5,549,993) (9,165,000) (15,184,000) General Fund Costs $ 40,163,276 $ 13,199,960 $ 12,961,373 $ 15,757,734 STAFFING There is no staffing associated with this program. 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 40,163,276 18,749,953 22,126,373 30,941,734 Capital Outlay - - - - Special Projects - - - - 524 NON DEPARTMENTAL DEBT SERVICE – PUBLIC FACILITIES CORPORATION Budget Unit 365-90-500 Budget at a Glance Total Revenues - Total Expenditures 3,167,538 Fund Balance - General Fund Costs 3,167,538 % Funded by General Fund 100.0% Total Staffing - 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: o Blackberry Farm - $18 million, voter approved debt; o Creekside Park - $12 million voter approved debt; o Sports Center - $8 million; o Quinlan Community Center, including park real estate - $6.1 million; o Wilson Park and improvements - $5.6 million; o Jollyman Park development - $1 million; o City Hall renovation/improvements - $1.7 million; o Library renovation/improvements - $1.7 million; o New library/community center - $10 million. 525 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. Lease Total Annual Payment Principal Interest Lease Lease Date Component 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 6/15/28 2,900,000.00 136,243.75 3,036,243.75 3,172,487.50 12/15/28 92,743.75 92,743.75 6/15/29 2,985,000.00 92,743.75 3,077,743.75 3,170,487.50 12/15/29 47,968.75 47,968.75 6/15/30 3,070,000.00 47,968.75 3,117,968.75 3,165,937.50 Total 43,940,000.00 13,133,759.40 57,073,759.40 57,073,759.40 SCHEDULE OF LEASE PAYMENTS 526 ADOPTED BUDGET On June 20, 2017, City Council approved a budget of $3,167,538 for the Public Facilities Corporation Budget. This budget is unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Non Departmental Debt Service - Public Facilities Corporation 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency - - - - Total Expenditures 3,175,138 3,169,038 3,167,538 3,167,538 Fund Balance - - - - General Fund Costs $ 3,175,138 $ 3,169,038 $ 3,167,538 $ 3,167,538 STAFFING There is no staffing associated with this program. 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 3,175,138 3,169,038 3,167,538 3,167,538 Capital Outlay - - - - Special Projects - - - - 527 NON DEPARTMENTAL - EMPLOYEE HOUSING ASSISTANCE Budget Unit 100-90-502 Budget at a Glance Total Revenues - Total Expenditures 10,000 Fund Balance - General Fund Costs 10,000 % Funded by General Fund 100.0% Total Staffing - PROGRAM OVERVIEW The recruitment and hiring of top quality department heads is 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 On June 20, 2017, City Council approved a budget of $10,000 for the Employee Housing Assistance Budget. This budget is unchanged from the prior year. The following table details revenue, total expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Final Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 528 Non Departmental - Employee Housing Assistance 2018 Category 2015 Actual 2016 Actual 2017 Final Budget Adopted Appropriations for Contingency - - - - Total Expenditures 8,100 8,246 10,000 10,000 Fund Balance - - - - General Fund Costs $ 8,100 $ 8,246 $ 10,000 $ 10,000 STAFFING There is no staffing associated with this program. 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 8,018 7,419 10,000 10,000 Contract Services - - - - Cost Allocation 82 827 - - Capital Outlay - - - - Special Projects - - - - 529 Personnel Schedules Column1 FY12 FY13 FY14 FY15 FY16 FY17 Change FY18 CITY COUNCIL/COMMISSIONS City Council 0.50 0.50 0.50 0.50 0.45 0.30 5.85 6.15 Sister Cities 0.00 0.00 0.00 0.10 0.05 0.05 0.05 0.10 Fine Arts Commission 0.10 0.10 0.10 0.15 0.15 0.15 0.00 0.15 Technology, Information & Communications Commission 0.10 0.10 0.10 0.10 0.10 0.10 (0.10)0.00 Parks and Recreation Commission 0.10 0.10 0.10 0.05 0.10 0.10 0.00 0.10 Teen Commission 0.15 0.15 0.25 0.25 0.25 0.30 0.00 0.30 Housing Commission 0.05 0.05 0.05 0.15 0.15 0.15 0.00 0.15 Library Commission 0.02 0.07 0.05 0.05 0.05 0.05 0.00 0.05 Sustainability Commission 0.00 0.00 0.00 0.00 0.00 0.10 0.00 0.10 Planning Commission 0.45 0.45 0.42 0.30 0.30 0.25 0.00 0.25 1.47 1.52 1.57 1.55 1.60 1.55 5.80 7.35 ADMINISTRATION City Clerk 0.00 0.00 3.60 3.60 3.00 3.00 0.10 3.10 City Manager 1.55 1.40 2.55 2.55 3.30 3.02 0.35 3.37 Community Outreach 0.50 0.75 0.00 0.00 0.00 0.00 0.00 0.00 Economic Development 0.00 0.00 1.00 1.00 0.00 0.00 0.00 0.00 Public Affairs 0.00 0.00 0.00 0.00 0.00 0.00 1.85 Sustainability 0.00 0.00 0.60 0.60 1.55 1.55 0.25 1.80 Legal Services 3.00 2.90 3.00 3.00 3.00 3.00 1.00 4.00 5.05 5.05 10.75 10.75 10.85 10.57 3.55 14.12 INNOVATION & TECHNOLOGY Administration 1.60 1.60 1.80 1.80 1.15 2.45 (1.60)0.85 Cupertino Scene 0.35 0.35 0.35 0.35 0.35 0.30 (0.30)0.00 Video (formally Government Channel)3.20 3.20 3.15 3.15 2.95 3.40 (0.15)3.25 Applications (formally City Website)1.00 0.95 0.95 0.95 0.95 0.80 2.40 3.20 GIS 0.00 0.00 0.00 0.00 2.00 2.30 0.35 2.65 Infrastructure (formally Information Technology)0.00 0.00 4.00 4.00 4.00 4.70 (0.10)4.60 6.15 6.10 10.25 10.25 11.40 13.95 0.60 14.55 ADMINISTRATIVE SERVICES Administration 1.98 1.93 2.70 1.80 2.50 2.50 0.30 2.80 Accounting 4.50 4.33 4.50 5.60 5.20 5.75 (0.35)5.40 Business Licensing 0.50 0.50 0.50 0.50 1.10 0.55 0.05 0.60 City Clerk 2.90 2.90 0.00 0.00 0.00 0.00 0.00 0.00 Duplicating and Printing 0.60 0.60 0.00 0.00 0.00 0.00 0.00 0.00 Human Resources 3.50 3.50 2.95 3.75 3.15 3.15 (0.30)2.85 Insurance Administration 0.50 0.50 0.35 0.35 0.35 0.35 0.00 0.35 Code Enforcement 4.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 Information Technology 4.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 22.48 22.26 11.00 12.00 12.30 12.30 -0.30 12.00 RECREATION AND COMMUNITY SERVICES Administration 2.00 2.00 2.05 3.05 2.95 2.85 0.05 2.90 Business and Community Services 9.60 9.60 9.80 9.85 8.85 9.55 1.30 10.85 Recreation and Education 4.88 4.88 4.58 4.53 5.58 11.85 (1.15)10.70 Sports, Safety and Outdoor Recreation 6.00 6.00 6.05 6.00 6.00 8.83 2.10 10.93 Senior Center/Stevens Creek Trail/Blue Pheasant 7.30 7.05 7.00 7.10 8.10 0.00 0.00 0.00 Community Outreach 0.00 0.00 0.00 0.75 0.70 0.00 0.00 0.00 29.78 29.53 29.48 31.28 32.18 33.08 2.30 35.38 COMMUNITY DEVELOPMENT Administration 1.41 1.39 1.41 0.90 0.90 0.55 0.00 0.55 Planning 7.79 7.89 8.84 9.10 8.60 10.63 0.00 10.63 Housing Services 0.83 0.68 0.68 0.80 0.80 0.80 0.00 0.80 Building 11.90 11.90 12.25 12.25 13.30 13.95 (0.10)13.85 Economic Development/RDA Successor Agency 1.50 2.04 0.00 0.00 1.00 1.00 0.00 1.00 Muni/Building Code Enforcement 0.00 0.00 1.65 1.75 2.70 1.25 0.00 1.25 23.43 23.90 24.83 24.80 27.30 28.18 -0.10 28.08 PUBLIC WORKS Administration 3.25 3.25 10.15 3.25 3.25 3.25 0.00 3.25 Environmental Programs 3.17 3.17 3.67 4.17 6.22 6.22 0.05 6.27 PERSONNEL SUMMARY by Division and Department 1.85 531 Column1 FY12 FY13 FY14 FY15 FY16 FY17 Change FY18 PERSONNEL SUMMARY by Division and Department Development Services 6.72 6.82 0.00 7.40 7.40 7.40 0.10 7.50 Service Center 2.00 2.00 2.00 2.30 2.70 3.70 (0.65)3.05 Grounds 19.70 18.95 18.75 19.75 19.75 19.75 (0.15)19.60 Streets 10.25 11.25 13.15 13.10 13.65 13.65 0.30 13.95 Trees and Right of Way 16.90 16.80 15.40 16.40 16.40 16.40 0.00 16.40 Facilities and Fleet 7.35 7.20 7.15 7.15 8.15 8.15 (0.15)8.00 Transportation 4.25 4.15 3.85 3.60 4.60 5.60 0.90 6.50 73.59 73.59 74.12 77.12 82.12 84.12 0.40 84.52 LAW ENFORCEMENT Code Enforcement 0.00 0.00 2.00 2.00 2.00 2.00 0.00 2.00 0.00 0.00 2.00 2.00 2.00 2.00 0.00 2.00 Total Benefitted Positions 161.95 161.95 164.00 169.75 179.75 185.75 12.25 198.00 532