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Budget 2018-2019 BUDGET FISCAL YEAR 2018 - 2019ADOPTED i Table of Contents City Organizational Chart ....................................................................................................................... 1 Directory of City Officials ....................................................................................................................... 3 Commissions and Committees ............................................................................................................... 4 GFOA Distinguished Budget Award .................................................................................................... 5 CSMFO Operating Budget Excellence Award ..................................................................................... 6 Resolutions ................................................................................................................................................. 7 Budget Message ....................................................................................................................................... 15 Transmittal Letter ............................................................................................................................ 15 Notable Accomplishments and New Initiatives .......................................................................... 20 Adopted Budget Overview ............................................................................................................ 27 Budget Guide ........................................................................................................................................... 37 Our Mission ...................................................................................................................................... 37 Elements of the Budget Document ................................................................................................ 38 Glossary of Budget Terminology ................................................................................................... 40 Commonly Used Acronyms ........................................................................................................... 43 Revenues, Expenditures, and Fund Balance Table ..................................................................... 45 Community Profile ................................................................................................................................. 47 History ............................................................................................................................................... 47 2018 Community Economic Profile ............................................................................................... 48 2018 City Profile ............................................................................................................................... 50 Education .......................................................................................................................................... 53 Programs and Applications ............................................................................................................ 54 Community Statistics ....................................................................................................................... 56 Community and Recreation Services ............................................................................................ 57 Things to Do and See ....................................................................................................................... 58 Financial Policies and Schedules ......................................................................................................... 61 Annual Budget Process ................................................................................................................... 61 Structure of City Finances ............................................................................................................... 63 Fund Structure .................................................................................................................................. 65 Fiscal Policies .................................................................................................................................... 69 Appropriations & Legal Debt Margin ........................................................................................... 82 Financial Overview by Fund .......................................................................................................... 84 ii Flow of Funds Chart (Sankey) ....................................................................................................... 85 General Fund Contribution Schedule ........................................................................................... 86 Fund Balance Report ....................................................................................................................... 90 General Fund Summary .................................................................................................................. 91 General Fund Classification of Fund Balance ............................................................................ 108 All Funds Summary ....................................................................................................................... 109 5-Year and 20-Year General Fund Forecast ................................................................................ 117 5-Year Forecast Schedules ............................................................................................................. 132 Department Operating Budgets ............................................................................................................... COUNCIL AND COMMISSIONS ................................................................................................ 153 Department Overview.................................................................................................................. 153 City Council City Council ............................................................................................................................... 158 Community Funding ................................................................................................................ 160 Sister Cities ................................................................................................................................. 162 Commissions Technology, Information & Communications Commission ............................................... 164 Library Commission ................................................................................................................. 166 Fine Arts Commission .............................................................................................................. 168 Public Safety Commission ....................................................................................................... 170 Bicycle and Pedestrian Commission ...................................................................................... 172 Parks and Recreation Commission ......................................................................................... 174 Teen Commission ...................................................................................................................... 176 Planning Commission .............................................................................................................. 178 Housing Commission ............................................................................................................... 180 Sustainability Commission………………………………………………………………..….182 ADMINISTRATION ........................................................................................................................ 185 Department Overview.................................................................................................................. 186 City Manager City Manager ............................................................................................................................. 192 Sustainability ............................................................................................................................. 194 Public Affairs ............................................................................................................................. 197 City Clerk City Clerk ................................................................................................................................... 200 Duplicating and Mail Services ................................................................................................ 202 Elections ..................................................................................................................................... 204 iii City Manager Discretionary Fund City Manager Contingency ...................................................................................................... 206 City Attorney City Attorney ............................................................................................................................. 208 LAW ENFORCEMENT .................................................................................................................... 211 Department Overview.................................................................................................................. 212 Law Enforcement Law Enforcement ...................................................................................................................... 216 Interoperability Project ............................................................................................................. 219 Code Enforcement .................................................................................................................... 221 INNOVATION & TECHNOLOGY ............................................................................................... 223 Department Overview.................................................................................................................. 224 Innovation & Technology Innovation & Technology Administration ............................................................................ 229 Innovation & Technology Administration ............................................................................ 231 Cupertino Scene ........................................................................................................................ 233 Video Video .......................................................................................................................................... 235 Public Access Support .............................................................................................................. 240 Applications Applications .............................................................................................................................. 242 Infrastructure Infrastructure ............................................................................................................................ 246 GIS GIS ............................................................................................................................................... 249 Citywide – Non Departmental Network Upgrade ..................................................................................................................... 251 ADMINISTRATIVE SERVICES .................................................................................................... 253 Department Overview.................................................................................................................. 254 Administration Administration .......................................................................................................................... 259 Finance Accounting ................................................................................................................................. 261 Business Licenses ...................................................................................................................... 263 iv Human Resources Human Resources ..................................................................................................................... 265 Retiree Benefits .......................................................................................................................... 267 Insurance Administration ........................................................................................................ 269 Workers Compensation Insurance ......................................................................................... 271 Long Term Disability ................................................................................................................ 273 Compensated Absences ........................................................................................................... 275 RECREATION AND COMMUNITY SERVICES ....................................................................... 277 Department Overview.................................................................................................................. 279 Recreation and Community Services Leadership 95014 ....................................................................................................................... 283 Recreation Administration ...................................................................................................... 285 Park Planning and Restoration ............................................................................................... 287 Library Services ......................................................................................................................... 289 Business and Community Services Administration .......................................................................................................................... 291 Blackberry Farm Picnic Area ................................................................................................... 294 Community Hall Operations ................................................................................................... 296 Cultural Events .......................................................................................................................... 298 Quinlan Community Center Operations ............................................................................... 302 Facilities ...................................................................................................................................... 304 Community Outreach & Neighborhood Watch ................................................................... 307 Recreation and Education Administration ......................................................................................................................... 309 Youth Program ......................................................................................................................... 311 Teen Program ........................................................................................................................... 313 Teen Center ................................................................................................................................ 315 Park Facilities ............................................................................................................................. 317 Youth Teen Recreation ............................................................................................................ 319 Youth, Teen and Senior Adult Recreation ............................................................................ 321 Sports, Safety and Outdoor Recreation Park Facilities ............................................................................................................................ 324 Administration ......................................................................................................................... 327 Blackberry Farm Golf Course ................................................................................................. 329 Creekside Park Youth Sport ................................................................................................... 331 Outdoor Recreation ................................................................................................................. 333 Sports Center Operations ........................................................................................................ 335 v Disaster Preparedness ............................................................................................................. 338 Monta Vista Recreation Center .............................................................................................. 340 Senior Programs Senior Adult Supervision ......................................................................................................... 342 Youth, Teen, and Senior Adult Recreation ........................................................................... 344 Senior Adult Recreation .......................................................................................................... 346 Facilities ..................................................................................................................................... 348 Community Services Community Outreach & Neighborhood Watch ................................................................... 350 Disaster Preparedness ............................................................................................................. 352 Neighborhood Watch .............................................................................................................. 354 Library Services ........................................................................................................................ 356 PLANNING AND COMMUNITY DEVELOPMENT ................................................................ 359 Department Overview.................................................................................................................. 360 Administration Community Development Administration ........................................................................... 364 Planning and Economic Development Current Planning ...................................................................................................................... 366 Mid and Long Term Planning ................................................................................................ 368 Annexations .............................................................................................................................. 371 Economic Development .......................................................................................................... 373 Housing Services Community Development Block Grant (CDBG) Administration ..................................... 375 Affordable Housing ................................................................................................................. 377 Public Service Grants ............................................................................................................... 379 BMR Housing ........................................................................................................................... 381 Human Services Grants ........................................................................................................... 383 Building General Building ....................................................................................................................... 385 Building Plan Review .............................................................................................................. 387 Building Code Enforcement ................................................................................................... 389 Muni Code Enforcement ......................................................................................................... 391 PUBLIC WORKS ............................................................................................................................... 393 Department Overview.................................................................................................................. 395 Administration Public Works Administration ................................................................................................. 401 vi Environmental Programs Resource Recovery .................................................................................................................... 404 Non-Point Source ..................................................................................................................... 407 Development Services Plan Review ............................................................................................................................... 410 CIP Administration ................................................................................................................... 414 Service Center Administration .......................................................................................................................... 416 Grounds McClellan Ranch Park .............................................................................................................. 419 Memorial Park .......................................................................................................................... 421 School Site Maintenance ......................................................................................................... 423 Neighborhood Parks................................................................................................................. 426 Sports Field Jollyman, Creekside ........................................................................................... 429 Civic Center Maintenance ....................................................................................................... 432 Streets Storm Drain Maintenance ........................................................................................................ 434 Sidewalk Curb and Gutter ...................................................................................................... 436 Street Pavement Maintenance ................................................................................................ 439 Street Sign Marking ................................................................................................................. 441 Street Lighting .......................................................................................................................... 443 Equipment Maintenance ......................................................................................................... 445 Environmental Materials ........................................................................................................ 447 Trees and Right of Way Overpasses and Medians ........................................................................................................ 449 Street Tree Maintenance .......................................................................................................... 451 Weekend Work Program ........................................................................................................ 453 Facilities and Fleet City Hall Maintenance.............................................................................................................. 455 Library Maintenance ............................................................................................................... 457 Service Center Maintenance ................................................................................................... 459 Quinlan Community Center Maintenance ........................................................................... 461 Senior Center Maintenance ..................................................................................................... 464 McClellan Ranch Maintenance ............................................................................................... 466 Monta Vista Community Center Maintenance .................................................................... 468 Wilson Park Maintenance ....................................................................................................... 470 Portal Park Maintenance ......................................................................................................... 472 Sports Center Maintenance ..................................................................................................... 474 vii Creekside Park Maintenance .................................................................................................. 477 Community Hall Maintenance ............................................................................................... 479 Teen Center Maintenance ....................................................................................................... 481 Park Bathrooms Maintenance ................................................................................................ 483 Blackberry Farm Maintenance ............................................................................................... 485 Transportation Franco Traffic Operations Center .......................................................................................... 487 Traffic Engineering .................................................................................................................. 489 Traffic Signal Maintenance ..................................................................................................... 493 Safe Routes 2 School ................................................................................................................ 495 Citywide – Non Departmental Minor Storm Drain Improvement ......................................................................................... 497 Fixed Assets Acquisition .......................................................................................................... 499 NON-DEPARTMENTAL ................................................................................................................ 503 Department Overview.................................................................................................................. 504 Transfers Out General Fund Transfers Out .................................................................................................... 507 Capital Reserve Transfers Out ................................................................................................ 509 Facility Lease Debt Service ...................................................................................................... 511 Employee Housing Assistance ................................................................................................ 515 PERSONNEL SUMMARY ................................................................................................................. 517 CAPITAL IMPROVEMENT PROGRAM ................................................................. See CIP FY 2019 Citizens of Cupertino City Council Committees and Commissions City Attorney City Manager City Treasurer City Clerk Public Affairs Sustainability Programs Law Enforcement (Santa Clara County Sherriff – Contract) Administrative Services Community Development Recreation and Community Services Public Works Innovation & Technology Code Enforcement Finance Building Recreation & Education Capital Improvement Program Transportation GIS Infrastructure Human Resources Planning Sports, Safety & Outdoor Recreation Development Services Environmental Programs Video Applications Economic Development Business & Community Services Service Center Code Enforcement (Zoning & Building) Grounds Streets Trees & ROW Facilities & Fleet Housing 1 This page intentionally left blank. 2 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2018-19 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  Steven Scharf Council member Barry Chang Council member Savita Vaidhyanathan Council member Darcy Paul Mayor Rod Sinks Vice Mayor 3 Fiscal Year 2018-19 Commissions and Committees AUDIT COMMITTEE LIBRARY COMMISSION Barry Chang Rose Grymes Eno Schmidt Liana Crabtree Darcy Paul Gopal Kumarappan Jim Luther Amando Wo Daisy Liang Christie Wang HOUSING COMMISSION PLANNING COMMISSION John Zhao Geoffrey Paulsen Sue Bose David Fung Nina Daruwalla Jerry Liu Poonam Goyal Don Sun Sanjiv Kapil Alan Takahashi FINE ARTS COMMISSION BICYCLE PEDESTRIAN COMMISSION Janki Chokshi Wenjia Chen Susan Levine Rajeswari Mahaliagan Michael Sanchez Gerhard Eschelbeck Peter Heller Erik Lindskog Sean Lyn Jennifer Shearin PUBLIC SAFETY COMMISSION TEEN COMMISSION Yvonne Chao Emily Chan Juliet Shearin Andy Huang Madhavan Krishnan Varsha Subramanyam Robert McCoy Christina Lau Vanitha Vemula Hymanand Nellore Sidharth Rajaram Neha Sahai Shivani Sahni SUSTAINABILITY COMMISSION ECONOMIC DEVELOPMENT Angela Chen Meera Ramanathan Don Sun Angela Tsui Gary Latshaw Anna Weber Timm Borden Jeff Milkes Vignesh Swaminathan Savita Vaidhyanathan David Brandt Aarti Shrivastava Anjali Kausar FISCAL STRATEGIC COMMITTEE Kevin McClelland Roslyn Donald Kristina Alfaro Aarti Shrivastava Jason Lundgaard Mike Rohde Darcy Paul Steven Scharf Steven Scharf Timm Borden Zach Korach PARKS AND RECREATION COMMISSION TECHNOLOGY, INFORMATION & COMMUNICATIONS COMMISSION Meenakshi Biyani Helene Davis Judy Wilson Carol Stanek Neesha Tambe Mukesh Garg Keita Broadwater Rajaram Soundararajam Vaishali Deshpande Arnold de Leon 4 5 California Society of Municipal Finance Officers Certificate of Award Operating Budget Excellence Award Fiscal Year 2017-2018 Presented to the City of Cupertino For meeting the criteria established to achieve the Operating Budget Excellence Award. February 7, 2018 Drew Corbett Craig Boyer, Chair CSMFO President Professional Standards and Recognition Committee Dedicated Excellence in Municipal Financial Reporting6 7 8 9 RESOLUTION NO. 18-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING A PORTION OF THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2018-19 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 soqpd 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 2018- 19 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 2018-19 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 Exhibit A, attached and incorporated by reference. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 51h day of June, 2018, by the following vote: 10 Resolution No . 18-056 Page 2 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Paul, Chang, Scharf, Vaidhyanathan None None Sinks APPROVED: ~~2'~11 ~Paul,~--P Grace Schmidt, City Clerk City of Cupertino 11 FISCAL YEAR 2018-19 PROPOSED BUDGET FINANCIAL OVERVIEW BY FUND Exhibit A Special Debt Service Capital Project Enterprise Internal Service 2018-19 Proposed Revenue Categories General Fund Revenue Fund Fund Funds Funds Funds Budget Total Sales Tax $ $ $ $ $ $ $ Property Tax Transient Occupancy Utili ty Tax Franchise Fees Other Taxes Licenses & Permits Use of Money & Property Intergovernmental Charges for Services 41,000 41,000 Fines & Forfeitures Miscellaneous 6,150 6,150 Transfers In TOTAL REVENUE $ 47,150 $ $ $ $ $ $ 47,150 Special Debt Service Capital Project Enterprise Internal Service 2018-19 Proposed Appropriation Categories General Fund Revenue Fund Fund Funds Funds Funds Budget Total Employee Compensation $ $ $ $ $ $ $ Employee Benefits Materials Contract Services Contingencies Cost Allocation Special Projects 41,000 41,000 Capital Outlays Debt Service/Other Uses Transfers Out TOTAL EXPENDITURES $ 41,000 $ $ $ $ $ $ 41,000 12 RESOLUTION NO. 18-058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ESTABLISHING AND ADOPTING THE APPROPRIATION LIMIT IN THE AMOUNT OF $100,538,305 FOR FISCAL YEAR 2018-19 WHEREAS, the State of California has adopted legislation requiring local jurisdictions to calculate their appropriation limits in complying with Article XIII B of the State Constitution; and WHEREAS, pursuant to Proposition 111, passed by the voters of California on June 5, 1990, said limits are determined by an adjustment formula based upon change in population, (either city or county), combined with either the change in inflation (California per capita income) or the change in the local assessment roll due to local nonresidential construction; and WHEREAS, the local governing body is required to set an appropriation limit each year by adoption of a resolution; and WHEREAS, the city/county population percentage change over the prior year is .02% /.99% respectively, and the California per capita personal income change is 3.67%; and WHEREAS, In computing the 2018-19 limit based upon the adjustment factors provided pursuant to Proposition 111, the City Council has elected to use the county population percentage change along with the California per capita income change, but the Council expressly reserves the right to use the non-residential assessed valuation percentage change when the figure is available. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby approves a 2018-19 fiscal appropriation limit of $100,538,305, based on Proposition 111 guidelines allowing for use of the county population percentage change along with the California Per Capita Personal Income change to adjust base year appropriations. BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby reserves the right to use the non-residential assessed valuation percentage change when the figure is available. PASS ED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 5th day of June, 2018, by the following vote: 13 CC Resolution No. 18-058 Page 2 AYES: NOES: Paul, Sinks, Chang, Scharf, Vaidhyanathan None ABSENT: None ABSTAIN: None ATTEST: APPROVED: ~~aul,M~-P ~,'di_ Grace Schmidt, City Clerk City of Cupertino 14 Budget Message May 1, 2018 To the Residents of Cupertino, Honorable Mayor, and Members of the City Council: I am happy to report that the City of Cupertino presently finds itself in a healthy financial position. With revenues continuing to outpace expenditures in the short term, coupled with the City’s conservative budgeting approach, the City is able to maintain excellent service, high- quality programs and initiatives, and healthy reserves. The City prides itself on being a financially stable organization, so it is a pleasure to submit a balanced budget for Fiscal Year 2018-2019. The City’s top three sources of revenue continue to be property, sales, and transient occupancy taxes. All three revenue streams are expected to grow, although the pace of that growth will slow. The last five years were a boon to the City’s coffers due to major development projects, such as Main Street and Apple Park. However, these were one-off projects that have been completed. As large-scale development begins to decline in Cupertino, the City will see the effects of that in reduced short-term revenue. This year, for the first time, City staff has included a medium-term (5 year) and a long-term (20 year) budget projection. While long-term projections are inherently less reliable than short-term projections, they can help detect structural budget issues that can be mitigated if identified early. In the next five years, our projections show small operating surpluses, even without additional development-generated revenue. However, beginning in 2025, the forecast shows that expenditures are projected to exceed revenues at an increasing rate. That is because two of the City’s largest sources of revenue, property tax and sales tax, are projected to continue to grow but at a much slower pace. Expenditure growth is being driven by pension liability costs that are projected to increase by more than 80% in the first five years of the forecast. Although pension costs are projected to level off in future years, the City’s contract with the Santa Clara County Sheriff’s Office is expected to continue increasing at a much faster rate of approximately 4.5% per year. This budget reflects the interesting position that the City finds itself in. In the short term, the City can target specific programs and initiatives for smart expansion that will immediately benefit our residents and broader community. However, the City is also making decisions now, such as scaling back on certain programs and projects, to better position itself financially in the next five to 20 years. The following sections are snapshots of the decisions being made that fall into those categories. 15 Recreation and Community Service Events and Initiatives The City’s goal, and the mission of the Recreation and Community Services Department, is to offer opportunities that celebrate Cupertino’s diverse culture and varying age groups. We do that by providing events and activities to encourage participation by those with different backgrounds, experiences, and interests. This year’s budget will allow the Recreation and Community Services Department to expand on its ever-popular summer events. This summer will include a full schedule of outdoor concerts, movies, and free fitness activities. This year’s offerings differ from previous years in that events will expand into neighborhoods and local parks. New sites will include the Civic Center Plaza, Jollyman Park, Creekside Park, and Main Street Park. The goal, as always, is to create a sense of community and offer residents a stress-free environment where they can relax and have fun while hanging out with family, friends, and neighbors. To that extent, the City will be partnering with neighborhood leaders and local nonprofits to help organize and host these events. These partnerships will ensure buy-in from our community. In addition, the City will also be investing in improvements to the popular Memorial Park events. The City will be unveiling a new sound system for concerts and outdoor movie screen and projection system for the Cinema at Sundown event series. We fully expect that these new events and upgraded equipment will enhance the quality of City- hosted events our residents have come to expect. Pension Liability Funding Cupertino, like most California cities, provides retirement benefits for its employees through the California Public Employee’s Retirement System (CalPERS), which administers benefits for its more than 1.5 million members. The CalPERS retirement plan is structured as a defined benefit plan. This means the plan provides benefits that are calculated using a formula, rather than accounting for individual member’s contributions and earnings in a savings pl an, which occurs with a 401k. During the recession, CalPERS investment assets decreased substantially and actuarial methods and economic and demographic assumptions were adjusted, significantly decreasing asset valuations. Together, the investment decline and actuarial changes created a gap between pension assets and liabilities. This gap is known as an “Unfunded Accrued Liability” (UAL). Prior to 2014, CalPERS agencies received their retirement rate as a percentage of payroll that included both the normal and UAL costs. In 2014, CalPERS separated the UAL from the normal annual service cost in the annual valuation report, in addition to moving from a percent of pay to a flat amount for UAL, normal cost rates remained unchanged as a percent of pay calculation. 16 Two years later, in December 2016, the CalPERS Board voted to decrease the rate of return on investments, also known as the discount rate, from 7.5% to 7.0%. Since then, cities across the state have been faced with an unprecedented escalation in employee pension costs. Each city has chosen to confront the challenge in its own way. The City of Cupertino decided last fiscal year to increase our CalPERS retirement reserve from $500,000 to $4.8 million. To further prepare the City, this budget increases funding for this reserve by $3.2 million to a total of $8.0 million. This approach, based on a 20-year projection, should allow the City to weather the significant projected increases to employer retirement rates while minimizing its impact on City operations. In addition, should rates exceed those currently forecasted by CalPERS due to investment returns or assumption changes, the City will be able to utilize these dollars to offset any unexpected cost. If rates stabilize, these dollars could be used as a direct payment to offset UAL costs and result in the City reaching an 80% funded status in a shorter time frame. Although not a problem of our making, the City is doing everything it can to limit the ramifications of rising pension costs. In order to protect the City’s valuable assets, and reduce the impact on programs and services, the City will continue to augment the retirement reserve. Although this will help mitigate the effects of the City’s pension liability increases, the escalating costs of the Sheriff’s contract—mostly due to rising pension costs on their end—is outside of this program. These costs will become increasingly unaffordable without growing revenues through property, sales, and other taxes that have yet to be approved by the electorate. Capital Improvement Projects The City has been fortunate over the last five years to have been able to invest in itself. The City focused on major infrastructure projects such as paving roads, upgrading storm drainage systems, and constructing a bicycle network. With the investments made into our Pavement Management Program, as well as focused infrastructure areas of our Capital Improvement Program, the City made noticeable improvements that benefit residents and businesses in their everyday lives. After years of infrastructure investment, the City can scale back on some of these capital projects and focus on less costly infrastructure maintenance. Through many years of neglect and degradation, much brought about by the recession, the overall pavement condition rating for the City bottomed out in 2013 at rating of 64 on a 1 to 100 scale. This is on the low end of the “good” range, which was mostly kept up by the better condition of our major arterial streets. Unfortunately, many of our neighborhood streets had sunk into the 20s, which is considered “very poor.” With the investments made over the past five years, our network rating is anticipated to hit 83 this year, which is on the high end of the “very good” range, closing in on “excellent.” This five-year turnaround is believed to be the quickest improvement in the state. As part of our Pavement Management Program, the City accomplished a significant amount of improvements to our bicycle path network by applying different paint legends and striping after the repaving of roadways were completed. We installed green bike lanes in sensitive merging locations, and installed bike “buffers,” cross-hatched areas to give some room between 17 bikes and cars, and we installed “sharrows” to indicate where bikes and cars must share the road. More importantly, we initiated and made great progress with detailed planning, community outreach, and design of three major bicycle trails within the City, two long segments of protected bike lanes on McClellan Road and Stevens Creek Boulevard, and a citywide network of bike boulevards that reduce vehicular speeds and encourage bicycles along neighborhood streets. A plan for a system of wayfinding signage has also been completed. While a lot of this work has not yet been constructed, the initial stage work on many of these projects will occur this fiscal year. Other major investments have been in our storm drainage system. Over the last few years, we have completed three major storm drainage projects that addressed areas of historical local flooding. These areas are in the Monta Vista neighborhood, on Bubb, Elm Court and McClellan Road, and on North Foothill Boulevard near Cupertino Road. Despite our progress toward meeting our infrastructure needs, there is still much to be accomplished. There will be a host of improvements coming to our parks, both large and small, which will flow from our Parks and Recreation System Master Plan. Also many of our facilities, not the least being City Hall, need to be replaced or significantly upgraded. Without the infusion of additional one-time revenues, in the form of developer fees or publicly approved debt, these improvements will continue to be deferred. Efficiencies Gained Through Technology Along with its investments in physical infrastructure, the City recently focused on four key initiatives: 1. Implementing business applications that provide enhanced accessibility and transparency to its residents 2. Strengthening the City’s cybersecurity posture 3. Enhancing citizen engagement 4. Solidifying business continuity and disaster recovery plans Over the past few years, the City acquired and implemented new applications to improve operational efficiencies and customer service, including an enterprise resource planning software for budget, payroll, and human resources processes; along with transparency platforms like OpenGov. Enhancements coming this fiscal year are planned for three major applications: land management, recreation, and asset management. The City fully expects to complete the implementation of land management software within the next year, as well as new Recreation software in the fall or winter of 2018. Additionally, Innovation Technology will pilot two technologies in the coming year: chatbots and augmented reality. The goal of these technologies is to enhance customer experience. 18 Cybersecurity concerns have magnified over the past year and Cupertino has responded by replacing security systems with next generation technologies. IT will further strengthen our posture by implementing security controls, policies, and procedures that meet bests practice guidelines. Next year the City will move to geographically dispersed data locations to store mission critical information thereby increasing both business continuity and disaster recovery for City data. Citizen engagement, always a priority with Cupertino staff, will be enhanced by the implementation of the Open Town Hall application. This application will be utilized to inform and involve citizens by sharing information more effectively and collecting broader resident feedback. The City’s GIS capabilities were significantly expanded through the use of the asset management software. Conclusion The near future looks bright for the City’s financial picture. With revenues still outpacing expenditures for the next few years, the City can focus on maintaining and improving services and initiatives that will positively affect our residents’ lives. But with the knowledge that expenditures are projected to eventually surpass revenues, the City has the ability to make decisions now to scale back on certain programs to ensure that the City remains a financially stable organization well into the future. Respectfully submitted, David Brandt City Manager 19 Notable Accomplishments and New Initiatives NOTABLE ACCOMPLISHMENTS IN FISCAL YEAR 2017-18 Green Prime In Spring 2017, Silicon Valley Clean Energy began providing clean, carbon-free electricity to Cupertino residents and businesses. The City opted into its Green Prime service, which provides 100% renewable electricity to our City-owned facilities, buildings, parks, and lights throughout the City. This reduces our overall greenhouse gas emissions and helps bring the City closer to its Climate Action Plan (CAP) goals. Demonstration Garden The City transformed the landscape around City hall to a drought tolerant demonstration garden. This demonstration garden implements xeriscaping, a landscaping method that integrates water-conserving techniques such as utilizing low water using plants, mulch, and efficient irrigation to eliminate the need for supplemental watering. A well-designed xeriscape can be a beautiful addition that not only saves water, but also invites wildlife, provides year- round interest, and creates attractive natural spaces. Pogo In partnership with the Fremont Union High School District, the City of Cupertino launched a student carpool pilot program in January 2018. The pilot gives Cupertino High parents free access to the Pogo, Inc. mobile platform, which allows Cupertino High parents to connect in a closed group to create and manage walk-, bike-, or carpools. The goal is to make it easy for busy parents to organize convenient, reliable alternative transportation options for their children. An effective parent carpool program has the potential to reduce traffic congestion around schools during peak hours as well as reduce GHG emissions to further the City’s CAP goals. Youth Engagement The City Manager’s Office undertook several youth engagement efforts in Fiscal Year 2017-18. Staff annually hosts DeAnza College’s APALI Youth Leadership Academy class at City Hall to inform students about careers in local government. This year, staff also created a local government civics lesson geared for middle school students. Staff spent a day with Miller Middle School students engaging them using fun, interactive activities. These students were later invited to visit City Hall and meet then-Mayor Vaidhyanathan. Lastly, City Manager’s Office staff partnered with the Recreation and Community Services Department on a youth job fair and created a presentation on “landing the job” with tips for resume writing and interviewing. 20 Recruitment Software Implementation NeoGov, an online system for recruitment and applicant tracking, as well as onboarding, is being implemented to streamline the recruitment and hiring process for all departments. Implementation includes staff training, and inputting recruitment, salary, job specifications into the test module. The system will be more user-friendly for job candidates and hiring managers. Staff will complete implementation of the recruitment and application tracking model by the end of the fiscal year. Establishing a Labor Management Committee The City is working with CEA (Cupertino Employees’ Association) to establish a Labor Management Committee. The proposal is to meet regularly to explore mutual concerns that will be beneficial between the City and CEA. Such meetings should not be intended to serve as negotiations but as an exchange information or to solve problems and issues. Asset Management Module During FY 2017-18, the City’s Finance staff began implementation of its Asset Management module. This module will assist in the accounting and financial reporting for the City’s capital assets. While system implementations require significant staff resources, recording and maintaining the City’s capital asset records within its general ledger will improve efficiency, clarity, as well as transparency. Legal Actions The City prosecuted and defended a total of 11 legal actions with favorable results. In Yanovsky v. City of Cupertino, a jury found that the City was not liable for traumatic injuries suffered by a motorcyclist who collided with a motor vehicle exiting its residential driveway on to a City street. In Tefari v. City of Cupertino, the trial court granted the City’s motion for summary judgment, disposing of a personal injury action filed by an 8-year-old girl who sought a damage award for injuries that she allegedly suffered after a fall from a soccer goal. In City of Saratoga, et al. v. California Department of Transportation, et al. the City obtained a favorable settlement resolving its CEQA challenge to Caltrans’s proposed expansion of toll lanes located on State Route 85. The City Attorney’s Office also continued to defend the City’s legal position with respect to initiatives. Development Projects The Community Development Department oversaw the planning and the City Attorney’s Office facilitated the City’s approval of three development projects including the following: the Charities Housing Project which consists of 19 residential units, of which 18 are Below Market Rent (“BMR”) senior housing units; the Marina Foods Redevelopment, featuring a 122 room hotel and 188 housing units including 18 BMR units; and the Hamptons, a 942 unit apartment complex with 71 BMR units. 21 Contract Templates To promote best practices and to streamline the contract review process, the City Attorney’s Office developed seven contract templates for use with design professionals, professional consultants, information technology, and for use based on a specific contract amount. Medical Marijuana Ordinance In response to voter approval of Proposition 64 at the November 2016 Election, City staff and the City Attorney’s Office collaborated on the adoption of an amendment to its Medical Marijuana Ordinance to maintain local control, and to address the changes mandated by the Adult Use of Marijuana Act (“AUMA”). The City also adopted an ame ndment to update its Municipal Code to reflect the most recent changes in state law to the regulation of Accessory Development Units. Fourth of July Fireworks In July 2017, the Recreation and Community Services Department coordinated the return of the 4th of July Fireworks Show to Cupertino. The fireworks were launched from Hyde Middle School to an estimated crowd of 7,500. Spectators gathered at three viewing sites (Creekside Park, Miller Avenue, and Sedgwick Elementary) and throughout the adjacent neighborhoods. The City’s Recreation and Public Works staff worked closely with a number of partners to deliver a safe and successful event, including the Santa Clara County Sheriff’s Office, Santa Clara County Fire Department, CERT and Citizen Corps volunteers, Cupertino Union School District, Fremont Union High School District, Creekside Community Church of Cupertino, West Valley Presbyterian Church, and local businesses. This collaborative, community event was well-received and is planned to continue. Expanded Hours at the Senior Center In September 2017, the Senior Center launched expanded evening and weekend hours and is now open Monday through Thursday 8am-9pm, Friday 8 a.m.-5.p.m., and Saturday 8:30 a.m.- 4:30 p.m. The increased hours allow for more programming in the evenings and on Saturdays, improved customer service, and increased access for working adults. YAC Attack In March 2018, the Recreation and Community Services Department, in partnership with the Youth and Teens Recreation Services (YTRS) professionals group, coordinated YAC Attack, a biennial teen leadership conference that focuses on empowering youth and teens to promote change by: 1) encouraging greater involvement within their local municipal government, 2) developing positive youth and teen special events and programs in their community, and 3) learning about youth and teen specific health and wellness issues. Participants had the opportunity to attend workshops in health and wellness, college preparation, and debates on 22 social issues. This marked the first time in the City’s history that this event was hosted in Cupertino and a total of 255 youth from the Bay Area registered for the leadership conference. California Stormwater Quality Association Award for Schools Goin’ Green Youth Outreach The Environmental Programs Division was presented with the “Outstanding News, Information, Outreach and Media Project” by the California Stormwater Quality Association (CASQA) for the interagency collaborative Schools Goin’ Green (SGG) program. The goal of the program was to partner with six middle and high schools along the Cupertino-Sunnyvale border and implement student-led campaigns focused on litter removal on and around their campuses, pollution prevention messaging and education, and development of recycling and food waste composting programs. Accomplishments of the program resulted in 98 clean up events totaling over 4,100 pounds of litter collected, student developed branding of the SGG logo and associated educational handbook, and on-going litter reduction around their schools. EPA Food Recovery Challenge Certificate of Achievement The goals of this program are to reduce the amount of wasted food from being disposed to the landfill through source reduction, food donation, and composting. In 2016, these efforts by staff and our participating business partners resulted in a 26% reduction of food waste entering the landfill over 2015 levels. Those efforts translate to a reduction of 1,220 metric tons of CO2 equivalent, which is comparable to removing 257 passenger vehicles from the road for one year. Safe Routes 2 School (SR2S) Program Receives a Grant and Award Cupertino SR2S was awarded the America Walks Community Change Grant of $1,500 to work with middle school students. The grant will fund student groups at each middle school campus, which are creating and implementing their own walking encouragement program. A truly student-driven initiative. For example, Kennedy Middle School Students plan to host an ongoing walk to school event that will reward students who walk the most with a pizza party, candy, and possibly gift cards if funds permit. In addition, Cupertino SR2S was awarded the “Exemplary City” recognition for its robust Safe Routes to School Program. This award was part of the Healthy Cities Initiative facilitated by the Santa Clara County Public Health Department. Collaborative Food Diversion & Rescue Initiative Grant Recipient A collaborative effort between Joint Venture Silicon Valley, The County of Santa Clara, and City representatives across Santa Clara County to engage stakeholders, collect data, and devise a plan to develop a comprehensive and robustly equipped food rescue project wherein edible surplus food will be transported safely to underserved areas where people can collect the food for their families with dignity. This effort addresses food insecurity in the County while reducing the amount of landfilled organic material that contributes significant amounts of greenhouse gases to our atmosphere. CalRecycle awarded $313,000 dollars to Joint Venture Silicon Valley to implement the countywide initiative. The grant will provide paid drivers and a 23 refrigerated food truck that will distribute the food with dignity to people. Stanford University recently signed on as a partner and food donor and, as of April 12th, the Food Rescue Initiative received a grant for $150,000 from the Sobrato Family Foundation. California Society of Municipal Finance Officers Budget Award for CIP Program While the City’s Operating Budget has received an award for many years from the California Society of Municipal Finance Officers, this is the first year that we have applied for a Budget Excellence Award for our Capital Budget. In February we were notified that this initial application was successful. Gold Level Bicycle Friendly Community Designation The City of Cupertino has recently been recognized as a Gold Level Bicycle Friendly Business. The Gold Level Bicycle Friendly Business designation is awarded by the League of American Bicyclists to businesses who have shown a remarkable commitment to bicycling. Creating a bicycle-friendly community and workplace has been shown to improve citizens’ health, well- being, and quality of life; improving traffic safety, and reducing pollution, congestion and wear and tear on our streets and roads. Tree City USA Growth Award Designation The City of Cupertino celebrated its 6th straight year as being designated a Tree City USA, and its 4th year of obtaining a Growth Award. The Growth Award recognizes higher levels of tree care by participating Tree City USA communities. The Growth Award highlights innovative programs and projects as well as increased commitment of resources for urban forestry. It also provides an opportunity to share new ideas and successes across the country. NEW INITIATIVES FOR FISCAL YEAR 2018-19 Economic Development Initiatives The Economic Development Division will implement initiatives from the Economic Development Strategic Plan including:  Develop regulations to encourage and allow for smaller-sized incubator and accelerator space for start-up businesses with shared on-site resources and amenities;  Develop new regulations and policies to allow mobile vendors to provide services in designated areas of the city as a pilot program; and  Partner with the Cupertino Chamber of Commerce to develop and launch an “I Love Cupertino” community-focused website to promote civic pride, local events, and local businesses. Bike Implementation Plan Projects The Public Works Department will undertake various bicycle related infrastructure projects in this fiscal year: 24  McClellan Road Class IV (separated) Bike Lanes – Begin construction on Phase 1, Imperial to Stelling in summer 2018  Junipero Serra Trail (I-280 Trail) – Continue to develop design alternatives, work with stakeholders and the community.  Regnart Creek Trail – After several community workshops, bring design alternatives to City Council for selection and approval.  UPRR Trail Feasibility Study – Develop alternatives in preparation for working with railroad company.  Stevens Creek Boulevard Bike Lanes – Initial conceptual design and hold community workshops.  Carmen Road Bike/Ped bridge – Initiate conceptual design alternatives and hold community meetings, and develop implementation budget. Upgraded Community Garden The Community Garden at McClellan Ranch Preserve has experienced a number of challenges due to unreliable perimeter fencing, insufficient irrigation, pervasive rodents and critters, and inconsistent garden plot sizes. Recreation and Community Services staff met with the gardener community on several occasions from September 2017 to January 2018 to solicit input on important features of a new garden. Staff presented a conceptual design to the Parks and Recreation Commission in March 2018. The conceptual design incorporates features desired by the community, current gardeners, and staff while maintaining the same footprint and includes: more regular-sized garden plots, new irrigation, new fencing, vegetable and hand wash stations, education areas, and composting demonstration areas. The budget for this work is in the 2018/19 CIP plan. The current timeline is to solicit bids for the construction of the improvements is in fall 2018 and to complete the project by early spring 2019. Neighborhood Events Program In summer 2018, Recreation and Community Services will present an expanded citywide neighborhood events program to build a heightened sense of community. The expanded events will be held at neighborhood parks and will include a summer movie series, summer concert series, and other events in the future as the program expands and incorporates community input. Emergency Operations Plan An Emergency Services Coordinator was hired in 2017 to prepare the city for any natural disaster or emergency. In FY 2018-19, the Coordinator will complete a new, updated Emergency Operations Plan and a Continuity of Government Plan while focusing on volunteer and employee support and development and greater communication processes. 25 Community Transit Program Planning The Public Works Department will begin planning for a Community Transit/Shuttle Program. The City will initiate surveys to determine need and desire for routes to support seniors, schools, and other sectors of the community currently underserved by VTA routes. City Council Election The City Clerk, as the Elections Official, oversees Cupertino’s General Municipal election in even-numbered years. This entails that the City Clerk or clerk staff meet with each candidate during the Nomination Period to distribute paperwork and go over in detail the requirements to run for City Council. The City Clerk is also the Filing Officer for mandatory Campaign Disclosure Statements in which candidates must disclose funding sources for their election committees. Cupertino will hold its General Municipal election on November 6, 2018 to elect three Councilmembers each to a four-year term. The election is for one open and two incumbent seats. ActiveNet Recreation and Community Services will launch a new recreation management system, ActiveNet, at the end of 2018. The web-based software will allow the Department to provide more efficient online and in-person transactions for activity registration, membership management, facility reservations, and point of sale services. 26   Adopted Budget Overview The Adopted Budget reflects a total City budget of $131.7 million, a decrease of $17.2 million or  12% when compared to the FY 2018 Adopted Budget. The City’s General Fund is adopted at  $77.6 million, an increase of $2.6 million or 3.4% from the FY 2018 Adopted Budget.  The  General Fund is balanced through the use of General Fund revenue of $76.9 million and is  projected to end FY 2019 with approximately $9 million in unassigned fund balance that may be  transferred to the 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 (58%).        Fund Type Total Adopted  Expenditures Total Adopted  Revenue Change in  Fund  Balance/Net   Position General  $            77,639,720  $            76,888,476  $                (751,244) Special Revenue  $            13,689,297  $            12,565,191  $             (1,124,106) Debt  Service  $              3,169,438  $              3,169,438  $                          ‐    Capital Projects  $            17,868,000  $              9,051,500  $             (8,816,500) Enterprise  $            10,854,026  $              7,344,400  $             (3,509,626) Internal Service  $              8,498,378  $              7,024,288  $             (1,474,090) Total  $           131,718,859  $           116,043,293  $           (15,675,566) General 77,639,720 59% Special Revenue  13,689,297 10% Debt Service 3,169,438 2% Capital Projects  17,868,000 14% Enterprise 10,854,026 8% Internal Service 8,498,378 7% FY 2018-19 Adopted Budget by Fund 27   The graph below summarizes the changes in the City’s General Fund for an eight‐year period:    A total of 201.75 positions are budgeted in FY 2019 with two new positions. These new positions  will: (1) ensure current analytical and technical projects and system implementations are  completed; and (2) assume many already existing duties for Development Services which will  allow current staff to allocate resources to additional street maintenance projects and grant  management due to SB1 and Measure B.  The conversion of two positions from Limited Term to  Permanent was also approved based on a continued need for additional resources.    FY 2017‐18 Adopted Budget       197.75  Senior Assistant Attorney (Council Item) 1.00  Account Clerk I/II (Mid‐Year)       1.00  Adopted Conversions from Limited Term to Permanent    Environmental Programs Assistant       0.00  Associate Civil Engineer 0.00  FY 2018‐19 Adopted Budget          Senior Management Analyst, Limited Term 1.00  Engineering Technician         1.00      FY 2018‐19 Benefitted Positions 201.75    28   As in the past, staff continues to recommend adding positions only on a limited term basis  unless staff is confident that the needed level of service will be permanent, our ongoing  revenues can support the position long term, or staff cannot recruit and/or retain the staff  resource on a limited term basis.  Staff believe that the need for the Engineering Technician will  be on a permanent basis.    Changes to the Budget and Policies   The FY 2019 budget document and process are very similar to those of the past few years.  Below are a few highlights from the budget and process:    Revised Fees and Cost Allocation Plan (CAP)  Significant shifts in the category of cost allocation changes are primarily due to the following  changes.  Overall, cost allocation has decreased over prior year due to the correction and  removal of a double‐counting of Strategic Support charges in fiscal year 2017‐2018.   Additionally, vehicle and equipment charges decreased due to the winding down of  replacements for vehicles and equipment that have surpassed their useful life.  Furthermore,  I&T charges increased due to additional one‐time project expenses and additional changes in  methodology.  Finance and Human Resources experienced additional charges due to the  increased cost and volume of providing related services.        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 June 5, 2018 City Council agenda packet.     GANN Appropriations Limit  The City’s appropriations limit for FY 2019 is $100,538,305, $4,409,818, or 4.7% higher than the  FY 2018 limit of $96,028,488. For FY 2019, the City’s estimated appropriations of proceeds from  taxes, less statutory exclusions, are unchanged as of the Proposed Budget.  Data needed to  calculate the 2019 appropriations limit will not be available until mid‐May.   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.  This reflects  the prior year limit and will not be updated until the Adopted Budget when the information  required for this calculation is available.       29   Budget by Fund  General Fund  The General Fund pays for core services such as public safety, recreation and community  services, planning and community development, streets and trees, and a host of other vital  services. The revenue used to pay for these services comes primarily from local taxes such as  property tax and sales tax, transient occupancy tax, charges for service, and a variety of other  discretionary sources.     General Fund revenue is estimated at $76.9 million in the FY 2019 Adopted Budget (excluding  fund balance). This is an overall decrease of $3.1 million (4%) when compared to the FY 2018  Adopted Budget. This decrease is primarily attributable to a change in the methodology for cost  allocation.  In recent years, the City has experienced local economic boom that had driven  strong gains in sales tax, property tax, and transient occupancy tax revenues, which were  partially offset by decreases in development‐related fees and charges given the challenging  political climate surrounding development in the City.  With downward trending development  activity compared to previous years, the City’s revenues and expenditures are returning to a  state of normalcy. 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 decrease from the current year  estimate of $9.6 million to $9.0 million in FY 2019. As shown in the chart below, the FY 2019  ending fund balance is estimated to be $45.4 million, or 1% lower than the FY 2018 year end  estimate.   30       As shown in the graph below, the majority of city resources are used to support public works  (24%), non‐departmental expenses (15%), law enforcement (17%), recreation (14%), and  community development (11%).      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 10% of the citywide expenditure budget. The largest Special Revenue Fund accounts  for streets, roads, and transportation. Other funds account for storm drain management,  affordable housing programs, and park development. The Adopted Budget for Special Revenue  Funds for FY 2019 is $13.7 million, which is an $11.6 million decrease from FY 2018 Adopted  Budget primarily due to the completion of capital and the decision to budget BMR grant  funding on an as‐needed basis.       Classification FY 15‐16  Actual FY 16‐17  Actual FY 17‐18  Estimated FY 18‐19  Adopted Percent  Change Unassigned 29,869,085$ 28,057,799$ 9,645,226$   8,893,982$   ‐8% All Other Classification 22,325,755   25,531,891   36,316,546   36,316,546   0% Total Fund Balance 52,194,840$ 53,589,690$ 45,961,772$ 45,210,528$ ‐2% GENERAL FUND FUND BALANCE 31   Budgets within the Special Revenue Funds are funded by $4.5 million in restricted department  revenue, and $8.1 million in transfers, including $6.6 million from the General Fund, bringing  total funding sources for the fund to $12.6 million. This will result in a projected decrease to  fund balance of $1.1 million. The Special Revenue Funds are projected to end the year with fund  balances of $3.1 million.     Capital Projects Funds  The Capital Improvement Project Fund, Stevens Creek Corridor Park Fund, and Capital Reserve  Fund are currently in the Capital Projects Fund type category. This fund type is typically used  to account for financial resources that are used for the acquisition or construction of major  capital facilities or to provide facilities for City departments, and are identified in the five‐year  Capital Improvement Program (CIP).     The Adopted Budget for the Capital Projects Funds for FY 2019 is $17.9 million, comprised of  $7.2 million in new capital projects and $10.7 million in transfers out to the Special Revenue and  Enterprise funds to fund capital projects.  The FY 2019 budget is $5.6 million lower than FY 2018  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 2019 is $10.9 million, an increase of $0.3  million from the FY 2018 Adopted Budget. Budgets within the Enterprise Funds are funded by  $7.3 million in program revenue including $75,000 in transfers from CIP. The Enterprise Funds  also rely on $11.1 million of prior year fund balance, bringing total funding sources for the  funds to $18.4 million. The Enterprise Funds are projected to begin the fiscal year with $8.2  million in retained earnings and are projected to end the year with retained earnings of $4.7  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  funds and programs for information technology, workers’ compensation, equipment,  compensated absence, long‐term disability, and retiree medical insurance.     The Adopted Budget for the Internal Service Funds is $8.5 million, which is $3.2 million lower  than the FY 2018 Adopted Budget.  This decrease is primarily attributed to the transfer of the  City Channel to the General Fund. Budgets within Internal Service Funds are funded by $5.0  million in department revenue, $1.6 million from the General Fund, and $473,000 from a  combination of depreciation reserves and retained earnings.      32   Special Projects  The FY 2019 Adopted Budget includes funding for several one‐time Special Projects.  These  projects are identified as part of the Special Project section within each program and are  summarized in the table below.  This list excludes one‐time capital outlays and ongoing  pavement management costs.            Program Budget Project Name Expenditure Funding Source 122 Sustainability Residential Drought Tolerant Landscaping Pilot Program 175,000$         General Fund Residential Energy Reduction & Efficiency Program 6,000$            General Fund Utility Box Art Painting Round 4 10,000$          General Fund Employee Commute Program 50,500$          General Fund 132 Duplicating and Mail Services Postage Machine 22,970$          General Fund 200 Law Enforcement K9 7,328$            General Fund 305 Video Conference Room  Upgrade Phase II 225,000$         General Fund iMac Video Editing Computers 40,000$          PEG  Funds Live Graphics System Upgrade 30,000$          PEG  Funds Camera Gimble Stabilization  System 10,000$          PEG  Funds SCALA Digital Signage Hardware Upgrade 10,000$          PEG  Funds DSLR Camera System 6,500$            PEG  Funds 310 Infrastructure HyperConverged ‐ Phase II 70,000$          Internal Service Fund MFP Refresh ‐ Phase II 95,000$          Internal Service Fund Campus Wireless LAN 98,000$          Internal Service Fund Public Wireless Hotspots 52,000$          General Fund Video Storage Area Network 50,000$          Depreciation 610 Cultural Events Neighborhood Parks Special Events 40,000$          General Fund 612 Park Facilities Grassroots Ecology 68,000$          General Fund 616 Blackberry Farm Golf Course Facility Maintenance 10,000$          Enterprise Fund 621 Sports Center  Operations Health & Safety Equipment 5,000$            Enterprise Fund 630 Facilities Quinlan Equipment 10,000$          General Fund 702 Mid and Long Term Planning General Plan Amendment Authorization Applications 100,000$         General Fund 801 Resource Recovery Waste Characterization  Study 105,000$         Enterprise Fund Waste Tonnage Audit 45,000$          Enterprise Fund 804 Plan  Review Apple Campus 2 20,500$          Pass Thru Revenues 813 Neighborhood Parks Baseball Field Renovation 20,000$          General Fund 820 Sidwalk Curb and Gutter Annual Sidewalk Curb & Gutter Project 850,000$         Transportation Fund Sidewalk Grinding 50,000$          Transportation Fund 821 Street Pavement  Maintenance Pavement Maintenance 5,000,000$      Transportation Fund 825 Street Tree Maintenance Street Tree Maintenance 10,000$          General Fund 828 Library Maintenance Granite Polishing 6,000$            General Fund 832 McClellan  Ranch Maintenance Rodent Controls Gift Shop 30,000$          General Fund 836 Sports Center  Maintenance Paint Lower Level Floor & Stairwell 30,000$          Enterprise Fund Paint Racquetball and Gym 30,000$          Enterprise Fund Panel Replacement in Lower Level 15,000$          Enterprise Fund 839 Teen  Center  Maintenance Painting 30,000$          General Fund Carpet Replacement 20,000$          General Fund 844 Traffic Engineering Traffic Signal System Upgrade 400,000$         General Fund AC2 Staff Time Pass Through 20,500$          Pass Thru Revenues 985 Fixed Assets Acquisition Vehicle Replacement 538,000$         Internal Service Fund TOTAL 8,411,298$       33   0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Number of Jobs (not seasonally adjusted)Monthly Employement ‐ San Jose/Santa  Clara MSA 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 2.9% in 2017 according to the Bureau of Economic Analysis, compared with an  increase of 1.6% in 2016. The increase in real GDP in 2017 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 continuing to hit record lows while over two million jobs were created in  2017. The U.S. unemployment rate stood at 4.1% in March 2018 representing a 0.4% percentage  point drop compared to the March 2017 unemployment rate of 4.5%, 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.     Consumer confidence, as reflected by the Conference Board Consumer Confidence Index,  continued to rise over the previous year and stands at 127.0 as of March 2018, despite a 3.8 point  decrease over the previous month.  The year‐over‐year increase is 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  4.3% in March 2018, an improvement  compared to last year’s unemployment  rate of 4.9%.  Per capita personal income  increased 3.5% in 2017 over 2016, mostly  due to faster growth in wages. Growth  in the housing market continues with  the prices of single family homes up  8.8% and sales up 5.4% compared to  February of last year according to the  California Association of Realtors  (CAR).  Recognizing that the state has a chronic housing shortage and understanding that  inadequate housing has the potential to impede economic growth, state legislators have  succeeded in passing a legislative housing package that has the potential to make a difference.      Cupertino Economic Conditions  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 2018 employment level in the MSA was 1.0 million, virtually  unchanged from the March 2017 level.  The March 2018 preliminary unemployment rate of 2.7%  34   has dropped from the 3.5% rate experienced a year ago. Our local unemployment rate is lower  than the national unemployment rate of 4.4%.      Housing prices remain strong compared to the same period in 2018. In March 2019, single  family homes sold for a median home price of $2.2 million, a significant increase over the past  year. Property Tax revenue is expected to increase slightly compared to last year given the  increase in the median home price, reassessments of development projects, and additional TEA  property tax share. Construction activity, although strong in previous years, will begin to flatten  out as development projects, particularly Apple Park, begin to wind down.    Key Budget Assumptions  Revenue Assumptions  The FY 2019 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 assumed in the FY 2019 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 contract period.      In addition, budgeted personnel expenditures factor in salary step increases for approximately  49% 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 2019 funding needs. In addition, one‐time projects have been separated out in  FY 2019 to ensure that expenditure trends reflect ongoing expenditure needs. Contingency  budgets are being reduced to 5% of the total General Fund budget for contractual services and  supplies and materials for operating programs. Consistent with past budgets, an additional 5%  is allocated to the City Manager’s discretionary budget to cover unanticipated program  expenses.     Ongoing Challenges  Retirement Benefits   Cupertino provides retirement benefits for its employees through the California Public  Employee’s Retirement System (CalPERS). Poor investment returns during the Great Recession  and actuarial assumption changes have increased the gap between the pension system’s assets  and liabilities, resulting in the overall funded status of the system falling significantly. The  funded status as of June 30, 2017 is estimated at 68%, down from 69% over the prior year due to  lower than expected investment returns.    35   As a result, the CalPERS Board has adopted revised actuarial policies to improve the financial  sustainability of the system. In February 2018, the CalPERS board voted to decrease the  amortization period for new pension liabilities from 30 years to 20 years, effective July 1, 2019.  In addition, in December 2016, the CalPERS Board voted to reduce the discount rate, also  known as the assumed rate of return for investments, by 0.5 percentage points to 7.0%. The  result of this change is significant and will result in considerable increases in retirement costs  well above what the City had previously forecasted for retirement expenses as noted in the  table below.  The FY 2019 Adopted Budget includes these additional expenses and proposes the  creation of a Pension Rate Stabilization Program (PRSP), a Section 115 Trust that will act to  stabilize pension rate volatility and minimize the impact on the General Fund’s operating  budget from year to year. The FY 2019 Adopted Budget also includes an increase to the City’s  CalPERS Reserve from $4.8 million to $8.0 million to achieve this stabilization through the  following ramp‐up period:        Revenue Volatility  The City’s revenue mix is heavily reliant on volatile business‐to‐business sales tax, which makes  up approximately 19% of the City’s annual General Fund revenues. Business‐to‐business sales  taxes are very sensitive to economic fluctuations as evidenced by Cupertino’s experience during  the dotcom bust from 2000‐2004. Our heavy reliance on the volatile high tech industry also  makes us vulnerable. The loss of one of our top three sales tax producers in FY 2013‐14 only  made the City more reliant on a single tax producer, making us more vulnerable to its business  volatility.    Health Benefits  There is uncertainty around potential repeal and replacement of the Affordable Care Act (ACA)  and how it would affect health care costs. Rate increases have stabilized with the  implementation of the ACA.       FY19‐20 FY20‐21 FY21‐22 FY22‐23 FY23‐24 FY24‐25 Projected Payroll 17,041,226$ 17,552,463$ 18,079,037$ 18,621,408$ 19,180,050$ 19,755,452$  Normal Cost (%)10.6% 11.6% 11.6% 11.6% 11.6% 11.6% Normal Cost 1,806,370$   2,036,086$   2,097,168$   2,160,083$   2,224,886$   2,291,632$    UAL Payment 3,201,000$   3,584,000$   4,029,000$   4,420,000$   4,698,000$   4,940,000$    Total Contribution 5,007,370$   5,620,086$   6,126,168$   6,580,083$   6,922,886$   7,231,632$    Total Contribution (%) 29.4% 32.0% 33.9% 35.3% 36.1% 36.6% 36 Budget Guide OUR MISSION     The mission of the City of Cupertino is to provide exceptional service,  encourage all members of the community to take responsibility for one another,  and support the values of education, innovation, and collaboration.  37 Elements of the Budget Document The budget is the City’s fundamental policy document.  It describes the City’s goals and details  how resources are allocated to achieve these goals.  In addition, the budget serves as the annual  financial plan, an operations guide and a communications tool.    The budget guide provides an overview of the elements of the budget document.  It includes a  glossary of budget terminology.  The budget document includes the following key elements:    1. Budget Message: This section includes the City Manager’s transmittal letter submitting the  budget to the City Council.  The Budget Message also summarizes the City’s current and  long‐term financial position, highlights new programs and organizational changes  addressed in the budget and outlines both short and long‐term goals of our city  government.    2. Fiscal Strategic Plan:  The Fiscal Strategic Plan Committee was formed to analyze current  funding gaps and present a more accurate financial picture.  The committee identifies one‐ time, non‐recurring revenue.    3. Budget Guide: This section includes the City’s Mission and other tools to assist the reader in  identifying key terminology in the budget document.     4. Community Profile:  This section describes Cupertino’s history, the economic and city  profiles, community statistics, recreation and community services, education, and additional  areas of interest in the city.    5. Financial Policies and Schedules: This section provides financial information on projected  revenues, expenditures, fund balances and reserves.  It includes the Budget Summary of  Funds as well as detailed fund descriptions and information on all revenue sources and  expenditure projections.      This section also includes fund balance trends and detailed revenue and expenditure  projections for the next five years.    Additionally, this section includes an analysis of all City revenues by category.  Our major  revenue projections are based on trends, current economic indicators and other agency  input.  Sales tax projections are based on input from our sales tax consultants, industry  trends and major company forecasts.  Property tax revenues are projected by the county and  adjusted by staff based on known trends.  Park dedication fees are estimated based on  current development projects and other taxes are reviewed quarterly and budgets are based  on this trend analysis.    38 6. Departmental Operating Budgets: This section details historical and proposed expenditures  by operating department.  The City is organized into seven key operating functions,  including Administration, Law Enforcement, Innovation and Technology, 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  projects or costs.    Departmental expenditures are divided into the following categories:    Employee Compensation represents permanent full‐time and part‐time salary costs and  overtime.    Employee Benefits represents PERS retirement, health insurance costs, and other benefits.    Materials represents items purchased for repair and maintenance, operational activities such  as books, uniforms and recreation supplies, and office supplies.    Contract Services represents legal, consulting and other professional services, contract  repair and maintenance, utility charges, training and memberships, equipment rentals,  insurance and employment services.    Cost Allocation represents Cost Allocation and Internal Service charges to user departments    Appropriations for Contingency represent 5% of total budgeted materials and contract costs  and is designed for unexpected expenditures and/or emergencies.    Capital Outlay represents expenditures for tangible fixed assets including land, buildings,  furniture, equipment and City vehicles.    Special Projects represent any one time projects or costs.    Debt Service/Other represents principal and interest payments on outstanding debt and  interfund transfers.    7. Non‐Departmental Operating Budgets: This section details historical and proposed  expenditures for the functions of interfund transfers and debt service.    39 8. Capital Improvements: The Capital Improvements section is in a separate document called  Capital Improvement Program that details the proposed capital projects for the next five  fiscal years.  These projects are organized into five categories: Parks, Buildings, Streets,  Traffic Facilities, and Storm Drainage.  The five‐year budget denotes funding sources and a  description of each project. The City Council approves funding of Capital Improvements on  a total project basis. The project may expend the funds over multiple years.    Glossary of Budget Terminology The Cityʹs budget contains specialized and technical terminology that is unique to public finance  and budgeting.  To help the reader understand the terms, a glossary of budgetary terminology is  found below.     Accrual – A basis of accounting in which revenues are recognized in the accounting period in  which they are earned and expenses are recognized in the period in which they are incurred.     Adopted Budget – Revenues and appropriations approved by the City Council in June for the  following fiscal year.    Allocated Costs – An expense charged by one department/division to another for services  performed or expenditures of a general nature that are charged to one main account and allocated  to other departments/divisions by a specified formula.    Appropriation – An authorization made by the City Council that permits the City to incur  obligations and to make expenditures of resources.    Balanced Budget – A balanced budget requires that the amount of budgeted expenditures be  equal to or less than the amount of projected revenues for the budget year.    Budget – A financial plan for a specific period of time (fiscal year) that matches all planned  revenues and expenditures with various municipal services.    Budget Amendment – A legal procedure utilized by the City Manager to revise a budget  appropriation.  Adjustments to expenditures within or between departmental budgets may be  accomplished administratively.  City Council approval is required for additional appropriations  from fund 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 Cityʹs physical plant to be incurred over a fixed  period of several future years.    Capital Outlay – Expenditures relating to the purchase of equipment, land and other fixed assets.    40 Cost Allocation Plan – A plan that details how indirect costs are calculated and allocated to user  departments.    Cost Recovery – The establishment of user fees that is equal to the full cost of providing services.    Department – A major administrative segment of the City that indicates overall management  responsibility for an operation or a group of related operations within a functional area.    Division – A unit of organization that reports to a department.    Enterprise Fund – A fund established to account for activities that are financed and operated in a  manner similar to private business enterprises, in which costs of providing services are primarily  recovered through user fees.    Estimated Budget – The status of appropriations between July 1 and June 30 includes the adopted  budget, budget amendments, prior year encumbrances, approved carryovers, and transfers  between objects, divisions and departments.    Expenditure – Utilization of fund resources.  Expenditures include operating expenses, debt  service and capital outlays.    Expenditure Category – A basis for distinguishing types of expenditures.  The major expenditure  categories used by the City are: employee compensation, employee benefits, materials, contract  services, appropriations for contingency, special projects, capital outlay and debt service.    Fiscal Year – A twelve‐month time period signifying the beginning and ending period for  recording financial transactions.  The City has specified July 1 through June 30 for its fiscal year.    Full‐Time Equivalent (FTE) – The ratio of a position in comparison to the amount of time a  regular, full‐time employee normally works in a year. A full‐time employee (1.00 FTE) is paid for  2,080 hours a year. Positions budgeted to work less than full‐time are expressed as a percent of full‐ time.     Fund – A fiscal and accounting entity for which the recording of financial transactions is made for  the purpose of carrying on specific activities in accordance with the requirements placed upon the  use of financial resources.    Fund Balance – The net effect of assets less liabilities at any given point in time.    General Fund – The fund used to account for the major operating revenues and expenditures of  the City, except for those financial resources that are required to be accounted for in another fund  category.  General Fund revenues are derived primarily from property and other taxes.    41 Goal – Broad mission statements that define the purpose of a department.    Governmental Fund – Account for activities that are primarily tax‐supported operations or other  mandatory payments. Reported using the current financial resources measurement focus and the  modified accrual basis of accounting.    Infrastructure – Long lived capital assets that normally are stationary in nature and can be  preserved for a significantly greater number of years than most capital assets.  Examples include  roadways, bridges, and drainage systems.    Internal Service Fund – A fund used to account for the services provided by one department to  other departments on a cost‐reimbursement basis.    Modified Accrual – Under the modified accrual basis of accounting, revenues are recognized in  the period in which they become available and measurable, and expenditures are recognized at  the time a liability is incurred pursuant to appropriation authority.     Operating Budget – A financial plan for the provision of direct service and support functions that  provide basic governmental services.  The operating budget contains appropriations for such  expenditures as employee compensation, materials, contract services, capital outlay and debt  service.  It does not include Capital Improvement Project expenditures.    Reserve – An account used to designate a portion of the fund balance for a specific future use and  is, therefore, not available for general appropriation.    Revenue – Increases in fund resources.  Revenues include income from user fees, taxes, permits,  and other sources.    Section – A unit or organization that reports to a division.    Self‐Supporting Activity – An enterprise activity where all service costs (including principal and  interest debt payments) are primarily covered solely from the earnings of the enterprise.    Subsidy – Supplemental resources provided to ensure adequate funding when anticipated  expenditures exceed revenues.    Transfer Out – Amounts transferred from one fund to another to assist in financing the services for  the recipient fund.     User Fees – Fees charged to users of a particular service provided by the City.         42 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 43 RWQCB Regional Water Quality Control Board UBC Uniform Building Code YAC Youth Advisory Commission VSP Vision Service Plan                                                                               44 Revenues, Expenditures, and Fund Balance Table   Example    Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues ‐                  ‐                  ‐                                       ‐                                        Taxes ‐                  ‐                  ‐                                       ‐                                        Licenses and Permits ‐                  ‐                  ‐                                       ‐                                        Use of Money  and Property ‐                  ‐                  ‐                                       ‐                                        Intergovernmnental 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 ‐                  ‐                  ‐                                       ‐                                        Appropriations  for  Contingency ‐                  ‐                  ‐                                       ‐                                        Total Expenditures ‐                  ‐                  ‐                                       ‐                                        Fund Balance (Usage)‐                  ‐                  ‐                                       ‐                                        General Fund Contribution ‐                  ‐                  ‐                                       ‐                                            Glossary    Taxes – Money received from tax revenue    Licenses and Permits – Money received from license and permit fees    Use of Money and Property – Interest earnings, facility and concession rents    Intergovernmental Revenue – Funds received from Federal, State or Local government such as  grants    Charges for Services – Fees collected for services provided by the department    Fines and Forfeitures – Money received from fines and penalties    45 Miscellaneous Revenue – Money received from various sources such as donations, salvage and  legal settlement    Interdepartmental Revenue – Interdepartmental service charges and transfers    Total Revenues – Total of all revenue categories    Employee Compensation – Full‐time and part‐time salaries    Employee Benefits – Employee benefits including health insurance and retirement     Materials – All material, conference and training costs    Contract Services – All contracted goods and services    Cost Allocation – Cost of services from other City departments and depreciation expenses    Capital Outlay – Land, buildings, vehicles, infrastructure and assets used in operation beyond  one year    Special Projects – One‐time projects or costs    Appropriations for Contingency – Fund for unexpected expenses and emergencies    Total Expenditures – Total of all expenditure categories    Fund Balance – The net effect of assets less liabilities at any given point in time    General Fund Contribution – Total Expenditures minus Total Revenues minus Fund Balance  46 Community Profile History “This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a settlement because it is among the hills very near to the range of cedars which I mentioned yesterday, and lacks level lands.” When Spanish explorer San Juan Bautista De Anza traveled through California in 1776, he and his party documented these words about the land surrounding Stevens Creek, named back then as Arroyo San Joseph Cupertino. However, first impressions can often be misleading. Underneath the spiny, overgrown bush was a completely different land waiting to be uncovered. During this time, the area was populated by Native Americans who hunted and gathered, prospering from the abundant resources the land had to offer. It wasn’t until 1848 when the first American settler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply ‘West Side’ and primarily owned by the government. After crossing over the Sierra Nevada in wagons, he discovered the true value of the land underneath the bush, and proceeded to purchase over 300 acres of farmland to grow grapes and blackberries. Stephens pioneered the way for farmers, which established West Side as an agricultural hot spot. The land Stephens owned eventually became Blackberry Farm, and the road, creek, and reservoir were all named after him, although misspelled. In early West Side, many of the newest advances in agriculture were being developed. Settlers were drawn to the land because of its rich earth, where they were able to grow products that competed on the world market. Once the bush had been cleared, they grew grapes, which covered the West Valley area with vineyards by the late 1800s. By the 1900s, a plant louse called Phylloxera spread throughout the vineyards, attacking the roots of the grape vines, killing the grapes and putting a halt to wine production. As a solution, nearly everything was replanted with fruit orchards. When the fruit trees blossomed, visitors would come to the orchards for “The Valley of Heart’s Delight” festivals, which celebrated the prosperous agriculture of the West Valley area. Apart from the farmland, West Side was primarily known as a cross-roads, an intersection between Saratoga-Sunnyvale Road and Stevens Creek. This served as a way station for travelers to pass through while going from town to town. As more people came to West Side to take advantage of the rich farm land, more family holdings gathered around the cross-roads. Starting off as just a post office and home union store, West Side’s humble cross-roads brought many diverse communities, all attracted by the preferable climate and profitable market for crops. As more people were drawn to the area around the cross-roads, the orchards were gradually replaced with modern houses for workers. The population steadily grew, and the face of West Side changed, progressing to a more modern town. The community wanted to rename the city, as to not confuse it with other cities, as well as establish a unique identity. John T. Doyle, a 47 lawyer from San Francisco, and writer of historical anthologies on the area, chose the name “Cupertino” after the original name of the creek. After the post-World War II population boom, the growing community petitioned for Cupertino to become an incorporated town. Members of the community were worried that the alternative to incorporation was to have parts of Cupertino annexed by surrounding cities, splitting up the community and erasing the local culture. To preserve the rural atmosphere, lower taxes for farmers, start a local government, and prepare for growth, Cupertino voted for incorporation. In 1955, Cupertino officially became the 13th city in Santa Clara County. By the 1970s, Cupertino once again began to undergo dramatic changes. The growing community attracted several large technology corporations. Lockheed Martin, HP, Intel, and many other big names established themselves in the Silicon Valley. Apple Inc. was founded in Cupertino in 1976 and quickly grew into the tech giant the City is known for today. In the late 20th century, Cupertino and the surrounding areas experienced another surge in population growth, this time due to the immigration of people from Asian countries. Immigration laws at the time were in the favor of families looking to move to the Silicon Valley. People immigrated here for a variety of reasons—whether they were aspiring for career prospects with major tech companies, or striving for a quality education for their children, everyone who immigrated here had a common goal: to find opportunities to work hard for a better life for themselves and their families. 2018 Community Economic Profile Cupertino, with a population of 64,127 and City limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the Bay Area. Economic health is an essential component to maintaining a balanced city, which provides high- level opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that success as a partnership is a direct reflection of success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters residential and business prosperity and strengthens working relationships among all sectors of the community. Because Cupertino is a mature, 93% built-out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world renowned as the home of high-tech giants, such as Apple, Inc. and Seagate Technologies, and as a community with stellar public schools. 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. 48 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, Chef Hung, HaiDiLao Hot Pot Restaurant, Pressed Juicery, Orangetheory, 85 Degree Bakery, Target Express, Steins Beer Garden, Kula Sushi, Vitality Bowls, Doppio Zero, Koja Kitchen, and Icool In2 Ice Cream. Housing, office, and a new Residence Inn by Marriott are available to support the thriving area. Benihana, Dynasty Seafood Restaurant, Bowlmore, Ice Center Cupertino, and Silicon Valley Bay Club also serve as nearby anchors. The construction of new retail and commercial development strengthens existing popular venues in Cupertino, including The Marketplace. The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals. They include Daiso, Marukai Groceries, Super Cue, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Aloha Fresh, Merlion Restaurant, Icicles, CBI Boiling Fish, Garlic Mediterranean Grill, Rori Rice, and Erik’s DeliCafé. Cupertino Village is undergoing renovations to upgrade existing buildings, construct new buildings, parking, and open-courtyard space. The shopping center is home to 99 Ranch Market, Starbucks, Gogigo Korean BBQ, Creamistry, MOD Pizza, Ten Ren Tea, Fantasia Coffee & Tea, Happy Lemon, Joy Luck Palace, Kee Wah Bakery, and many other Asian restaurants, bakeries, and shops. Cupertino features many other retail opportunities, including TJ Maxx and Home Goods, Whole Foods, Target, and over 180 restaurants to serve residents and the local workforce. There are six hotels, which provide almost 1,000 rooms, to serve the area: The Aloft Cupertino, Cupertino Hotel, Hilton Garden Inn, Juniper Hotel operated by Curio, Marriott Courtyard, and the Residence Inn by Marriott. The Hyatt House is currently under construction and will offer an additional 148 rooms. 49 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, Yayoi Teishoku Japanese Restaurant, Starbucks, and Chipotle. Apple completed construction of its new corporate campus, Apple Park, which includes approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. A state of the art Visitors Center, Observation Deck, flagship retail store and café are open to the public seven days a week. 2018 City Profile The City of Cupertino operates as a general law city with a City Council-City Manager form of government. Five council members serve four year, overlapping terms, with elections held every two years. The Council meets twice a month on the first and third Tuesday at 6:45 p.m. in Cupertino Community Hall. The meetings can be viewed on the City website. The City has 201.75 authorized full-time benefited employee positions. City departments include Administration (City Council, Commissions, City Manager, City Attorney, City Clerk, Sustainability, Public Affairs); Administrative Services (Finance, Human Resources); Community Development (Planning, Building, Housing Services, Economic Development, Code Enforcement); Recreation and Community Services (Neighborhood Watch, Emergency Preparedness); Public Works (Engineering, Maintenance, Transportation, Solid Waste, Environmental Programs, Storm Drain Management); and Innovation & Technology (IT, GIS, Website and Applications, Video). Public safety services are provided by the Santa Clara County Sheriff’s Department and the Santa Clara County Fire District. Assisting the City Council are several citizen advisory commissions/committees including: • Audit Committee • Fine Arts Commission • Housing Commission • Library Commission • Parks and Recreation Commission • Planning Commission • Public Safety Commission • Sustainability Commission • Teen Commission • Technology, Information and Communication Commission 50 Members of the volunteer boards are appointed by the City Council and vacancies are announced so that interested residents can apply for the positions. For more information, visit cupertino.org/commissions. Housing The median sales price for an existing single-family home was $2,178,000 in January 2018. For affordable housing programs in Cupertino, please see the “Programs & Applications” section below. 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 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: $21,346,570,360 (7/17) County: $449,772,839,608 (7/17) 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%. 51 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: vta.org 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 55 De Anza – Great America Route 81 East San Jose – Vallco Express 101 Camden/Branham – Palo Alto Express 501 Palo Alto – I.B.M Bailey Car: The City of Cupertino is in the heart of the world renowned Silicon Valley. The major highway transportation facilities are Interstate Route 280 and State Route 85 freeways. The City is linked internally by several principal arterials and Santa Clara County expressways. Principal arterials are De Anza Boulevard, Stevens Creek Boulevard, and Wolfe Road. Nearby expressways are Lawrence Expressway and Foothill Expressway. Sister Cities The 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. 52 Education Winner of numerous state and national awards for excellence, Cupertino’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 a 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 achievement. Many high schools in the district exceed their established achievement targets for the State Academic Performance Index. District students are encouraged to volunteer and provide service to organizations within the community. During their senior year, if students complete 80 hours of service to a non-profit community organization, they are recognized with a “Community Service Award” medal that may be worn at their graduation ceremonies. Building on its tradition of excellence and innovation, 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. 53 Programs and Applications Community Outreach Programs Leadership 95014 Leadership 95014 is a program designed by the City of Cupertino, Wilfred Jarvis Institute, and other local sponsors to offer an exciting adult program that is guaranteed to enhance the participants’ leadership skills. The ten full-day sessions feature inside looks at local governments, the social sector, local non-profit organizations, and educational institutions. This 9-month program is offered annually, September to May, and applications can be found online. Neighborhood Block Leader Program Good neighborhoods are those where neighbors work together on common issues and look out for each other. Block leaders take extra steps to connect neighbors and build community, making our neighborhoods safer and more harmonious. The Block Leader Program teaches residents how to get to know their neighbors and how to organize activities so neighbors can more easily communicate with each other. Block leaders are vital links between City Hall and the neighborhoods, and leaders gain the inside track on neighborhood development activities. Neighborhood Watch Neighborhood Watch is a crime prevention program that enlists the active participation of residents 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; residents 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. 54 Affordable Housing: Below Market Rate (BMR) Program The City of Cupertino requires all new development projects with seven or more units to provide at least 15% of the units as BMR units. BMR rental units are affordable to very-low and low-income households, while BMR ownership units are affordable to median- and moderate- income households. The City contracts with Hello Housing as the BMR Program Administrator to manage the day- to-day operations of the BMR Program. Hello Housing maintains a waitlist, screens and places qualified households in BMR units, and assists tenants and homebuyers with annual monitoring. For more information, please visit our website or call (415) 863-3036. Smart Phone Applications Mobile 95014 City of Cupertino’s Mobile 95014 app offers the latest listings 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. Trees 95014 Trees 95014 is an iPhone/iPad and Android app which provides details about city-maintained 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. 55 Community Statistics Facts and Figures 1 Population in City Limits 64,127 Average Household Income $222,322 Average Age 40 Registered Voters 28,778 Democrats 11,296 Republicans 4,923 American Independent 406 Other 208 No Political Party designated 11,873 Top 40 Sales Tax Producers Third Quarter 2017, in Alphabetical Order 7 Eleven Brightview Landscape Development Kula Revolving Sushi Bar Shell Station 99 Ranch Market Brightview Tree Company Lazy Dog Cafe Staples Agie Charmilles Chevron Lindgren RF Enclosures Superior Air Handling Alexander's Steak House De Anza College Campus Center Mirapath Target Alliance Dental Arts of California Ross Teknion Apple Dynasty Seafood Restaurant Rotten Robbie TJ Maxx Aqui Cal Mex Estel Group Safeway Ulta Beauty Argonaut Window & Door Huawei Enterprise Scandinavian Designs Valero Benihana Insight Direct Seele Whole Foods Market BJs Restaurant & Brewhouse Insight Public Sector Shane Company Wiremold 1 Claritas 2018 Estimates and California Secretary of State Report of Registration February 10, 2017 56 Demographic Information Community and Recreation Services Blackberry Farm Blackberry Farm is a large park featuring picnic sites for groups of up to 400 people, an on-site café, two swimming pools, a waterslide, a playground, horseshoe courts, sand volleyball courts, and bocce ball courts. The Stevens Creek Trail runs through the park and connects it to the Blackberry Farm Golf Course and the McClellan Ranch Reserve. Blackberry Farm is a seasonal facility — the pools, café, and picnic sites are open to the public May-September. The trail, playground, and courts can be enjoyed year-around. 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. 57 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 Community Hall. Across from City Hall and adjacent to Community Hall, the 54,000 square foot Cupertino 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 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, located next to the 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 58 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. 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. 59 This page intentionally left blank. 60 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.  However, the  budget process is an ongoing process that occurs throughout the year and includes the phases  of development, proposal, adoption, monitoring, and amendment.    The budget development phase begins in December with the preparation of budget instructions  and work program development by the City Council and City Manager.  During March,  departments prepare the budgets for which they are responsible.  These proposed department  budgets are reviewed by the Finance Division using current and prior year trends data.  The  City Manager then reviews the proposals with the Director of Administrative Services and  departmental staff and makes final decisions which form the basis of the City 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  adopted budget is adopted by resolution in June and takes effect on July 1.    The following chart illustrates the City’s budget reporting cycle.  Staff reports to Council on a  quarterly basis in addition to the annual proposed and adopted budget.  Should amendments to  the budget be required outside of this cycle, staff will bring budget amendments as separate  Council staff reports.       Proposed  Budget  •May Adopted  Budget  •June/July First  Quarter  •November Mid‐Year •Feb/Mar  Third  Quarter  •May  61 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.                                                      62 Structure of City Finances   Cost Accounting  The City of Cupertino has five internal service funds that account for innovation & technology,  equipment replacement, workers compensation, long‐term disability and compensated absence,  and retiree health costs experienced by City departments.  Fund costs are allocated to user  departments or operating funds based on salaries, equipment and software purchase price,  actuarial studies and actual and projected service level.  Please view the Cost Allocation Plan  and Changes to the Internal Service Fund section of this document for details.    Other employee fringe benefits such as medical, dental, life insurance, and pensions are directly  added to department costs as a percentage of salaries. Staff salary and benefit costs are split  among departments and related funds based on the anticipated percentage of time spent  working in various departments.    Overhead Cost Allocation  All overhead costs are allocated to the appropriate program within the limits of local, State and  federal laws.  The City utilizes a two‐step method (double step down method) where costs are  first allocated among the central service department support programs to arrive at the total  costs of central service programs.  Beginning in FY 2014 overhead/indirect costs associated with  service departments in the General Fund were allocated based on a Cost Allocation Plan (CAP).      These total costs are then allocated to the departments and funds that are benefiting from these  expenses.  The corresponding revenue is collected by the General Fund for indirect/overhead  costs associated with the Cost Allocation Plan (CAP) and Internal Service Funds and allocated  directly to the department providing the service.    Basis of Budgeting  Basis of Budgeting refers to the method used to recognize revenues and expenditures in the  budget.  For the City of Cupertino, the basis of budgeting is the same basis used for accounting.  The modified accrual basis is followed in the Governmental Funds, including the General,  Capital, Debt Service, and Special Revenue funds.  Under this basis, revenues are recognized  when they become “susceptible to accrual”, which means they are both measureable and  available.  Measurable means the transaction can be determined.    The budget is split into nine Departments: City Council and Commissions, Administration, Law  Enforcement, Innovation and Technology, Administrative Services, Recreation and Community  63 Services, Planning and Community Development, Public Works, Non Departmental (includes  budget that are not attributable to any specific division) and Capital Projects.  These  departments are further split into divisions then programs.  The programs within the divisions  are balanced at the department level within a given fund.    Comprehensive Annual Financial Report (CAFR)  The Comprehensive Annual Financial Report (CAFR) is prepared by Crowe and Horwath, the  City’s Auditors and according to “Generally Accepted Accounting Principles” (GAAP).    Citizen Participation  Every two years the City of Cupertino has a Community Survey completed by Godbe Research  to measure resident’s satisfaction with living in the City, City Services and to identify issues  facing the City.  In addition, the budget study session and budget hearings are public meetings  where citizens are given the opportunity to comment on the budget.  The public can also  provide feedback to two Council sub‐committees, the Fiscal Strategic Planning and Audit  Committees.     64 Fund Structure   For accounting purposes, a state or local government is not treated as a single, integrated entity.   Rather, a government is viewed as a collection of smaller separate businesses known as ‘funds’.   Fund accounting is an accounting system emphasizing accountability rather than profitability.   In this system, a fund is a self‐balancing set of accounts, segregated for specific purposes in  accordance with laws and regulations or special restrictions and limitations.    The City’s finances are structured in a variety of funds that are the basic accounting and  reporting entities in governmental accounting. The funds that comprise the FY 2018‐19 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.     65 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.    Special Revenue Funds  Special Revenue Funds are a fund type used to account for the proceeds of specific revenue  sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds  include the Park Dedication, Transportation, Storm Drain, Environmental Management/ Clean  Creeks funds and Housing and Community Development.    Special Revenue  Funds Purpose  Storm Drain  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.       66 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 pay for activities related to the Community  Development Block Grant (CDBG).    Proprietary Funds  Proprietary Funds are used to account for “business‐type” activities.  Proprietary Funds include  Enterprise Funds and Internal Service funds.  They are accounted for under the full accrual  basis of accounting.  Enterprise Funds  Enterprise Funds are set up for specific services that are funded directly by fees charged for  goods or services. Enterprise Funds include the Resource Recovery, Sports Center, Blackberry  Farm Golf Course and Recreation funds.    Enterprise Fund Purpose  Resource Recovery This fund pays for operating costs related to the collection,  disposal, and recycling of solid waste performed under a  franchise agreement with 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 Cityʹs  community centers and park facilities.       67 Internal Service Funds  Internal Service Funds are used for areas where goods or services are provided to other  departments or governments on a cost‐reimbursement basis.  Internal Service Funds include the  Innovation & Technology, Equipment, Workers Compensation, Long‐Term  Disability/Compensated Absence, and Retiree Medical funds.      Internal Service  Funds Purpose  Innovation &  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.  Workersʹ  Compensation  This fund pays for claims and insurance premiums related to  workersʹ compensation.  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 life 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.         68 Fiscal Policies – Revenue Policies   PURPOSE  To establish revenue polices that assist the City in striving for and maintaining a diversified and  stable revenue system to prevent undue or unbalanced reliance on any one source of funds.   This revenue diversity will shelter the City from short‐run fluctuations in any one revenue  source.    SCOPE   All revenue sources across all funds.    POLICY  To the extent possible, maximize investment yield while maintaining a high level of liquidity  for the City’s anticipated capital costs.    Identify and recommend sources of revenue necessary to maintain the services desired by the  community and to maintain the Cityʹs quality of life.    Perform ongoing evaluations of existing sources of revenue to maximize the Cityʹs 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.    69 Fiscal Policies – Expenditure Policies   PURPOSE  To establish expenditure control polices through the appropriate internal controls and  procedures.  Management must ensure expenditures comply with the legally adopted or  amended budget.    SCOPE   All expenditure categories across all funds.    POLICY  Each Department or Division Manager will be responsible for the administration of their  department/division budget.  This includes accomplishing the goals and objectives incorporated  into the budget and monitoring each department/division budget for compliance with spending  limits.    Accurately charge expenditures to the appropriate chart of accounts;    Maintain operating activities at levels which are offset by revenues;    The City will make every effort to control expenditures to ensure City services and programs  provided to its citizens and tax payers are cost effective and efficient;    Evaluate expenditures at the department and project levels to ensure control;    Before the City purchases any major asset or undertakes any operating or capital arrangements  that create fixed assets or ongoing operational expenses, the implications of such purchases or  arrangements will be fully determined for current and future years;    All compensation planning and collective bargaining will include analysis of total cost of  compensation which includes analysis of salary increases, health benefits, pension  contributions, fringe benefits and other personnel costs.  The City will only propose operating  personnel costs which can be sustained by on‐going operating revenues;    Reduce costs and improve productivity through the use of efficiency and effective measures. ‐    Structure debt financing to provide the necessary capital while minimizing future debt service  costs.    70 Fiscal Policies – Capital Improvement Policy   PURPOSE  To establish a Capital Improvement Policy to assist in future planning.      SCOPE   All anticipated Capital Improvement Projects for the current fiscal year plus four additional  fiscal years.    POLICY  The City will prepare and update a five year Capital Improvement Plan (CIP) encompassing all  City facilities.    Projects included in the CIP will have complete information on the need for the project (project  justification), description and scope of work, total cost estimates, future cost estimates, future  operating and maintenance costs and how the project will be funded.    An objective process for evaluating CIP projects with respect to the overall needs of the City  will be established through a priority ranking of CIP projects. The ranking of projects will be  used to allocate resources to ensure priority projects are completed effectively and efficiently.    Changes to the CIP such as addition of new projects, changes in scope and costs of a project  or reprioritization of projects will require City Manager and City Council approval.    The City will maintain its physical assets at a level adequate to protect the City’s capital  investment and to minimize future operating maintenance and replacement costs. The City  recognizes that deferred maintenance increases future capital costs, thus placing a burden on  future residents. Therefore, the budget will provide for adequate maintenance and the orderly  replacement of capital plant and equipment from current revenues when possible.    The City will determine the least costly funding method for its capital projects and will obtain  grants, contributions and low cost state or federal loans whenever possible.    The City will utilize “pay‐as‐you‐go” funding for capital improvement expenditures considered  recurring, operating or maintenance in nature. The City may also utilize “pay‐as‐you‐go”  funding for capital improvements when current revenues and adequate fund balances are  available or when issuing debt would adversely affect the City’s credit rating.  71 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.         72 Fiscal Policies – Information Technology Replacement and Capitalization Policy PURPOSE  The purpose of this policy is to establish guidelines for replacing and capitalizing technology  equipment and systems.  Replacement is indicated when a product has run its useful life and  updating/upgrading is no longer an option. Capitalization of equipment requires the set aside  of funding for future replacement.   Generally, technology equipment with a life expectancy of at least 5 years and a total cost of  over $5,000 shall be capitalized. Software with an expected life of at least 7 years or a cost of  over $10,000 shall also be capitalized. Software‐as‐a‐Service (SaaS) contracts are not  capitalizable and are expensed as incurred.   Technology upgrades are determined by the Innovation Technology Department and user  departments based on functionality, vendor support, and industry standards.  SCOPE    This policy covers the City of Cupertino:  network infrastructure (routers, switches, firewalls,  security appliances); server infrastructure (files servers, database servers, mail servers, web  servers, etc); user laptops and workstations; mission‐critical systems, telephone system  (telephone equipment not already listed previously); desktop software; enterprise software;  workgroup software; and broadcast video and audiovisual equipment.  Cell phones, printers, and tablet devices are not covered by this policy as these items do not  meet the minimum criteria for capitalization. Replacement of these items are at the discretion of  the Innovation Technology Department in concert with the user Department.   POLICY  All technology shall be replaced according to the following:  Network infrastructure (routers, switches, firewalls) shall be replaced when no longer  functional, as determined by the Innovation Technology Department Division (IT), or when  parts or support are no longer available from the manufacturer.  Replacement needs will be  determined by IT annually as part of the operating budget process.  Network infrastructure  with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized.   73 Server infrastructure shall be replaced when it is no longer functional (defined as not being  able to meet its intended purpose), or when parts or support are no longer available from the  manufacturer.  These needs are evaluated annually by IT and user departments as part of the  operating budget process.  Servers are evaluated as they approach 3 years in service, and placed  on the schedule accordingly.  Server lifetime may be extended by the purchase of additional  memory or disk. Server infrastructure with a life expectancy of at least 5 years and a total cost of  over $5,000 shall be capitalized.   User workstations shall be replaced, on average, after 4 years as is industry standard. Zero  Client work stations shall be replaced, on average, every 8 years.  IT will determine the need for  specific replacements. User workstations shall not be capitalized as they do not meet the  minimum criteria for capitalization.  Interoperable systems are defined as a group of interdependent and/or interoperable  components that together form a single functional unit.  These components may be  interconnected by their structural relationships, their common functional behavior, or by both.  Generally, for a system to be eligible for capitalization, the cumulative value of its components  should be at least $5,000 and have a life expectancy of five years or more. A common example of  such system would be a telephone system or network. Individual component or replacement  costs are not capitalizable unless they are greater than $5,000 and increase the value of the  asset.    Enterprise Software replacement shall be determined individually by IT and the end users.   Only those large enterprise systems (on‐site or on premise) with an expected life of at least 7  years or a cost of over $10,000 shall be capitalized. SaaS contracts are not capitalizable and are to  be expenses as incurred.  Desktop Software is replaced/updated according to Microsoft’s releases of Windows and  Office.  Software shall not be more than one version out of date to ensure functionality and  vendor support.  IT will generally wait at least 90 days after a new release to roll out new  versions. Only software with an expected life of at least 7 years or a cost of over $10,000 shall be  capitalized. Desktop software generally does not meet this criterion.   Broadcast Video and Audiovisual Equipment/Systems shall be repaired or replaced when  determined no longer functional. Replacement will occur on average after 10 years. Broadcast  video and audiovisual equipment/systems with a life expectancy of at least 5 years and a total  cost of over $5,000 shall be capitalized. Equipment that does not meet these criteria may still be  capitalized if the item is a component of interoperable systems.          74 Fiscal Policies – Pension and Retirement Funding Policy   PURPOSE  To establish a policy for the funding of Retirement and Retiree health.    SCOPE   Retirement and Retiree Health costs citywide, across all funds.    POLICY  Fund all current pension liabilities on an annual basis.    Monitor certain health and dental care benefits for retired employees. Funding the liability for  future retiree benefits will be determined by City Council action.     75 Fiscal Policies – Long Term Financial Stability Policies   PURPOSE  To establish a policy for Long Term Financial Stability    SCOPE   All programs across all funds    POLICY  Ensure ongoing productivity through employee training and retention programs.    Pursue consolidation of resources and activities with other agencies and jurisdictions where  beneficial.    Ensure financial planning flexibility by maintaining adequate fund balances and reserves.    Provide for major maintenance and repair of City buildings and facilities on a timely basis.    Provide for infrastructure asset preservation that maximizes the performance of these assets at  minimum life‐cycle costs.    Continually evaluate and implement long‐term financial planning including technology  automation, multiple year capital improvement programs, revenue and expenditure  forecasting, automating and streamlining service delivery, stabilizing and repositioning  revenue sources, and decreasing expenditures and risk exposure.             76 Fiscal Policies – Committed, Unassigned Fund Balance, and Use of One Time Funds Policy PURPOSE  To establish assigned and unassigned fund balance and one time use policies.    SCOPE   The General Fund and Capital Funds.    POLICY  To maintain sufficient committed and unassigned fund balance (general fund only) in each fund  for the ability to meet following economic uncertainties:    Economic Uncertainty –$19,000,000 and  represents two months of General Fund (GF)  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    PERS– $8,000,000 and represents the initial investment into the City’s Pension Rate Stabilization  Program (PRSP).  As a result of the significant increase in retirement costs based on the most  recent actuarial forecast, the City elects to establish and fund a secondary pension trust to assist  in stabilizing the potential impact of pension cost volatility on the City’s operating budget.   Annual contributions subsequent to the initial funding are determined by calculating the  difference between CalPERS’ current discount rate and a more conservative rate determined by  the City.  This difference is to be transferred to the pension trust and to be used solely for the  benefit of members in the plan.       77 Sustainability Reserve– Cupertino’s Sustainability Division oversees the City’s Climate Action  Plan (CAP), which defines strategies to reduce greenhouse gas emissions, and provides  residents, businesses and schools with programs and services focused on energy efficiency,  renewable energy, water conservation, alternative transportation and other sustainable actions.   The City receives rebates for projects that successfully meet the eligibility requirements such as  energy or water efficiency.  If the rebates were not initially budgeted, they are categorized as  committed fund balance in the General Fund. The purpose of this reserve is to help support  future sustainability projects/programs.       Unassigned – $500,000 and represents 1% of the total general fund operating budget.  This  assignment may change from year to year based on budgeted general fund expenditures.   Absorb unanticipated operating needs that arise during the fiscal year that were not  anticipated during the budget process   Absorb unexpected claims or litigation settlements    Capital Improvement – $5,000,000 and represents average dollars spent for capital projects in  the last three fiscal years.  This assignment may change from year to year based on actuals  dollars spent on capital projects and anticipated future capital project needs.   Meet future capital project needs so as to minimize future debt obligations    The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses  except as specifically provided in the City’s reserve policy.    The chart below summarizes reserve policy levels as described above:    Funding  Priority Reserve  Reserve  Level Escalator¹ Description  GENERAL FUND  1 Economic  Uncertainty   $19,000,000  GF Budgeted  Operating  Expenditures²  GF Budget  Revenue³  For economic  downturns and  major revenue  changes.  2 PERS  $8,000,000  Budgeted  Citywide  Retirement  Costs  For pension cost  increases.  3 Sustainability  Reserve   $75,499  GF Budget  Revenue³  For future  sustainability  projects/programs.  78 4 Unassigned  $         500,000   Budgeted GF  Operating  Expenditures²  For mid‐year  budget  adjustments and  redeployment  into the five  year budget.  CAPITAL PROJECTS 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    Changes to Committed Fund Balance – All reserves listed in this policy are classified as  Committed Fund Balance under Government Accounting Standards Board (GASB) Statement  54.    Committed fund balance is comprised of amounts that can be used only for the specific  purposes determined by a formal action of the government’s highest level of decision‐making  authority.   Changes to committed fund balances must be approved by City Council.   This  policy will be reviewed annually as part of the budget process.    Replenishment process – Should the City need to utilize any of the committed fund balances  listed in this policy, recommendation will be brought to City Council for approval and a plan to  replenish the committed balance will be developed in conjunction with its use.    Excess – Funding of these reserves will come generally from one‐time revenues, annual net  income, and transfers from other reserves that exceed policy levels. They will be funded in the  following priority order with any remaining funds to be placed in the Capital Reserve:     1) Economic Uncertainty  2) PERS  3) Sustainability Reserve  4) Unassigned       79 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 1, 2018 City Council agenda packet.      80 Fiscal Policies – Community Funding Policy PURPOSE  The City of Cupertino currently provides funding to local non‐profit organizations in the areas  of social services, fine arts and other programs for the general public. This policy establishes a  standard application process whereby funding decisions of non‐profit requests can be  addressed on a fair and consistent basis by establishing a set of criteria for evaluating requests,  ensuring that all entities follow a formal application process and pre‐approving a dollar limit  for those requests.   SCOPE   All requests for funding must comply with this policy.     POLICY  The applicant should identify the services provided, purpose for the funds, how the  expenditure aligns to City priorities and how the funds will be used to benefit the Cupertino  community.    A recurring organization should state how prior year funds, if any, were used.     The applicant should include information about the organization, its budget and its purpose.     Non‐profit organizations which serve multi‐jurisdictions should state what they have requested  from other cities/organizations they service in 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.     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.      81 Appropriations & Legal Debt Limit Margin   Gann Appropriations Limit  Fiscal Year 2018‐19    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  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.      82 The City’s appropriations limit for FY 2019 is $100,538,305, $4,509,818 or 4.7% higher than the  FY 2018 limit of $96,028,488. For FY 2019, 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.      Legal Debt Margin  Fiscal Year 2018‐19    The Government Code of the State of California provides for a legal debt limit of 15% of gross  assessed valuation. However, this provision was enacted when assessed valuation was based  upon 25% of market value.  Effective with the 1981‐82 fiscal year, each parcel is now assessed at  100% of market value (as of the most recent change in ownership for that parcel). The  computation shown below reflects a conversion of assessed valuation data for fiscal year  2017/18 from the current full valuation perspective to the 25% level that was in effect at the time  that the legal debt margin was enacted by the State of California for local governments located  within the State.      Description Amount Formula  Secured Property Assessed Value, Net of Exempt Real  Property (1) $27,750,185,792      Adjusted Valuation ‐ 25% of Assessed Valuation (2) $  6,937,546,448  (1) * 25%  Debt Limit ‐ 15% of Adjusted Valuation $  1,040,631,967  (2) * 15%  Total City Bonded Debt (3) $     31,520,000     Less: Certificates of Participation Not Subject to Debt Limit (4) $    (31,520,000)      Amount of Debt Subject to Limit                     ‐        (3) ‐ (4)    Legal Debt Margin $  1,040,631,967                 83 Fiscal Year 2018-19 Adopted Budget Financial Overview by Fund Revenue Categories General Fund Special Revenue Fund Debt Service Fund Capital Project Funds Enterprise Funds Internal Service Funds 2018-19 Adopted Budget Total Sales Tax 23,637,000$ -$ -$ -$ -$ -$ 23,637,000$ Property Tax 22,766,000$ -$ -$ -$ -$ -$ 22,766,000$ Transient Occupancy 8,252,000$ -$ -$ -$ -$ -$ 8,252,000$ Utility Tax 3,200,000$ -$ -$ -$ -$ -$ 3,200,000$ Franchise Fees 3,042,000$ -$ -$ -$ -$ -$ 3,042,000$ Other Taxes 1,150,000$ 3,000$ -$ -$ -$ -$ 1,153,000$ Licenses & Permits 2,685,000$ -$ -$ -$ -$ -$ 2,685,000$ Use of Money & Property 692,000$ 89,310$ -$ -$ 317,000$ -$ 1,098,310$ Intergovernmental 326,000$ 3,822,881$ -$ -$ 15,000$ -$ 4,163,881$ Charges for Services 9,419,276$ 370,000$ -$ -$ 6,871,400$ 4,973,162$ 21,633,838$ Fines & Forfeitures 615,000$ 9,000$ -$ -$ -$ -$ 624,000$ Miscellaneous 244,200$ 185,000$ -$ -$ 66,000$ -$ 495,200$ Transfers In/Other Financing Uses 860,000$ 8,086,000$ 3,169,438$ 9,051,500$ 75,000$ 2,051,126$ 23,293,064$ TOTAL REVENUE 76,888,476$ 12,565,191$ 3,169,438$ 9,051,500$ 7,344,400$ 7,024,288$ 116,043,293$ Appropriation Categories General Fund Special Revenue Fund Debt Service Fund Capital Project Funds Enterprise Funds Internal Service Funds 2018-19 Adopted Budget Total Employee Compensation 19,349,144$ 990,595$ -$ -$ 1,902,484$ 1,361,662$ 23,603,885$ Employee Benefits 8,059,818$ 501,148$ -$ -$ 566,178$ 1,696,269$ 10,823,413$ Materials 5,772,556$ 855,119$ -$ -$ 568,836$ 981,277$ 8,177,788$ Contract Services 19,461,836$ 867,900$ -$ -$ 6,066,925$ 1,981,855$ 28,378,516$ Cost Allocation 9,368,223$ 425,454$ -$ -$ 906,362$ 727,082$ 11,427,121$ Capital Outlays 793,000$ 4,103,379$ -$ 7,141,500$ 75,000$ -$ 12,112,879$ Special Projects 1,368,298$ 5,900,000$ -$ -$ 240,000$ 903,000$ 8,411,298$ Contingencies 1,197,933$ 35,702$ -$ -$ 207,732$ 147,882$ 1,589,249$ Transfers Out 11,358,912$ 10,000$ -$ 10,726,500$ -$ -$ 22,095,412$ Debt Service/Other Uses 910,000$ -$ 3,169,438$ -$ 320,509$ 699,351$ 5,099,298$ TOTAL EXPENDITURES 77,639,720$ 13,689,297$ 3,169,438$ 17,868,000$ 10,854,026$ 8,498,378$ 131,718,859$ Net Increase (Decrease) in Fund Balance/Retained Earnings (751,244)$ (1,124,106)$ -$ (8,816,500)$ (3,509,626)$ (1,474,090)$ (15,675,566)$ 84  Fiscal Year 2018-19 Adopted Budget Flow of Funds Chart      Expenditures by Fund SOURCE OF FUNDS Revenue by Object Expenditures by Department 85 Fiscal Year 2018-19 Adopted Budget General Fund Contribution Schedule Fund Type Adopted Budget Expenditures Adopted Program Revenues Adopted Budget Fund Balance/ Retained Earnings (Usage) Adopted General Fund Contribution General Fund 10 City Council 100 City Council 417,912 406,858 - 11,054 101 Community Funding 53,431 - - 53,431 110 Sister Cities 57,352 - - 57,352 11 Commissions 131 Telecommunication Commission 6,640 - - 6,640 140 Library Commission 27,350 - - 27,350 142 Fine Arts Commission 44,349 - - 44,349 150 Public Safety Commission 28,945 - - 28,945 155 Bike/Ped Safety Commission 6,278 - - 6,278 160 Recreation Commission 40,690 - - 40,690 165 Teen Commission 71,571 - - 71,571 170 Planning Commission 127,478 - - 127,478 175 Housing Commission 36,565 - - 36,565 180 Sustainability Commission 30,091 - - 30,091 12 City Manager 120 City Manager 993,118 332,342 - 660,776 122 Sustainability Division 888,266 - - 888,266 126 Public Affairs 549,902 122,318 - 427,584 13 City Clerk 130 City Clerk 603,198 63,559 - 539,639 132 Duplicating/Mail Services 98,911 - - 98,911 133 Elections 82,740 - - 82,740 14 City Manager Discretion 123 City Manager Contingency 593,661 - - 593,661 15 City Attorney 141 City Attorney 2,129,992 194,351 - 1,935,641 20 Law Enforcement 200 Law Enforcement SC Sherif 12,304,029 510,000 - 11,794,029 201 Interoperability Project 49,598 - - 49,598 202 Code Enforcement 634,726 265,000 - 369,726 31 I&T Video 305 Video 1,557,572 - - 1,557,572 307 Public Access Support 73,503 - - 73,503 32 I&T Applications 308 Applications 2,083,188 - - 2,083,188 40 Administrative Services 400 Admin Services Administration 966,135 49,347 - 916,788 41 Finance 405 Accounting 1,294,931 1,206,427 - 88,504 406 Business Licenses 189,184 - - 189,184 44 Human Resources 412 Human Resources 1,201,425 788,243 - 413,182 417 Insurance Administration 954,886 788,243 - 166,643 60 Recreation & Community Service 601 Rec & Comm Svcs Administration 804,138 42,000 - 762,138 634 Park Planning and Restoration 267,549 - - 267,549 636 Library Services 969,505 - - 969,505 61 Business and Community Services 602 Administration 923,993 - - 923,993 605 Cultural Events 646,618 - - 646,618 630 Facilities 684,362 703,382 - (19,020) 632 Comm Outreach & Neigh Watch 201,251 - - 201,251 86 Fiscal Year 2018-19 Adopted Budget General Fund Contribution Schedule Fund Type Adopted Budget Expenditures Adopted Program Revenues Adopted Budget Fund Balance/ Retained Earnings (Usage) Adopted General Fund Contribution 62 Recreation and Education 608 Administration 1,281,016 34,000 - 1,247,016 623 Youth, Teen and Senior Adult Rec 2,036,109 581,550 - 1,454,559 63 Sports, Safety & Outdoor Rec 612 Park Facilities 2,382,394 374,000 - 2,008,394 615 Administration 190,734 - - 190,734 633 Disaster Preparedness 266,914 - - 266,914 70 Planning & Community Development 700 Community Development Admin 786,755 - - 786,755 71 Planning 701 Current Planning 2,854,250 1,462,500 - 1,391,750 702 Mid Long Term Planning 739,478 215,000 - 524,478 704 Annexations 903 - - 903 705 Economic Development 231,632 - - 231,632 72 Housing Services 712 Human Service Grants 103,010 - - 103,010 73 Building 713 General Building 854,205 460,000 - 394,205 714 Construction Plan Check 1,341,586 751,000 - 590,586 715 Building Code Enforcement 1,158,840 1,450,000 - (291,160) 718 Muni-Bldg Code Enforcement 262,224 - - 262,224 80 PW Admin 800 Public Works Admin 1,088,583 - - 1,088,583 82 Developmental Services 804 Plan Review 1,297,073 556,000 - 741,073 806 CIP Administration 739,939 - - 739,939 83 Service Center 807 Service Center Administration 1,234,946 50,000 - 1,184,946 84 Grounds 808 McClellan Ranch Park 84,009 - - 84,009 809 Memorial Park 760,345 - - 760,345 812 School Site Maintenance 1,128,886 135,000 - 993,886 813 Neighborhood Parks 1,629,502 - - 1,629,502 814 Sport Fields Jollyman CRK 665,541 - - 665,541 815 Civic Center Ground Maint 261,867 193,990 - 67,877 85 Streets 818 Storm Drain Maintenance 476,503 - - 476,503 848 Street Lighting 588,241 - - 588,241 850 Environmental Materials 195,008 - - 195,008 86 Trees and Right of Way 824 Overpasses and Medians 1,251,274 - - 1,251,274 825 Street Tree Maintenance 1,194,987 22,000 - 1,172,987 826 Weekend Work Program 469,476 - - 469,476 87 Facilities and Fleet 827 Bldg Maint City Hall 619,750 303,250 - 316,500 828 Bldg Maint Library 338,834 550,800 - (211,966) 829 Bldg Maint Service Center 262,132 323,466 - (61,334) 830 Bldg Maint Quinlan Center 466,416 181,950 - 284,466 831 Bldg Maint Senior Center 241,686 181,950 - 59,736 832 Bldg Maint McClellan Ranch 178,993 1,700 - 177,293 833 Bldg Maint Monta Vista Ct 227,890 121,300 - 106,590 834 Bldg Maint Wilson 63,164 - - 63,164 835 Bldg Maint Portal 37,207 - - 37,207 837 Bldg Maint Creekside 65,790 60,650 - 5,140 87 Fiscal Year 2018-19 Adopted Budget General Fund Contribution Schedule Fund Type Adopted Budget Expenditures Adopted Program Revenues Adopted Budget Fund Balance/ Retained Earnings (Usage) Adopted General Fund Contribution 838 Comm Hall Bldg Maint 251,328 202,167 - 49,161 839 Teen Center Bldg Maint 96,024 80,867 - 15,157 840 Park Bathrooms 168,860 - - 168,860 841 BBF Facilities Maintenance 556,114 444,766 - 111,348 852 Franco Traffic Operations Center 35,633 - - 35,633 88 Transportation 844 Traffic Engineering 1,446,695 458,500 - 988,195 845 Traffic Signal Maintenance 526,530 - - 526,530 846 Safe Routes 2 School 446,499 - - 446,499 90 Citywide - Non Departmental 001 No Department 11,358,912 - - 11,358,912 502 EE Housing Loan - - - - GENERAL FUND SUBTOTAL I 77,639,720$ 14,668,476$ -$ 62,971,244$ General Fund Revenue/Fund Balance General Fund Revenue - 62,220,000 - (62,220,000) Unassigned Fund Balance - - (751,244)$ (751,244) GENERAL FUND SUBTOTAL II -$ 62,220,000$ (751,244)$ (62,971,244)$ TOTAL GENERAL FUND 77,639,720$ 76,888,476$ (751,244)$ -$ Special Revenue Fund Non Point Source 720,785 379,000 94,215 436,000 HCD General Administration 65,871 62,388 (3,483) - CDBG- Capital Grants 210,892 205,729 (5,163) - Public Service Grants 47,983 46,791 (1,192) - Below Market Rate Housing 818,427 3,000 (815,427) - Sidewalk, Curb and Gutter Maint 1,195,876 1,057,060 661,184 800,000 Street Pavement Maintenance 6,832,574 1,525,379 (307,195) 5,000,000 Street Signs/Markings 661,889 - (661,889) - Parkland Fund 10,000 - (10,000) - CIP - MRP Community Garden Improvement Construction 1,500,000 575,000 (925,000) - CIP - MRP EEC Aquatic Habitat 125,000 - (125,000) - CIP - Storm Drain MP Implementation 1,500,000 900,000 (600,000) - Non-Departmental - 1,199,844 - 375,000 TOTAL SPECIAL REVENUE FUNDS 13,689,297$ 5,954,191$ (2,698,950)$ 6,611,000$ Debt Service Public Facilities Corporation 3,169,438 - - 3,169,438 TOTAL DEBT SERVICE 3,169,438$ -$ -$ 3,169,438$ Capital Projects Funds CIP - SCCP Chain to MP-MCLN to SCB 75,000 75,000 - - CIP - ADA Improvements 75,000 75,000 - - CIP - Sport Center Exterior Upgrades 830,000 830,000 - - CIP - Service Center Shed #3 Improvements 600,000 600,000 - - CIP - Bike Plan Implementation 1,800,000 1,800,000 CIP - Citywide Parks and Recreation Master Plan 100,000 100,000 - - CIP - Prelim Planning and Design 125,000 125,000 - - CIP - Capital Project Support 50,000 50,000 - - CIP - Street Light Install Annual Infill 30,000 30,000 - - CIP - CW Building Condition Assessment Implementation 1,000,000 1,000,000 - - CIP - Creek Infall/Outfall Restoration 160,000 160,000 - - CIP - DeAnza Median Island Landscaping Phase 2 1,546,500 1,546,500 - - 88 Fiscal Year 2018-19 Adopted Budget General Fund Contribution Schedule Fund Type Adopted Budget Expenditures Adopted Program Revenues Adopted Budget Fund Balance/ Retained Earnings (Usage) Adopted General Fund Contribution CIP - Regnart Road Improvements 150,000 150,000 - - CIP - School Walk Audit Implementation 250,000 250,000 - - CIP -SCB/Bandley Signal and Median Improvements 150,000 150,000 - - CIP - Street Light Replacement CW (Labor)200,000 200,000 - - Transfer In 1,910,000 Transfer Out 10,726,500 - (10,726,500) - TOTAL CAPITAL PROJECTS FUNDS 17,868,000$ 9,051,500$ (10,726,500)$ -$ Enterprise Funds Resources Recovery 3,501,101 2,268,000 (1,233,101) - Golf Course 687,939 335,000 (352,939) - Sports Center 2,460,735 2,100,500 (360,235) - Sports Center Maintenance 490,076 - (490,076) - Youth Teen Recreation 2,040,825 1,444,500 (596,325) - Outdoor Recreation 1,598,350 1,121,400 (476,950) - CIP - BBF Entrance Road Improvement Feasability Study 75,000 75,000 - - TOTAL ENTERPRISE FUNDS 10,854,026$ 7,344,400$ (3,509,626)$ -$ Internal Service Funds Information Services Admin 405,034 359,741 (45,293) - Information Technology 2,668,918 2,284,031 (384,887) - GIS 1,107,071 1,110,156 3,085 - Equipment Maintenance 1,593,660 1,056,968 (536,692) - Equipment Fixed Asset Acquisition 538,000 - (538,000) - Workers' Compensation Claims 472,652 472,652 - Disability Claims 162,266 162,266 - - Leave Payouts 422,772 - 24,228 447,000 Retiree Medical Insurance 1,128,005 - 3,469 1,131,474 TOTAL INTERNAL SERVICE FUNDS 8,498,378$ 5,445,814$ (1,474,090)$ 1,578,474$ TOTAL ALL FUNDS 131,718,859$ 104,684,381$ (19,160,410)$ 11,358,912$ 89 Fiscal Year 2018-19 Adopted Budget Fund Balance Report Fund Fund Balance 7/1/2017 Projected Fund Balance 7/1/2018 Adopted Budget Revenue Adopted Budget Expenditures Projected Fund Balance 7/1/2019 100 GENERAL FUND 53,589,690$ 45,961,772$ 76,888,476$ 77,639,720$ 45,210,528$ SPECIAL REVENUE FUNDS 210, 215 Storm Drain Improvement 3,102,458$ 806,981$ 1,100,000$ 1,500,000$ 406,981$ 230 Environmental Management/ Clean Creek / Storm Drain 397,236 63,752 815,900 720,785 158,867 260, 261 265 Housing & Community Development 12,484,169 1,390,243 500,852 1,143,173 747,922 270 Transportation 8,379,939 523,437 9,573,439 8,690,339 1,406,537 280, 281 Park Dedication 9,412,547 1,435,261 575,000 1,635,000 375,261 TOTAL SPECIAL REVENUE FUNDS 33,776,349$ 4,219,674$ 12,565,191$ 13,689,297$ 3,095,568$ DEBT SERVICE FUND 365 Public Facilities Corporation 1,597,234$ 1,597,234$ 3,169,438$ 3,169,438$ 1,597,234$ TOTAL DEBT SERVICE FUND 1,597,234$ 1,597,234$ 3,169,438$ 3,169,438$ 1,597,234$ CAPITAL PROJECTS FUNDS 420 Capital Improvement Fund 9,272,101 2,920,404 9,051,500 7,141,500 4,830,404 427 Stevens Creek Corridor Park 236,814 54,971 - - 54,971 429 Capital Reserve 15,797,060 10,613,062 - 10,726,500 (113,438) TOTAL CAPITAL PROJECTS FUNDS 25,305,975$ 13,588,436$ 9,051,500$ 17,868,000$ 4,771,936$ ENTERPRISE FUNDS 520 Resource Recovery 5,341,647$ 3,972,178$ 2,268,000$ 3,501,101$ 2,739,077$ 560 Blackberry Farm 637,556 228,590 410,000 762,939 (124,349) 570 Sports Center 2,004,836 1,760,432 2,100,500 2,950,811 910,121 580 Recreation Programs 3,067,419 2,213,327 2,565,900 3,639,175 1,140,052 TOTAL ENTERPRISE FUNDS 11,051,458$ 8,174,527$ 7,344,400$ 10,854,026$ 4,664,901$ INTERNAL SERVICE FUNDS 610 Information Technology 2,204,739$ 207,573$ 3,753,928$ 4,181,023$ (219,522)$ 620 Workers' Compensation 1,325,940 1,428,703 472,652 472,652 1,428,703 630 Equipment 2,371,328 1,490,496 1,056,968 2,131,660 415,804 641 Compensated Absence & LTD 150,989 225,484 609,266 585,038 249,712 642 Retiree Medical 9,015,651 10,415,651 1,131,474 1,128,005 10,419,120 TOTAL INTERNAL SERVICE FUNDS 15,068,647$ 13,767,907$ 7,024,288$ 8,498,378$ 12,293,817$ TOTAL ALL FUNDS 140,389,353$ 87,309,550$ 116,043,293$ 131,718,859$ 71,633,984$ 90   General Fund Summary The General Fund is the City’s primary operating fund.  It accounts for basic services such as  public safety, public works, planning and development, park maintenance, code enforcement,  and the administrative services required to support them.  The fund generates revenue from the  City’s discretionary funding sources (e.g., property tax, sales tax, transient occupancy tax and  utility tax).  As a rule, general fund resources are used only to fund operations that do not have  other dedicated (restricted) funding sources.  Operations that rely heavily upon non‐general fund  resources, such as street maintenance, solid waste collection, and recreation are accounted for in  other funds.  Information on these funds may be found in the Other Funds section of this  document.    For FY 2018‐19, General Fund revenue estimates (excluding fund balance) total $76.9 million,  representing a 4% decrease from the FY 2017‐18 Adopted Budget, mostly due to a wind down in  development resulting in less revenue in Charges for Services and Construction Tax. When fund  balance carryover is included, General Fund resources total $45.4 million, which is consistent  with the FY 2017‐18 Adopted Budget.  General Fund expenditure estimates total $77.6 million,  representing a 3% increase from FY 2017‐18 Adopted, mostly due to increased costs in salary and  benefits as a result of increased staffing and negotiated increases as part of the third year of a 3  year contract with the City’s bargaining groups. In addition, cost allocation has increased due to  a change in allocation methodology for IT charges from a “per user” to “per device” basis and an  increase in materials due to the acquisition of software.  The General Fund’s ending fund balance  is projected to decrease by 2% from FY 2017‐18 estimated ending fund balance.  This is due to the  transfer out of $6 million to the Capital Reserve as approved in the Mid‐Year Financial Report.        This section provides information on the FY 2018‐19 General Fund budget including, expenditure  and revenue highlights, transfers to other funds, reserve funds and the financial forecast.         FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19 Percent  Actual Actual Estimated Adopted Change Beginning Fund Balance 39,324,543     52,194,840   53,589,690     45,961,772     ‐14% Operating Revenue 77,932,145     95,163,736   94,580,834     76,888,476     ‐19% Operating Expenditures (65,023,330)    (94,040,212) (102,208,752) (77,639,720)‐24% Net  Revenue/Expenditures 12,908,815     1,123,524     (7,627,918)     (751,244)         ‐90% Committed/Other 22,325,755     25,531,891   36,316,546     36,316,546    0% Unassigned 29,869,085     28,057,799   9,645,226       8,893,982       ‐8% Total Ending Fund Balance 52,194,840     53,589,690   45,961,772     45,210,528    ‐2% GENERAL FUND OPERATING SUMMARY 91   General Fund Revenue Estimates for the FY 2018‐19 beginning fund balance and General Fund revenue sources are based  upon a careful examination of collection history and patterns as they relate to such factors as  seasonality and performance in the economic environment that the City is most likely to  encounter in the coming year.  FY 2018‐19 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 2018‐19  revenue estimates are built on the assumption of moderate economic growth that continues to  positively impact on the City’s tax revenues, while uncertainty surrounding development  activities reduces development‐related fees and charges.      As shown in the chart below, FY 2018‐19 revenues are estimated at $76.9 million, a 4% decrease  below the FY 2017‐18 Adopted Budget.           The majority  of Cupertino’s General Fund operating revenues are generated by sales taxes (31%)  and property taxes (30%), followed by charges for services (12%) and the transient occupancy tax  (11%).  The chart on the next page illustrates the sources of General Fund revenue by category.     FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19 Percent  REVENUES Actuals Actuals Adopted Adopted Change   Sales Tax 21,350,056 26,932,012 22,790,000 23,637,000 3.7%   Property Tax 18,139,368 20,219,077 20,757,000 22,766,000 9.7%   Transient Occupancy 5,852,244 6,023,681 6,708,000 8,252,000 23.0%   Utility Tax 3,370,830 3,082,408 3,200,000 3,200,000 0.0%   Franchise Fees 3,478,024 3,409,572 3,040,000 3,042,000 0.1%   Other Taxes 2,595,773 2,981,883 2,850,000 1,150,000 ‐59.6% Licenses & Permits 3,073,109 2,536,924 2,145,000 2,685,000 25.2% Use of Money & Property 1,400,899 1,210,231 1,647,790 692,000 ‐58.0% Intergovernmental 428,991 330,107 484,000 326,000 ‐32.6% Charges for Services 15,454,535 17,913,165 13,337,897 9,419,276 ‐29.4% Fines & Forfeitures 558,517 593,122 600,000 615,000 2.5% Miscellaneous 2,229,799 9,931,554 2,435,960 1,104,200 ‐54.7% TOTAL REVENUES 77,932,145 95,163,736 79,995,647 76,888,476 ‐3.9% GENERAL FUND REVENUE SUMMARY 92     The FY 2018‐19 General Fund revenue estimates are discussed by category in the material that  follows.        Sales and Use Tax commonly referred to as just the “sales tax” has two components: (1) an excise  tax imposed on retailers for the privilege of selling  tangible personal property, and (2) an excise tax  imposed on a person and applies to purchases  from out‐of‐state vendors that are not required to  collect tax on their sales. The proceeds of sales and  use taxes imposed within the boundaries of  Cupertino are distributed by the State to various  agencies, with the City of Cupertino receiving one  percent, as shown in the chart to the right.    FY 16-17 Actual 26,932,012 FY 17-18 Adopted 22,790,000 FY 17-18 Estimate 23,790,000 FY 18-19 Adopted 23,637,000 % of General Fund 30.74% % Change from FY 17-18 Adopted 3.72% SALES & USE TAX 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%  93   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 and  business technology spending has driven growth in this sector.  Sales tax activity has increased  across most sectors with a decrease primarily in construction. This decrease is attributed to the  winding down of construction projects in the City, particularly, the Apple Park campus  development.  Given these trends, the City’s FY 2018‐19 sales tax revenue is projected to show a  more modest increase going forward.    Sales tax receipts took a slight dip of 1.8% in FY 2015‐16 only to increase by 26.1% in FY 2016‐17  due to a onetime $3.5 million payment  related to the close out of the triple flip.   Sales tax revenue is expected to drop  11.7% in FY 2017‐18, returning to  normal levels prior to the triple flip  payment.  In FY 2017‐18, initial fixture,  furniture, and equipment purchases  for Apple Park contributed to higher  sales tax revenues for the year but are  not expected for FY 2018‐19. Sales tax  revenues are estimated to generate  $23.6 million in FY 2018‐19, which is up  3.7% from the FY 2017‐18 Adopted  Budget.       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,  FY 16-17 Actual 20,219,077 FY 17-18 Adopted 20,757,000 FY 17-18 Estimate 22,357,000 FY 18-19 Adopted 22,766,000 % of General Fund 29.61% % Change from FY 17-18 Adopted 9.68% PROPERTY TAX 94   newly‐constructed property, State‐assessed property, and personal property are assessed at the  full market value in the first year and subject to the two percent cap, thereafter.     In 1978, voters approved the passage of Proposition 13, which froze property tax rates and limited  the amount that rates could increase each year.  Cupertino had one of the lowest property tax  rates in Santa Clara County receiving only $0.02 for every $1.00 paid.  Subsequent legislation  required Counties to provide “no/low tax” cities with a Tax Equity Allocation (TEA) equal to 7%  of the property tax share, however, the property tax distribution for the no/low tax cities in Santa  Clara County was limited to 55% of what other TEA cities in the state received.        In FY 2006‐07 West Valley cities won the passage of State legislation which restored a portion of  TEA property tax revenue.  This TEA change provided an additional $1.35 million in property  tax annually and increased the City’s share of property taxes to 5.6%. Cupertino, in conjunction  with three other West Valley cities, continued legislative efforts to gain parity with other no/low  property tax cities in the state.  In FY 2015‐16, Governor Brown agreed to restore TEA revenues  over a five‐year period. As shown in the graph above, Cupertino will keep 6.72% of property tax  revenues compared to 6.44% in FY 2017‐18. TEA will be fully restored to 7% by FY 2019‐20 as  shown in the following chart.      95       Property tax receipts increased 11.5%  in FY 2016‐17.  In FY 2017‐18, property  taxes are up 10.6% due in part to the  restoration of TEA funds and  reassessment of value for Apple Park.  Property tax revenues are estimated to  generate $22.8 million in FY 2018‐19,  which represents a 9.7% increase from  the FY 2017‐18 Adopted Budget.            FY 16-17 Actual 6,023,681 FY 17-18 Adopted 6,708,000 FY 17-18 Estimate 6,708,000 FY 18-19 Adopted 8,252,000 % of General Fund 10.73% % Change from FY 17-18 Adopted 23.02% TRANSIENT OCCUPANCY TAX 96   Transient occupancy taxes (TOT) are levied on hotels and short term room rentals located in the  City at the rate of 12% of room revenues.  In November 2011, 83% of voters approved increasing  the rate from 10% to 12%.  This rate increase contributed to the upward trend shown in the TOT  Historical Trend graph to the right.  TOT is expected to increase by 23% in FY 2018‐19 mostly due  to the new Residence Inn by Marriot located at Main Street, which opened in 2018.           The utility user tax (UUT), approved  by voters in 1990, is assessed on gas,  electricity and telecommunication  services provided within the City’s  jurisdiction at a rate of 2.4% of billed  charges.  Revenues generated from  this tax can be used for general City  purposes.     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.  FY 16-17 Actual 3,082,408 FY 17-18 Adopted 3,200,000 FY 17-18 Estimate 3,200,000 FY 18-19 Adopted 3,200,000 % of General Fund 4.16% % Change from FY 17-18 Adopted 0.00% UTILITY TAX Gas/Electric Cable Water Telecom Sunnyvale 2.0%‐‐2.0% Cupertino 2.4%‐‐2.4% Mountain View 3.0%‐‐3.0% Los Altos 3.5% 3.2% 3.5% 3.2% Palo Alto 5.0%‐5.0% 5.0% Gilroy 5.0% 4.5%‐4.5% San Jose 5.0%‐5.0% 4.5% Utility User  Tax Comparison 97   In FY 2016‐17, UUT revenues decreased  by 8.6% compared to FY 2015‐16,  primarily due to the settlement payout  that was taken from UUT receipts.  UUT  revenues are trending up 3.8% in FY 2017‐ 18.  Budgeted revenues are expected to  remain at $3.2 million for FY 2018‐19 and  beyond.  This revenue source will be  monitored closely as the fiscal year  progresses.   Franchise fees are received from cable, solid waste, water, gas and electricity franchisees that  operate in the City.  The fees range from 1% to 12% of the franchisee’s gross revenues depending  on each particular agreement.  As shown in the graph below, these revenues are relatively steady  and not sensitive to economic fluctuations.     Franchise fee revenues decreased by  2% in FY 2016‐17 from the prior year.   In FY 2017‐18, franchise fee revenues  are trending down 10.8% partially due  to the winding down of development  resulting in lower solid waste  revenues.   Budgeted revenues are  expected to remain at approximately  $3 million for FY 2018‐19.  This revenue  source will be monitored closely as the  fiscal year progresses.    FY 16-17 Actual 3,409,572 FY 17-18 Adopted 3,040,000 FY 17-18 Estimate 3,040,000 FY 18-19 Adopted 3,042,000 % of General Fund 3.96% % Change from FY 17-18 Adopted 0.07% FRANCHISE FEES 98   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 Park and Main Street developments.   These projects coupled with a strong housing recovery created a record year for revenues in FY  2013‐14.  These revenues have since returned to historic levels. In FY 2018‐19, these revenues are  expected to be $1.2 million.    FY 16-17 Actual 2,981,883 FY 17-18 Adopted 2,850,000 FY 17-18 Estimate 2,850,000 FY 18-19 Adopted 1,150,000 % of General Fund 1.50% % Change from FY 17-18 Adopted -59.65% OTHER TAXES FY 16-17 Actual 17,913,165 FY 17-18 Adopted 13,337,897 FY 17-18 Estimate 15,259,770 FY 18-19 Adopted 9,419,276 % of General Fund 12.25% % Change from FY 17-18 Adopted -29.38% CHARGES FOR SERVICE 99   This category accounts for charges to users of City services funded by the General Fund as well  as internal City‐wide overhead. The City attempts to recover the cost of the services, including  planning, zoning, and engineering permit processing for new property development as well as  some recreation‐related fees.  As such, this revenue source is sensitive to economic fluctuations,  as shown in the graph below. Apple Park and other large developments generated large one‐time  revenues in FY 2013‐14 as well as FY 2015‐16 and FY 2016‐17.   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 were included to capture  internal strategic support services that were previously excluded (City Council, Facilities,  Maintenance, etc.). In FY 2015‐16, the City’s administration changed its methodology for tracking  developer deposits driven by increased developer activity and, as a result, both budgets for  revenues and expenses were increased by anticipated deposit amounts leading to another large  increase in revenue.     For FY 2018‐19, Charges for Services will decrease to $9.4 million largely due to the winding down  of development projects.  In addition, revised fees will be brought to Council for approval in June  which may result in increased revenue estimates.           FY 16-17 Actual 2,536,924 FY 17-18 Adopted 2,145,000 FY 17-18 Estimate 2,145,000 FY 18-19 Adopted 2,685,000 % of General Fund 3.49% % Change from FY 17-18 Adopted 25.17% LICENCES AND PERMITS 100   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.      The Apple Park project and large  residential projects (Rosebowl, Biltmore  expansion, Main Street) generated  significant permitting revenues in FY  2013‐14. Since then, activity has slowed.  FY 2016‐17 revenues came in 17.4%  lower and another 15.4% drop was  projected as part of the FY 2017‐18  Adopted Budget due to the winding  down of construction projects in the  City.  Revenue estimates for FY 2018‐19  are up 25.2% as building plan review  revenue actuals have been trending  higher.      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 $136.6  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  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  FY 16-17 Actual 1,210,231 FY 17-18 Adopted 1,647,790 FY 17-18 Estimate 1,647,790 FY 18-19 Adopted 692,000 % of General Fund 0.90% % Change from FY 17-18 Adopted -58.00% USE OF MONEY AND PROPERTY 101   necessitated a weighting of the portfolio toward safety and lower average yields.  In March 2018,  the Federal Reserve raised short‐term interest rates by a quarter percentage point to a range of  1.50% to 1.75%.  Two more increases are forecasted for the next year.    Investment earnings are expected to begin to rise as the Federal Reserve continues its ramp up,  though modest, with interest rates.  Economists predict interest rates will increase further in FY  2018‐19 with an additional two to three increases, resulting in a 2019 projected rate of 2.9%. Due  to recent volatility in the market, revenue in this category for FY 2018‐19 was estimated using a  conservative approach, resulting in 58% decrease.   Fines and forfeitures account for revenues generated from vehicle, parking, and miscellaneous  code violations issued by the County Sheriff and the City’s Code Enforcement officers.   Parking  fine revenues have increased with the addition of a part‐time Code Enforcement Officer.  Fines  and forfeiture revenue is projected to remain relatively flat in FY 2017‐18.  In FY 2018‐19 revenues  are expected to remain at this level with a slight increase due to expected increases in parking  fine revenues.    FY 16-17 Actual 593,122 FY 17-18 Adopted 600,000 FY 17-18 Estimate 600,000 FY 18-19 Adopted 615,000 % of General Fund 0.80% % Change from FY 17-18 Adopted 2.50% FINES AND FORFEITURES 102       Intergovernmental revenues are made up of federal, state, and regional grants, including  miscellaneous intergovernmental revenue.  Current year actuals may come in higher compared  to budgeted levels due to anticipated State mandate reimbursements. In FY 2018‐19, revenues of  $326,000 are anticipated.       Miscellaneous revenues account for the sale of land and other miscellaneous revenues such as  administrative fees.  FY 2017‐18 miscellaneous revenue is estimated to come in about $10 million  higher than budgeted due to refundable deposit revenue associated with development projects  and the transfer in of fund balance from the Capital Reserve back to the General Fund.   Miscellaneous revenue is expected to decline and is projected to be $1.1 million for FY 2018‐19.   FY 16-17 Actual 330,107 FY 17-18 Adopted 484,000 FY 17-18 Estimate 484,000 FY 18-19 Adopted 326,000 % of General Fund 0.42% % Change from FY 17-18 Adopted -32.64% INTERGOVERNMENTAL FY 16-17 Actual 9,931,554 FY 17-18 Adopted 2,435,960 FY 17-18 Estimate 12,499,274 FY 18-19 Adopted 1,104,200 % of General Fund 1.44% % Change from FY 17-18 Adopted -54.67% MISCELLANEOUS REVENUE 103 General Fund Expenditures   Estimates for the FY 2018‐19 General Fund expenditures are based upon anticipated personnel  and non‐personnel cost increases. This year department budgets reflect actual projected costs  based on the 2017‐18 Adopted Budget, removing any one time costs, and accounting for  changes in personnel costs and any other anticipated/known increased costs in FY 2018‐19. In  addition, most budgets were given additional funds for any unexpected expenditures that are  accounted for in the contingency account.  Lastly, per the City’s Reserve policy, an unassigned  General Fund balance above the $500,000 maximum balance will be transferred to the Capital  Fund for future capital and infrastructure projects, after year‐end close and as part of the mid‐ year budget.  As shown in the chart below, FY 2018‐19 expenditures are estimated at $77.6  million, a 3% increase above adopted budget from the prior year. This increase is primarily  attributed to increased costs in salary and benefits as a result of increased staffing and  negotiated salary and benefit increases as part of the third year of a 3 year contract with the  City’s bargaining groups. In addition, cost allocation has increased due to a change in allocation  methodology for IT charges from a “per user” to “per device” basis and an increase in materials  due to the acquisition of software.   These increases are offset by a decrease in transfers out due  a reduction in enterprise and internal service fund subsidies driven primarily by the  communication fund being moved to the general fund.         *The increase in Other Uses is due to the reallocation of budget from Special Projects to the Refundable deposit  account in Current Planning and Building.  The increase is off‐set by a decrease in Special Projects.        2015‐16 2016‐17 2017‐18 2018‐19 % EXPENDITURES Actuals Actuals Adopted Adopted Change Employee Compensation 13,430,658 15,019,952 17,078,787 19,349,144 13% Employee Benefits 5,543,191   6,522,993   7,210,639   8,059,818   12% Total Personnel Costs 18,973,849 21,542,945 24,289,426 27,408,962 13% Non‐Personnel Costs Materials 3,323,691   3,637,591   4,784,228   5,772,556   21% Contract Services 16,819,679 17,366,277 18,165,596 19,461,836 7% Cost Allocation 3,078,935   13,459,891 7,812,849   9,368,223   20% Capital Outlay & Special Projects 9,657,395   8,919,870   2,827,469   2,161,298   ‐24% Contingencies 5,010          1,186          1,253,931   1,197,933   ‐4% Other Uses 827             146,722      160,000      910,000      469% Total Non‐Personnel 32,885,537 43,531,537 35,004,073 38,871,846 11% Transfers 13,163,945 28,965,731 15,757,734 11,358,912 ‐28% TOTAL EXPENDITURES 65,023,331 94,040,213 75,051,233 77,639,720 3% GENERAL  FUND EXPENDITURE SUMMARY 104 The largest General Fund operating expenditure categories include Employee Compensation  and Benefits (35%), Contract Services (25%) and Transfers Out (15%) as illustrated in the FY  2018‐19 General Fund Expenditures by Category chart.             Personnel Costs  Personnel cost total $27.4 million in FY 2018‐19, comprising 35% of General Fund expenditures.  These costs are made up of salaries and compensation for benefitted and part‐time staff (71%),  retirement benefits (17%), and other fringe benefits (12%), 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  primarily due to a cost of living increase negotiated as part of the labor agreements, and  projected cost escalators for health, dental, long‐term disability, and vision benefits.  In  addition, an increase in salaries is attributed to an increase in part‐time staffing.      CalPERS retirement rates are projected to increase 2.7%, as per the most recent actuarial  valuation report from CalPERS. In addition, the CalPERS discount rate is projected to remain at  7%, as the CalPERS board voted in December 2017 to maintain the same rate. Future actuarial  assumptions project changes to the discount rate and these projections are reflected in the  General Fund forecast section of the budget.       105 A total of 201.75 FTEs are budgeted in FY 2018‐19, up from 197.75 in FY 2017‐18. This increase of  4.0 FTEs represents a 2% increase in staffing.  The growth in positions is summarized below:        Positions approved as part of the Adopted Budget are summarized below:        Non‐Personnel   Non‐personnel cost total $38.9 million in FY 2018‐19, comprising 50% of General Fund  expenditures. These costs are primarily made up of Contract Services (25%), Cost Allocation  charges (12%), Materials (7%), Capital Outlays and Special Projects (3%) and Contingencies  (2%). Costs were developed based on FY 2017‐18 Adopted budget and actual expenditures in  prior years, and then adjusted for FY 2018‐19 funding needs. One‐time projects were moved to a  separate category in FY 2013‐14 to ensure that expenditure trends reflect ongoing expenditure  needs.  In FY 2017‐18, a concerted effort was made to differentiate costs related to special  projects and capital outlays that are required to be depreciated.  A special projects series was  created in the contracts section of accounts for any new special projects going forward.    Contingencies totaling 5% of the total General Fund and 5% of Material and Contract budgets  have been established. This contingency level is within the recommended range by the  FY 2017‐18 Adopted Budget 197.75 Senior Assistant  Attorney (Council Item)1.00 Account  Clerk I/II (Mid‐Year)1.00 Conversions from Limited Term to Permanent Environmental Programs Assistant 0.00 Associate Civil Engineer 0.00 FY 2018‐2019 Adopted Budget Senior Management Analyst, Limited Term 1.00 Engineering Technician 1.00 FY 2018‐19 Benefitted Positions 201.75 Department(s) Classification Salaries Benefits Total Costs Funding Source/Purpose Administrative  Services Senior Management Analyst,  2 year limited term $122,900 $47,464 $170,364 General Fund Continue Current Technical and  Analytical Projects Public Works Engineering Technician $87,448 $38,768 $126,216 General Fund Development Services Projects  Administration Environmental Programs  Assistant $38,120 $11,317 $49,437 General Fund Sustainability and CAP  Public Works Associate Civil Engineer $11,841 $3,426 $15,267                                        General Fund  Bicycle & Pedestrian Transportation  Traffic Impact Fee $260,309 $100,975 $361,284POSITIONS FUNDED BY THE GENERAL  Limited Term to Permanent 106 Government Finance Officers Association. Contingencies have been 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.      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 2018‐19, budgets have been established for the following transfers.      Transfer Out from  General Fund Description Amount Special Revenue Funds Storm  Drain, Non‐Point Source, Sidewalk,  Curb and Gutter Maintenance $6,611,000  Debt  Service Fund Annual Debt Payment $3,169,438  Internal Service Funds General Fund Subsidy of Compensated  Absences  and Retiree Medical $1,578,474  TOTAL GENERAL FUND TRANSFERS OUT  $11,358,912  107 Actuals Actuals Adopted Budget Year End Projection Adopted Budget CLASSIFICATION 2015-16 2016-17 2017-18 2017-18 2018-19 Non Spendable Loans Receivable 868,608 851,714 1,032,275 460,047 460,047 Prepaid Items 68,773 25,225 66,428 6,000 6,000 Total Non Spendable 937,381 876,939 1,098,703 466,047 466,047 Restricted Public Access Television 888,374 1,016,771 761,693 843,000 843,000 Total Restricted 888,374 1,016,771 761,693 843,000 843,000 Committed Economic Uncertainty - 19,000,000 - 19,000,000 19,000,000 Sustainability Reserve - - - 75,499 75,499 PERS - - - 8,000,000 8,000,000 Total Committed - 19,000,000 - 27,075,499 27,075,499 Assigned Economic Uncertainty 19,000,000 - 19,000,000 - - Economic Fluctuation 1,400,000 - 1,400,000 - - PERS 100,000 100,000 4,793,000 - - Reserve for Encumbrances - 4,538,181 11,604,000 7,932,000 7,932,000 Total Assigned 20,500,000 4,638,181 36,797,000 7,932,000 7,932,000 Total UnAssigned 29,869,085 28,057,799 6,750,090 9,645,226 8,893,982 TOTAL FUND BALANCE 52,194,840 53,589,690 45,407,486 45,961,772 45,210,528 Fiscal Year 2018-19 Adopted Budget General Fund Classification of Fund Balance 108 All Funds Summary This section provides information on the FY 2018‐19 Special Revenue, Debt Service, Capital  Project, Enterprise and Internal Service Funds budgets including, expenditure and revenue  highlights, transfers to other funds, reserve funds and the financial forecast.     Revenue Estimates  Estimates for FY 2018‐19 fund balance and individual revenue accounts are based upon a  careful examination of the collection history and patterns as they relate to such factors as  seasonality and performance in the economic environment that the City is most likely to  encounter in the coming year. Each source of revenue can be influenced by external (outside of  the City’s control) and/or internal factors. The FY 2018‐19 revenue estimates are built on the  assumption that the economy will continue to experience modest growth.    Special Revenue Funds  Special Revenue Funds account for the proceeds of specific revenue sources that are legally  restricted to expenditures for specific purposes. Special Revenue Funds include the Park  Dedication, Transportation, Storm Drain, and Environmental Management/Clean Creeks funds.    Revenue  Revenue sources for special revenue funds are summarized in the table below and discussed in  greater detail following the table:        Revenues are projected to decrease by $3.9 million dollars, largely due to a reduction in one‐ time transfers in from the General Fund as well as a decrease in estimated development fees  related to housing mitigation and park dedication fees.     2016‐17  2017‐18 Actuals Projected Other  Taxes 276,234 1,350,000 3,000 Use of  Money & Property 252,529 2,000 89,310 Intergovernmental 2,254,931 1,980,590 3,822,881 Charges  for Services 394,862 384,100 370,000 Miscellaneous  Revenue 182,138                           ‐   185,000 Fines  and Forfeitures 10,071 6,000 9,000 Transfers In 8,263,430 12,772,122 8,086,000 Total Revenue Sources $11,634,195 $16,494,812 $12,565,191  REVENUE SOURCES  2018‐19 Adopted Budget   109 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 decrease by $32.4 million dollars, which is primarily due to a  decrease related to the completion of capital and BMR projects in FY 2017‐18.      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, 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.          2016‐17  2017‐18 Actuals Projected Employee Compensation 893,672 936,730 990,595 Employee Benefits 463,651 511,493 501,148 Materials 601,690 690,869 855,119 Contract Services 821,701 976,537 867,900 Cost Allocation 379,431 550,748 425,454 Capital Outlays 1,022,285 21,467,129 4,103,379 Special Projects 7,450,532 20,098,648 5,900,000 Contingencies                         ‐              39,571.00 35,702 Transfers Out                         ‐            779,762.00 10,000 Total Expenditures  Uses $11,632,963 $46,051,487 $13,689,297   2018‐19 Adopted Budget  EXPENDITURE USES CHANGES TO FUND BALANCE 2016‐17 2017‐18 Actuals Projected Beginning Balance 33,775,116 33,776,349 4,219,674 Net  Increase (Decrease) in Fund Balance 1,233 (29,556,675) (1,124,106) Ending Balance $33,776,349 $4,219,674 $3,095,568   2018‐19 Adopted Budget   110 Revenue  Revenue sources for the Debt Service Funds are summarized in the table below and discussed  in greater detail following the table:        Revenues are expected to remain relatively unchanged.    Expenditures  Expenditure uses for Debt Service Funds are summarized in the table below and discussed in  greater detail following the table:        Expenditures are expected to remain relatively unchanged. This represents a repayment of debt  and payments which are fixed for the life of the loan.    Fund Balance  Fund balance represents 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 2016‐17  2017‐18 Actuals Projected Use of  Money & Property 4,951                           ‐                                ‐   Transfers In 3,167,538 3,167,538 3,169,438 Total Revenue Sources $3,172,489 $3,167,538 $3,169,438   2018‐19 Adopted Budget   EXPENDITURE USES 2016‐17  2017‐18 Actuals Projected Debt Service 3,172,238 3,167,538 3,169,438 Total Expenditures  Uses $3,172,238 $3,167,538 $3,169,438   2018‐19 Adopted Budget   CHANGES TO FUND BALANCE 2016‐17  2017‐18 Actuals Projected Beginning Balance 1,596,982 1,597,234 1,597,234 Net  Increase (Decrease) in Fund Balance 252                            ‐                                ‐   Ending Balance $1,597,234 $1,597,234 $1,597,234   2018‐19 Adopted Budget   111 Capital Project Funds  This fund pays for the acquisition of major capital facilities and/or construction of major capital  projects.    Revenue  Revenue sources for Capital Project Funds are summarized in the table below and discussed in  greater detail following the table:          Revenue is projected to decrease by $11.1. This decrease is caused primarily by a $10 million  transfer in from the General Fund in FY 2017‐18.     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 decrease by $14.0 million dollars primarily due to a decrease in  transfers out of other funds to fund capital projects.  Capital outlays are also adopted to  decrease $9.4 million due to significant completion of capital projects in FY 2017‐18.    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.     2016‐17  2017‐18 Actuals Projected Miscellaneous                         ‐              1,800,000                              ‐   Transfers In        20,907,000           18,325,762                9,051,500  Total Revenue Sources $20,907,000           20,125,762 $9,051,500  REVENUE SOURCES  2018‐19 Adopted Budget   EXPENDITURE USES 2016‐17  2017‐18 2018‐19 Actuals Projected Adopted Budget Employee Compensation 29,077                           ‐                                ‐   Employee Benefits 11,013                           ‐                                ‐   Materials 841                           ‐                                ‐   Contract Services 0 147,289                             ‐   Capital Outlays 2,194,303 16,512,013 7,141,500 Transfers Out 8,709,982 15,184,000 10,726,500 Total Expenditures  Uses $10,945,216 $31,843,302 $17,868,000  112       Enterprise Funds  Enterprise Funds are set up for the provision of specific services that are funded directly by fees  charged for those goods or services. Enterprise Funds include the Resource Recovery, Sports  Center, Blackberry Farm Golf Course and Recreation funds.    Revenue  Revenue sources for Enterprise Funds are summarized in the table below and discussed in  greater detail following the table:        Revenue is projected to decrease by $540,000, this is primarily driven by anticipated decreases  in charges for services 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 2016‐17  2017‐18 Actuals Projected Beginning Balance 15,344,191 25,305,975 13,588,436 Net  Increase (Decrease) in Fund Balance 9,961,784 (11,717,540) (8,816,500) Ending Balance $25,305,975 $13,588,436 $4,771,936   2018‐19 Adopted Budget   2016‐17  2017‐18 Actuals  Projected Use of  Money & Property 366,914 231,200 317,000 Intergovernmental 15,380 15,000 15,000 Charges  for Services 7,484,945 7,181,800 6,871,400 Miscellaneous  Revenue 319,419 56,000 66,000 Transfers In 1,874,120 400,000 75,000 Total Revenue Sources $10,060,779 $7,884,000 $7,344,400  REVENUE SOURCES  2018‐19 Adopted Budget   113 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 $94,000. This increase is driven primarily by an  increase in contract services, cost allocation plan charges, and transfers out to other funds.    Retained Earnings  Enterprise funds carry retained earning instead of fund balance. Retained earnings are  calculated by taking the beginning balance and then adding the difference between revenue and  expenditures to arrive at the ending retained earnings. However, some of these resources are  not liquid and represent capital assets.  These monies are generally accumulated to support  capital replacement and/or expansion needs.           EXPENDITURE USES 2016‐17  2017‐18 Actuals  Projected Employee Compensation 1,526,685 1,952,091 1,902,484 Employee Benefits 517,333 603,569 566,178 Materials 223,998 565,186 568,836 Contract  Services 5,118,569 5,184,094 6,066,925 Contingencies                           ‐   273,496 207,732 Cost Allocation 661,972 759,543 906,362 Special Projects 40,284 729,186 315,000 Transfers Out 331,836 693,766 320,509 Total Expense Uses $8,420,678 $10,760,931 $10,854,026   2018‐19 Adopted Budget   CHANGES TO RETAINED EARNINGS 2016‐17  2017‐18 Actuals  Projected Beginning Balance 9,411,357 11,051,458 8,174,527 Net  Increase (Decrease) in Retained Earnings  1,640,101 (2,876,931) (3,509,626) Ending Balance $11,051,458 $8,174,527 $4,664,901   2018‐19 Adopted Budget   114 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 projected to decrease by $960,000. The reduction is primarily due to a decrease in  transfers in from the General Fund as a result of the consolidation of the City Channel fund to  the General Fund in FY 2016‐17.  This decrease is offset with an increase in cost allocation plan  charges to recoup funds for additional Innovation and Technology projects in FY 2018‐19.      Expenditures  Expenditure uses for Internal Service Funds are summarized in the table below and discussed  in greater detail following the table:      2016‐17  2017‐18 Actuals Projected Use of  Money & Property 32,275                           ‐                                ‐   Intergovernmental                          ‐                              ‐                                ‐   Charges  for Services 3,742,404 3,955,512 4,973,162 Miscellaneous  Revenue 1,530 ‐                                                  ‐   Transfers In 1,092,130 3,427,708 1,578,474 Other  Financing Uses 82,095 601,003 472,652 Total Revenue Sources $4,950,434 $7,984,223 $7,024,288  REVENUE SOURCES  2018‐19 Adopted Budget   EXPENDITURE USES 2016‐17  2017‐18 Actuals Projected Employee Compensation 1,137,168 1,421,306 1,361,662 Employee Benefits 2,064,248 1,505,057 1,696,269 Materials 545,556 818,238 981,277 Contract Services 1,871,151 1,717,095 1,981,855 Contingencies                         ‐   323,695 147,882 Cost Allocation 798,514 444,717 727,082 Special Projects 438,866 2,594,413 903,000 Transfers Out 532385 460,442 699,351 Total Expenditures  Uses $7,387,889 $9,284,963 $8,498,378   2018‐19 Adopted Budget   115 Total expenditures is projected to decrease $787,000 as a result of the consolidation of the City’s  City Channel fund to the General Fund in FY 2016‐17.      Retained Earnings  Internal Service Funds carry retained earning instead of fund balance.  Retained earnings are  calculated in the same manner as fund balance, taking the beginning balance and then adding  the difference between revenue and expenditures to arrive at the ending retained earnings.  However, some of the resources are not liquid and represent capital assets.  These monies are  generally accumulated to support capital replacement and/or expansion needs.          CHANGES TO RETAINED EARNINGS 2016‐17  2017‐18 Actuals Projected Beginning Balance 17,506,102 15,068,647 13,767,907 Net Increase  (Decrease) in Retained Earnings  (2,437,455) (1,300,740) (1,474,090) Ending Balance $15,068,647 $13,767,907 $12,293,817   2018‐19 Adopted Budget   116 5-Year and 20-Year General Fund Forecast In the past, City staff has completed 5-year forecasts as part of the budget process. This year, City staff has also prepared a 20-year forecast as the City prepares to deal with significant increases in retirement costs due to changes in the CalPERS discount rate, also known as the assumed rate of return. These increases in CalPERS retirement costs will also impact the City’s law enforcement contract, which increases as retirement costs rise. These rising costs coupled with stalled growth in development in the City are resulting in projected shortfalls beginning in FY 2023-24. The financial forecast is a planning tool that helps staff identify important trends and anticipate the longer term consequences of budget decisions. The forecast is an instrumental tool in modeling the effects of rising retirement costs, increases in employee compensation, and revenue performance scenarios. The forecast is not a plan, but a model based on cost and revenue assumptions that are updated regularly as new information becomes available. Of these components, cost projections, which are based on known costs, are relatively reliable. Revenue forecasts, on the other hand, are based on assumptions related to future economic conditions, which are fraught with uncertainty. Economic forecasts in the financial markets and the media change on a seemingly daily basis and demonstrate the difficulties of committing to a particular prediction of the future. For this reason, the forecast is updated regularly. A discussion of both the national and local economic outlooks used to develop the revenue estimates for the FY 2018-19 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 tax consultant HDL to assist in the development of sales tax, property tax and transient occupancy tax (TOT) revenue estimates and projections. While economic conditions are the primary drivers for economically sensitive revenues such as 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 utility rate changes, energy prices, and consumption levels. Collections from local, State, and federal agencies are primarily driven by grant and reimbursement funding available from these agencies. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. 117 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. It’s important to note that the national economy has been expanding since June 2009, as defined by the National Bureau of Economic Research (NBER). The expansion is now in its ninth year and is poised to become the second-longest on record later this year. According to the non-partisan Congressional Budget Office (CBO), economic growth is expected to dampen between 2020 and 2026 primarily due to higher interest rates. Similarly, the Federal Open Market Committee (FOMC) forecasts GDP growth of 2.7 percent in 2018, 2.4 percent in 2019, and 2.0 percent in 2020. The broad consensus among economists is modest expansion until 2020, after which growth is expected to decrease. 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 (B2B) sales in the City’s technology sector. Property taxes have also performed well over the last several 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. In recent years, large construction projects have generated strong development-related revenue for the City’s coffers. However, development-related activity has started to decrease. The majority of revenues associated with the Apple Park project have already been collected per the development agreement. No other major development projects are forecasted 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. 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 services are expected to decline from the peak experienced in FY 2013-14 due to the completion of one-time projects. As shown in the chart on the next page, operating revenues are expected to exceed operating expenditures through the fifth year of the forecast. Per the City’s One Time Use and Reserve Policy, any additional unassigned fund balance above the $500,000 threshold will be transferred to the Capital Reserve at the end of the year. This year, staff is also recommending funding the CalPERS Reserve on an annual basis as part of a long-term strategy to improve the financial sustainability of the City’s pension system and reduce the effect of pension rate volatility on the City’s operating budget. 118 Revenues As shown in the following table, the City’s top three revenue sources continue to be property tax, sales tax, and transient occupancy tax (TOT). All three revenue sources are expected to grow, although that pace of growth is projected to slow. In the last five years, major development projects, such as Main Street and Apple Park, were a large source of revenue. 119 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast REVENUES Sales Tax 23,790,000 23,637,000 23,495,000 23,965,000 24,022,000 24,550,000 Property Tax 22,357,000 22,766,000 23,405,000 23,873,000 24,350,000 24,837,000 Transient Occupancy Tax 6,708,000 8,252,000 9,170,000 9,308,000 9,355,000 9,542,000 Utility Tax 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 Franchise Fees 3,040,000 3,042,000 3,133,000 3,227,000 3,324,000 3,424,000 Other Taxes 2,850,000 1,150,000 1,672,000 1,710,000 1,750,000 1,790,000 Licenses & Permits 2,145,000 2,685,000 2,145,000 2,194,000 2,245,000 2,296,000 Use of Money & Property 1,647,790 692,000 692,000 692,000 692,000 692,000 Intergovernmental 484,000 326,000 484,000 484,000 484,000 484,000 Charges for Services 15,472,270 9,419,276 9,636,000 9,858,000 10,084,000 10,316,000 Fines & Forfeitures 600,000 615,000 615,000 615,000 615,000 615,000 Miscellaneous 1,610,351 244,200 - - - - Other 9,202,885 850,000 - - - - Transfers In 2,000,000 10,000 - - - - TOTAL REVENUES 95,107,296 76,888,476 77,647,000 79,126,000 80,121,000 81,746,000 FIVE-YEAR GENERAL FUND REVENUES FORECAST 120 Sales Tax Sales tax is projected to be lower in FY 2018-19 due to the completion of Apple Park, then increase modestly in subsequent years. Starting in FY 2024-25, sales tax is projected to grow by 0.5% in the long-term forecast. Business-to- business (B2B) revenue is the largest portion of the City’s sales tax base, so the City’s sales tax revenue is sensitive to market forces. In particular, the City’s two largest sales tax sources—both technology companies—account for a large portion of the City’s total sales tax revenue. Sales tax revenue is reported two quarters in arrears thus providing the City with about six months to react should a reduction in this revenue source occur. Given the volatility of B2B revenue, which accounts for 67.0% 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 promoting the general retail and food product sectors. Recently completed development projects such as Nineteen800 and Main Street are expected to generate new or replacement retail. These developments should boost retail sales and reduce the City’s reliance on B2B revenue. Property Tax Property taxes are projected to increase by 2% each year in the forecast. These forecasts are based on estimates from the Santa Clara County Assessor’s Office. Again, with little to no major development projects expected in the City, the City will not continue to see dramatic increases in property tax revenue as it has in the past. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Sales Tax 23,790,000 23,637,000 23,495,000 23,965,000 24,022,000 24,550,000 FIVE-YEAR SALES TAX FORECAST FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Property Tax 22,357,000 22,766,000 23,405,000 23,873,000 24,350,000 24,837,000 FIVE-YEAR PROPERTY TAX FORECAST 121 Transient Occupancy Tax In FY 2018-19 and FY 2019-20, transient occupancy tax (TOT) revenues are projected to increase due to the opening of new hotels: the 180-room Residence Inn by Marriott hotel at Main Street and the 148-room Hyatt House hotel at Vallco Park (expected in 2019). Starting in FY 2022-23, revenues are projected to increase by national Gross Domestic Product (GDP) or about 2% per year. This revenue source is impacted by the tax rate charged on hotels in the City and the occupancy rate of these hotels. This revenue source is highly correlated with B2B revenue, as revenue is primarily driven by business travel. Occupancy rates are currently at record levels given our strong local economy. However, a decline in the economy could have a significant impact on this revenue source. In addition, this forecast does not assume any additional hotels opening in the City. Licenses and Permits Licenses and permits are forecasted to decrease in FY 2019-20 due to reduced development activity. Starting in FY 2020-21, revenue is projected to increase by CPI. Out of prudence, this forecast does not reflect any major development projects that are awaiting approval. If new development projects are approved, this forecast will be updated accordingly. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Transient Occupancy Tax 6,708,000 8,252,000 9,170,000 9,308,000 9,355,000 9,542,000 FIVE-YEAR TRANSIENT OCCUPANCY TAX FORECAST FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Licenses & Permits 2,145,000 2,685,000 2,145,000 2,194,000 2,245,000 2,296,000 FIVE-YEAR LICENSES & PERMITS FORECAST 122 Charges for Services In FY 2018-19, revenues from charges for services are projected to decrease, primarily due to a decrease in development activity. Starting in FY 2019-20, revenue is projected to increase by CPI. This forecast does not assume any major development projects that are awaiting approval. Other Revenue Utility taxes are assumed to remain flat based on past performance. In the last 10 years, increases in rates have been offset by decreases in consumption. Franchise fees are projected to increase by CPI in all out-years. Other taxes are made up of construction, property transfer, and business license tax revenue. Revenue is projected to increase by CPI in all out-years. Use of money and property is expected to remain flat throughout the forecast based on the City’s current conservative investment strategy and low interest rates. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Charges for Services 15,472,270 9,419,276 9,636,000 9,858,000 10,084,000 10,316,000 FIVE-YEAR CHARGES FOR SERVICES FORECAST FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Utility Tax 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 Franchise Fees 3,040,000 3,042,000 3,133,000 3,227,000 3,324,000 3,424,000 Other Taxes 2,850,000 1,150,000 1,672,000 1,710,000 1,750,000 1,790,000 Use of Money & Property 1,647,790 692,000 692,000 692,000 692,000 692,000 Intergovernmental 484,000 326,000 484,000 484,000 484,000 484,000 Fines & Forfeitures 600,000 615,000 615,000 615,000 615,000 615,000 Miscellaneous 1,610,351 244,200 - - - - Other 9,202,885 850,000 - - - - Transfers In 2,000,000 10,000 - - - - TOTAL 24,635,026 10,129,200 9,796,000 9,928,000 10,065,000 10,205,000 FIVE-YEAR FORECAST - OTHER REVENUE 123 Intergovernmental revenues will decrease in FY 2018-19 but are projected to remain flat in the out- years. Fines and Forfeitures are anticipated to increase in FY 2018-19 but will remain flat in the out- years. Miscellaneous and non-operational revenues are not assumed in the forecast. Expenditures An in-depth analysis of General Fund expenditures was completed to develop the FY 2018-19 expenditure estimates included in this forecast. As displayed in the chart above, General Fund expenditures are projected to decrease from $110.7 million in FY 2017-18 to $77.6 million in FY 2018-19 and increase each year in the forecast. The forecast is adjusted to eliminate one-time additions or deletions and annualize partial year allocations that were included in the FY 2017-18 Adopted Budget. One-time additions scheduled to expire in June 2018 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 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast EXPENDITURES Employee Compensation 18,069,974 19,349,144 19,790,000 19,649,000 19,649,000 20,112,000 Employee Benefits 7,548,730 8,059,818 9,465,000 9,465,000 9,604,000 10,603,000 Personnel Costs 25,618,704 27,408,962 29,255,000 29,114,000 29,253,000 30,715,000 Materials 6,185,981 5,772,556 5,773,000 5,773,000 5,773,000 5,773,000 Contract Services 22,209,795 19,461,836 20,108,000 20,711,000 21,332,000 21,972,000 Cost Allocation 8,101,838 9,368,223 9,612,000 9,910,000 10,207,000 10,513,000 Capital Outlay 4,478,588 793,000 - - - - Special Projects 18,105,713 1,368,298 500,000 500,000 500,000 500,000 Contingencies 990,239 1,197,933 800,000 800,000 800,000 800,000 Other Uses 892,376 910,000 - - - - Non-Personnel Costs 60,964,530 38,871,846 36,793,000 37,694,000 38,612,000 39,558,000 Transfers 24,129,368 11,358,912 11,359,000 11,359,000 11,359,000 11,359,000 TOTAL EXPENDITURES 110,712,602 77,639,720 77,407,000 78,167,000 79,224,000 81,632,000 FIVE-YEAR GENERAL FUND EXPENDITURES FORECAST 124 Personnel Expenditures Salaries Salaries are expected to grow significantly in the out-years of the forecast. Full-time salaries are projected to grow at a rate of 2.5% per year, which is slightly lower than the presumed rate of growth by CalPERS. Part-time salaries are forecasted to grow at a rate of 1.5% as they generally grow at a slower pace than full-time salaries. Increases in salaries are primarily due to employees below Step 5 progressing to higher salary steps. Five limited-term positions are forecasted to end in FY 2020-21. The ending of these limited-term positions will result in approximately $1 million in ongoing salary and benefits savings. Health Benefits Health benefits account for about 9% of all personnel costs in the General Fund, mostly due to health insurance costs. The City pays employees a fixed amount for health and dental insurance costs, as opposed to covering a percentage of premiums. In October 2016, City Council approved labor contracts that resulted in a significant increase in the City’s health insurance contributions. In the out-years, an annual increase of 5% is projected for health insurance and 2% for dental insurance. Cost increases in health above the negotiated flat amount and any increases in dental are fully absorbed by employees. While not factored into the forecast, there is uncertainty about the fate of the Affordable Care Act (ACA). Rate increases have stabilized with the implementation of the ACA. Still looming is the so-called “Cadillac Tax” which, beginning in 2022, will impose an excise tax for any employer-sponsored health coverage whose value exceeds $10,200 per year for individuals and $27,500 for families. A 40% excise tax will be imposed on the amount that exceeds the predetermined thresholds. Most of the City’s current health plans would fall under the definition of a Cadillac plan, which could increase the City’s cost of providing health benefits to employees. The City’s health care administrator, CalPERS, has given assurances that coverage plans will fall below the Cadillac Tax threshold. Retirement Benefits Rising retirement costs are driving the increase in employee benefits. The table below shows the current breakdown of City employees amongst the three retirement tiers. The majority of employees in the City are currently covered under the Tier 1 retirement system. Savings from the lower-cost Tier 2 and Tier 3 plans are not expected to be substantial for another 10-15 years. Tier # Employees Benefits Employer Share Employee Share Total Rate 2.7@ 55 Highest Year 2% @ 60 Highest 3 Yr Avg 2% @ 62 Highest 3 Yr AvgIII79 26.17%6.25%32.42% I 102 26.17%8.00%34.17% II 16 26.17%7.00%33.17% 125 Cupertino provides retirement benefits for its employees through the California Public Employee’s Retirement System (CalPERS). Poor investment returns during the Great Recession and actuarial assumption changes have increased the gap between the pension system’s assets and liabilities, resulting in the overall funded status of the system falling significantly. Currently, the funded status of the CalPERS plan is 68%. The City’s pension plan has an Unfunded Accrued Liability (UAL) of $40.6 million and a funded ratio of 65.8%, according to the most recent actuarial report issued by CalPERS in August 2017. A defined-benefit plan is considered adequately funded if its assets equal or exceed the value of its future liabilities. The funded ratio is the ratio of assets to liabilities. When the funded ratio is lower than 100%, the plan has insufficient assets to pay all future liabilities. After a thorough analysis, CalPERS actuaries determined that the retirement system was at significant risk of falling to dangerously low funded status levels under existing actuarial policies. In December 2016, the CalPERS Board voted to reduce the discount rate by 0.5 percentage points. This change will result in significant increases in retirement costs well above the City’s previous forecasts. As a result of the discount rate reduction, the City’s CalPERS costs are projected to increase by over 80% from FY 2017-18 to FY 2024-25 as shown in the table below.3 In addition, it is unclear if CalPERS investment returns will be able to meet this new rate of return and many experts speculate that CalPERS will need to lower the discount rate again in the future. As part of a budget-balancing strategy, the budget proposes the creation of a Pension Rate Stabilization Program (PRSP), also known as a Section 115 Trust. The Section 115 Trust would help the City to offset the costs of any further discount rate changes, address the UAL earlier than required by CalPERS, and attain a funded status of at least 80% within 20 years. 6/30/2015 6/30/2016 Present Value of Projected Benefits 129,440,196$ 138,600,233$ Entry Age Normal Accrued Liability 111,188,031$ 118,489,119$ Market Value of Assets (MVA)77,897,977$ 77,919,876$ Unfunded Accrued Liability (UAL)33,290,054$ 40,569,243$ Funded Ratio 70.1%65.8% CALPERS PLAN STATUS FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Projected Payroll 16,544,880$ 17,041,226$ 17,552,463$ 18,079,037$ 18,621,408$ 19,180,050$ 19,755,452$ Normal Cost (%)10.1% 10.6% 11.6% 11.6% 11.6% 11.6% 11.6% Normal Cost 1,677,320$ 1,806,370$ 2,036,086$ 2,097,168$ 2,160,083$ 2,224,886$ 2,291,632$ UAL Payment 2,770,235$ 3,201,000$ 3,584,000$ 4,029,000$ 4,420,000$ 4,698,000$ 4,940,000$ Total Contribution 4,447,555$ 5,007,370$ 5,620,086$ 6,126,168$ 6,580,083$ 6,922,886$ 7,231,632$ Total Contribution (%)26.9% 29.4% 32.0% 33.9% 35.3% 36.1% 36.6% PROJECTED CALPERS CONTRIBUTIONS 126 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, standby pay and wellness credit. Non-Personnel Expenditures Non-personnel expenditures in FY 2018-19 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 2018-19 non-personnel base levels in each of the four years. The average growth rate for the non-personnel category is 3% annually. Materials costs are forecasted to remain flat in the out year of the forecast as the City’s base budget is reviewed. It is anticipated savings can be found within existing budgets to flatten out these costs. Contract Services costs are projected to grow by CPI in the out-years of the forecast with the exception of the Law Enforcement contract with the Santa Clara County Sheriff’s Office. Law Enforcement costs are projected to grow by CPI plus 2% and by changes in retirement costs per the current contract terms. The major increase in contracts is driven by increases in CalPERS that will be passed on to the City. Cost Allocation is projected to grow by CPI in the out-years but this estimate is conservative as savings may materialize in department budgets that may drive these costs down. Capital Outlays and Special Projects are projected to remain flat at $500,000 in the forecast period. In the last five years, the City has spent about $2 million per year in capital outlay and special project costs excluding development projects that include pass thru revenue. Costs related to this category are being reduced as a budget-balancing strategy. Appropriations for Contingency are projected to remain flat at $800,000 in the forecast period. The City has historically underspent in this category and the decrease is being used as a budget- balancing strategy. In addition, use of these funds would require pre-approval by the City Manager or his/her designee should departments want to utilize these funds. Transfers represent the General Fund’s contributions to other City funds to support debt payments, pay retiree health costs, finance capital projects, replenish capital project reserves, acquire new equipment, and subsidize enterprises and operations. With the implementation of 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 127 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. Fund Balance The General Fund’s fund balance is projected to increase by $1.5 million over the forecast period. This is driven by the City’s strong revenues and the City’s conservative approach to expenditure growth. The City’s restricted fund balance is projected to increase, as the City proposes to initially fund the Section 115 Trust with $8.0 million from the CalPERS Reserve. In addition, the City proposes to add $2.0 million of fund balance to the Section 115 Trust each year until FY 2022-23. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Beginning Fund Balance 53,589,690 45,961,772 45,210,528 45,450,528 46,409,528 47,306,528 Committed/Other 36,316,546 36,316,546 34,424,479 36,424,479 38,424,479 40,424,479 Unassigned 9,645,226 8,893,982 11,026,049 9,985,049 8,882,049 6,996,049 Total Ending Fund Balance 45,961,772 45,210,528 45,450,528 46,409,528 47,306,528 47,420,528 FIVE-YEAR GENERAL FUND FUND BALANCE FORECAST 128 It is anticipated that any unassigned fund balance over the $500,000 threshold will be transferred to the Capital Reserve, the CalPERS Reserve, or the Section 115 Trust. The budget proposes the creation of a Section 115 Trust to stabilize the potential impact of pension cost volatility on the City’s operating budget. The City will be able to use funds from the Section 115 Trust to offset unexpected increases in retirement contributions. Funds in the Section 115 Trust are restricted and can only be used to pay CalPERS or reimburse the City for pension contributions. Budget-Balancing Strategies The City’s budget has historically been structurally sound with revenues exceeding expenditures in most years. When revenues have exceeded expenditures, the excess fund balance was moved to the Capital Reserve per the City’s One Time Use and Reserve Policy. The current 5-year forecast anticipates a small deficit in the first year that the City anticipates will not materialize due to salary and benefits savings from vacancies and attrition. In addition, as mentioned above, the City has historically underspent contingencies. Overall, in the next five years, projections show small operating surpluses. However, beginning in FY 2023-24, staff anticipates structural deficits. Staff is currently recommending the following strategies to assist in balancing the budget over the next 20 years. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Estimate Adopted Forecast Forecast Forecast Forecast Non-Spendable Loans Receivable 460,047 460,047 460,047 460,047 460,047 460,047 Prepaid Items 6,000 6,000 - - - - Total Non-Spendable 466,047 466,047 460,047 460,047 460,047 460,047 Restricted Public Access Television 843,000 843,000 888,933 888,933 888,933 888,933 Section 115 Trust 10,000,000 12,000,000 14,000,000 16,000,000 Total Restricted 843,000 843,000 10,888,933 12,888,933 14,888,933 16,888,933 Committed Economic Uncertainty 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 Sustainability Reserve 75,499 75,499 75,499 75,499 75,499 75,499 PERS 8,000,000 8,000,000 - - - - Total Committed 27,075,499 27,075,499 19,075,499 19,075,499 19,075,499 19,075,499 Assigned Reserve for Encumbrances 7,932,000 7,932,000 4,000,000 4,000,000 4,000,000 4,000,000 Total Assigned 7,932,000 7,932,000 4,000,000 4,000,000 4,000,000 4,000,000 Total Unassigned 9,645,226 8,893,982 11,026,049 9,985,049 8,882,049 6,996,049 TOTAL FUND BALANCE 45,961,772 45,210,528 45,450,528 46,409,528 47,306,528 47,420,528 FIVE-YEAR GENERAL FUND FUND BALANCE FORECAST 129 Strategy Description Potential Impact Revenues Employer-Based business license tax Introduced as part of City Council Work Plan Unknown at this time Storm Water Fee Increase Introduced as part of the City Council Work Plan. Rates have not increased in many years and would be brought to cost recovery levels, thereby eliminating a General Fund subsidy. Unknown at this time Expenditures Salary and Benefit Savings through attrition Keep non-essential positions unfilled as they become vacant. The goal would be approximately 10 positions. $2 million No new positions past the current fiscal year Cost containment strategy $0 Section 115 Trust Smoothing mechanism for years when CalPERS does not meet discount rate projections or assumption changes Varies based on investment returns and investment strategy No extension of limited term positions Eliminates potential ongoing salary and benefit costs associated with 5 remaining limited term positions in FY 2020-21 $1 million Reduction in capital outlays and special projects Cost containment strategy Up to $1.5 million Reduction in contingencies Cost containment strategy Up to $400,000 Additional Strategies The following strategies, although not recommended at this time, may be considered by the City in future years should revenues experience a sharp decline or expenditures a sharp unexpected increase resulting in a larger structural deficit than currently anticipated. Strategy Description Potential Impact Employee cost-sharing of increases to CalPERS Negotiate to share costs of increases to CalPERS employer rates with employees $250,000 approximate based on 5% rate increase Furloughs Employee cost-sharing of increases to CalPERS $300,000 approximate based on 1% 130 decrease Reduction in force The City would identify what positions could be reduced (laid off) based on provisions in the MOUs where applicable and service level needs in the City Varies 131 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - General Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23 Sales Tax 26,932,012 22,790,000 23,790,000 23,637,000 23,495,000 23,965,000 24,022,000 24,550,000 Property Tax 20,219,077 20,757,000 22,357,000 22,766,000 23,405,000 23,873,000 24,350,000 24,837,000 Transient Occupancy Tax 6,023,681 6,708,000 6,708,000 8,252,000 9,170,000 9,308,000 9,355,000 9,542,000 Utility Tax 3,082,408 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 Franchise Fees 3,409,572 3,040,000 3,040,000 3,042,000 3,133,000 3,227,000 3,324,000 3,424,000 Other Taxes 2,981,883 2,850,000 2,850,000 1,150,000 1,672,000 1,710,000 1,750,000 1,790,000 Licenses & Permits 2,536,924 2,145,000 2,145,000 2,685,000 2,145,000 2,194,000 2,245,000 2,296,000 Use of Money and Property 1,210,231 1,647,790 1,647,790 692,000 692,000 692,000 692,000 692,000 Intergovernmental 330,107 484,000 484,000 326,000 484,000 484,000 484,000 484,000 Charges for Services 17,913,165 13,337,897 15,472,270 9,419,276 9,636,000 9,858,000 10,084,000 10,316,000 Fines & Forfeitures 593,122 600,000 600,000 615,000 615,000 615,000 615,000 615,000 Miscellaneous 1,822,763 225,960 1,610,351 244,200 - - - - Other 5,747,045 210,000 9,202,885 850,000 - - - - Transfers In 2,361,747 2,000,000 2,000,000 10,000 - - - - TOTAL REVENUES 95,163,736 79,995,647 95,107,296 76,888,476 77,647,000 79,126,000 80,121,000 81,746,000 Classification 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 132 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - General Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23 Employee Compensation 15,019,952 17,078,787 18,069,974 19,349,144 19,790,000 19,649,000 19,649,000 20,112,000 Employee Benefits 6,522,993 7,210,639 7,548,730 8,059,818 9,465,000 9,465,000 9,604,000 10,603,000 Personnel Costs 21,542,944 24,289,426 25,618,704 27,408,962 29,255,000 29,114,000 29,253,000 30,715,000 Materials 3,637,591 4,784,228 6,185,981 5,772,556 5,773,000 5,773,000 5,773,000 5,773,000 Contract Services 17,366,277 18,165,596 22,209,795 19,461,836 20,108,000 20,711,000 21,332,000 21,972,000 Cost Allocation 13,459,891 7,812,849 8,101,838 9,368,223 9,612,000 9,910,000 10,207,000 10,513,000 Capital Outlay 856,477 1,024,400 4,478,588 793,000 - - - - Special Projects 8,063,393 1,803,069 18,105,713 1,368,298 500,000 500,000 500,000 500,000 Contingencies 1,186 1,253,931 990,239 1,197,933 800,000 800,000 800,000 800,000 Other Uses 146,722 160,000 892,376 910,000 - - - - Non-Personnel Costs 43,531,537 35,004,073 60,964,530 38,871,846 36,793,000 37,694,000 38,612,000 39,558,000 Transfers 28,965,731 15,757,734 24,129,368 11,358,912 11,359,000 11,359,000 11,359,000 11,359,000 TOTAL EXPENDITURES 94,040,212 75,051,233 110,712,602 77,639,720 77,407,000 78,167,000 79,224,000 81,632,000 Classification 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 133 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - General Fund Fund Balance 2018-19 2019-20 2020-21 2021-22 2022-23 Beginning Balance 52,194,840 40,390,672 53,589,690 45,961,772 45,210,528 45,450,528 46,409,528 47,306,528 Committed/Other 25,531,891 38,657,396 36,316,546 36,316,546 34,424,479 36,424,479 38,424,479 40,424,479 Unassigned 28,057,799 6,750,090 9,645,226 8,893,982 11,026,049 9,985,049 8,882,049 6,996,049 Ending Balance 53,589,690 45,407,486 45,961,772 45,210,528 45,450,528 46,409,528 47,306,528 47,420,528 Classification 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 134 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Special Revenue Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23 STORM DRAIN IMPROVEMENT (FUNDS 210, 215) Taxes 84,984 100,000 100,000 - - - - - Use of Money and Property 10,199 - - - - - - - Transfer In 1,950,000 1,700,000 1,700,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 TOTAL 2,045,183 1,800,000 1,800,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 ENVIRON. MGMT./CLEAN CREEKS/STORM DRAIN (FUND 230) Use of Money and Property 1,411 - - 900 - - - - Transfer In 156,834 84,122 84,122 436,000 - - - - Fines and Forfeitures 10,071 6,000 6,000 9,000 9,000 9,000 9,000 9,000 Charges for Services 369,884 380,000 380,000 370,000 370,000 370,000 370,000 370,000 Miscellaneous Revenue 7,640 - - - - - - - TOTAL 545,840 470,122 470,122 815,900 379,000 379,000 379,000 379,000 TRANSPORTATION (FUND 270) Use of Money and Property 47,372 2,000 2,000 77,500 77,500 77,500 77,500 77,500 Transfer In 6,152,982 10,988,000 10,988,000 5,800,000 5,800,000 5,800,000 5,800,000 5,800,000 Intergovernmental Revenue 1,798,005 1,666,000 1,666,000 3,510,939 3,165,000 3,165,000 3,165,000 3,165,000 Charges for Services 22,279 4,100 4,100 - - - - - Miscellaneous Revenue 174,498 - - 185,000 - - - - TOTAL 8,195,136 12,660,100 12,660,100 9,573,439 9,042,500 9,042,500 9,042,500 9,042,500 HOUSING & COMMUNITY DEVELOPMENT (FUNDS 260, 261, 265) Taxes 39,000 1,000,000 1,000,000 3,000 3,000 3,000 3,000 3,000 Licenses and Permits - 62,918 62,918 - - - - - Use of Money and Property 141,907 - - 10,910 10,910 10,910 10,910 10,910 Transfer In 3,614 - - 175,000 - - - - Intergovernmental Revenue 456,926 251,672 251,672 311,942 311,942 311,942 311,942 311,942 TOTAL 641,447 1,314,590 1,314,590 500,852 325,852 325,852 325,852 325,852 5-Year ForecastClassification2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 135 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Special Revenue Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23 5-Year ForecastClassification2016-17 Actuals 2017-18 Adopted 2017-18 Estimate PARK DEDICATION (FUND 280) Taxes 152,250 250,000 250,000 - - - - - Use of Money and Property 50,784 - - - - - - - Transfer In - - - 575,000 - - - - TOTAL 203,034 250,000 250,000 575,000 - - - - TOTAL SPECIAL REVENUE FUNDS 11,630,640 16,494,812 16,494,812 12,565,191 10,847,352 10,847,352 10,847,352 10,847,352 136 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Debt Service Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23 PUBLIC FACILITIES CORPORATION (FUND 365) Use of Money and Property 4,951 - - - - - - - Transfer In 3,167,538 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 3,170,738 TOTAL 3,172,489 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 3,170,738 TOTAL DEBT SERVICE FUNDS 3,172,489 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 3,170,738 Classification 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 137 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Capital Project Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23 CAPITAL IMPROVEMENT PROJECTS (FUND 420) Transfer In 5,907,000 8,325,762 8,325,762 9,051,500 1,840,000 1,840,000 1,680,000 1,680,000 Miscellaneous - - 1,773,538 - - - - - TOTAL 5,907,000 8,325,762 10,099,300 9,051,500 1,840,000 1,840,000 1,680,000 1,680,000 CAPITAL RESERVE (FUND 429) Transfer In 15,000,000 - 10,000,000 - - - - - TOTAL 15,000,000 - 10,000,000 - - - - - TOTAL CAPITAL PROJECT FUNDS 20,907,000 8,325,762 20,099,300 9,051,500 1,840,000 1,840,000 1,680,000 1,680,000 Classification 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 138 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Enterprise Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23 RESOURCE RECOVERY (FUND 520) Use of Money and Property 33,409 25,000 25,000 30,000 30,000 30,000 30,000 30,000 Transfer In 53,215 - - - - - - - Intergovernmental Revenue 15,380 15,000 15,000 15,000 - - - - Charges for Services 2,717,524 2,150,000 2,150,000 2,157,000 2,157,000 2,157,000 2,157,000 2,157,000 Miscellaneous Revenue 59,290 56,000 56,000 66,000 - - - - TOTAL 2,878,818 2,246,000 2,246,000 2,268,000 2,187,000 2,187,000 2,187,000 2,187,000 BLACKBERRY FARM GOLF COURSE (FUND 560) Use of Money and Property 24,012 22,000 22,000 - - - - - Transfer In 332,931 300,000 300,000 75,000 75,000 75,000 75,000 75,000 Charges for Services 305,435 381,000 381,000 335,000 335,000 335,000 335,000 335,000 Miscellaneous Revenue (2) - - - - - - - TOTAL 662,376 703,000 703,000 410,000 410,000 410,000 410,000 410,000 SPORTS CENTER (FUND 570) Use of Money and Property 9,345 1,200 1,200 - - - - - Transfer In 1,030,662 100,000 100,000 - - - - - Charges for Services 2,238,023 2,285,000 2,285,000 2,100,500 2,100,500 2,100,500 2,100,500 2,100,500 Miscellaneous Revenue (7,179) - - - - - - - TOTAL 3,270,851 2,386,200 2,386,200 2,100,500 2,100,500 2,100,500 2,100,500 2,100,500 RECREATION PROGRAMS (FUND 580) Use of Money and Property 300,148 183,000 183,000 287,000 287,000 287,000 287,000 287,000 Transfer In 457,312 - - - 2,796,992 2,796,992 2,796,992 2,796,992 Charges for Services 2,223,964 2,365,800 2,365,800 2,278,900 2,278,900 2,278,900 2,278,900 2,278,900 Miscellaneous Revenue 267,310 - - - - - - - TOTAL 3,248,734 2,548,800 2,548,800 2,565,900 5,362,892 5,362,892 5,362,892 5,362,892 TOTAL ENTERPRISE FUNDS 10,060,779 7,884,000 7,884,000 7,344,400 10,060,392 10,060,392 10,060,392 10,060,392 Classification 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 139 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Internal Service Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23 Use of Money and Property 13,344 - - - - - - - Transfer In 931,470 549,705 549,705 - - - - - Charges for Services 2,996,196 2,361,792 2,073,912 3,753,928 3,753,928 3,753,928 3,753,928 3,753,928 TOTAL 3,941,010 2,911,497 2,623,617 3,753,928 3,753,928 3,753,928 3,753,928 3,753,928 Transfer In - 3,028,366 - - - - - - TOTAL - 3,028,366 - - - - - - Use of Money and Property 14,542 - - - - - - - Transfer In 1,192 - - - - - - - Charges for Services 628,648 - - - - - - - Other Financing Sources - 601,003 601,003 472,652 - - - - TOTAL 644,382 601,003 601,003 472,652 - - - - Use of Money and Property 6,652 - - - - - - - Transfer In 9,468 - - - - - - - Charges for Services 3,000 1,721,825 1,721,825 1,056,968 1,056,968 1,056,968 1,056,968 1,056,968 Miscellaneous Revenue 1,530 - - - - - - - Other Financing Sources 82,095 - - - - - - - TOTAL 102,745 1,721,825 1,721,825 1,056,968 1,056,968 1,056,968 1,056,968 1,056,968 Use of Money and Property 1,819 - - - - - - - Transfer In 150,000 509,517 509,517 447,000 150,000 150,000 150,000 150,000 Charges for Services 114,560 83,875 159,775 162,266 83,875 83,875 83,875 83,875 TOTAL 266,379 593,392 669,292 609,266 233,875 233,875 233,875 233,875 CITY CHANNEL (FUND 615) WORKERS' COMPENSATION (FUND 620) VEHICLE/EQUIPMENT REPLACEMENT (FUND 630) COMPENSATED ABSENCE & LONG-TERM DISABILITY (FUND 641) INFORMATION TECHNOLOGY (FUND 610) Classification 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 140 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Internal Service Fund Revenues 2018-19 2019-20 2020-21 2021-22 2022-23Classification2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast Use of Money and Property (4,082) - - - - - - - Transfer In - 968,486 2,368,486 1,131,474 1,131,474 1,131,474 1,131,474 1,131,474 TOTAL (4,082) 968,486 2,368,486 1,131,474 1,131,474 1,131,474 1,131,474 1,131,474 TOTAL INTERNAL SERVICE FUNDS 4,950,434 9,824,569 7,984,223 7,024,288 6,176,245 6,176,245 6,176,245 6,176,245 RETIREE MEDICAL (FUND 642) 141 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Special Revenue Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23 STORM DRAIN IMPROVEMENT (FUND 210, 215) 210-90-978 Minor Storm Drain Improvements 4,000 - 101,828 - - - - - 210-90-980 SD Master Plan Update 65,753 - 140,000 - - - - - 210-90-981 Calabazas Creek Outfall Repair - - 135,000 - - - - - 210-99-042 SD Improvement - Foothill/Cupertino Rd.47,995 - 1,852,004 - - - - - 210-99-060 SD Improvement - Byrne & SCB - 1,500,000 1,500,000 - - - - - 210-99-071 CIP-Storm Drain MP Implementation - - - 1,500,000 400,000 400,000 400,000 400,000 215-90-982 Bubb Road/Elm Court SD Improvement - - 178,255 - - - - - 215-90-983 Monta Vista Storm Drain System - - 322,828 - - - - - TOTAL 117,748 1,500,000 4,229,915 1,500,000 400,000 400,000 400,000 400,000 ENVIRON. MGMT./CLEAN CREEKS/STORM DRAIN (FUND 230) 230-81-802 Non Point Source 594,356 761,720 852,026 720,785 720,785 720,785 720,785 720,785 TOTAL 594,356 761,720 852,026 720,785 720,785 720,785 720,785 720,785 HOUSING & COMMUNITY DEVELOPMENT (FUND 260, 261, 265) 260-72-707 CDBG General Admin 63,890 88,814 63,974 65,871 65,871 65,871 65,871 65,871 260-72-709 Affordable Housing 284,484 284,484 231,822 210,892 210,892 210,892 210,892 210,892 260-72-710 Public Service Grants 47,187 47,188 47,983 47,983 47,983 47,983 47,983 47,983 265-72-711 BMR Housing 602,308 8,610,724 12,331,451 818,427 475,000 475,000 475,000 475,000 TOTAL 997,869 9,031,210 12,675,230 1,143,173 799,746 799,746 799,746 799,746 TRANSPORTATION (FUND 270) 270-85-820 Sidewalk Curb and Gutter 980,352 1,085,525 1,150,672 1,195,876 1,195,876 1,195,876 1,195,876 1,195,876 270-85-821 Street Pavement Maintenance 7,394,614 6,744,384 13,403,276 6,832,574 6,832,574 6,832,574 6,832,574 6,832,574 270-85-822 Street Sign Marking 645,761 831,990 866,106 661,889 661,889 661,889 661,889 661,889 270-90-954 Monument Gateway Sign 35,000 - 25,859 - - - - - 270-90-958 Orange and Byrne Sidewalk Impv 56,366 3,388,000 3,831,561 - - - - - 270-90-960 Bridge Rehab Minor 6,223 - 693,745 - - - - - 270-90-961 St Median Irrg Plant Repl 33,836 750,000 1,363,350 - - - - - 270-90-962 Bicycle Ped Facility Impr 121,351 779,762 1,559,524 - - - - - Program 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 142 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Special Revenue Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23Program2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 270-90-974 Fiber Ntwk Signal Interco 335 - - - - - - - 270-90-975 Speed Bump Vista Lazaneo 1,600 - - - - - - - 270-90-976 Ph 2 Mcl Sidewalk Improv 418,103 - 1,588,825 - - - - - 270-99-044 Traffic Calm Rodrigues/Pacifica - - 24,000 - - - - - 270-99-046 Sidewalk Renovation-SCB 202,410 - 47,589 - - - - - TOTAL 9,895,951 13,579,661 24,554,507 8,690,339 8,690,339 8,690,339 8,690,339 8,690,339 PARK DEDICATION (FUND 280) 280-99-009 Lawrence-Mitty Park 27,039 - 8,227,288 - - - - - 280-99-066 MRP Community Grdn Improv-Const 1,500,000 280-99-067 MRP EEC Aquatic Habitat 125,000 TOTAL 27,039 - 8,227,288 1,625,000 - - - - TREE FUND (FUND 281) 281-90-001 No Department - - - 10,000 TOTAL - - - 10,000 - - - - TOTAL SPECIAL REVENUE FUNDS 11,632,962 24,872,591 50,538,966 13,689,297 10,610,870 10,610,870 10,610,870 10,610,870 143 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Debt Service Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23 PUBLIC FACILITIES CORPORATION (FUND 365) 365-90-500 Facility Lease 3,172,238 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 3,170,738 TOTAL 3,172,238 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 3,170,738 TOTAL DEBT SERVICE FUNDS 3,172,238 3,167,538 3,167,538 3,169,438 3,172,838 3,169,138 3,168,488 3,170,738 Program 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 144 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Capital Project Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23 CAPITAL IMPROVEMENT PROJECTS (FUND 420) 420-90-001 No Department - - 50,000 - 420-90-880 Env Edu Facility 3,608 - 4,800 - 420-90-897 Spt Ctr Tennis Court Ret Wall - - 50,000 - 420-90-898 SCCP Chain MP-MCLN TO SCB 143 - 128,727 75,000 420-90-904 Spt Ctr Resurf Tennis Cts 418,016 - 2,000 - 420-90-938 Pub Bldg Solar Service Center 6,230 - 28,624 - 420-90-969 DeAnza/McClellan Signal Maint - - 145,700 - 420-90-971 STLG/280 Ped Bridge Lighting 50 - 46,450 - 420-90-999 Green Bike Lanes - - 95,000 - 420-99-002 BBF Splash Pad - - 70,000 - 420-99-003 MR Construct Trash Enclosure 610 - 153,390 - 420-99-004 MR Community Garden Improvements - 70,000 100,000 - 420-99-005 Memorial Park MP and Parking - - 150,000 - 420-99-007 ADA Improvements - 95,000 245,000 75,000 75,000 75,000 75,000 75,000 420-99-014 Stevens Crk Bank Repair Concept - 100,000 100,000 - 420-99-015 Tennis Court Resurfacing Parks 300,875 515,000 802,125 - 420-99-017 Sports Center Exterior Upgrades 490 - 739,510 830,000 420-99-018 Sports Center Interior Upgrades - - 20,000 - 420-99-023 QCC Fire Alarm Control Panel Upg 23,145 - 109,704 - 420-99-025 Service Center Parking Lot Mods 92,031 - - - 420-99-026 Bicycle Transportation Plan Upda 2,210 - - - 420-99-027 Pasadena Ave Pub Imp Granada 527,492 - 1,236 - 420-99-028 Traffic Signal Foothill-I280 SB - 100,000 100,000 - 420-99-030 MCClellan West-Parking Lot Impro 52,126 550,000 897,873 - 420-99-031 Rec Facilities Monument Signs - - 385,000 - 420-99-033 City Hall - Turf Reduction 300,684 - 146,216 - 420-99-034 Svc Ctr - Shed No. 3 Improvement 17,100 400,000 482,899 600,000 420-99-035 Stocklmeir Hse-New Sewer Lateral - - 50,000 - 420-99-036 2016 Bike Plan Implementation 159,319 4,779,762 8,430,333 1,800,000 420-99-037 Bikeway Enhncmnts & Brnding Stdy 136 - 49,973 - Program 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 145 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Capital Project Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23Program2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 420-99-038 Fiber Network Ext to Svc Ctr 24,142 - 325,857 - 420-99-039 Pedestrian Master Plan 67,453 - 52,547 - 420-99-040 Retaining Wall Repair-Cordova Rd 581 - 299,418 - 420-99-041 Retaining Wall Repl - Regnart Rd 31,313 - 468,686 - 420-99-043 Svc Ctr-New Admin Bldg Feas Stdy 18,624 - 32,385 - 420-99-045 Citywide Park & Recreation MP 90,853 - 288,323 100,000 420-99-047 CIP Prelim Planning & Design - 125,000 82,090 125,000 125,000 125,000 125,000 125,000 420-99-048 Capital Project Support - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 420-99-049 Int'l Cricket Ground-Feasibility - 20,000 20,000 - 420-99-051 Inclusive Play Area - Planning - 30,000 30,000 - 420-99-054 Senior Ctr Walkway Replacement - 64,000 64,000 - 420-99-055 Outfall Rpr/Slope Stblz-Regnart - 400,000 400,000 - 420-99-056 St Light Install - Annual Infill - 30,000 30,000 30,000 30,000 30,000 30,000 30,000 420-99-057 McClellan Sdwlk-RB to Hwy85 Over - 430,000 430,000 - 420-99-058 St Light Install-Randy & Larry - 367,000 367,000 - 420-99-059 Senior Center Repairs - 200,000 200,000 - 420-99-063 CW Bldg Condition Assess Impl - - - 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 420-99-064 Creek Infall/Outfall Restoration - - - 160,000 160,000 160,000 420-99-065 DeAnza Med Islnd Landscaping Ph2 - - - 1,546,500 420-99-068 Regnart Road Improvements - - - 150,000 150,000 150,000 150,000 150,000 420-99-069 School Walk Audit Implementation - - - 250,000 250,000 250,000 250,000 250,000 420-99-070 SCB/Bandley Signal & Median Imps - - - 150,000 420-99-072 St Light Replacement CW (labor)- - - 200,000 420-99-885 Golf Irrigation Upgrades - - 493,000 - TOTAL 2,137,233 8,325,762 17,217,866 7,141,500 1,840,000 1,840,000 1,680,000 1,680,000 CAPITAL RESERVE (FUND 429) 429-90-001 Transfer to Capital Improvement 8,704,608 15,184,000 15,184,000 10,726,500 1,840,000 1,840,000 1,680,000 1,680,000 TOTAL 8,704,608 15,184,000 15,184,000 10,726,500 1,840,000 1,840,000 1,680,000 1,680,000 146 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Capital Project Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23Program2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast STEVENS CREEK CORRIDOR PARK (FUND 427) 427-90-870 Stevens Creek Corridor Park-Phase 1 3,679 - 38,115 - - - - - 427-90-881 Stevens Creek Corridor Park-Phase 2 22,840 - 151,493 - - - - - TOTAL 26,518 - 189,608 - - - - - TOTAL CAPITAL PROJECT FUNDS 10,868,360 23,509,762 32,591,474 17,868,000 3,680,000 3,680,000 3,360,000 3,360,000 147 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Enterprise Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23 RESOURCE RECOVERY (FUND 520) 520-81-801 Resource Recovery 2,991,181 3,269,762 3,663,889 3,501,101 3,501,101 3,501,101 3,501,101 3,501,101 TOTAL 2,991,181 3,269,762 3,663,889 3,501,101 3,501,101 3,501,101 3,501,101 3,501,101 BLACKBERRY FARM GOLF COURSE (FUND 560) 560-63-616 Golf Course 597,405 708,461 746,467 687,939 687,939 687,939 687,939 687,939 560-90-885 CIP Golf Irrigation Upgrade - - 469,418 - - - - - 560-99-061 BBF Entrnc Rd Improv-Feasibility - - - 75,000 - - - - TOTAL 597,405 708,461 1,215,885 762,939 687,939 687,939 687,939 687,939 SPORTS CENTER (FUND 570) 570-63-621 Sports and Physical 1,940,802 2,448,037 2,453,787 2,460,735 2,460,735 2,460,735 2,460,735 2,460,735 570-87-836 Maintenance 212,055 484,623 484,623 490,076 490,076 490,076 490,076 490,076 570-99-032 Children's Play Area - - 470,000 - - - - - TOTAL 2,152,857 2,932,660 3,408,410 2,950,811 2,950,811 2,950,811 2,950,811 2,950,811 RECREATION PROGRAMS (FUND 580) 580-62-613 Youth Teen Recreation 1,632,661 2,214,409 2,222,181 2,040,825 2,040,825 2,040,825 2,040,825 2,040,825 580-63-620 Sports, Safety and Outdoor Recreation 1,040,212 1,451,700 1,455,828 1,598,350 1,598,350 1,598,350 1,598,350 1,598,350 580-90-884 Fenced Dog Park - - 5,000 - - - - - 580-90-896 Sports Center Sport Court - - 20,032 - - - - - 580-90-907 Wilson Ball Safety Net Screen - - 268 - - - - - 580-90-908 Wilson Bleacher Shade Canopy - - 12,873 - - - - - 580-90-909 Wilson Park - Renovation Master Plan - - 55,000 - - - - - 580-99-019 Blacksmith Forge Restoration 6,363 - 37,189 - - - - - TOTAL 2,679,235 3,666,109 3,808,371 3,639,175 3,639,175 3,639,175 3,639,175 3,639,175 TOTAL ENTERPRISE FUNDS 8,420,678 10,576,992 12,096,555 10,854,026 10,779,026 10,779,026 10,779,026 10,779,026 Program 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 148 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Internal Service Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23 610-30-300 Administration 295,478.28 515,134.00 515,134.00 405,034.00 405,034.00 405,034.00 405,034.00 405,034.00 610-34-310 Infrastructure 1,945,013 2,812,304 3,227,906 2,668,918 2,668,918 2,668,918 2,668,918 2,668,918 610-35-986 GIS 714,129 863,088 882,153 1,107,071 1,107,071 1,107,071 1,107,071 1,107,071 610-90-989 Network Upgrade 329,151 - - - - - - - 610-90-991 New Project Contingency 3,334 - - - - - - - 610-90-995 Planning Software 86,287 - - - - - - - TOTAL 3,373,392 4,190,526 4,625,193 4,181,023 4,181,023 4,181,023 4,181,023 4,181,023 615-31-305 Government Channel - 1,569,256 - - - - - - 615-32-308 City Web Site - 1,664,219 - - - - - - TOTAL - 3,233,475 - - - - - - 620-44-418 Workers Compensation Insurance 480,508 498,240 498,240 472,652 472,652 472,652 472,652 472,652 TOTAL 480,508 498,240 498,240 472,652 472,652 472,652 472,652 472,652 630-85-849 Equipment Maintenance 1,482,830 1,251,239 1,289,259 1,593,660 1,593,660 1,593,660 1,593,660 1,593,660 630-90-985 Fixed Assets Acquisition 5,217 1,029,200 1,313,398 538,000 538,000 538,000 538,000 538,000 TOTAL 1,488,047 2,280,439 2,602,657 2,131,660 2,131,660 2,131,660 2,131,660 2,131,660 641-44-419 Long Term Disability 129,419 83,883 159,783 162,266 162,266 162,266 162,266 162,266 641-44-420 Compensated Absence 273,984 435,014 435,014 422,772 422,772 422,772 422,772 422,772 TOTAL 403,404 518,897 594,797 585,038 585,038 585,038 585,038 585,038 RETIREE MEDICAL (FUND 642) 642-44-414 Retiree Benefits 1,110,072 968,486 968,486 1,128,005 1,128,005 1,128,005 1,128,005 1,128,005 TOTAL 1,110,072 968,486 968,486 1,128,005 1,128,005 1,128,005 1,128,005 1,128,005 CITY CHANNEL (FUND 615) WORKERS' COMPENSATION (FUND 620) VEHICLE/EQUIPMENT REPLACEMENT (FUND 630) COMPENSATED ABSENCE & LONG-TERM DISABILITY (FUND 641) Program 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast INFORMATION TECHNOLOGY (FUND 610) 149 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - Internal Service Fund Expenditures 2018-19 2019-20 2020-21 2021-22 2022-23Program2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast TOTAL INTERNAL SERVICE FUNDS 6,855,423 11,690,063 9,289,373 8,498,378 8,498,378 8,498,378 8,498,378 8,498,378 150 Fiscal Year 2018-19 Adopted Budget Five-Year Forecast - All Funds Fund Balance/Retained Earnings 2018-19 2019-20 2020-21 2021-22 2022-23 SPECIAL REVENUE Beginning Balance 33,775,116 41,593,695 33,776,349 4,219,674 3,095,568 3,332,050 3,568,532 3,805,014 Assigned 33,776,349 33,215,916 4,219,674 3,095,568 3,332,050 3,568,532 3,805,014 4,041,496 Unassigned - - - - - - - - Ending Balance 33,776,349 33,215,916 4,219,674 3,095,568 3,332,050 3,568,532 3,805,014 4,041,496 DEBT SERVICE Beginning Balance 1,596,982 1,596,982 1,597,234 1,597,234 1,597,234 1,597,234 1,597,234 1,597,234 Assigned 1,597,234 1,596,982 1,597,234 1,597,234 1,597,234 1,597,234 1,597,234 1,597,234 Unassigned - - - - - - - - Ending Balance 1,597,234 1,596,982 1,597,234 1,597,234 1,597,234 1,597,234 1,597,234 1,597,234 CAPITAL PROJECT Beginning Balance 15,344,191 18,568,230 25,305,975 13,588,436 4,771,936 2,931,936 1,091,936 (588,064) Assigned 25,305,975 3,384,230 13,588,436 4,771,936 2,931,936 1,091,936 (588,064) (2,268,064) Unassigned - - - - - - - - Ending Balance 25,305,975 3,384,230 13,588,436 4,771,936 2,931,936 1,091,936 (588,064) (2,268,064) ENTERPRISE Beginning Balance 9,411,357 6,810,995 11,051,458 8,174,527 4,664,901 3,946,267 3,227,633 2,508,999 Assigned 11,051,458 4,118,003 8,174,527 4,664,901 3,946,267 3,227,633 2,508,999 1,790,365 Unassigned - - - - - - - - Ending Balance 11,051,458 4,118,003 8,174,527 4,664,901 3,946,267 3,227,633 2,508,999 1,790,365 INTERNAL SERVICE Beginning Balance 17,506,102 14,659,906 15,068,647 13,767,907 12,293,817 9,971,684 7,649,551 5,327,418 Assigned 15,068,647 12,794,412 13,767,907 12,293,817 9,971,684 7,649,551 5,327,418 3,005,285 Unassigned - - - - - - - - Ending Balance 15,068,647 12,794,412 13,767,907 12,293,817 9,971,684 7,649,551 5,327,418 3,005,285 Fund Type 2016-17 Actuals 2017-18 Adopted 2017-18 Estimate 5-Year Forecast 151 This page intentionally left blank. 152 Council and Commissions City Council Commissions Council and Commissions Budget Unit Program 2019 Adopted Budget City Council $ 528,695 100-10-100 City Council $ 417,912 100-10-101 Community Funding $ 53,431 100-10-110 Sister Cities $ 57,352 Commissions $ 419,957 100-11-131 Technology, Information & Communications Commission $ 6,640 100-11-140 Library Commission $ 27,350 100-11-142 Fine Arts Commission $ 44,349 100-11-150 Public Safety Commission $ 28,945 100-11-155 Bicycle and Pedestrian Commission $ 6,278 100-11-160 Parks and Recreation Commission $ 40,690 100-11-165 Teen Commission $ 71,571 100-11-170 Planning Commission $ 127,478 100-11-175 Housing Commission $ 36,565 100-11-180 Sustainability Commission $ 30,091 Total $ 948,652 153 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 406,858 Total Expenditures $ 948,652 Fund Balance - General Fund Costs $ 541,794 % Funded by General Fund 57.1 % Total Staffing 7.35 FTE Organization Darcy Paul, Mayor Rod Sinks, Vice Mayor Barry Chang, Council Member Steven Scharf, Council Member Savita Vaidhyanathan, Council Member 154 Adopted Budget On June 5, 2018, City Council approved a budget of $948,652 for the Council and Commissions department. This represents an increase of $24,015 (2.6%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. 155 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 55.7% 44.3%City Council Commissions $719k $1.23M $925k $949k 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 156 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 31,416 $ 749,064 $ 535,636 $ 406,858 Fines and Forfeitures ---- Miscellaneous Revenue $ 24,522 $ 586 -- Interdepartmental Revenue ---- Total Revenues $ 55,938 $ 749,650 $ 535,636 $ 406,858 Expenditures Employee Compensation $ 182,893 $ 193,988 $ 271,219 $ 297,392 Employee Benefits $ 147,952 $ 136,200 $ 190,421 $ 203,020 Materials $ 126,845 $ 132,054 $ 149,566 $ 174,163 Contract Services $ 98,765 $ 87,032 $ 120,912 $ 107,287 Cost Allocation $ 162,780 $ 683,989 $ 176,865 $ 157,166 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 15,654 $ 9,624 Total Expenditures $ 719,235 $ 1,233,262 $ 924,637 $ 948,652 Fund Balance ---- General Fund Costs $ 663,296 $ 483,612 $ 389,001 $ 541,794 157 City Council Budget Unit 100-10-100 General Fund - City Council - City Council Budget at a Glance 2019 Adopted Budget Total Revenues $ 406,858 Total Expenditures $ 417,912 Fund Balance - General Fund Costs $ 11,054 % Funded by General Fund 2.6 % Total Staffing 6.05 FTE 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 ensure 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 5, 2018, City Council approved a budget of $417,912 for the City Council program. This represents a decrease of $24,711 (-5.6%) from the FY 2018 Adopted Budget. The decrease is primarily due to a change in allocation methodology for IT charges. The City has also decreased program contingencies from 8% of materials and contracts to 5%. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 158 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 31,416 $ 749,064 $ 535,636 $ 406,858 Fines and Forfeitures ---- Miscellaneous Revenue $ 24,522 $ 86 -- Interdepartmental Revenue ---- Total Revenues $ 55,938 $ 749,150 $ 535,636 $ 406,858 Expenditures Employee Compensation $ 73,688 $ 73,084 $ 123,793 $ 135,690 Employee Benefits $ 107,545 $ 87,719 $ 128,237 $ 136,846 Materials $ 96,790 $ 98,854 $ 86,500 $ 86,500 Contract Services $ 493 $ 6,490 $ 387 $ 387 Cost Allocation $ 151,740 $ 520,918 $ 94,665 $ 54,145 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 9,041 $ 4,344 Total Expenditures $ 430,255 $ 787,065 $ 442,623 $ 417,912 Fund Balance ---- General Fund Costs $ 374,317 $ 37,915 $ (93,013)$ 11,054 Staffing Total current authorized positions - 6.15 Staffing is being reallocated to better reflect actual staff time spent in the program. Total recommended positions - 6.05 159 Community Funding Budget Unit 100-10-101 General Fund - City Council - Community Funding Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 53,431 Fund Balance - General Fund Costs $ 53,431 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The Community Funding program provides funding for various community activities and community-based organizations throughout the fiscal year. Service Objectives Provide funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. Grant funding requests in a fair and equitable manner. Grant funding requests per the Community Funding Policy adopted by City Council on April 2, 2013. Adopted Budget On June 5, 2018, City Council approved a budget of $53,431 for the Community Funding program. This represents an increase of $620 (1.2%) from the FY 2018 Adopted Budget. This budget includes $52,000 in funding to support non-profit organizations as described in the table below: Non-Profit Organization FY 2018 Funding FY 2019 Funding Difference Friends of Deer Hollow Farm $15,000 $15,000 $0 Cupertino Historical Society $15,000 $15,000 $0 Euphrat Museum of Art $10,000 $10,000 $0 Cupertino Rotary $12,000 $12,000 $0 Iranian Federated Women's Club $400 $400 $0 Total $52,400 $52,400 $0 160 In addition to the Community Funding program, the Cultural Events program provides funding for community festivals through waivers of fees and staff costs, and the Public Services Grants program provides funding for non-profit agencies serving low and very-low-income Cupertino residents. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 70,000 $ 40,750 $ 52,400 $ 52,400 Cost Allocation -$ 403 $ 411 $ 1,031 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 70,000 $ 41,153 $ 52,811 $ 53,431 Fund Balance ---- General Fund Costs $ 70,000 $ 41,153 $ 52,811 $ 53,431 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 161 Sister Cities Budget Unit 100-10-110 General Fund - City Council - Sister Cities Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 57,352 Fund Balance - General Fund Costs $ 57,352 % Funded by General Fund 100.0 % Total Staffing 0.1 FTE Program Overview Cupertino has four active sister cities registered with Sister Cities International; Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India. Service Objectives To further international communication and understanding through the Sister City Program To foster educational, technical, economic and cultural exchanges To encourage student exchange programs to promote communication and understanding among people of different cultures Adopted Budget On June 5, 2018, City Council approved a budget of $57,352 for the Sister Cities program. This represents an increase of $13,602 (31.1%) from the FY 2018 Adopted Budget. The increase is primarily due to the addition of a Toyokawa Sister City adult delegation, which occurs every 5 years. Increased costs in cost allocation are due to increased use of services provided by finance. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 162 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 3,305 $ 3,540 $ 12,635 $ 13,702 Employee Benefits $ 1,423 $ 1,588 $ 5,079 $ 5,456 Materials $ 2,344 $ 962 $ 3,100 $ 4,100 Contract Services $ 9,320 $ 9,320 $ 20,000 $ 25,000 Cost Allocation -$ 2,342 $ 2,936 $ 9,094 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 16,392 $ 17,753 $ 43,750 $ 57,352 Fund Balance ---- General Fund Costs $ 16,392 $ 17,753 $ 43,750 $ 57,352 Staffing Total current authorized positions - 0.10 There are no changes to the current level of staffing. Total recommended positions - 0.10 163 Technology, Information & Communications Commission Budget Unit 100-11-131 General Fund - Commissions - Technology, Information & Communications Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 6,640 Fund Balance - General Fund Costs $ 6,640 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The Technology, Information & Communications Commission (TICC) advises the City Council and informs the community about issues relating to the rapidly changing fields of communication and technology. Commissioners also serve as a resource for the Planning Commission in offering technical guidance for antenna sightings. The Chief Technology Officer serves as staff liaison. The commission also supports public and educational access to cable services. Service Objectives Continue to work with appropriate companies in bringing advanced services to interested residents. Monitor AT&T and Comcast services and revenue. Negotiate and manage public access provider KMVT to ensure maximum programming value for Cupertino residents. Work with Community Development and Public Works regarding antenna placement and negotiate agreements for communication services that serve Cupertino. Adopted Budget On June 5, 2018, City Council approved a budget of $6,640 for the Technology, Information & Communications Commission program. This represents a decrease of $4,285 (-39.2%) from the FY 2018 Adopted Budget. The decrease is a result of a reduction in cost allocation and contingency. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 164 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 12,707 $ 3,230 -- Employee Benefits $ 4,847 $ 1,518 -- Materials -$ 88 $ 750 $ 750 Contract Services -$ 10,000 -- Cost Allocation $ 1,056 $ 9,538 $ 8,159 $ 5,852 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 2,016 $ 38 Total Expenditures $ 18,611 $ 24,374 $ 10,925 $ 6,640 Fund Balance ---- General Fund Costs $ 18,611 $ 24,374 $ 10,925 $ 6,640 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 165 Library Commission Budget Unit 100-11-140 General Fund - Commissions - Library Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 27,350 Fund Balance - General Fund Costs $ 27,350 % Funded by General Fund 100.0 % Total Staffing 0.05 FTE Program Overview The Library Commission is a five-member commission appointed by the City Council to review and make recommendations related to the operations and services of the Cupertino Library. The Cupertino Library is operated by Santa Clara County Library Services. The building is provided by the City of Cupertino 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 5, 2018, City Council approved a budget of $27,350 for the Library Commission program. This represents an increase of $3,456 (14.5%) from the FY 2018 Adopted Budget. The increase is primarily due to increases in compensation and benefits due to negotiated salary and benefit changes due to take effect in July 2018. The budget also reflects increases in cost allocation due to increased costs of services provided by finance and human resources. 166 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 1,284 $ 7,272 $ 7,612 $ 8,145 Employee Benefits $ 627 $ 3,087 $ 3,413 $ 3,665 Materials $ 180 $ 215 $ 700 $ 700 Contract Services $ 1,225 $ 211 $ 4,700 $ 4,700 Cost Allocation $ 528 $ 9,794 $ 7,253 $ 9,870 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 216 $ 270 Total Expenditures $ 3,844 $ 20,579 $ 23,894 $ 27,350 Fund Balance ---- General Fund Costs $ 3,844 $ 20,579 $ 23,894 $ 27,350 Staffing Total current authorized positions - 0.05 There are no changes to the current level of staffing. Total recommended positions - 0.05 167 Fine Arts Commission Budget Unit 100-11-142 General Fund - Commissions - Fine Arts Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 44,349 Fund Balance - General Fund Costs $ 44,349 % Funded by General Fund 100.0 % Total Staffing 0.15 FTE Program Overview The Fine Arts Commission advances the arts in the City through a number of activities and programs. These include overseeing the “Quarter Percent for Art” requirement for developments over 50,000 square feet; promoting art in public places; making recommendations to City Council regarding arts opportunities; awarding grants to individuals and organizations; selecting winners for the "Energized by Art" Utility Box Contest to transform gray utility boxes into student eco-art canvasses; 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 5, 2018, City Council approved a budget of $44,349 for the Fine Arts Commission program. This represents an increase of $1,312 (3.0%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures 168 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 14,509 $ 15,362 $ 16,275 $ 16,906 Employee Benefits $ 5,615 $ 6,334 $ 6,820 $ 7,075 Materials $ 1,793 $ 2,320 $ 7,200 $ 7,200 Contract Services $ 170 $ 327 $ 950 $ 950 Cost Allocation $ 1,572 $ 21,650 $ 11,492 $ 11,810 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 300 $ 408 Total Expenditures $ 23,659 $ 45,993 $ 43,037 $ 44,349 Fund Balance ---- General Fund Costs $ 23,659 $ 45,993 $ 43,037 $ 44,349 Staffing Total current authorized positions - 0.15 There are no changes to the current level of staffing. Total recommended positions - 0.15 169 Public Safety Commission Budget Unit 100-11-150 General Fund - Commissions - Public Safety Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 28,945 Fund Balance - General Fund Costs $ 28,945 % Funded by General Fund 100.0 % Total Staffing 0.05 FTE Program Overview The Public Safety Commission (PSC), a five-member board appointed by the City Council, assists the Council by 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 5, 2018, City Council approved a budget of $28,945 for the Public Safety Commission program. This represents an increase of $11,893 (69.7%) from the FY 2018 Adopted Budget. The increase is primarily due to the addition of staff support from the City Manager's office. In previous years, the Public Safety Commission was staffed by the Sheriff's Office. Moving forward, the City Manager's office will be staffing the Commission. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 170 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation ---$ 8,157 Employee Benefits ---$ 3,097 Materials $ 65 $ 690 $ 5,000 $ 5,000 Contract Services $ 10,428 $ 15,059 $ 10,000 $ 10,000 Cost Allocation -$ 4,962 $ 1,148 $ 1,941 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 904 $ 750 Total Expenditures $ 10,494 $ 20,711 $ 17,052 $ 28,945 Fund Balance ---- General Fund Costs $ 10,494 $ 20,711 $ 17,052 $ 28,945 Staffing Total current authorized positions - 0.00 Staffing is being reallocated to better reflect actual staff time spent in the program. Total recommended positions - 0.05 171 Bicycle and Pedestrian Commission Budget Unit 100-11-155 General Fund - Commissions - Bicycle and Pedestrian Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 6,278 Fund Balance - General Fund Costs $ 6,278 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The Bicycle and Pedestrian Commission (BPC) is a five-member board appointed by the City Council, which assists the Council by reviewing, monitoring, and making recommendations on City transportation maQers 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 5, 2018, City Council approved a budget of $6,278 for the Bicycle and Pedestrian Commission program. This represents an increase of $1,366 (27.8%) from the FY 2018 Adopted Budget. The increase in cost allocation is due to a change in methodology for IT, finance and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 172 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 300 Contract Services $ 3,074 -$ 4,000 $ 4,000 Cost Allocation -$ 1,623 $ 292 $ 1,763 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 320 $ 215 Total Expenditures $ 9,516 $ 1,623 $ 4,912 $ 6,278 Fund Balance ---- General Fund Costs $ 9,516 $ 1,623 $ 4,912 $ 6,278 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 173 Parks and Recreation Commission Budget Unit 100-11-160 General Fund - Commissions - Parks and Recreation Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 40,690 Fund Balance - General Fund Costs $ 40,690 % Funded by General Fund 100.0 % Total Staffing 0.1 FTE Program Overview The Parks and Recreation Commission is a five-member commission appointed by the City Council to make recommendations pertaining to parks, recreation, and community services. The Director of 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 in special committees dealing with Recreation and Community Services. Serve as ambassadors for the Recreation and Community Services Department. Adopted Budget On June 5, 2018, City Council approved a budget of $40,690 for the Parks and Recreation Commission program. This represents an increase of $10,954 (36.8%) from the FY 2018 Adopted Budget. The increase is primarily due to conference and meeting expenses to fund Commissioners' aQendance at state and national parks and recreation conferences. This budget also adds costs associated with monthly Commission meetings. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 174 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 13,248 $ 6,922 $ 13,317 $ 14,283 Employee Benefits $ 4,897 $ 2,836 $ 5,581 $ 6,120 Materials $ 646 $ 326 $ 581 $ 9,981 Contract Services $ 305 -$ 500 $ 500 Cost Allocation $ 528 $ 15,956 $ 9,670 $ 9,282 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 87 $ 524 Total Expenditures $ 19,625 $ 26,041 $ 29,736 $ 40,690 Fund Balance ---- General Fund Costs $ 19,625 $ 26,041 $ 29,736 $ 40,690 Staffing Total current authorized positions - 0.10 There are no changes to the current level of staffing. Total recommended positions - 0.10 175 Teen Commission Budget Unit 100-11-165 General Fund - Commissions - Teen Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 71,571 Fund Balance - General Fund Costs $ 71,571 % Funded by General Fund 100.0 % Total Staffing 0.3 FTE Program Overview The Teen Commission is comprised of nine teens representing grades 8-11. The Teen Commission advises the City Council and staff on teen issues. A Recreation and Community Services Department Recreation Coordinator 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 5, 2018, City Council approved a budget of $71,571 for the Teen Commission program. This represents an increase of $12,553 (21.3%) from the FY 2018 Adopted Budget. The increase is primarily due to increased cost allocation costs, events such as Pizza and Politics and Hack Cupertino, and Teen Commission apparel. The increase in cost allocation is due to one-time project expenses and a change in allocation methodology for IT charges and increased costs associated with services provided by finance and human resources. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 176 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue -$ 500 -- Interdepartmental Revenue ---- Total Revenues -$ 500 -- Expenditures Employee Compensation $ 1,837 $ 21,916 $ 27,015 $ 25,377 Employee Benefits $ 830 $ 9,226 $ 11,718 $ 11,751 Materials $ 6,374 $ 5,181 $ 1,700 $ 15,897 Contract Services --$ 10,725 $ 1,100 Cost Allocation $ 2,628 $ 26,324 $ 7,666 $ 16,596 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 194 $ 850 Total Expenditures $ 11,669 $ 62,647 $ 59,018 $ 71,571 Fund Balance ---- General Fund Costs $ 11,669 $ 62,147 $ 59,018 $ 71,571 Staffing Total current authorized positions - 0.30 There are no changes to the current level of staffing. Total recommended positions - 0.30 177 Planning Commission Budget Unit 100-11-170 General Fund - Commissions - Planning Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 127,478 Fund Balance - General Fund Costs $ 127,478 % Funded by General Fund 100.0 % Total Staffing 0.3 FTE Program Overview The Planning Commission is a five-member citizen board appointed by the City Council. The functions of the Planning Commission are as follows: Advise the City Council on land use and development policy related to the General Plan; Implement the General Plan through review and administration of specific plans and related ordinances; Review land use applications for conformance with the General Plan and ordinances; and Promote the coordination of local plans and programs with regional and other agencies. Service Objectives Conduct periodic reviews of the General Plan. These reviews test the fundamental goals and measure the performance of short-term objectives. Conduct public hearings for approximately 80 land development applications every year. Ensure that decisions are made fairly and expeditiously in accordance with adopted General Plan policies, zoning ordinances, development plans, and design guidelines. Review specific plans, zoning ordinance amendments, and amendments to the General Plan and make recommendations to Council. Serve on the Planning Commission Design Review CommiQee, the Environmental Review CommiQee, and in an advisory role to the Housing Commission and Economic Development Committee. Adopted Budget On June 5, 2018, City Council approved a budget of $127,478 for the Planning Commission program. This represents a decrease of $7,901 (-5.8%) from the FY 2018 Adopted Budget. The decrease is mainly due to the fact that the $9,000 contract for transcription services is no longer necessary. Revenues and Expenditures 178 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 48,482 $ 37,169 $ 44,529 $ 46,650 Employee Benefits $ 16,847 $ 13,627 $ 15,051 $ 15,901 Materials $ 11,614 $ 22,112 $ 35,260 $ 35,260 Contract Services $ 3,750 $ 4,875 $ 17,250 $ 8,250 Cost Allocation $ 3,156 $ 52,626 $ 20,717 $ 19,241 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 2,572 $ 2,176 Total Expenditures $ 83,849 $ 130,409 $ 135,379 $ 127,478 Fund Balance ---- General Fund Costs $ 83,849 $ 130,409 $ 135,379 $ 127,478 Staffing Total current authorized positions - 0.25 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 0.30 179 Housing Commission Budget Unit 100-11-175 General Fund - Commissions - Housing Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 36,565 Fund Balance - General Fund Costs $ 36,565 % Funded by General Fund 100.0 % Total Staffing 0.15 FTE Program Overview The Cupertino Housing Commission (CHC) is a five-member board appointed by the City Council to assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of General Plan Housing Element goals. The Commission also oversees the Community Development Block Grant (CDBG) program. Service Objectives 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 5, 2018, City Council approved a budget of $36,565 for the Housing Commission program. This represents an increase of $2,944 (8.8%) from the FY 2018 Adopted Budget. The increase is mainly due to the increase in cost allocation for increased costs associated with services provided by the finance department. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 180 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 13,833 $ 12,116 $ 14,642 $ 15,705 Employee Benefits $ 5,320 $ 5,717 $ 7,456 $ 7,899 Materials $ 596 $ 243 $ 975 $ 975 Contract Services ---- Cost Allocation $ 1,572 $ 17,853 $ 10,544 $ 11,937 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 4 $ 49 Total Expenditures $ 21,321 $ 35,929 $ 33,621 $ 36,565 Fund Balance ---- General Fund Costs $ 21,321 $ 35,929 $ 33,621 $ 36,565 Staffing Total current authorized positions - 0.15 There are no changes to the current level of staffing. Total recommended positions - 0.15 181 Sustainability Commission Budget Unit 100-11-180 General Fund - Commissions - Sustainability Commission Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 30,091 Fund Balance - General Fund Costs $ 30,091 % Funded by General Fund 100.0 % Total Staffing 0.1 FTE Program Overview The Sustainability Commission is a five-member board appointed by the City Council to serve in an advisory capacity by providing expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino’s Climate Action Plan and General Plan Environmental Resources/Sustainability Element. Service Objectives Monitor and update the CAP based upon quantified metrics to measure and evaluate mitigated impacts and community benefits. Suggest recommendations, review, and monitor the City’s General Plan Environmental Resources/Sustainability Element and its intersections with the CAP. Advise the City Council how to strategically accelerate Cupertino’s progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability. Periodically review policies governing specific practices and programs, such as greenhouse gas emissions reduction, water conservation, renewable energy, energy efficiency, materials management, and urban forestry. Illustrative examples include the creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, drafting of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll-out of pollution prevention campaigns, etc. Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate the operational performance of City facilities, businesses, educational institutions, and homes by reducing costs, improving public health, and serving community needs. Accept public input on the subject areas noted above and advise the City Council on ways to drive community awareness, behavior change, education and participation in City programs modeled upon the field’s best practices. Review and make recommendations to the City Council on Federal, State and regional policies related to sustainability that have the potential to impact City Council’s goals and policies. Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council. Adopted Budget 182 Adopted Budget On June 5, 2018, City Council approved a budget of $30,091 for the Sustainability Commission program. This represents an increase of $2,212 (7.9%) from the FY 2018 Adopted Budget. The increase is due to negotiated salary and benefit changes due to take effect in July 2018 and increases in cost allocation. Since portions of the cost allocation plan are calculated based on the prior year budget, some charges were not included last year as it was the first year that the Sustainability Commission was budgeted. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation -$ 13,376 $ 11,401 $ 12,777 Employee Benefits -$ 4,547 $ 7,066 $ 5,210 Materials -$ 1,064 $ 7,500 $ 7,500 Contract Services ---- Cost Allocation --$ 1,912 $ 4,604 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures -$ 18,987 $ 27,879 $ 30,091 Fund Balance ---- General Fund Costs -$ 18,987 $ 27,879 $ 30,091 Staffing 183 Staffing Total current authorized positions - 0.10 There are no changes to the current level of staffing. Total recommended positions - 0.10 184 Administration City Manager City Clerk City Manager Discretionary Fund City Attorney Administration Budget Unit Program 2019 Adopted Budget City Manager $ 2,431,286 100-12-120 City Manager $ 993,118 100-12-122 Sustainability $ 888,266 100-12-126 Public Affairs $ 549,902 City Clerk $ 784,849 100-13-130 City Clerk $ 603,198 100-13-132 Duplicating and Mail Services $ 98,911 100-13-133 Elections $ 82,740 City Manager Discretionary $ 593,661 100-14-123 City Manager Contingency $ 593,661 City Attorney $ 2,129,992 100-15-141 City Attorney $ 2,129,992 Total $ 5,939,788 185 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 712,570 Total Expenditures $ 5,939,788 Fund Balance - General Fund Costs $ 5,227,218 % Funded by General Fund 88.0 % Total Staffing 15.47 FTE Organization David Brandt, City Manager Randolph Hom, City Attorney Jaqui Guzmán, Deputy City Manager Grace Schmidt, City Clerk 186 Performance Measures City Clerk Goal: Streamline information processing for Council, staff and community members for compliance with State requirements and facilitate independent and transparent access to public information. Benefit: All can fully participate in local government to achieve the community & organizational goals. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target City Council minutes for regular meetings presented for Council approval by the following regular meeting 100%100%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%100%100% Public Record Act requests responded to by the Statutory deadline date 100%100%100% Public Affairs Goal: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents. Benefit: Residents have access to timely, engaging, and important information. 187 Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram accounts 19,250 20,700 10% annual increase Social media engagement: average number of engagements (reactions, comments, shares, and clicks ) per post on City Hall Facebook account 39.6 44.9 10% annual increase Cupertino 311: Average response time to customers organization-wide (in days) : Construction: Graffiti: Trash: Parking /Abandoned Vehicle: Noise Disturbance: Animal Concern: Property Use Concerns: Tree/Landscape Issue: Roadway: Parks and Recreation: Stormwater: Homelessness: Other: N/A 1.45 0.29 2.00 2.32 1.06 0.48 3.18 2.70 1.08 5.14 3.71 4.79 1.76 Respond within 2 days Clicks have now been added to the engagement metric, which will bump up the average number. The performance measure for “Access Cupertino: Average response time to customers organization-wide” was revised as Access Cupertino was replaced by Cupertino 311 in September 2017. The Cupertino 311 Application is administered through the IT Department, but each individual department is responsible for responding to its own requests. Response times are organized by request category. Sustainability Goal: Implement Cupertino’s Climate Action Plan and General Plan Sustainability Element to achieve quantifiable emissions reductions, conserve finite resources, and achieve utility cost avoidance and savings across municipal operations and community partners. Benefit: Cupertino is a healthy, resilient, environmentally-vibrant city for current and future residents to live, work, learn and play. 1 2 1 2 188 Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target % community-wide emissions reduced from baseline of 307,288 MT CO2e/yr 2015 inventory: 13.1% decrease in emissions from baseline (294,281 MT CO2e/yr) 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% 45% 100% 55% 100% 100% Increase the total number of Certified Green Businesses through the city’s GreenBiz program to improve efficiency and conserve resources 63 Total 3 New 6 Re-cert 63 Total 1 Re-cert 100 Cupertino’s GHG inventories are conducted roughly every 3-5 years. Adopted Budget On June 5, 2018, City Council approved a budget of $5,939,788 for the Administration department. This represents an increase of $471,891 (8.6%) from the FY 2018 Adopted Budget. This increase is primarily associated with negotiated employee compensation and benefits changes due to take effect in July 2018. This budget also includes costs associated with special projects in Sustainability and election costs which only occur in even years. 1 1 189 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 40.9% 35.9% 13.2% 10.0% City Manager City Attorney City Clerk City Manager Discretionary $3.84M $4.73M $5.47M $5.94M 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 190 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 338,580 $ 3,367,273 $ 844,929 $ 712,070 Fines and Forfeitures ---- Miscellaneous Revenue $ 16,863 $ 53,958 -$ 500 Interdepartmental Revenue ---- Total Revenues $ 355,444 $ 3,421,231 $ 844,929 $ 712,570 Expenditures Employee Compensation $ 1,391,112 $ 1,712,430 $ 1,976,893 $ 2,301,666 Employee Benefits $ 482,995 $ 614,505 $ 782,277 $ 940,051 Materials $ 165,297 $ 273,460 $ 306,066 $ 327,766 Contract Services $ 998,653 $ 1,121,824 $ 1,255,568 $ 1,021,775 Cost Allocation $ 294,828 $ 979,665 $ 376,097 $ 422,346 Capital Outlay ---- Special Projects $ 504,933 $ 25,242 $ 160,000 $ 264,470 Appropriations for Contingency $ 113 $ 1,186 $ 610,996 $ 661,714 Total Expenditures $ 3,837,931 $ 4,728,312 $ 5,467,897 $ 5,939,788 Fund Balance ---- General Fund Costs $ 3,482,487 $ 1,307,081 $ 4,622,968 $ 5,227,218 191 City Manager Budget Unit 100-12-120 General Fund - City Manager - City Manager Budget at a Glance 2019 Adopted Budget Total Revenues $ 332,342 Total Expenditures $ 993,118 Fund Balance - General Fund Costs $ 660,776 % Funded by General Fund 66.5 % Total Staffing 3.62 FTE Program Overview The City Manager is responsible to the City Council for the effective and efficient operation of the City. Under the direction of the City Council as a whole, the City Manager carries out the City’s goals and objectives. The City Manager oversees Sustainability and Public Affairs. Service Objectives Accomplish the City Council’s work program. Manage City operations. Ensure all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed. Advise the City Council on policy, and the financial conditions and needs of the City. Investigate all complaints concerning the operation of the City. Prepare reports and initiate recommendations as may be desirable or as requested by the City Council. Ensure that the City’s policies and procedures provide a foundation for a secure financial position. Adopted Budget On June 5, 2018, City Council approved a budget of $993,118 for the City Manager program. This represents an increase of $40,719 (4.3%) from the FY 2018 Adopted Budget. The majority of the increase is due to negotiated increases in salaries and benefits due to take effect in July 2018. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 192 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 124,512 $ 1,027,154 $ 319,142 $ 332,342 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 124,512 $ 1,027,154 $ 319,142 $ 332,342 Expenditures Employee Compensation $ 469,105 $ 590,452 $ 622,201 $ 626,760 Employee Benefits $ 163,567 $ 209,668 $ 235,855 $ 247,959 Materials $ 38,229 $ 44,281 $ 44,380 $ 45,580 Contract Services $ 26,024 $ 32,772 $ 14,540 $ 14,540 Cost Allocation $ 108,180 $ 397,676 $ 31,937 $ 55,273 Capital Outlay ---- Special Projects ---- Appropriations for Contingency -$ 868 $ 3,486 $ 3,006 Total Expenditures $ 805,105 $ 1,275,718 $ 952,399 $ 993,118 Fund Balance ---- General Fund Costs $ 680,593 $ 248,564 $ 633,257 $ 660,776 Staffing Total current authorized positions - 3.37 The increase in staffing is due to staffing reallocations to better reflect time spent in this program. Total recommended positions - 3.62 193 Sustainability Budget Unit 100-12-122 General Fund - City Manager - Sustainability Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 888,266 Fund Balance - General Fund Costs $ 888,266 % Funded by General Fund 100.0 % Total Staffing 1.8 FTE Program Overview The Sustainability Division 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 program 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 a technical resource on sustainability initiatives by preparing staff reports, developing local policies and ordinances, coordinating educational events, and making presentations to Council, City departments, and applicable outside organizations. Coordinate municipal and community-wide greenhouse gas emissions inventories, develop emissions targets, execute a community-wide climate action plan, and track progress to achieve emissions reductions over time. Expand existing compliance-focused environmental services to offer innovative energy, water, and resource conservation programs that effectively engage employees and community members. Evaluate existing departmental programs and benchmark environmental achievements on an ongoing basis. Research tools and best practices for efficient utility management and conservation and adapt these to the City’s organizational culture, operations, and budgets. Manage or perform resource audits, identify energy conservation and renewable energy generation opportunities, calculate feasibility and develop projects that are cost-effective and conserve resources. Work with schools to expand successful municipal programs into educational institutions through effective partnerships that empower students as environmental leaders. Adopted Budget 194 Adopted Budget On June 5, 2018, City Council approved a budget of $888,266 for the Sustainability program. This represents an increase of $109,391 (14.0%) from the FY 2018 Adopted Budget. This increase is partially due to negotiated increases in compensation and benefits due to take effect in July 2018. In addition, the Sustainability Division will convert the current limited-term Environmental Program Assistant (Sustainability Program Coordinator) to a permanent position. This position will continue to 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 energy, natural gas, and waste usage, and community outreach and education. Sustainability Division expenses for this year are aQributed to continuing program services to implement the Climate Action Plan measures in the near term and reduce overall greenhouse gas emission. There is also an increase associated with special project requests outlined in the table below. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Residential Drought Tolerant Landscaping Pilot Program $175,000 General Fund Pilot to create a turnkey lawn removal and drought tolerant planting program for residents Residential Energy Reduction & Efficiency Program $6,000 General Fund Home Energy Score, and Home Intel, CBSM program. Incentive $$ and marketing to homeowners and renters throughout the City Utility Box Art Painting Round 4 $10,000 General Fund Art contest and painting up to 5 utility boxes throughout the City Employee Commute Program $50,500 General Fund Internal Employee Commuting program to encourage alternative commuting to work and encourage employee retention Total $241,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 195 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 68,987 $ 103,442 $ 31,452 - Fines and Forfeitures ---- Miscellaneous Revenue $ 16,863 $ 53,658 -- Interdepartmental Revenue ---- Total Revenues $ 85,850 $ 157,100 $ 31,452 - Expenditures Employee Compensation $ 137,722 $ 151,981 $ 165,944 $ 210,120 Employee Benefits $ 51,409 $ 66,474 $ 66,571 $ 89,005 Materials $ 23,862 $ 27,475 $ 36,225 $ 36,225 Contract Services $ 18,533 $ 77,637 $ 147,000 $ 147,000 Cost Allocation $ 22,212 $ 125,220 $ 191,006 $ 155,255 Capital Outlay ---- Special Projects $ 504,933 $ 25,242 $ 160,000 $ 241,500 Appropriations for Contingency --$ 12,129 $ 9,161 Total Expenditures $ 758,671 $ 474,029 $ 778,875 $ 888,266 Fund Balance ---- General Fund Costs $ 672,821 $ 316,929 $ 747,423 $ 888,266 Staffing Total current authorized positions - 1.80 There are no changes to the current level of staffing. The current limited term Environmental Program Assistant (Sustainability Program Coordinator) will be converted to a permanent position. Total recommended positions - 1.80 196 Public Affairs Budget Unit 100-12-126 General Fund - City Manager - Public Affairs Budget at a Glance 2019 Adopted Budget Total Revenues $ 122,318 Total Expenditures $ 549,902 Fund Balance - General Fund Costs $ 427,584 % Funded by General Fund 77.8 % Total Staffing 2.15 FTE Program Overview The Public Affairs program is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Public Affairs program oversees and maintains many of the City’s lines of communication with residents, including the City’s website, social media accounts, monthly newsleQer, 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 On June 5, 2018, City Council approved a budget of $549,902 for the Public Affairs program. This represents an increase of $78,956 (16.8%) from the FY 2018 Adopted Budget. This increase is primarily due to negotiated salary and benefit changes due to take effect in July 2018 and changes in position allocations. At Mid-Year, a portion of the Recreation and Community Services Department's Community Outreach Specialist, a graphic designer, was reallocated to Public Affairs. This restructuring change will ensure that the Community Outreach Specialist supporting Recreation is up-to-date on broader community interests, concerns, and sensitivities; as well as ensuring alignment to City-wide branding and marketing strategies. Realigning the position also allows greater flexibility for both Public Affairs and Recreation in meeting marketing demands. 197 The Public Affairs Division is also continuing its Guideline Refresh project. The first phase was completed in Fiscal Year 2018 and included an updated style guide with clearly defined fonts, a new color paleQe, and logo elements. It also included new leQerhead and staff report templates, fresh proclamation and press release documents, City-wide email signatures, and new PowerPoint layouts for meetings. Public Affairs will continue this project by creating a Grammar Style Guide, to ensure staff members are using a similar tone of voice and consistent spelling, and help various departments update their marketing materials to make sure they follow the new guidelines. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 97,618 $ 150,355 $ 121,818 Fines and Forfeitures ---- Miscellaneous Revenue ---$ 500 Interdepartmental Revenue ---- Total Revenues -$ 97,618 $ 150,355 $ 122,318 Expenditures Employee Compensation -$ 164,032 $ 186,448 $ 226,234 Employee Benefits -$ 64,581 $ 80,449 $ 96,034 Materials -$ 92,562 $ 107,374 $ 122,874 Contract Services -$ 68,566 $ 18,000 $ 26,000 Cost Allocation -$ 56,787 $ 60,307 $ 70,741 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 18,368 $ 8,019 Total Expenditures -$ 446,528 $ 470,946 $ 549,902 Fund Balance ---- General Fund Costs -$ 348,910 $ 320,591 $ 427,584 Staffing 198 Staffing Total current authorized positions - 2.15 There are no changes to the current level of staffing. At Mid-Year, 0.3 FTE of a Community Outreach Specialist was allocated to Public Affairs. Total recommended positions - 2.15 199 City Clerk Budget Unit 100-13-130 General Fund - City Clerk - City Clerk Budget at a Glance 2019 Adopted Budget Total Revenues $ 63,559 Total Expenditures $ 603,198 Fund Balance - General Fund Costs $ 539,639 % Funded by General Fund 89.5 % Total Staffing 2.5 FTE Program Overview The City Clerk’s office responsibilities include administrative duties associated with the City Council’s agenda and actions; publishing legal notices; posting notice of all commission vacancies; processing codification of City’s Municipal Code; records management; and compliance with Public Records Act requests. Service Objectives Ensure compliance with the Brown Act open meetings requirements, Maddy Act Commission vacancy requirements and the Public Records Act, to accurately process documents and maintain a records management system that facilitates timely access to information, including digital access to City records. Provide complete, accurate and timely information to the public, staff and City Council. Respond to internal routing requests within two working days; respond to internal requests requiring archival research within five working days. Respond to Public Record Act requests within the time specified by State law. Provide a digital City Council packet to members of the City Council and staff for use on mobile devices. Adopted Budget On June 5, 2018, City Council approved a budget of $603,198 for the City Clerk program. This represents an increase of $3,236 (0.5%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 200 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 27,276 $ 453,952 $ 80,947 $ 63,559 Fines and Forfeitures ---- Miscellaneous Revenue -$ 300 -- Interdepartmental Revenue ---- Total Revenues $ 27,276 $ 454,252 $ 80,947 $ 63,559 Expenditures Employee Compensation $ 263,000 $ 312,309 $ 323,903 $ 342,977 Employee Benefits $ 106,264 $ 121,263 $ 134,875 $ 125,997 Materials $ 21,478 $ 30,527 $ 25,441 $ 25,441 Contract Services $ 34,192 $ 34,434 $ 57,531 $ 57,531 Cost Allocation $ 91,560 $ 237,115 $ 53,590 $ 47,103 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 4,622 $ 4,149 Total Expenditures $ 516,494 $ 735,648 $ 599,962 $ 603,198 Fund Balance ---- General Fund Costs $ 489,218 $ 281,396 $ 519,015 $ 539,639 Staffing Total current authorized positions - 2.70 Staffing is being reallocated to better reflect actual time spent in this program. Total recommended positions - 2.50 201 Duplicating and Mail Services Budget Unit 100-13-132 General Fund - City Clerk - Duplicating and Mail Services Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 98,911 Fund Balance - General Fund Costs $ 98,911 % Funded by General Fund 100.0 % Total Staffing 0.4 FTE 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 5, 2018, City Council approved a budget of $98,911 for the Duplicating and Mail Services program. This represents an increase of $13,893 (16.3%) from the FY 2018 Adopted Budget. The budget increase is due to a proposal to purchase postage and folder-insert machines. By purchasing rather than leasing, contract costs will be reduced by $8,000. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 202 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 16,287 $ 16,156 $ 22,953 $ 22,941 Employee Benefits $ 849 $ 442 $ 11,198 $ 12,417 Materials $ 33,371 $ 38,930 $ 33,000 $ 33,000 Contract Services $ 14,557 $ 13,866 $ 14,000 $ 5,630 Cost Allocation $ 6,300 --$ 21 Capital Outlay ---- Special Projects ---$ 22,970 Appropriations for Contingency --$ 3,867 $ 1,932 Total Expenditures $ 71,364 $ 69,394 $ 85,018 $ 98,911 Fund Balance ---- General Fund Costs $ 71,364 $ 69,394 $ 85,018 $ 98,911 Staffing Total current authorized positions - 0.40 There are no changes to the current level of staffing. Total recommended positions - 0.40 203 Elections Budget Unit 100-13-133 General Fund - City Clerk - Elections Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 82,740 Fund Balance - General Fund Costs $ 82,740 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The City Clerk’s office administers the legislative process including management of local elections and filings of Fair Political Practices Commission documents. Service Objectives Administer elections and Fair Political Practices Commission filings in compliance with State law. Conduct a local election in even-numbered years and ballot measure elections as necessary, in compliance with the California Elections Code. Facilitate timely filing of required and voluntary documentation from candidates and election commiQees, 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 5, 2018, City Council approved a budget of $82,740 for the Elections program. This represents an increase of $82,452 (28629.2%) from the FY 2018 Adopted Budget. The increase is due to the General Municipal Election occurring in even years. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 204 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 22 $ 6,484 $ 100 $ 5,100 Contract Services $ 4,572 $ 307,736 -$ 73,700 Cost Allocation --$ 188 - Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---$ 3,940 Total Expenditures $ 4,594 $ 314,220 $ 288 $ 82,740 Fund Balance ---- General Fund Costs $ 4,594 $ 314,220 $ 288 $ 82,740 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 205 City Manager Contingency Budget Unit 100-14-123 General Fund - City Manager Discretionary - City Manager Contingency Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 593,661 Fund Balance - General Fund Costs $ 593,661 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The City Manager Contingency fund was established to meet citywide unexpected expenses that may occur during the year. In FY 2014, 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 5% of each program’s budgeted materials and contract services. A second level of contingency was also established for unexpected expenditures that may occur over the 5% 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 10% 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. Adopted Budget On June 5, 2018, City Council approved a budget of $593,661 for the City Manager Contingency program. This represents an increase of $52,840 (9.8%) from the FY 2018 Adopted Budget. The funding for the City Manager Contingency program is determined by taking 5% of all materials and contract services budgeted in the General Fund, excluding the contract with the Sheriff's Office. The increase is primarily due to increases in materials and contract services throughout the General Fund. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 206 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation ---- Employee Benefits ---- Materials ---- Contract Services --$ 35,000 - Cost Allocation --$ 821 - Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 505,000 $ 593,661 Total Expenditures --$ 540,821 $ 593,661 Fund Balance ---- General Fund Costs --$ 540,821 $ 593,661 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 207 City Attorney Budget Unit 100-15-141 General Fund - City Attorney - City Attorney Budget at a Glance 2019 Adopted Budget Total Revenues $ 194,351 Total Expenditures $ 2,129,992 Fund Balance - General Fund Costs $ 1,935,641 % Funded by General Fund 90.9 % Total Staffing 5.0 FTE Program Overview The City AQorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City AQorney’s Office. The City AQorney’s Office provides all legal services that are needed to support the City Council, City Commissions, City Manager, department directors, and City staff. Service Objectives The mission of the City AQorney’s Office is to protect and defend the City by all legal and ethical means and to provide the municipal corporation with high-quality legal service and advice. These legal services include the following: Prosecute and defend the City in any legal action such as civil maQers involving personal injury or property damage, employment practices, code enforcement, or any administrative action arising out of City business. Manage all liability claims filed against the City including investigation and disposition. Attend City Council, Planning Commission, and other public meetings as requested. Prepare and review proposed legislation including ordinances and resolutions. Draft and/or review contracts, agreements, and other legal documents. Conduct legal research and analysis, and prepare legal memoranda. Provide legal support for special projects, among other things. Adopted Budget On June 5, 2018, City Council approved a budget of $2,129,992 for the City AQorney program. This represents an increase of $90,404 (4.4%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures 208 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 117,805 $ 1,685,107 $ 263,033 $ 194,351 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 117,805 $ 1,685,107 $ 263,033 $ 194,351 Expenditures Employee Compensation $ 504,998 $ 477,500 $ 655,444 $ 872,634 Employee Benefits $ 160,906 $ 152,077 $ 253,329 $ 368,639 Materials $ 48,335 $ 33,200 $ 59,546 $ 59,546 Contract Services $ 900,775 $ 586,812 $ 969,497 $ 697,374 Cost Allocation $ 66,576 $ 162,867 $ 38,248 $ 93,953 Capital Outlay ---- Special Projects ---- Appropriations for Contingency $ 113 $ 318 $ 63,524 $ 37,846 Total Expenditures $ 1,681,703 $ 1,412,775 $ 2,039,588 $ 2,129,992 Fund Balance ---- General Fund Costs $ 1,563,897 $ (272,332)$ 1,776,555 $ 1,935,641 Staffing Total current authorized positions - 5.00 There are no changes to the current level of staffing. Total recommended positions - 5.00 209 This page intentionally left blank. 210 Law Enforcement Law Enforcement Budget Unit Program 2019 Adopted Budget Law Enforcement $ 12,988,353 100-20-200 Law Enforcement $ 12,304,029 100-20-201 Interoperability Project $ 49,598 100-20-202 Code Enforcement $ 634,726 Total $ 12,988,353 211 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 775,000 Total Expenditures $ 12,988,353 Fund Balance - General Fund Costs $ 12,213,353 % Funded by General Fund 94.0 % Total Staffing 2.0 FTE Organization Captain Rich Urena, Office of the Sheriff Performance Measures Goal: Maintain a safe environment to live, work, learn and play. Benefit: All members of the community are safe, informed, empowered and supported. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target response time for emergency calls Priority 1 Priority 2 Priority 3 5.07 8.00 15.79 4.23 7.49 14.79 5 minutes 9 minutes 20 minutes % programs maintaining minimum attendance Teen Academy Citizen Academy 85% 55% 90% 85% 80% 80% Adopted Budget On June 5, 2018, City Council approved a budget of $12,988,353 for the Law Enforcement department. This represents an increase of $644,046 (5.2%) from the FY 2018 Adopted Budget. 212 The increase is primarily related to increases in the Law Enforcement contract with the Santa Clara County Sheriff's Office. 213 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 100.0% Law Enforcement $11.0M $11.9M $12.3M $13.0M 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 214 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue $ 122,119 $ 129,324 $ 100,000 $ 100,000 Charges for Services -$ 292 -$ 60,000 Fines and Forfeitures -$ 593,122 $ 600,000 $ 615,000 Miscellaneous Revenue $ 93,682 $ 85,795 -- Interdepartmental Revenue ---- Total Revenues $ 215,802 $ 808,534 $ 700,000 $ 775,000 Expenditures Employee Compensation $ 178,915 $ 226,592 $ 239,683 $ 243,838 Employee Benefits $ 76,449 $ 86,879 $ 98,809 $ 101,379 Materials $ 69,190 $ 61,638 $ 62,578 $ 68,578 Contract Services $ 10,623,426 $ 11,390,392 $ 11,770,217 $ 12,482,024 Cost Allocation $ 40,536 $ 173,593 $ 163,020 $ 72,847 Capital Outlay ---- Special Projects ---$ 7,328 Appropriations for Contingency $ 220 -$ 10,000 $ 12,359 Total Expenditures $ 10,988,736 $ 11,939,094 $ 12,344,307 $ 12,988,353 Fund Balance ---- General Fund Costs $ 10,772,934 $ 11,130,560 $ 11,644,307 $ 12,213,353 215 Law Enforcement Budget Unit 100-20-200 General Fund - Law Enforcement - Law Enforcement Budget at a Glance 2019 Adopted Budget Total Revenues $ 510,000 Total Expenditures $ 12,304,029 Fund Balance - General Fund Costs $ 11,794,029 % Funded by General Fund 95.9 % Total Staffing 0 FTE Program Overview The Law Enforcement program provides law enforcement, emergency communications, School Resource Officers, and the Youth Probation Program. Law enforcement services are provided by the Santa Clara County Sheriff’s Office, while communications services are provided by the Santa Clara County General Services Administration. The County’s Youth Probation Program, also managed by the Sheriff’s Office, is funded through a partnership with the Cupertino Union School District and the City of Cupertino. Other services include general law enforcement (patrol), traffic enforcement and investigation, detective services, and additional resources from specialized units. The State allocates the Citizens Option for Public Safety (COPS) grant to cities and counties for front-line law enforcement purposes. Funding is allocated proportionately based on population size with a minimum allocation of $100,000 per jurisdiction. This grant will be used to partially offset the cost of a second School Resource Officer that was added in the FY 2017 school year. Service Objectives Protect life and property through innovative and progressive policing methods. Respond to Priority 1 emergency situations within an average of fewer than five minutes. Enforce the vehicle code with the goal of increasing traffic safety. Divert first time/minor youth offenders from the juvenile justice system. Provide daily on-site interaction with our youth. Adopted Budget On June 5, 2018, City Council approved a budget of $12,304,029 for the Law Enforcement program. This represents an increase of $668,143 (5.7%) from the FY 2018 Adopted Budget. The increase is due to costs associated with changes in total compensation and retirement rate increases as outlined in the City's contract with the Santa Clara County Sheriff's Office. In addition, the Sheriff's Office has requested the addition of a K9 to assist the West Valley Cities. Costs for the K9 will be split between the agencies. Special Projects 216 Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description K9 $7,328 $0 General Fund K9 to assist West Valley Cities Total $7,328 $0 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue $ 122,119 $ 129,324 $ 100,000 $ 100,000 Charges for Services ---$ 60,000 Fines and Forfeitures -$ 332,383 $ 350,000 $ 350,000 Miscellaneous Revenue $ 93,682 $ 85,795 -- Interdepartmental Revenue ---- Total Revenues $ 215,802 $ 547,502 $ 450,000 $ 510,000 Expenditures Employee Compensation ---- Employee Benefits ---- Materials $ 51,633 $ 51,709 $ 51,803 $ 51,803 Contract Services $ 10,368,255 $ 11,124,953 $ 11,513,428 $ 12,203,080 Cost Allocation -$ 68,322 $ 70,655 $ 41,818 Capital Outlay ---- Special Projects ---$ 7,328 Appropriations for Contingency ---- Total Expenditures $ 10,419,888 $ 11,244,984 $ 11,635,886 $ 12,304,029 Fund Balance ---- General Fund Costs $ 10,204,087 $ 10,697,482 $ 11,185,886 $ 11,794,029 Staffing 217 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 218 Interoperability Project Budget Unit 100-20-201 General Fund - Law Enforcement - Interoperability Project Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 49,598 Fund Balance - General Fund Costs $ 49,598 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The Silicon Valley Regional Interoperability Authority (SVRIA) was formed under the Joint Exercise of Powers Act (JPA) to provide interoperable communications solutions to its members. The SVRIA represents the interests of all public safety agencies in Santa Clara County through its members. It services the Santa Clara Operational Area which includes the County of Santa Clara, its fifteen cities and towns, and all special districts. Service Objectives SVRIA exists to identify, coordinate, and implement communications interoperability solutions to its member agencies. The purpose of these projects is to seamlessly integrate voice and data communications between law enforcement, the fire and rescue service, emergency medical services, and emergency management for routine operations, critical incidents, and disaster response and recovery. Adopted Budget On June 5, 2018, City Council approved a budget of $49,598 for the Interoperability Project program. This represents an increase of $785 (1.6%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 219 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 1,059 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 48,359 $ 48,627 $ 48,813 $ 49,598 Fund Balance ---- General Fund Costs $ 48,359 $ 48,627 $ 48,813 $ 49,598 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 220 Code Enforcement Budget Unit 100-20-202 General Fund - Law Enforcement - Code Enforcement Budget at a Glance 2019 Adopted Budget Total Revenues $ 265,000 Total Expenditures $ 634,726 Fund Balance - General Fund Costs $ 369,726 % Funded by General Fund 58.2 % Total Staffing 2.0 FTE Program Overview The Code Enforcement program provides 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 5, 2018, City Council approved a budget of $634,726 for the Code Enforcement program. This represents a decrease of $24,882 (-3.8%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year and supports enforcement of the municipal code and the Santa Clara County Sheriff 's Office. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 221 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 292 -- Fines and Forfeitures -$ 260,739 $ 250,000 $ 265,000 Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 261,032 $ 250,000 $ 265,000 Expenditures Employee Compensation $ 178,915 $ 226,592 $ 239,683 $ 243,838 Employee Benefits $ 76,449 $ 86,879 $ 98,809 $ 101,379 Materials $ 17,557 $ 9,929 $ 10,775 $ 16,775 Contract Services $ 206,812 $ 217,081 $ 208,250 $ 230,405 Cost Allocation $ 40,536 $ 105,003 $ 92,091 $ 29,970 Capital Outlay ---- Special Projects ---- Appropriations for Contingency $ 220 -$ 10,000 $ 12,359 Total Expenditures $ 520,488 $ 645,483 $ 659,608 $ 634,726 Fund Balance ---- General Fund Costs $ 520,488 $ 384,451 $ 409,608 $ 369,726 Staffing Total current authorized positions - 2.00 There are no changes to the current level of staffing. Total recommended positions - 2.00 222 Innovation & Technology Innovation & Technology Video Applications Infrastructure GIS Innovation & Technology Budget Unit Program 2019 Adopted Budget I&T Administration $ 405,034 100-30-300 Innovation & Technology Administration - 610-30-300 Innovation & Technology Administration $ 405,034 100-30-304 Cupertino Scene - Video $ 1,631,075 615-31-305 Video - 100-31-305 Video $ 1,557,572 100-31-307 Public Access Support $ 73,503 Applications $ 2,083,188 615-32-308 Applications - 100-32-308 Applications $ 2,083,188 Infrastructure $ 2,668,918 610-34-310 Infrastructure $ 2,668,918 GIS $ 1,107,071 610-35-986 GIS $ 1,107,071 Non-Departmental - 610-90-989 Network Upgrade - Total $ 7,895,286 223 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 3,753,928 Total Expenditures $ 7,895,286 Fund Balance $ (427,095) General Fund Costs $ 3,714,263 % Funded by General Fund 47.0 % Total Staffing 15.05 FTE Organization Bill Mitchell, Chief Technology Officer 224 Performance Measures Goal: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement. Benefit: Integrated information services enable customer access to the tools and information they need, when and where they need it. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target GIS: Open Data site visits per month 170 186 140 GIS: Number of annual requests (map, data, Web applications, Cityworks, schema, other) completed 325 158 400 GIS: Property Information site visits per month 190 220 200 GIS: Cityworks utilization - number of assets maintained / number of active users in the system 30/23 35/27 30/30 Video: Percentage of scheduled projects completed on time (on time/scheduled) 93% (69/74) 97% (67/69)95% Video: Percentage of accepted requests originating outside of Video Dept (external requests accepted/all external requests) 93% (54/58)98% (48/49)95% Infrastructure: Percentage based upon number of scheduled projects/Number of projects completed on time 84%76%80% Infrastructure: Percentage based upon number of HelpDesk KACE tickets/SLA measurements 94%96%90% Infrastructure: % Customer satisfaction based upon Satisfaction Rate from KACE tickets 100%100%85% Infrastructure: % of network uptime (not including planned maintenance)99.99%99.99%99.99% Applications: % of citywide-enterprise application project management performed on time and on budget 95%95%95% Applications: Number of website visits/hits 1,001,398 329,978 600,000 Reworded to explain ratios for clarity Tracking started in FY 2017 Q2 Corrected to include total number of visits/hits Adopted Budget 1 2 1 3 1 2 3 225 Adopted Budget On June 5, 2018, City Council approved a budget of $7,895,286 for the Innovation & Technology department. This represents an increase of $398,850 (5.3%) from the FY 2018 Adopted Budget. The increase is due to software and contract services for large projects within the Application and GIS Divisions. 226 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 33.8% 26.4% 20.7% 14.0% 5.1% I&T Infrastructure I&T Applications I&T Video I&T GIS I&T Administration $4.02M $5.15M $7.50M $7.90M 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 227 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 821,028 $ 113,150 -$ 3,753,928 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 821,028 $ 113,150 -$ 3,753,928 Expenditures Employee Compensation $ 1,340,171 $ 1,565,084 $ 2,037,051 $ 2,048,366 Employee Benefits $ 459,595 $ 658,486 $ 741,122 $ 833,134 Materials $ 282,078 $ 144,652 $ 1,064,067 $ 1,552,252 Contract Services $ 1,295,203 $ 1,136,354 $ 1,072,322 $ 1,433,822 Cost Allocation $ 490,055 $ 945,462 $ 1,018,780 $ 1,195,485 Capital Outlay ---- Special Projects $ 151,222 $ 698,479 $ 1,342,730 $ 686,500 Appropriations for Contingency --$ 220,364 $ 145,727 Total Expenditures $ 4,018,322 $ 5,148,517 $ 7,496,436 $ 7,895,286 Fund Balance $ (2,416,930)$ (2,241,076)$ (3,845,930)$ (427,095) General Fund Costs $ 780,364 $ 5,150,664 $ 3,650,506 $ 3,714,263 228 Innovation & Technology Administration Budget Unit 100-30-300 General Fund - I&T Administration - Innovation & Technology Administration Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2017, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 229 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 41,352 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 41,352 --- Expenditures Employee Compensation $ 181,714 --- Employee Benefits $ 54,642 --- Materials $ 49,535 --- Contract Services $ 56,041 --- Cost Allocation $ 18,912 $ 3,880 -- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 360,844 $ 3,880 -- Fund Balance ---- General Fund Costs $ 319,492 $ 3,880 -- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 230 Innovation & Technology Administration Budget Unit 610-30-300 Information Technology - I&T Administration - Innovation & Technology Administration Budget at a Glance 2019 Adopted Budget Total Revenues $ 359,741 Total Expenditures $ 405,034 Fund Balance $ (45,293) General Fund Costs - % Funded by General Fund - Total Staffing 0.7 FTE Program Overview The Innovation & Technology Department Administration Division is responsible for the management, strategic planning, governance, policy seQing 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 5, 2018, City Council approved a budget of $405,034 for the Innovation & Technology Administration program. This represents a decrease of $110,100 (-21.4%) from the FY 2018 Adopted Budget. This decrease is primarily due to the City Hall part-time front desk staff being reallocated to other departments and a decrease in contingency funds. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 231 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 111,225 -$ 359,741 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 111,225 -$ 359,741 Expenditures Employee Compensation -$ 114,473 $ 171,763 $ 94,970 Employee Benefits -$ 51,036 $ 49,401 $ 45,504 Materials -$ 16,716 $ 17,901 $ 17,901 Contract Services -$ 12,435 $ 152,200 $ 152,200 Cost Allocation -$ 100,818 $ 20,080 $ 85,954 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 103,789 $ 8,505 Total Expenditures -$ 295,478 $ 515,134 $ 405,034 Fund Balance -$ (43,523)$ (515,134)$ (45,293) General Fund Costs -$ 140,730 -- Staffing Total current authorized positions - 0.85 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 0.70 232 Cupertino Scene Budget Unit 100-30-304 General Fund - I&T Administration - Cupertino Scene Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2017, the Cupertino Scene program was moved into Administration - Public Affairs as part of a department reorganization. A complete discussion of this program can be found under Budget Unit 100-12-126. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 233 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 26,743 --- Employee Benefits $ 11,705 --- Materials $ 77,545 --- Contract Services $ 336 --- Cost Allocation $ 3,672 $ 479 -- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 120,001 $ 479 -- Fund Balance ---- General Fund Costs $ 120,001 $ 479 -- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 234 Video Budget Unit 615-31-305 Government Channel and Website - Video - Video Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2018, this program was transferred to the General Fund. A complete discussion of this program can be found under Budget Unit 100-31-305. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 235 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 542,520 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 542,520 --- Expenditures Employee Compensation $ 325,174 -$ 507,637 - Employee Benefits $ 109,555 -$ 175,404 - Materials $ 69,648 -$ 50,950 - Contract Services $ 52,585 -$ 108,650 - Cost Allocation $ 189,176 -$ 409,858 - Capital Outlay ---- Special Projects $ 52,076 -$ 306,000 - Appropriations for Contingency --$ 10,757 - Total Expenditures $ 798,214 -$ 1,569,256 - Fund Balance $ (255,694)-$ (205,109)- General Fund Costs --$ 1,364,147 - Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 236 Video Budget Unit 100-31-305 General Fund - Video - Video Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 1,557,572 Fund Balance - General Fund Costs $ 1,557,572 % Funded by General Fund 100.0 % Total Staffing 3.2 FTE Program Overview The primary goal of the Video Division is to increase public awareness, interest, understanding, and participation in the issues, programs, and services presented by the city of Cupertino. The staff promotes city services and programs through its 24/7 government access channel, radio station, digital signage network, city website, and numerous online video platforms. In addition, the video staff provides multimedia production services and technical support for all city departments. Video staff also oversees the design, maintenance, and engineering of the City’s broadcast and audiovisual systems. Service Objectives Video staff works together to manage and maintain the following city services: City Channel, the government access television channel which provides 24/7 information to Cupertino residents, includes full coverage of city meetings, community events, town hall forums, press conferences, election coverage, and local speaker series, as well as educational programming and state government affairs programming Webcasting and video on demand services for live streaming city meetings, events and other programs of interest Radio Cupertino for emergency and community information for public service announcements, traffic alerts, and weather forecasts Digital signage to promote city programs and events via electronic displays in city facilities Multimedia production services and maintenance of city video equipment Adopted Budget On June 5, 2018, City Council approved a budget of $1,557,572 for the Video program. In FY 2018, the City consolidated the City Channel/Web internal service fund with the City’s General Fund to beQer align with Governmental Accounting Standards. This change resulted in Budget Unit 615-31-305 being transferred to the General Fund under Budget Unit 100-31-305. This budget is relatively unchanged compared to 237 the 615-31-305 budget from last fiscal year and provides video support for services and programs throughout the city. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Conference Room Upgrade Phase II $225,000 General Fund Upgrading outdated conference rooms iMac Video Editing Computers $40,000 PEG Funds Replacement/upgrades to video editing system Live graphics system upgrade $30,000 PEG Funds Replacement of control room's live, on-air graphics system Camera Gimble Stabilization System $10,000 PEG Funds New camera stabilization system for field video productions SCALA Digital Signage Hardware Upgrade $10,000 PEG Funds Upgrade SCALA digital signage hardware DSLR Camera System $6,500 PEG Funds New DSLR camera system Total $321,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 238 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 1,925 -- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 1,925 -- Expenditures Employee Compensation -$ 431,236 -$ 493,990 Employee Benefits -$ 164,099 -$ 187,251 Materials -$ 32,127 -$ 78,050 Contract Services -$ 58,543 -$ 121,900 Cost Allocation -$ 253,380 -$ 344,883 Capital Outlay ---- Special Projects -$ 348,273 -$ 321,500 Appropriations for Contingency ---$ 9,998 Total Expenditures -$ 1,287,658 -$ 1,557,572 Fund Balance ---- General Fund Costs -$ 3,161,304 -$ 1,557,572 Staffing Total current authorized positions - 3.25 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 3.20 239 Public Access Support Budget Unit 100-31-307 General Fund - Video - Public Access Support Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 73,503 Fund Balance - General Fund Costs $ 73,503 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The City assists in the funding of the KMVT Community Access Television Program. Service Objectives Encourage Cupertino-based individuals and groups to use the community television production facilities for the purpose of expressing their interests, concerns, and ideas in a socially responsible manner. Provide professional training in hands-on video production by providing access to television equipment, computers, and software that would be otherwise out of reach of the average person. Provide workshops on all aspects of television production--including how to run a video camera, photography, editing, visual effects, social media, podcasting, and video blogging. Assist individuals and community groups to develop and produce programs for broadcast on the community access channel. Adopted Budget On June 5, 2018, City Council approved a budget of $73,503 for the Public Access Support program. This represents an increase of $1,068 (1.5%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year and supports stakeholder access to community television. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 240 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 63,871 $ 65,586 $ 71,542 $ 71,542 Cost Allocation -$ 842 $ 893 $ 1,961 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 63,871 $ 66,428 $ 72,435 $ 73,503 Fund Balance ---- General Fund Costs $ 63,871 $ 66,428 $ 72,435 $ 73,503 Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 241 Applications Budget Unit 615-32-308 Government Channel and Website - Applications - Applications Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2018, this program was transferred to the General Fund. A complete discussion of this program can be found under Budget Unit 100-32-308. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 242 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 237,156 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 237,156 --- Expenditures Employee Compensation $ 155,986 -$ 407,623 - Employee Benefits $ 30,688 -$ 149,570 - Materials $ 5,172 -$ 718,040 - Contract Services $ 66,534 -$ 225,250 - Cost Allocation $ 55,887 -$ 84,240 - Capital Outlay ---- Special Projects --$ 73,530 - Appropriations for Contingency --$ 5,966 - Total Expenditures $ 314,268 -$ 1,664,219 - Fund Balance $ (37,112)--- General Fund Costs $ 40,000 -$ 1,664,219 - Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 243 Applications Budget Unit 100-32-308 General Fund - Applications - Applications Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 2,083,188 Fund Balance - General Fund Costs $ 2,083,188 % Funded by General Fund 100.0 % Total Staffing 3.45 FTE 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 Enterprise Resource Planning (ERP), Land Based Management System, and Recreation Software. Additionally, the Applications Division is responsible for the City's website, Intranet, mobile apps and e-services applications. Service Objectives Deliver business solutions that meet customer requirements and integrate within the City's application framework. Assist departments in developing streamlined and effective business processes that are easy to understand and translate into existing and new enterprise applications. Work closely with City staff and members of the community to ensure that the City's enterprise applications are relevant and provide value to all the stakeholders. Collaborate with various city departments to determine that the City's enterprise applications meet the functional requirements and long-term application implementation strategy of the organization. Create and maintain effective online and mobile user access to municipal information and services. Enable and facilitate the use of communication and technical resources by nontechnical staff and customers. Adopted Budget On June 5, 2018, City Council approved a budget of $2,083,188 for the Applications program. In FY 2018, the City consolidated the Applications internal service fund with the City’s General Fund to beQer align with Governmental Accounting Standards. This change resulted in Budget Unit 615-32-308 being transferred to the General Fund under Budget Unit 100-32-308. Compared to the prior 615-32-308 budget, there is an increase in software that reflects additional modules and functionality for the Recreation & Community Services and Land Management System enterprise applications. This budget reflects an increase in contract services for an Application Architecture Strategic Plan and an Electronic Content Management Roadmap. The increase in compensation and benefits is due to the reallocation of staff time and negotiated salary and benefit 244 changes due to take effect in July 2018. Cost allocation increases are due to one-time project expenses, a change in allocation methodology for IT charges and costs of services provided by Finance and Human Resources. There was also an increase in contingency due to an increased number of applications and cost of projects. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation -$ 253,732 -$ 495,445 Employee Benefits -$ 76,533 -$ 203,014 Materials -$ 27,593 -$ 824,604 Contract Services -$ 77,544 -$ 357,800 Cost Allocation -$ 57,569 -$ 143,205 Capital Outlay ---- Special Projects -$ 13,330 -- Appropriations for Contingency ---$ 59,120 Total Expenditures -$ 506,301 -$ 2,083,188 Fund Balance ---- General Fund Costs -$ 987,103 -$ 2,083,188 Staffing Total current authorized positions - 3.20 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 3.45 245 Infrastructure Budget Unit 610-34-310 Information Technology - Infrastructure - Infrastructure Budget at a Glance 2019 Adopted Budget Total Revenues $ 2,284,031 Total Expenditures $ 2,668,918 Fund Balance $ (384,887) General Fund Costs - % Funded by General Fund - Total Staffing 4.5 FTE Program Overview The IT Infrastructure Division is responsible for technology-related expenses for the citywide management of information technology services. The Infrastructure Manager and staff are responsible for computer helpdesk, network availability, and performance, security and compliance, incident response, disaster recovery and business continuity, project management of implementations and upgrades, purchasing and inventory control, technical training, and maintenance of systems. Infrastructure is also tasked with ensuring that the City continues to follow best practices in technology adoption and security practices. Service Objectives Provide and continuously improve helpdesk support as this function is often the face of IT that staff interacts with on a daily basis. Maintain standards and procedures for the replacement, support, and maintenance of all City-owned computing devices, printers, networks, peripherals and systems defined by City policy. Continue innovation and outreach to ensure the City follows best IT practices relating to equipment, policy, and security practices. Adopted Budget On June 5, 2018, City Council approved a budget of $2,668,918 for the Infrastructure program. This represents a decrease of $143,386 (-5.1%) from the FY 2018 Adopted Budget. This reduction is due to the completion of large special infrastructure projects such as the Network Refresh and Voice-Over-IP phone system replacement. Special Projects The following table shows the special projects for the fiscal year. 246 Special Project Appropriation Revenue Funding Source Description HyperConverged - Phase II $70,000 Internal Service Fund Storage and memory expansion for servers MFP Refresh - Phase II $95,000 Internal Service Fund Replacement of outdated multi-function printers Campus Wireless LAN $98,000 Internal Service Fund Wireless upgrade for city facilities Public Wireless Hotspots $52,000 General Fund Public wireless access around city facilities Video Storage Area Network $50,000 Depreciation Video storage for the Video Division Total $365,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 247 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---$ 2,284,031 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---$ 2,284,031 Expenditures Employee Compensation $ 461,832 $ 502,547 $ 580,473 $ 536,002 Employee Benefits $ 182,286 $ 240,731 $ 235,555 $ 228,253 Materials $ 79,988 $ 57,253 $ 256,116 $ 455,037 Contract Services $ 984,204 $ 698,090 $ 304,600 $ 579,600 Cost Allocation $ 222,408 $ 446,391 $ 406,174 $ 453,294 Capital Outlay ---- Special Projects --$ 946,000 $ 365,000 Appropriations for Contingency --$ 83,386 $ 51,732 Total Expenditures $ 1,930,718 $ 1,945,013 $ 2,812,304 $ 2,668,918 Fund Balance $ (1,758,218)$ (1,910,446)$ (2,262,599)$ (384,887) General Fund Costs $ 172,500 $ 34,567 $ 549,705 - Staffing Total current authorized positions - 4.60 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 4.50 248 GIS Budget Unit 610-35-986 Information Technology - GIS - GIS Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,110,156 Total Expenditures $ 1,107,071 Fund Balance $ 3,085 General Fund Costs - % Funded by General Fund - Total Staffing 3.2 FTE Program Overview The Geographic Information Systems (GIS) program captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, globes, reports, and charts we provide ways to view, understand, question, interpret, and visualize, our City in ways that reveal relationships, paQerns, and trends. The GIS Program works to help our staff, citizens, business, and development communities answer questions and solve problems by looking at our data in a way that is quickly understood and easily shared – on a map! Service Objectives Cupertino GIS works to provide and support state-of-the-art GIS mapping services and applications in the rapidly evolving and expanding field of geospatial technology. Create, collect, maintain, and distribute high quality, up-to-date, and complete geospatial data. Ensure that the City’s GIS systems and data are available for day-to-day City and regional purposes. Share the City’s GIS data and services as widely as possible. Raise the awareness of GIS. Integrate spatial technology into Cupertino’s business processes and applications. Support emergency planning, response, and recovery. Adopted Budget On June 5, 2018, City Council approved a budget of $1,107,071 for the GIS program. This represents an increase of $243,983 (28.3%) from the FY 2018 Adopted Budget. This increase is mainly due to a growth in software license maintenance, Zonar’s 3D back office implementation, and a park augmented reality app resulting in an increase in software costs. The increase in compensation and benefits reflects approved assimilation of 0.5 FTE from Public Works and reallocation of support staff. Increased cost allocation is due to one-time IT project expenses, a change in allocation methodology for IT charges, and cost of services provided by Finance and Human Resources. Revenues and Expenditures 249 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---$ 1,110,156 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---$ 1,110,156 Expenditures Employee Compensation $ 188,721 $ 263,096 $ 369,555 $ 427,959 Employee Benefits $ 70,720 $ 126,086 $ 131,192 $ 169,112 Materials $ 189 $ 10,964 $ 21,060 $ 176,660 Contract Services $ 71,631 $ 224,157 $ 210,080 $ 150,780 Cost Allocation -$ 82,103 $ 97,535 $ 166,188 Capital Outlay ---- Special Projects $ 6,519 $ 7,725 $ 17,200 - Appropriations for Contingency --$ 16,466 $ 16,372 Total Expenditures $ 337,780 $ 714,129 $ 863,088 $ 1,107,071 Fund Balance $ (323,280)$ 42,044 $ (863,088)$ 3,085 General Fund Costs $ 14,500 $ 756,173 -- Staffing Total current authorized positions - 3.15 The increase in staffing is due to a 50% FTE GIS Technician position that was shared with Public Works being reallocated to a 100% FTE GIS Asset Management Technician along with a reallocation of administrative support to better reflect actual time spent in this program. Total recommended positions - 3.20 250 Network Upgrade Budget Unit 610-90-989 Information Technology - Non-Departmental - Network Upgrade Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2018, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 251 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 92,627 $ 329,151 -- Appropriations for Contingency ---- Total Expenditures $ 92,627 $ 329,151 -- Fund Balance $ (42,627)$ (329,151)-- General Fund Costs $ 50,000 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 252 Administrative Services Administration Finance Human Resources Administrative Services Budget Unit Program 2019 Adopted Budget Administrative Services $ 966,135 100-40-400 Administrative Services Administration $ 966,135 Finance $ 1,484,115 100-41-405 Accounting $ 1,294,931 100-41-406 Business Licenses $ 189,184 Human Resources $ 4,342,006 100-44-412 Human Resources $ 1,201,425 642-44-414 Retiree Benefits $ 1,128,005 100-44-417 Insurance Administration $ 954,886 620-44-418 Workers Compensation Insurance $ 472,652 641-44-419 Long Term Disability $ 162,266 641-44-420 Compensated Absences $ 422,772 Total $ 6,792,256 253 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 3,304,912 Total Expenditures $ 6,792,256 Fund Balance $ (134,569) General Fund Costs $ 3,352,775 % Funded by General Fund 49.4 % Total Staffing 14.0 FTE Organization Kristina Alfaro, Director of Administrative Services 254 Performance Measures Finance Goal: Financial Stability – Provide a sustainable level of core services that are funded from ongoing and stable revenue sources. Benefit: Citizens can enjoy high quality of services that meet community priorities. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target General fund balance as a % of budgeted appropriations 53%61%35% Credit Rating AA+AA+AA+ Funding allocated to high priority services (Public Works, Community Development, Law Enforcement) 49%59%63% Actual revenue vs. budget (within x% budget)24%58%10% Actual expenditures (% below budget)14%68%5% Human Resources Goal: To create a thriving organization with meaningful careers in public service. Benefit: The agency supports a professional and engaged workforce offering diverse and quality community services. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target # of Worker’s Compensation Cases 12 7 0 Total Recordable Injury Rate YTD 5.2%2.8%0% % absenteeism (% of total annual work hours)2.3%2%2% % turnover rate 9.06%1%1% % employee satisfaction N/A N/A 100% % employee participation in wellness activities 63%55%75% Average # of applications received per recruitment 76 37 50 Recruitment timeline - # days from hiring request to offer letter 81 97 60 # of employees using the Telework program 17 16 17 % utilization of full-service employee portal 100%100%100% Adopted Budget 255 Adopted Budget On June 5, 2018, City Council approved a budget of $6,792,256 for the Administrative Services department. This represents an increase of $812,449 (13.6%) from the FY 2018 Adopted Budget. The increase is primarily due to negotiated employee compensation and benefits changes due to take effect in July 2018, the addition of a limited-term Senior Management Analyst, the addition of an Account Clerk I/II at Mid-Year, and reoccurring costs for part-time staffing. Furthermore, the increase is due to outsourcing the treasury investment function, the city’s annual required contribution (ARC) for Other Post-Employment Benefits (OPEB), additional liability insurance, and short-term disability costs. The increases are partially offset by decreases in contingencies. 256 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 63.9% 21.9% 14.2% Human Resources Finance Administrative Services $4.85M $7.06M $5.98M $6.79M 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 257 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 359,148 $ 3,563,702 $ 3,002,232 $ 3,295,912 Fines and Forfeitures ---- Miscellaneous Revenue $ 188,325 $ 3,488 -$ 9,000 Interdepartmental Revenue ---- Total Revenues $ 547,473 $ 3,567,191 $ 3,002,232 $ 3,304,912 Expenditures Employee Compensation $ 1,151,260 $ 1,336,351 $ 1,394,052 $ 1,758,713 Employee Benefits $ 1,355,605 $ 1,734,876 $ 1,621,692 $ 1,951,996 Materials $ 122,740 $ 148,459 $ 130,274 $ 130,274 Contract Services $ 1,928,007 $ 2,139,135 $ 2,409,263 $ 2,519,543 Cost Allocation $ 176,988 $ 1,689,699 $ 277,742 $ 299,513 Capital Outlay $ 37,264 $ 8,783 -- Special Projects $ 77,332 $ 7,505 -- Appropriations for Contingency --$ 146,784 $ 132,217 Total Expenditures $ 4,849,197 $ 7,064,808 $ 5,979,807 $ 6,792,256 Fund Balance $ 107,616 $ (1,842,792)$ 93,383 $ (134,569) General Fund Costs $ 4,409,339 $ 1,654,825 $ 3,070,958 $ 3,352,775 258 Administrative Services Administration Budget Unit 100-40-400 General Fund - Administrative Services - Administrative Services Administration Budget at a Glance 2019 Adopted Budget Total Revenues $ 49,347 Total Expenditures $ 966,135 Fund Balance - General Fund Costs $ 916,788 % Funded by General Fund 94.9 % Total Staffing 3.8 FTE Program Overview The Administrative Services Administration program oversees and coordinates the Human Resources/Risk Management, Finance, Budget, and Treasury divisions. Staff support is provided to the Fiscal Strategic and Audit Committees. Service Objectives Manage the City's investment portfolio to obtain safety of funds, liquidity and a reasonable rate of return. Provide short and long-term fiscal planning including the implementation of the Fiscal Strategic Plan. Perform special projects for the City Manager. Manage the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office. Manage the City's budget process. Adopted Budget On June 5, 2018, City Council approved a budget of $966,135 for the Administrative Services Administration program. This represents an increase of $175,625 (22.2%) from the FY 2018 Adopted Budget. The increase is primarily due to the addition of a limited-term Senior Management Analyst to assist the department with current projects. The projects include CalPERS retirement analysis, efficiency improvements, budget analysis, and reporting in the City's Enterprise Resource Planning system. In addition, the Senior Management Analyst would continue to improve a tool to increase the efficiency of budget book publication. The tool enables staff to collaborate on the book and allows changes in budget or actual numbers to automatically populate the financial schedules, ensuring timely and accurate financial information. The increase is partially offset by a reduction in contract services. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 259 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 59,076 $ 266,505 $ 67,899 $ 49,347 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 59,076 $ 266,505 $ 67,899 $ 49,347 Expenditures Employee Compensation $ 241,226 $ 336,640 $ 378,630 $ 547,116 Employee Benefits $ 94,416 $ 139,709 $ 174,269 $ 251,438 Materials $ 41,661 $ 50,196 $ 31,924 $ 31,924 Contract Services $ 26,855 $ 42,252 $ 147,827 $ 81,977 Cost Allocation $ 35,184 $ 327,462 $ 55,459 $ 47,985 Capital Outlay $ 37,264 $ 8,783 -- Special Projects $ 45,200 --- Appropriations for Contingency --$ 2,401 $ 5,695 Total Expenditures $ 521,806 $ 905,041 $ 790,510 $ 966,135 Fund Balance ---- General Fund Costs $ 462,730 $ 638,536 $ 722,611 $ 916,788 Staffing Total current authorized positions - 2.80 Staffing is increasing due to the addition of a limited-term Senior Management Analyst. Total recommended positions - 3.80 260 Accounting Budget Unit 100-41-405 General Fund - Finance - Accounting Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,206,427 Total Expenditures $ 1,294,931 Fund Balance - General Fund Costs $ 88,504 % Funded by General Fund 6.8 % Total Staffing 6.4 FTE Program Overview The Finance Division oversees all financial accounting and treasury functions for the City. Accurate and timely maintenance of all City financial records, including financial reporting, revenue collection, banking and investments, disbursement of all funds, and payroll processing are handled by the Finance Division. All required Federal, State and other regulatory reporting with respect to the City's financial condition are prepared in the Accounting program of Finance. In addition, Finance monitors the City's two investment policies, manages budget-to-actual activities for both operational and capital budgets, performs all financial analyses, conducts research, and prepares reports on all fiscal matters of the City for internal and external customers. Service Objectives Process all financial transactions of the City of Cupertino, including general ledger accounting, cash management and investment of City funds, payroll, accounts payable, revenue collections, banking, and miscellaneous billing. Record all City financial transactions prudently and within all regulatory requirements. Produce timely and accurate financial reports. Maintain a high level of professionalism when fulfilling the City’s financial policies, processing its financial transactions, and representing the City to its residents. Respond promptly to inquiries from the public and other City departments. Adopted Budget On June 5, 2018, City Council approved a budget of $1,294,931 for the Accounting program. This represents an increase of $160,457 (14.1%) from the FY 2018 Adopted Budget. Salary and benefits have increased in this program due to reoccurring part-time staffing to maintain operational efficiency and the addition of a full-time Account Clerk I/II at Mid-Year. In addition, contract services have increased to outsource the treasury investment function and to account for annual training and conferences for staff to attend. Revenues and Expenditures 261 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 137,448 $ 1,156,570 $ 906,996 $ 1,197,427 Fines and Forfeitures ---- Miscellaneous Revenue ---$ 9,000 Interdepartmental Revenue ---- Total Revenues $ 137,448 $ 1,156,570 $ 906,996 $ 1,206,427 Expenditures Employee Compensation $ 434,398 $ 541,522 $ 573,535 $ 667,528 Employee Benefits $ 184,768 $ 231,570 $ 259,004 $ 293,358 Materials $ 21,813 $ 23,839 $ 36,171 $ 36,171 Contract Services $ 388,510 $ 324,623 $ 178,215 $ 205,104 Cost Allocation $ 75,096 $ 569,026 $ 80,321 $ 80,706 Capital Outlay ---- Special Projects $ 32,132 $ 7,505 -- Appropriations for Contingency --$ 7,228 $ 12,064 Total Expenditures $ 1,136,717 $ 1,698,085 $ 1,134,474 $ 1,294,931 Fund Balance ---- General Fund Costs $ 999,269 $ 541,515 $ 227,478 $ 88,504 Staffing Total current authorized positions - 6.90 There are no changes to the current level of staffing. Total recommended positions - 6.40 262 Business Licenses Budget Unit 100-41-406 General Fund - Finance - Business Licenses Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 189,184 Fund Balance - General Fund Costs $ 189,184 % Funded by General Fund 100.0 % Total Staffing 0.6 FTE Program Overview The Business Licenses program monitors business licensing activity for compliance with the City Municipal Code and applicable state law. Service Objectives Issue business licenses to entities conducting business within the city limits of Cupertino. Collect appropriate business license fees. Monitor compliance with the Business License Tax Code and provide useful information related to business activity to City departments. Identify non-compliant business activity. Adopted Budget On June 5, 2018, City Council approved a budget of $189,184 for the Business Licenses program. This represents a decrease of $24,751 (-11.6%) from the FY 2018 Adopted Budget. Decreases in cost allocation are primarily due to decreased costs of services provided by the administrative services, human resources, and building maintenance programs. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 263 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 69,802 $ 41,361 $ 47,895 $ 48,757 Employee Benefits $ 31,194 $ 20,451 $ 25,640 $ 22,941 Materials $ 1,324 $ 1,026 $ 6,022 $ 6,022 Contract Services $ 51,614 $ 87,866 $ 34,196 $ 34,196 Cost Allocation $ 5,256 $ 106,815 $ 99,764 $ 75,257 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 418 $ 2,011 Total Expenditures $ 159,191 $ 257,519 $ 213,935 $ 189,184 Fund Balance ---- General Fund Costs $ 159,191 $ 257,519 $ 213,935 $ 189,184 Staffing Total current authorized positions - 1.10 There are no changes to the current level of staffing. Total recommended positions - 0.60 264 Human Resources Budget Unit 100-44-412 General Fund - Human Resources - Human Resources Budget at a Glance 2019 Adopted Budget Total Revenues $ 788,243 Total Expenditures $ 1,201,425 Fund Balance - General Fund Costs $ 413,182 % Funded by General Fund 34.4 % Total Staffing 2.85 FTE 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 administers risk management, safety and wellness programs, and a self-insured workers’ compensation program. Funding for retiree medical insurance is also covered in the Human Resources budget. Service Objectives Provide a working environment where respect for the individual is encouraged and safeguarded. Provide timely personnel services to departments and divisions in a fair, objective, and equitable manner. Enter into agreements with employee groups concerning terms and conditions of employment. Provide an employee development program addressing immediate and long-term training needs. Provide departments a listing of qualified persons for employment consideration within sixty days of an authorized vacant position. Ensure equal employment opportunities. Administer classification plan. Administer employee benefits. Provide personnel services consistent with the operational needs of the user department. Adopted Budget On June 5, 2018, City Council approved a budget of $1,201,425 for the Human Resources program. This represents an increase of $222,543 (22.7%) from the FY 2018 Adopted Budget. The increase is primarily due to increased part-time salary costs associated with a part-time Human Resources Manager position that was previously budgeted in the Administration budget of the department under contract services and increased benefit costs due to a change in the City's Rec Bucks Program resulting in increased use and costs. Finally, increased cost allocation costs are due to one-time project expenses and a change in allocation methodology for IT charges. 265 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 162,624 $ 2,140,627 $ 708,222 $ 788,243 Fines and Forfeitures ---- Miscellaneous Revenue -$ 500 -- Interdepartmental Revenue ---- Total Revenues $ 162,624 $ 2,141,127 $ 708,222 $ 788,243 Expenditures Employee Compensation $ 366,508 $ 376,686 $ 352,907 $ 453,609 Employee Benefits $ 110,203 $ 181,240 $ 187,257 $ 249,068 Materials $ 57,911 $ 73,377 $ 56,153 $ 56,153 Contract Services $ 263,723 $ 234,705 $ 352,620 $ 363,761 Cost Allocation $ 55,680 $ 657,056 $ 18,646 $ 57,838 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 11,299 $ 20,996 Total Expenditures $ 854,024 $ 1,523,064 $ 978,882 $ 1,201,425 Fund Balance ---- General Fund Costs $ 691,400 $ (618,062)$ 270,660 $ 413,182 Staffing Total current authorized positions - 2.85 There are no changes to the current level of staffing. Total recommended positions - 2.85 266 Retiree Benefits Budget Unit 642-44-414 Retiree Medical - Human Resources - Retiree Benefits Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 1,128,005 Fund Balance $ 3,469 General Fund Costs $ 1,131,474 % Funded by General Fund 100.3 % Total Staffing 0 FTE Program Overview The Retiree Benefits program administers the City’s Other Post Employment Benefits (OPEB). Service Objectives Provide investment oversight and appropriate funding for the City’s retiree medical liability. The City established a trust account with Public Agency Retirement Services (PARS) that will fund the future liability. Annual contributions from the City are deposited into the trust and invested in a portfolio of equity, bond, and money market funds. Adopted Budget On June 5, 2018, City Council approved a budget of $1,128,005 for the Retiree Benefits program. This represents an increase of $159,519 (16.5%) from the FY 2018 Adopted Budget. The increase is due to an increase in the City's Annual Required Contribution (ARC) based on the City's latest actuarial valuation report. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 267 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 919,219 $ 1,104,232 $ 957,466 $ 1,116,765 Materials ---- Contract Services --$ 5,495 $ 5,495 Cost Allocation -$ 5,840 $ 5,525 $ 5,745 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 919,219 $ 1,110,072 $ 968,486 $ 1,128,005 Fund Balance $ 81,281 $ (1,110,072)-$ 3,469 General Fund Costs $ 1,000,500 -$ 968,486 $ 1,131,474 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 268 Insurance Administration Budget Unit 100-44-417 General Fund - Human Resources - Insurance Administration Budget at a Glance 2019 Adopted Budget Total Revenues $ 788,243 Total Expenditures $ 954,886 Fund Balance - General Fund Costs $ 166,643 % Funded by General Fund 17.5 % Total Staffing 0.15 FTE Program Overview The Insurance Administration program manages Risk Management safety programs and self-insured Workers’ Compensation and General Liability programs. Service Objectives Satisfy statutory regulations regarding Workers’ Compensation and employee safety. Promote work environment that emphasizes safe work practices. Adopted Budget On June 5, 2018, City Council approved a budget of $954,886 for the Insurance Administration program. This represents an increase of $78,503 (9.0%) from the FY 2018 Adopted Budget. The increase is due to costs associated with additional liability insurance that was purchased by the City. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 269 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services --$ 718,112 $ 788,243 Fines and Forfeitures ---- Miscellaneous Revenue $ 188,325 $ 2,988 -- Interdepartmental Revenue ---- Total Revenues $ 188,325 $ 2,988 $ 718,112 $ 788,243 Expenditures Employee Compensation $ 15,682 $ 16,575 $ 16,897 $ 17,133 Employee Benefits $ 6,703 $ 7,629 $ 7,893 $ 8,059 Materials $ 18 $ 8 $ 4 $ 4 Contract Services $ 620,596 $ 660,798 $ 813,030 $ 875,230 Cost Allocation $ 1,572 $ 2,103 $ 956 $ 10,698 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 37,603 $ 43,762 Total Expenditures $ 644,571 $ 687,114 $ 876,383 $ 954,886 Fund Balance ---- General Fund Costs $ 456,246 $ 684,126 $ 158,271 $ 166,643 Staffing Total current authorized positions - 0.15 There are no changes to the current level of staffing. Total recommended positions - 0.15 270 Workers Compensation Insurance Budget Unit 620-44-418 Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance 2019 Adopted Budget Total Revenues $ 472,652 Total Expenditures $ 472,652 Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0.2 FTE Program Overview This program provides oversight of the Workers’ Compensation program, including claims, proactive Risk Management, return to work accommodations and excess workers compensation insurance. Service Objectives Monitor costs associated with claims. Analyze and implement proactive measures to curtail costs. Implement a return to work policy. Adopted Budget On June 5, 2018, City Council approved a budget of $472,652 for the Workers Compensation Insurance program. This represents a decrease of $25,588 (-5.1%) from the FY 2018 Adopted Budget. The decrease is primarily due to decreased contingency costs. The City has decreased the budget program contingencies from 8% of materials and contract services to 5% to better align with actual usage. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 271 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services --$ 601,003 $ 472,652 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues --$ 601,003 $ 472,652 Expenditures Employee Compensation $ 23,644 $ 23,567 $ 24,188 $ 24,570 Employee Benefits $ 9,102 $ 50,043 $ 10,163 $ 10,367 Materials $ 13 $ 13 -- Contract Services $ 57 $ 388,768 $ 400,780 $ 400,780 Cost Allocation $ 4,200 $ 18,117 $ 13,442 $ 16,896 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 49,667 $ 20,039 Total Expenditures $ 37,016 $ 480,508 $ 498,240 $ 472,652 Fund Balance $ (37,016)$ (479,316)$ 102,763 - General Fund Costs -$ 1,192 -- Staffing Total current authorized positions - 0.20 There are no changes to the current level of staffing. Total recommended positions - 0.20 272 Long Term Disability Budget Unit 641-44-419 Compensated Absence/LTD - Human Resources - Long Term Disability Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 162,266 Fund Balance $ (162,266) General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview This program oversees claims and premiums associated with Long Term Disability. Service Objectives Monitor employee injuries and provide proactive risk management for disability avoidance. Obtain and manages insurance policy. Adopted Budget On June 5, 2018, City Council approved a budget of $162,266 for the Long Term Disability program. This represents an increase of $78,383 (93.4%) from the FY 2018 Adopted Budget. The increase is primarily due to short-term disability costs that were inadvertently missed from this program the prior fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 273 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 82,201 $ 128,812 $ 77,100 $ 153,000 Cost Allocation -$ 607 $ 615 $ 1,616 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 6,168 $ 7,650 Total Expenditures $ 82,201 $ 129,419 $ 83,883 $ 162,266 Fund Balance $ (82,201)$ (129,419)$ (83,883)$ (162,266) General Fund Costs ---- Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 274 Compensated Absences Budget Unit 641-44-420 Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 422,772 Fund Balance $ 24,228 General Fund Costs $ 447,000 % Funded by General Fund 105.7 % Total Staffing 0 FTE Program Overview This program provides for payment of liabilities associated with employees retiring or leaving service. Service Objectives Properly account and disburse benefits as set forth in the employee contracts. Adopted Budget On June 5, 2018, City Council approved a budget of $422,772 for the Compensated Absences program. This represents a decrease of $12,242 (-2.8%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 275 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 494,451 $ 271,311 $ 400,000 $ 400,000 Cost Allocation -$ 2,673 $ 3,014 $ 2,772 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 32,000 $ 20,000 Total Expenditures $ 494,451 $ 273,984 $ 435,014 $ 422,772 Fund Balance $ 145,553 $ (123,984)$ 74,503 $ 24,228 General Fund Costs $ 640,004 $ 150,000 $ 509,517 $ 447,000 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 276 Recreation and Community Services Administration Business and Community Services Recreation and Education Sports, Safety, and Outdoor Recreation Senior Programs Community Services Recreation and Community Services Budget Unit Program 2019 Adopted Budget Administration $ 2,041,192 100-60-600 Leadership 95014 - 100-60-601 Recreation Administration $ 804,138 100-60-634 Park Planning and Restoration $ 267,549 100-60-636 Library Services $ 969,505 Business and Community Services $ 2,456,224 100-61-602 Administration $ 923,993 100-61-603 Blackberry Farm Picnic Area - 100-61-604 Community Hall Operations - 100-61-605 Cultural Events $ 646,618 100-61-607 Quinlan Community Center Operations - 100-61-630 Facilities $ 684,362 100-61-632 Community Outreach & Neighborhood Watch $ 201,251 Recreation and Education $ 5,357,950 100-62-608 Administration $ 1,281,016 100-62-609 Youth Program - 100-62-610 Teen Program - 100-62-611 Teen Center - 100-62-612 Park Facilities - 580-62-613 Youth Teen Recreation $ 2,040,825 100-62-623 Youth, Teen and Senior Adult Rec $ 2,036,109 Sports, Safety and Outdoor Recreation $ 7,587,066 100-63-612 Park Facilities $ 2,382,394 100-63-615 Administration $ 190,734 560-63-616 Blackberry Farm Golf Course $ 687,939 100-63-618 Creekside Park Youth Sport - 580-63-620 Outdoor Recreation $ 1,598,350 570-63-621 Sports Center Operations $ 2,460,735 100-63-633 Disaster Preparedness $ 266,914 Total $ 17,442,432 277 100-63-637 Monta Vista Recreation Center - Senior Programs - 100-64-622 Senior Adult Supervision - 100-64-623 Youth, Teen and Senior Adult Rec - 100-64-624 Senior Adult Recreation - 100-64-630 Facilities - Community Services - 100-65-632 Community Outreach & Neighborhood Watch - 100-65-633 Disaster Preparedness - 100-65-635 Neighborhood Watch - 100-65-636 Library Services - Total $ 17,442,432 Budget Unit Program 2019 Adopted Budget 278 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 6,736,332 Total Expenditures $ 17,442,432 Fund Balance $ (1,786,449) General Fund Costs $ 8,919,651 % Funded by General Fund 51.1 % Total Staffing 34.8 FTE Organization Jeff Milkes, Director of Recreation and Community Services 279 Performance Measures Goal: Create a positive, healthy and connected community. Benefit: Cupertino has an exceptional system of parks & services that align with community values. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target % of Recreation and Community Services Department customers surveyed who rate services as good or excellent 95%97%85% % of programs maintaining minimum registration 71%69%80% % Department’s total cost recovery for all (direct and indirect) costs 49%63%40% # of new programs or events offered 132 87 50 % change in participants -6%-4%+1% Adopted Budget On June 5, 2018, City Council approved a budget of $17,442,432 for the Recreation and Community Services department. This represents an increase of $994,854 (6.0%) from the FY 2018 Adopted Budget. The department's net budget increase is primarily due to changes in how the City applies cost allocation charges. Increased cost allocation charges are due to one-time project expenses and a change in allocation methodology for IT charges as well as increased costs of services provided by finance, human resources, and building maintenance. This budget decreases revenues to more accurately reflect projected revenue receipts based on historical trends and current service levels. Funding is increased in this budget for new outdoor concert, movies, and fitness programs in neighborhood parks as well as additional family and teen activities such as a Teen Leadership Academy. This budget includes decreases in budgeted costs in other program areas, a result of more accurately budgeting expenses to align with historical actual expenditures and current service levels. 280 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 43.5% 30.7% 14.1% 11.7% Sports, Safety and Outdoor Rec Recreation and Education Business and Community Services Administration $10.9M $14.6M $16.4M $17.4M 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 281 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 562,456 $ 676,453 $ 601,325 $ 754,500 Intergovernmental Revenue $ (1,387)-$ 10,500 - Charges for Services $ 5,642,870 $ 6,185,732 $ 6,505,929 $ 5,925,832 Fines and Forfeitures ---- Miscellaneous Revenue $ 58,928 $ 49,575 $ 63,000 $ 56,000 Interdepartmental Revenue ---- Total Revenues $ 6,262,866 $ 6,911,760 $ 7,180,754 $ 6,736,332 Expenditures Employee Compensation $ 3,523,471 $ 3,770,679 $ 4,958,694 $ 5,185,708 Employee Benefits $ 1,120,347 $ 1,185,469 $ 1,580,194 $ 1,583,600 Materials $ 1,076,671 $ 869,264 $ 1,395,942 $ 1,062,056 Contract Services $ 3,941,287 $ 3,659,175 $ 4,552,277 $ 4,756,614 Cost Allocation $ 1,140,589 $ 4,998,615 $ 3,501,914 $ 4,461,823 Capital Outlay $ 5,848 $ 313 -- Special Projects $ 116,801 $ 91,082 $ 83,000 $ 133,000 Appropriations for Contingency $ 14,135 -$ 375,557 $ 259,631 Total Expenditures $ 10,939,149 $ 14,574,598 $ 16,447,578 $ 17,442,432 Fund Balance $ 976,182 $ 678,906 $ (1,184,607)$ (1,786,449) General Fund Costs $ 5,652,465 $ 8,341,743 $ 8,082,217 $ 8,919,651 282 Leadership 95014 Budget Unit 100-60-600 General Fund - Administration - Leadership 95014 Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 283 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue $ 15,875 --- Interdepartmental Revenue ---- Total Revenues $ 15,875 --- Expenditures Employee Compensation $ 10,103 --- Employee Benefits $ 4,012 --- Materials $ 6,863 --- Contract Services $ 13,865 --- Cost Allocation $ 1,596 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 36,439 --- Fund Balance ---- General Fund Costs $ 20,564 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 284 Recreation Administration Budget Unit 100-60-601 General Fund - Administration - Recreation Administration Budget at a Glance 2019 Adopted Budget Total Revenues $ 42,000 Total Expenditures $ 804,138 Fund Balance - General Fund Costs $ 762,138 % Funded by General Fund 94.8 % Total Staffing 2.85 FTE Program Overview The Recreation Administration program provides overall department administration, as well as project management, community outreach, and support to the Parks and Recreation Commission. In addition, the program 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, renovation, and improvements of parks and open spaces. Complete long-term and strategic plans for the Department including the Parks and Recreation System Master Plan. Monitor and facilitate partnerships in regards to Library and other community organizations. Oversee community services functions to include code enforcement and the Office of Emergency Services. Outreach to the community in conjunction with programs and the Parks and Recreation System Master Plan. Promote partnerships with Cupertino Union School District, Fremont Union High School District, and De Anza College with quarterly meetings and joint projects. Continually evaluate the efficiency and effectiveness of the Department, working to receive national accreditation. Adopted Budget On June 5, 2018, City Council approved a budget of $804,138 for the Recreation Administration program. This represents an increase of $308,231 (62.2%) from the FY 2018 Adopted Budget. The increase in compensation and benefits is primarily due to the reallocation of the Assistant Director position from 100-62-608 to this program budget. The increase also funds a part-time Administrative Assistant to support the national accreditation process and additional Department staff training opportunities (contract services). Revenues and Expenditures 285 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue $ 42,980 $ 43,200 $ 42,000 $ 42,000 Interdepartmental Revenue ---- Total Revenues $ 42,980 $ 43,200 $ 42,000 $ 42,000 Expenditures Employee Compensation $ 250,990 $ 145,714 $ 257,608 $ 462,975 Employee Benefits $ 94,547 $ 78,966 $ 105,964 $ 186,440 Materials $ 66,757 $ 72,451 $ 74,521 $ 74,521 Contract Services $ 82,387 $ 27,960 $ 11,000 $ 40,500 Cost Allocation $ 63,456 $ 658,797 $ 36,814 $ 35,426 Capital Outlay ---- Special Projects -$ 2,468 -- Appropriations for Contingency $ 4,677 -$ 10,000 $ 4,276 Total Expenditures $ 562,814 $ 986,356 $ 495,907 $ 804,138 Fund Balance ---- General Fund Costs $ 519,834 $ 943,156 $ 453,907 $ 762,138 Staffing Total current authorized positions - 1.90 Increased staffing is due to reallocation of existing staff to better reflect time spent in this program. Total recommended positions - 2.85 286 Park Planning and Restoration Budget Unit 100-60-634 General Fund - Administration - Park Planning and Restoration Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 267,549 Fund Balance - General Fund Costs $ 267,549 % Funded by General Fund 100.0 % Total Staffing 1.0 FTE Program Overview This program conducts park planning, renovation, outreach, and monitoring of Capital Improvement Projects and grant funding opportunities and works with other agencies and jurisdictions to identify potential partnerships for future park and trail expansion and collaboration opportunities. Service Objectives Oversee the Parks and Recreation System Master Plan and assist with the Stevens Creek Corridor Master Plan and monitoring of the Stevens Creek Corridor Park & Restoration Phase 2 Project. Support the Public Works Department in the planning and development of new parks and restoration of existing parks. Promote partnerships with Santa Clara County (SCC), Santa Clara Valley Water District (SCVWD), Midpeninsula Regional Open Space District (MROSD) and other agencies. Identify and monitor grant funding opportunities. Adopted Budget On June 5, 2018, City Council approved a budget of $267,549 for the Park Planning and Restoration program. This represents an increase of $14,314 (5.7%) from the FY 2018 Adopted Budget. This budget is relatively unchanged since last fiscal year and supports Citywide park planning. Increased costs in cost allocation are due to one-time project expenses and a change in allocation methodology for IT charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 287 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 141,510 $ 143,496 $ 151,209 $ 153,090 Employee Benefits $ 51,924 $ 57,721 $ 63,864 $ 65,777 Materials $ 5,914 $ 2,461 $ 11,500 $ 11,500 Contract Services $ 55,601 -$ 10,000 $ 10,000 Cost Allocation -$ 34,794 $ 16,662 $ 27,182 Capital Outlay ---- Special Projects $ 5,866 --- Appropriations for Contingency ---- Total Expenditures $ 260,816 $ 238,472 $ 253,235 $ 267,549 Fund Balance ---- General Fund Costs $ 260,816 $ 238,472 $ 253,235 $ 267,549 Staffing Total current authorized positions - 1.00 There are no recommended changes to the current level of staffing. Total recommended positions - 1.00 288 Library Services Budget Unit 100-60-636 General Fund - Administration - Library Services Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 969,505 Fund Balance - General Fund Costs $ 969,505 % Funded by General Fund 100.0 % Total Staffing 0 FTE 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 5, 2018, City Council approved a budget of $969,505 for the Library Services program. This represents an increase of $180,613 (22.9%) from the FY 2018 Adopted Budget. The increase in cost allocation is due to the reallocation of Library building maintenance costs to this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 289 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation ---- Employee Benefits ---- Materials ---- Contract Services -$ 443,106 $ 454,871 $ 468,023 Cost Allocation -$ 715,712 $ 334,021 $ 501,482 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures -$ 1,158,818 $ 788,892 $ 969,505 Fund Balance ---- General Fund Costs -$ 1,158,818 $ 788,892 $ 969,505 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 290 Administration Budget Unit 100-61-602 General Fund - Business and Community Services - Administration Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 923,993 Fund Balance - General Fund Costs $ 923,993 % Funded by General Fund 100.0 % Total Staffing 6.05 FTE Program Overview The Business and Community Services Division supports department programs and services through the provision of customer service and analytical support, development, and administration of policies, managing marketing and social media functions, and administration of recreation management software. The division is also responsible for the department's community outreach programs, including community festivals and City events at Memorial Park, the Neighborhood Watch and Block Leader programs, and City neighborhood events. This division also manages Quinlan Community Center (QCC) and Community Hall, as well as facility and park picnic rentals. Service Objectives Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards. Procure and implement a new recreation software system to streamline customer registration, memberships, point-of-sale, and facility rentals. Collect and analyze data from customer satisfaction surveys and program and revenue reports to improve programs and services. Enhance program marketing and communications through an effective brochure, website, print materials, and social media. Increase participation at City events including 4th of July, Summer Concerts, Cinema at Sundown, Shakespeare in the Park, and the Tree Lighting Ceremony. Issue parks and facilities permits for individual customers as well as community festivals and events that promote our diverse culture and connected community. Maintain a positive relationship with neighborhoods adjacent to our facilities and parks. Facilitate connected, safe neighborhoods through the production of events in neighborhood parks, leveraging the input and support of Block Leader participants. Adopted Budget 291 Adopted Budget On June 5, 2018, City Council approved a budget of $923,993 for the Administration program. This represents an increase of $4,988 (0.5%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year and supports customer service, administrative and analytical, and marketing activities in support of department-wide activities. The increase in compensation and benefits is due to negotiated salary and benefit changes to take effect in July 2018. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 394,592 $ 363,454 $ 506,532 $ 495,491 Employee Benefits $ 178,195 $ 178,886 $ 243,155 $ 252,608 Materials $ 3,665 $ 14,163 $ 30,170 $ 30,170 Contract Services -$ 1,063 $ 8,500 $ 8,500 Cost Allocation $ 57,756 $ 166,746 $ 130,188 $ 135,290 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 460 $ 1,934 Total Expenditures $ 634,208 $ 724,312 $ 919,005 $ 923,993 Fund Balance ---- General Fund Costs $ 634,208 $ 724,312 $ 919,005 $ 923,993 Staffing 292 Staffing Total current authorized positions - 6.05 There are no changes to the current level of staffing. Total recommended positions - 6.05 293 Blackberry Farm Picnic Area Budget Unit 100-61-603 General Fund - Business and Community Services - Blackberry Farm Picnic Area Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 294 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 36,260 --- Intergovernmental Revenue ---- Charges for Services $ 238,874 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 275,134 --- Expenditures Employee Compensation $ 346,539 --- Employee Benefits $ 52,930 --- Materials $ 91,714 --- Contract Services $ 81,551 --- Cost Allocation $ 23,976 --- Capital Outlay ---- Special Projects $ 10,243 --- Appropriations for Contingency ---- Total Expenditures $ 606,953 --- Fund Balance ---- General Fund Costs $ 331,819 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 295 Community Hall Operations Budget Unit 100-61-604 General Fund - Business and Community Services - Community Hall Operations Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 296 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 59,637 --- Employee Benefits $ 25,903 --- Materials $ 656 --- Contract Services ---- Cost Allocation $ 9,588 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 95,784 --- Fund Balance ---- General Fund Costs $ 67,365 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 297 Cultural Events Budget Unit 100-61-605 General Fund - Business and Community Services - Cultural Events Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 646,618 Fund Balance - General Fund Costs $ 646,618 % Funded by General Fund 100.0 % Total Staffing 0.77 FTE Program Overview The Business and Community Service Division's events program produces the City's special events including 4th of July festivities and those hosted at Memorial Park and Quinlan Community Center including the Summer Concert Series, Cinema at Sundown, Shakespeare in the Park, and Tree Lighting. This staff also serves as liaison and issues permits for community and cultural events at Memorial Park including the Cherry Blossom Festival, World Journal Festival, Kids 'N Fun Festival, Fall Festival, Veteran's Day Memorial Ceremony, Diwali Festival, and more. Expanded programs will be developed to provide and enhance neighborhood events to build community. Service Objectives Provide a summer concert series at Memorial Park and in various neighborhood parks. Produce a summer movie series at Memorial Park and in various neighborhood parks. Partner with the San Francisco Shakespeare Company to produce Free Shakespeare in the Park in Cupertino. Organize and facilitate the 4th of July Independence Day celebration and fireworks show. Bring the community together with the annual Tree Lighting celebration. Serve as liaison and issue special event permits to nonprofit organization event producers to ensure successful community and cultural festivals in Memorial Park. Adopted Budget On June 5, 2018, City Council approved a budget of $646,618 for the Cultural Events program. This represents an increase of $208,281 (47.5%) from the FY 2018 Adopted Budget. This budget proposes enhancements to special events (Concerts and Movies) at Memorial Park and expanded events in neighborhood parks. Funding for Memorial Park enhancements includes $10,000 for a professional sound contractor to provide high-quality sound for concerts at Memorial Park. The expanded neighborhood events require ongoing costs of $154,000 for part-time staff to coordinate and execute the events and $20,000 for 298 contractual services for bands, performers, and movie licensing. To support these efforts, one-time funding of $40,000 is included for the purchase of projectors and movie screens. The increase in compensation and benefits is due to negotiated salary and benefit changes due to take effect in July 2018. As the City greatly values community and cultural events, the City will waive costs totaling $119,847 to festival producers as detailed in the table below. Festival Date Festival Producer Recreation Facility/Park/ Road Permits Public Works Sheriff Materials Total Kids 'N Fun Festival Aug. 11, 2018 Taiwanese Cultural and Sports Association $1,598 $7,440 $2,803 $5,289 $17,130 Fall Festival Sept. 15, 2018 Cupertino Rotary $1,512 $5,938 $3,008 $5,289 $15,747 Diwali October 13, 2018 Cupertino Chamber of Commerce $1,564 $6,710 $3,031 $5,264 $16,569 Veteran's Day Nov. 11, 2018 Cupertino Veteran's Memorial $642 $1,000 $18 $1,593 $3,253 Egg Hunt April 13, 2019 Home of Christ Church $861 $1,000 $38 $1,899 Holi April 7, 2019 Cupertino Chamber of Commerce $984 $3,000 $18 $871 $4,873 Cherry Blossom April 27- 28, 2019 Toyokawa Sister City $4,007 $17,466 $5,801 $4,356 $31,630 World Journal May 11, 2019 World Journal/Cupertino Chinese School $2,065 $4,960 $3,004 $4,356 $14,385 Tournament of Bands October 13, 2018 Cupertino Tournament of Bands $0 $3,150 $185 $3,500 $6,835 Heroes Run November 3, 2018 County of Santa Clara $0 $4,326 $3200 $7,526 Total $13,233 $54,990 $21,106 $28,925 $1,593 $119,847 Special Projects The following table shows the special projects for the fiscal year. 299 Special Project Appropriation Revenue Funding Source Description Neighborhood Parks Special Events $20,000 General Fund Projectors, Stage, Generators Neighborhood Parks Special Events $20,000 General Fund Movie Screens Total $40,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue --$ 5,000 - Interdepartmental Revenue ---- Total Revenues --$ 5,000 - Expenditures Employee Compensation $ 42,757 $ 90,421 $ 160,849 $ 264,053 Employee Benefits $ 16,136 $ 33,619 $ 37,004 $ 45,493 Materials $ 8,488 $ 3,717 $ 20,850 $ 23,850 Contract Services $ 67,880 $ 85,402 $ 164,496 $ 217,496 Cost Allocation $ 3,516 $ 37,289 $ 42,685 $ 45,209 Capital Outlay ---- Special Projects -$ 1,582 -$ 40,000 Appropriations for Contingency --$ 12,453 $ 10,517 Total Expenditures $ 138,777 $ 252,030 $ 438,337 $ 646,618 Fund Balance ---- General Fund Costs $ 138,777 $ 252,030 $ 433,337 $ 646,618 Staffing 300 Staffing Total current authorized positions - 0.77 There are no changes to the current level of staffing. Total recommended positions - 0.77 301 Quinlan Community Center Operations Budget Unit 100-61-607 General Fund - Business and Community Services - Quinlan Community Center Operations Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 302 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 121,773 --- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 121,773 --- Expenditures Employee Compensation $ 105,407 --- Employee Benefits $ 29,096 --- Materials $ 41,429 --- Contract Services $ 7,423 --- Cost Allocation $ 22,800 --- Capital Outlay ---- Special Projects $ 40,371 --- Appropriations for Contingency ---- Total Expenditures $ 246,527 --- Fund Balance ---- General Fund Costs $ 124,754 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 303 Facilities Budget Unit 100-61-630 General Fund - Business and Community Services - Facilities Budget at a Glance 2019 Adopted Budget Total Revenues $ 703,382 Total Expenditures $ 684,362 Fund Balance - General Fund Costs $ (19,020) % Funded by General Fund - Total Staffing 2.68 FTE Program Overview Community Hall provides space for City Council meetings and various Commission meetings, as well as facility rental space available for a variety of activities including business meetings, community events, and Cupertino Library programs. The Quinlan Community Center houses the administrative office of the Recreation and Community Services Department and serves as facility space for rentals and a variety of recreational, social, and community activities. Service Objectives Provide a rental facility for community meetings, business functions, social events, and other similar activities. Provide a facility for City Channel programming, and City Council, Planning Commission, Parks & Recreation Commission and other City meetings. Offer in-person and online registration for recreation programs. Schedule facility space for contractual and staff-run classes and camps. House the Cupertino Historical Society. Serve as the City’s Emergency Operations Shelter in case of disasters. Develop a master plan for this facility with the Stevens Creek to McClellan Ranch Corridor that will serve the community’s long-term goals for improvements or changes. Adopted Budget On June 5, 2018, City Council approved a budget of $684,362 for the Facilities program. This represents an increase of $104,615 (18.0%) from the FY 2018 Adopted Budget. This budget includes one-time funding for the replacement of the department's portable speakers (speakers, stands, case, soundboard, microphones, cables) used for a variety of indoor and outdoor events. The current systems have reached the end of their useful life. The increase in compensation and benefits is due to negotiated salary and benefit changes due to take effect in July 2018 and the reallocation of part-time staffing for the City 304 Hall front desk (nights and weekends) which was previously budgeted in the Innovation and Technology Department. The increase in cost allocation is due to one-time project expenses and a change in allocation methodology for IT charges and increased costs of services provided by finance and human resources. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Quinlan Equipment $10,000 General Fund Portable Sound System Total $10,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 305 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property -$ 289,115 $ 142,000 $ 245,000 Intergovernmental Revenue ---- Charges for Services -$ 825,501 $ 489,379 $ 458,382 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 1,114,616 $ 631,379 $ 703,382 Expenditures Employee Compensation $ 5,126 $ 290,439 $ 301,728 $ 330,663 Employee Benefits $ 1,454 $ 102,430 $ 101,702 $ 102,437 Materials -$ 51,386 $ 68,465 $ 68,465 Contract Services -$ 15,028 $ 17,000 $ 17,000 Cost Allocation -$ 546,269 $ 85,157 $ 151,524 Capital Outlay -$ 313 -- Special Projects -$ 5,694 -$ 10,000 Appropriations for Contingency --$ 5,695 $ 4,273 Total Expenditures $ 6,580 $ 1,011,559 $ 579,747 $ 684,362 Fund Balance ---- General Fund Costs $ 6,580 $ (103,057)$ (51,632)$ (19,020) Staffing Total current authorized positions - 2.68 There are no changes to the current level of staffing. Total recommended positions - 2.68 306 Community Outreach & Neighborhood Watch Budget Unit 100-61-632 General Fund - Business and Community Services - Community Outreach & Neighborhood Watch Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 201,251 Fund Balance - General Fund Costs $ 201,251 % Funded by General Fund 100.0 % Total Staffing 0.8 FTE Program Overview Community Outreach programs facilitate communication and enhance cultural understanding in Cupertino neighborhoods. Block Leaders are instrumental in building connected communities, delivering timely and pertinent information to neighbors, and providing input to the City. Neighborhood Watch enhances public safety by providing crime prevention information to local businesses and residents. The program promotes an active relationship between the community and the Sheriff’s Office. Service Objectives Aid in the development, implementation, and coordination of City programs and community-building activities designed to bring Cupertino neighborhoods together. Coordinate and disseminate useful and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods. Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs. Train residents to connect and organize neighbors and neighborhoods. Get Block Leaders involved in the Parks and Recreation System Master Plan. Create and implement Neighborhood Watch meetings and groups. Disseminate important City news and safety information. Organize and conduct annual National Night Out initiative. Adopted Budget On June 5, 2018, City Council approved a budget of $201,251 for the Community Outreach & Neighborhood Watch program. This represents a decrease of $90,996 (-31.1%) from the FY 2018 Adopted Budget. The decrease in compensation and benefits is due to the reallocation of existing management and administrative support staff to better reflect actual time spent in this program. Revenues and Expenditures 307 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation -$ 127,900 $ 173,131 $ 99,003 Employee Benefits -$ 43,967 $ 47,406 $ 32,968 Materials -$ 9,588 $ 18,250 $ 19,250 Contract Services -$ 3,181 $ 9,500 $ 9,500 Cost Allocation -$ 51,725 $ 42,400 $ 39,142 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 1,560 $ 1,388 Total Expenditures -$ 236,361 $ 292,247 $ 201,251 Fund Balance ---- General Fund Costs -$ 236,361 $ 292,247 $ 201,251 Staffing Total current authorized positions - 0.80 There are no changes to the current level of staffing. Total recommended positions - 0.80 308 Administration Budget Unit 100-62-608 General Fund - Recreation and Education - Administration Budget at a Glance 2019 Adopted Budget Total Revenues $ 34,000 Total Expenditures $ 1,281,016 Fund Balance - General Fund Costs $ 1,247,016 % Funded by General Fund 97.3 % Total Staffing 3.2 FTE Program Overview This program includes administration activities in support of the coordination of youth, teen, and senior programs throughout the City. Program services focusing on youth include youth camps, special events, preschool, teens, 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 two designated divisions. Establish program goals and priorities. Educate participants on Cupertino’s City government, schools, businesses, and nonprofit sectors. 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. Coordinate Special Events at Main Street Park and at the Creekside Farmer's Market. Partner with Fremont Union High School District to provide social skills programming for Special Education high school students. Adopted Budget On June 5, 2018, City Council approved a budget of $1,281,016 for the Administration program. This represents an increase of $198,528 (18.3%) from the FY 2018 Adopted Budget. The increase is primarily due to cost allocation increases for one-time project expenses, a change in allocation methodology for IT charges, and an increase in the cost of services provided for building maintenance. This budget also includes a $16,000 increase in general supplies for events at Main Street Park and the weekly Creekside Farmers' Market, and a new Special Education program. A $20,000 part-time staffing increase will support the new Special Education program. 309 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property -$ 5,017 $ 33,125 $ 20,000 Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue -$ 6,375 $ 16,000 $ 14,000 Interdepartmental Revenue ---- Total Revenues -$ 11,392 $ 49,125 $ 34,000 Expenditures Employee Compensation $ 91,979 $ 430,150 $ 401,786 $ 358,084 Employee Benefits $ 42,068 $ 197,044 $ 148,131 $ 144,312 Materials $ 7,222 $ 20,666 $ 39,416 $ 53,851 Contract Services $ 388 $ 10,216 $ 22,200 $ 30,750 Cost Allocation $ 4,800 $ 494,790 $ 452,107 $ 690,664 Capital Outlay ---- Special Projects --$ 15,000 - Appropriations for Contingency --$ 3,848 $ 3,355 Total Expenditures $ 146,457 $ 1,152,866 $ 1,082,488 $ 1,281,016 Fund Balance ---- General Fund Costs $ 146,457 $ 1,141,474 $ 1,033,363 $ 1,247,016 Staffing Total current authorized positions - 3.45 Decreased staffing is due to reallocation of existing staff to better reflect time spent in this program. Total recommended positions - 3.20 310 Youth Program Budget Unit 100-62-609 General Fund - Recreation and Education - Youth Program Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 311 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 9,079 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 9,079 --- Expenditures Employee Compensation $ 20,843 --- Employee Benefits $ 7,823 --- Materials $ 6,017 --- Contract Services ---- Cost Allocation $ 2,136 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 36,819 --- Fund Balance ---- General Fund Costs $ 27,740 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 312 Teen Program Budget Unit 100-62-610 General Fund - Recreation and Education - Teen Program Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 313 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 12,950 --- Employee Benefits $ 5,664 --- Materials $ 1,169 --- Contract Services $ 1,208 --- Cost Allocation $ 2,136 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 23,127 --- Fund Balance ---- General Fund Costs $ 23,127 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 314 Teen Center Budget Unit 100-62-611 General Fund - Recreation and Education - Teen Center Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 315 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 2,000 --- Intergovernmental Revenue ---- Charges for Services $ 1,844 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 3,844 --- Expenditures Employee Compensation $ 40,634 --- Employee Benefits $ 2,878 --- Materials $ 13,721 --- Contract Services ---- Cost Allocation $ 3,720 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 60,953 --- Fund Balance ---- General Fund Costs $ 57,110 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 316 Park Facilities Budget Unit 100-62-612 General Fund - Recreation and Education - Park Facilities Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 317 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 3,456 --- Intergovernmental Revenue ---- Charges for Services $ 370 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 3,826 --- Expenditures Employee Compensation $ 183,282 --- Employee Benefits $ 60,206 --- Materials $ 46,158 --- Contract Services $ 4,163 --- Cost Allocation $ 11,508 --- Capital Outlay ---- Special Projects $ 28,000 --- Appropriations for Contingency ---- Total Expenditures $ 333,317 --- Fund Balance ---- General Fund Costs $ 329,491 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 318 Youth Teen Recreation Budget Unit 580-62-613 Recreation Program - Recreation and Education - Youth Teen Recreation Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,444,500 Total Expenditures $ 2,040,825 Fund Balance $ (596,325) General Fund Costs - % Funded by General Fund - Total Staffing 1.6 FTE Program Overview This program encompasses fee-based youth and teen programs such as academic and enrichment classes, STEAM and STEM programming, recreational camps, preschool, and special events, as well as special interest and enrichment classes for adults. Service Objectives Provide a preschool program, summer camps, and an extensive variety of contract classes for youth, teens, and adults, while collaborating with the Cupertino Union School District and Fremont Union High School District on select program offerings. Promote programs through social media to increase community awareness. 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. Provide family-oriented programs designed to bring the community together. Provide safe, fun, life-long learning activities that promote self-confidence, skill development, and personal growth. Coordinate a new spring special event (Bunny Brunch/Egg Hunt) targeting preschool and elementary youth and their families. Adopted Budget On June 5, 2018, City Council approved a budget of $2,040,825 for the Youth Teen Recreation program. This represents a decrease of $173,584 (-7.8%) from the FY 2018 Adopted Budget. The decrease in compensation and benefits is due to a reallocation of existing staff to beQer reflect actual time spent in this program. In addition to staff cost savings, this program budget includes reductions in materials and supplies and contract services to reflect improved efficiencies and to address the changing needs of the Cupertino community. The decrease is partially offset by an increase in cost allocation due to increased costs of services provided by finance, human resources, and building maintenance. This budget also adds funding for 319 part-time staffing, supplies and materials, and contract services for a new family spring event, targeting preschool and young elementary school students, and the addition of Parent/Tot classes and a Creative Arts Toddler program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 1,503,958 $ 1,441,395 $ 1,510,300 $ 1,444,500 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 1,503,958 $ 1,441,395 $ 1,510,300 $ 1,444,500 Expenditures Employee Compensation $ 428,178 $ 397,589 $ 530,720 $ 432,339 Employee Benefits $ 84,793 $ (1,545)$ 109,842 $ 71,556 Materials $ 70,134 $ 71,123 $ 87,588 $ 79,988 Contract Services $ 936,993 $ 859,700 $ 1,110,600 $ 1,049,500 Cost Allocation $ 307,549 $ 305,794 $ 290,183 $ 351,973 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 85,476 $ 55,469 Total Expenditures $ 1,827,648 $ 1,632,661 $ 2,214,409 $ 2,040,825 Fund Balance $ 258,058 $ 257,692 $ (704,109)$ (596,325) General Fund Costs $ 581,748 $ 448,957 -- Staffing Total current authorized positions - 2.25 Decreased staffing is due to reallocation of existing staff to better reflect actual time spent in this program. Total recommended positions - 1.60 320 Youth, Teen and Senior Adult Rec Budget Unit 100-62-623 General Fund - Recreation and Education - Youth, Teen and Senior Adult Rec Budget at a Glance 2019 Adopted Budget Total Revenues $ 581,550 Total Expenditures $ 2,036,109 Fund Balance - General Fund Costs $ 1,454,559 % Funded by General Fund 71.4 % Total Staffing 5.2 FTE Program Overview This program includes the coordination and delivery of 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. Staff coordinates youth enrichment programs; volunteer opportunities for teens in the Cupertino community; a safe, comfortable, and well-maintained Teen Center for students in grades 6-12; a safe, comfortable, and well maintained Senior Center for adults age 50+; and senior adult recreation programs such as educational classes, presentations, group trips and travel, and social events. In addition, the Senior Center team leverages members to support programs and services through over 24,000 hours of volunteer service annually and also coordinates Case Management services to assist seniors in remaining independent and safe in their own homes. Service Objectives Enhance partnerships with Cupertino Union School District, Fremont Union High School District, the Santa Clara County Library, the YMCA, and other local nonprofit agencies. Provide appreciation events for teen and senior volunteers who support the Recreation and Community Services Department throughout the year. Encourage youth development and leadership through volunteer efforts of teens in summer camps, aquatics, and outdoor park improvements through the Leader In Training program and the Cupertino Teen Leadership Academy. 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. Provide multi-lingual senior case management services. Offer educational courses and presentations, group travel, and socialization opportunities to adults age 50+. Provide volunteer service opportunities for adults age 50+. Provide educational and performing arts community youth competitions such as a Spelling Bee, Geography Bee, and "CuperTeeno" Talent. Adopted Budget 321 Adopted Budget On June 5, 2018, City Council approved a budget of $2,036,109 for the Youth, Teen and Senior Adult Rec program. This represents a decrease of $170,775 (-7.7%) from the FY 2018 Adopted Budget. The decrease is primarily due to changes in cost allocation charges and more accurately budgeting the Senior Center travel program to align with actual expenditures from the trend of the past few years. This decrease is partially offset by an increase in compensation and benefits due to negotiated salary and benefit changes due to take effect in July 2018 and an increase in part-time staffing. This budget includes a minor increase in part-time staffing at the Senior Center to support extended hours of operation and increased rentals. It also includes increases in part-time staffing for two new Staff Assistant positions and three college interns to assist with new and expanded Teen programs, such as the Teen Talent Show, Spelling and Geography Bees, and a Teen Leadership Academy. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 322 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property -$ 4,788 $ 1,000 $ 3,500 Intergovernmental Revenue ---- Charges for Services -$ 572,307 $ 734,750 $ 578,050 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 577,095 $ 735,750 $ 581,550 Expenditures Employee Compensation -$ 449,507 $ 649,620 $ 818,614 Employee Benefits -$ 142,146 $ 213,676 $ 238,292 Materials -$ 341,397 $ 585,723 $ 220,985 Contract Services -$ 98,398 $ 143,800 $ 317,220 Cost Allocation -$ 588,869 $ 552,901 $ 415,210 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 61,164 $ 25,788 Total Expenditures -$ 1,620,317 $ 2,206,884 $ 2,036,109 Fund Balance ---- General Fund Costs -$ 1,043,222 $ 1,471,134 $ 1,454,559 Staffing Total current authorized positions - 5.00 Increased staffing is due to reallocation of existing staff to better reflect time spent in this program. Total recommended positions - 5.20 323 Park Facilities Budget Unit 100-63-612 General Fund - Sports, Safety and Outdoor Recreation - Park Facilities Budget at a Glance 2019 Adopted Budget Total Revenues $ 374,000 Total Expenditures $ 2,382,394 Fund Balance - General Fund Costs $ 2,008,394 % Funded by General Fund 84.3 % Total Staffing 3.43 FTE 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 of the Community Garden program and non-profit operations such as Grassroots Ecology, Santa Clara Valley Audubon Society, UCCE Master Gardeners, and Rolling Hills 4-H Club. The Creekside Park building provides community members with facility space which can be used for a variety of activities. The Monta Vista Recreation Center is home to a diverse array of recreational activities including gymnastics classes and preschool. Service Objectives Blackberry Farm Picnic Grounds and Pools: Provide the community with two recreational pools for drop-in use. Offer a Junior Lifeguard course for teens, ages 12-15. Engage and provide the community with annual 4th of July and Pooch Plunge 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, Santa Clara Valley Audubon Society, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs. Expand programming opportunities for teens. Increase volunteer/docent opportunities at McClellan Ranch. 324 Improve and increase community garden programming. Creekside Park Building: Rent facility for nonprofit board meetings, birthday parties, school group picnics, and other similar activities. Provide contract and staff-run classes and camps. Provide space for year-round farmers’ market Monta Vista Recreation Center: Provide gymnastics classes via Twisters Sports Center. Offer department run preschool program. Provide contract and staff-run classes and camps. Make space available for co-sponsored clubs and rentals. Adopted Budget On June 5, 2018, City Council approved a budget of $2,382,394 for the Park Facilities program. This represents an increase of $414,216 (21.0%) from the FY 2018 Adopted Budget. The increase in compensation and benefits is due to the reallocation of full-time positions to beQer reflect actual time spent supporting McClellan Ranch. In addition, the increase in cost allocation is due to one-time project expenses and a change in allocation methodology for IT charges and increased costs of services provided by finance, human resources, and building maintenance. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Grassroots Ecology $68,000 General Fund Habitat Restoration of Stevens Creek Corridor Total $68,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 325 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 9,650 $ 69,631 $ 219,000 $ 199,000 Intergovernmental Revenue ---- Charges for Services -$ 152,130 $ 250,000 $ 175,000 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 9,650 $ 221,761 $ 469,000 $ 374,000 Expenditures Employee Compensation -$ 586,441 $ 623,665 $ 730,520 Employee Benefits -$ 112,901 $ 128,654 $ 130,493 Materials -$ 96,656 $ 141,214 $ 136,073 Contract Services -$ 10,427 $ 31,550 $ 31,700 Cost Allocation -$ 815,707 $ 954,759 $ 1,277,319 Capital Outlay ---- Special Projects -$ 55,071 $ 68,000 $ 68,000 Appropriations for Contingency --$ 20,336 $ 8,289 Total Expenditures -$ 1,677,203 $ 1,968,178 $ 2,382,394 Fund Balance ---- General Fund Costs $ (9,650)$ 1,455,442 $ 1,499,178 $ 2,008,394 Staffing Total current authorized positions - 2.73 Increased staffing is due to reallocation of existing staff to beQer reflect actual time spent supporting McClellan Ranch. Total recommended positions - 3.43 326 Administration Budget Unit 100-63-615 General Fund - Sports, Safety and Outdoor Recreation - Administration Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 190,734 Fund Balance - General Fund Costs $ 190,734 % Funded by General Fund 100.0 % Total Staffing 0.5 FTE Program Overview This program supports all facets of the Sports, Safety, and Outdoor Recreation Division. It provides for the supervision and operation of the Cupertino Sports Center, Blackberry Farm Golf Course, Blackberry Farm picnic area and swimming pools, McClellan Ranch Preserve, Monta Vista Recreation Center and Creekside Park building. The Sports, Safety, and Outdoor Recreation Division includes a diverse offering of recreation programs for all ages including sports leagues, camps/classes, nature programs, volunteer opportunities, drop-in activities, 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. BeQer coordinate park facilities and staff within the Stevens Creek Corridor in order to enhance customer service and experience for park visitors. Oversee marketing, budget development, and program plans for all locations. Adopted Budget On June 5, 2018, City Council approved a budget of $190,734 for the Administration program. This represents a decrease of $53,086 (-21.8%) from the FY 2018 Adopted Budget. The decreased is due to the reallocation of existing staff to 100-63-612 to more accurately reflect actual time spent in these programs. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 327 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 32,867 $ 88,077 $ 101,931 $ 54,513 Employee Benefits $ 19,272 $ 39,767 $ 47,714 $ 20,550 Materials $ 507 $ 4,620 $ 6,755 $ 6,755 Contract Services $ 81 $ 388 -- Cost Allocation $ 6,384 $ 105,013 $ 87,147 $ 108,578 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 273 $ 338 Total Expenditures $ 59,110 $ 237,865 $ 243,820 $ 190,734 Fund Balance ---- General Fund Costs $ (135,426)$ 237,865 $ 243,820 $ 190,734 Staffing Total current authorized positions - 1.75 Decreased staff is due to reallocation of existing staff to better reflect actual time spent in this program. Total recommended positions - 0.50 328 Blackberry Farm Golf Course Budget Unit 560-63-616 Blackberry Farm - Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course Budget at a Glance 2019 Adopted Budget Total Revenues $ 335,000 Total Expenditures $ 687,939 Fund Balance $ (352,939) General Fund Costs - % Funded by General Fund - Total Staffing 0.9 FTE 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 private golf instruction, family events, high school golf team partnerships, and marketing tools such as Groupon and Golf Now. Operate a golf course concession where customers may purchase golfing accessories and golf instruction. Adopted Budget On June 5, 2018, City Council approved a budget of $687,939 for the Blackberry Farm Golf Course program. This represents a decrease of $20,522 (-2.9%) from the FY 2018 Adopted Budget. The increase in compensation is primarily due to golf instruction now provided under a part-time class instructor position. This same move has resulted in a decrease in contract services, as golf instruction was previously provided contractually. A $23,000 increase in materials and supplies will support merchandise concession, which is now operated by the City. An allocation of $10,000 for special projects will address pro shop facility maintenance needs. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Blackberry Farm Golf Course Facility Maintenance $10,000 560 - Enterprise Fund Facility maintenance backlog project Total $10,000 Revenues and Expenditures 329 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 14,650 $ 19,791 $ 22,000 - Intergovernmental Revenue ---- Charges for Services $ 199,707 $ 305,435 $ 381,000 $ 335,000 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 214,357 $ 325,226 $ 403,000 $ 335,000 Expenditures Employee Compensation $ 116,011 $ 147,505 $ 145,924 $ 150,811 Employee Benefits $ 32,574 $ 47,658 $ 46,214 $ 37,632 Materials $ 64,471 $ 24,148 $ 101,015 $ 124,693 Contract Services $ 258,604 $ 267,036 $ 305,472 $ 244,200 Cost Allocation $ 84,462 $ 88,300 $ 82,183 $ 102,158 Capital Outlay ---- Special Projects $ 17,304 $ 22,758 -$ 10,000 Appropriations for Contingency $ 2,750 -$ 27,653 $ 18,445 Total Expenditures $ 576,176 $ 597,405 $ 708,461 $ 687,939 Fund Balance $ (99,811)$ 60,753 $ (5,461)$ (352,939) General Fund Costs $ 262,008 $ 332,931 $ 300,000 - Staffing Total current authorized positions - 0.90 There are no changes to the current level of staffing. Total recommended positions - 0.90 330 Creekside Park Youth Sport Budget Unit 100-63-618 General Fund - Sports, Safety and Outdoor Recreation - Creekside Park Youth Sport Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 331 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 10,600 --- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 10,600 --- Expenditures Employee Compensation $ 3,396 --- Employee Benefits $ 141 --- Materials $ 295 --- Contract Services ---- Cost Allocation ---- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 3,831 --- Fund Balance ---- General Fund Costs $ (6,769)--- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 332 Outdoor Recreation Budget Unit 580-63-620 Recreation Program - Sports, Safety and Outdoor Recreation - Outdoor Recreation Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,121,400 Total Expenditures $ 1,598,350 Fund Balance $ (476,950) General Fund Costs - % Funded by General Fund - Total Staffing 2.45 FTE Program Overview This program encompasses the coordination and delivery of a wide range of sports, fitness, and outdoor activities for youth and adults. Service Objectives Operate a summer Red Cross learn-to-swim program for infants, children, teens, and adults. Coordinate spring, summer, and fall adult softball leagues. Provide sports, dance, fitness, and wellness classes for youth, teens, and adults. Offer a 5k, community walk, and kids' fun run in the spring. Manage user group field rentals under the Cupertino Union School District/City Joint Use Agreement. Increase nature and environmental classes for parent/child, teen, and adult demographics. Increase youth and teen activities to better accommodate working parents. Provide an afternoon summer nature program to provide all-day camp options for families. Offer fee-based gardening programs for youth and adults. Adopted Budget On June 5, 2018, City Council approved a budget of $1,598,350 for the Outdoor Recreation program. This represents an increase of $146,650 (10.1%) from the FY 2018 Adopted Budget. The increase in compensation and benefits is due to negotiated salary and benefit changes due to take effect in July 2018. This budget also includes increased part-time salaries for additional staff for fee-based programs, including aquatic program expansion and the addition of afterschool and weekend Outdoor Education classes and camps at McClellan Ranch Preserve. Additional evenings of the adult softball program require an increase in part-time staff as well as general service agreements for umpires. The increase in cost allocation is due to one- time project expenses and a change in allocation methodology for IT charges and increased costs of services provided by finance and human resources. Revenues and Expenditures 333 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property -$ 287,318 $ 183,000 $ 287,000 Intergovernmental Revenue ---- Charges for Services $ 901,067 $ 756,005 $ 855,500 $ 834,400 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 901,067 $ 1,043,324 $ 1,038,500 $ 1,121,400 Expenditures Employee Compensation $ 185,014 $ 168,563 $ 388,966 $ 401,676 Employee Benefits $ 48,189 $ 64,633 $ 113,583 $ 113,131 Materials $ 78,161 $ 102,762 $ 90,387 $ 90,367 Contract Services $ 515,273 $ 498,388 $ 652,188 $ 701,125 Cost Allocation $ 274,369 $ 205,271 $ 193,496 $ 253,026 Capital Outlay ---- Special Projects -$ 595 -- Appropriations for Contingency --$ 13,080 $ 39,025 Total Expenditures $ 1,101,007 $ 1,040,212 $ 1,451,700 $ 1,598,350 Fund Balance $ (66,428)$ 11,467 $ (413,200)$ (476,950) General Fund Costs $ 133,512 $ 8,355 -- Staffing Total current authorized positions - 2.43 A minimal reallocation of existing staff is included to better reflect actual time spent in this program. Total recommended positions - 2.45 334 Sports Center Operations Budget Unit 570-63-621 Sports Center - Sports, Safety and Outdoor Recreation - Sports Center Operations Budget at a Glance 2019 Adopted Budget Total Revenues $ 2,100,500 Total Expenditures $ 2,460,735 Fund Balance $ (360,235) General Fund Costs - % Funded by General Fund - Total Staffing 2.27 FTE Program Overview The Cupertino Sports Center offers a variety of health and wellness activities including a full fitness center, child care, a Teen Center, and a wide assortment of fitness classes and racquet sports. In addition, the Sports Center houses contract tennis, table tennis, and badminton classes, camps, and programs. Service Objectives Increase memberships, participation in fitness classes, and enrollment in contract camps. Market programs through social media, the recreation schedule, 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 5, 2018, City Council approved a budget of $2,460,735 for the Sports Center Operations program. This represents an increase of $12,698 (0.5%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year and supports the operations at the Cupertino Sports Center. This includes staffing, fitness programs, exercise classes, tennis, child care, racquetball, and a variety of camps and classes for all ages. Increased costs in cost allocation are due to one-time project expenses and a change in allocation methodology for IT charges and increased costs of services provided by finance and human resources. Special Projects The following table shows the special projects for the fiscal year. 335 Special Project Appropriation Revenue Funding Source Description Sports Center Health & Safety Equipment $5,000 Signage and hand sanitizer stations Total $5,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 1,257 $ 793 $ 1,200 - Intergovernmental Revenue ---- Charges for Services $ 2,130,534 $ 2,132,958 $ 2,285,000 $ 2,100,500 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 2,131,791 $ 2,133,751 $ 2,286,200 $ 2,100,500 Expenditures Employee Compensation $ 234,492 $ 305,387 $ 352,461 $ 340,112 Employee Benefits $ 60,739 $ 86,232 $ 91,226 $ 91,817 Materials $ 31,114 $ 39,705 $ 86,600 $ 86,600 Contract Services $ 1,422,146 $ 1,338,511 $ 1,606,100 $ 1,606,100 Cost Allocation $ 132,581 $ 170,485 $ 179,899 $ 246,571 Capital Outlay $ 5,848 --- Special Projects $ 11,532 $ 481 -$ 5,000 Appropriations for Contingency $ 6,708 -$ 131,751 $ 84,535 Total Expenditures $ 1,905,160 $ 1,940,802 $ 2,448,037 $ 2,460,735 Fund Balance $ 884,363 $ 348,994 $ (61,837)$ (360,235) General Fund Costs $ 657,732 $ 156,045 $ 100,000 - Staffing Total current authorized positions - 2.02 336 Increased staffing is due to the reallocation of existing staff to better reflect actual time spent in this program. Total recommended positions - 2.27 337 Disaster Preparedness Budget Unit 100-63-633 General Fund - Sports, Safety and Outdoor Recreation - Disaster Preparedness Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 266,914 Fund Balance - General Fund Costs $ 266,914 % Funded by General Fund 100.0 % Total Staffing 1.1 FTE Program Overview The mission of the Office of Emergency Services is to lead and direct the City in prevention, preparation, mitigation, response, and recovery from all emergencies, hazards, incidents, and events. Service Objectives Develop and implement the goals and objectives of Cupertino's Office of Emergency Services. Maintain the City’s Emergency Operations Center (EOC) in a perpetual state of operational readiness. Support Citizen Corps, Cupertino Amateur Radio Emergency Service (CARES), Medical Reserve Corps (MRC), and Community Emergency Response Team (CERT). Prepare, test and revise emergency response and recovery policies, plans, and procedures in compliance with the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System (NIMS). Coordinate training of City staff in personal preparedness, SEMS/NIMS, and EOC functions. Maintain effective liaison with local, state, and national emergency management organizations and/or allied disaster preparedness and response agencies. Adopted Budget On June 5, 2018, City Council approved a budget of $266,914 for the Disaster Preparedness program. This represents a decrease of $89,317 (-25.1%) from the FY 2018 Adopted Budget. The decrease reflects reduced staffing costs, due primarily to a 0.50 Recreation Coordinator that is no longer allocated to the program. In addition, due to an oversight identified after the proposed budget was developed, part-time staff was not included in the budget but will be requested as a First Quarter Budget Adjustment ($37,000). The decrease in compensation and benefits is partially offset by an increase in cost allocation due to one-time project expenses, a change in allocation methodology for IT charges, increased costs of services provided by finance and human resources, and increased vehicle and equipment charges due to updated allocations to better identify the programs utilizing the items. Revenues and Expenditures 338 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue --$ 10,500 - Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues --$ 10,500 - Expenditures Employee Compensation -$ 36,036 $ 212,564 $ 93,764 Employee Benefits -$ 1,043 $ 82,059 $ 50,094 Materials -$ 14,421 $ 33,488 $ 34,988 Contract Services -$ 372 $ 5,000 $ 5,000 Cost Allocation -$ 13,054 $ 21,312 $ 81,069 Capital Outlay ---- Special Projects -$ 2,433 -- Appropriations for Contingency --$ 1,808 $ 1,999 Total Expenditures -$ 67,359 $ 356,231 $ 266,914 Fund Balance ---- General Fund Costs -$ 67,359 $ 345,731 $ 266,914 Staffing Total current authorized positions - 1.10 There are no changes to the current level of staffing. Total recommended positions - 1.10 339 Monta Vista Recreation Center Budget Unit 100-63-637 General Fund - Sports, Safety and Outdoor Recreation - Monta Vista Recreation Center Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 340 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 2,141 --- Employee Benefits $ 84 --- Materials $ 2,793 --- Contract Services ---- Cost Allocation ---- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 5,018 --- Fund Balance ---- General Fund Costs $ (17,722)--- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 341 Senior Adult Supervision Budget Unit 100-64-622 General Fund - Senior Programs - Senior Adult Supervision Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 342 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 1,160 --- Intergovernmental Revenue ---- Charges for Services $ 3,634 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 4,794 --- Expenditures Employee Compensation $ 377,893 --- Employee Benefits $ 164,475 --- Materials $ 16,194 --- Contract Services $ 278 --- Cost Allocation $ 51,456 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 610,297 --- Fund Balance ---- General Fund Costs $ 605,504 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 343 Youth, Teen and Senior Adult Rec Budget Unit 100-64-623 General Fund - Senior Programs - Youth, Teen and Senior Adult Rec Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 344 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 8,837 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 8,837 --- Expenditures Employee Compensation $ 117,381 --- Employee Benefits $ 49,147 --- Materials $ 9,826 --- Contract Services $ 3,994 --- Cost Allocation $ 22,368 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 202,716 --- Fund Balance ---- General Fund Costs $ 193,879 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 345 Senior Adult Recreation Budget Unit 100-64-624 General Fund - Senior Programs - Senior Adult Recreation Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 346 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 635,835 --- Fines and Forfeitures ---- Miscellaneous Revenue $ 73 --- Interdepartmental Revenue ---- Total Revenues $ 635,908 --- Expenditures Employee Compensation $ 199,129 --- Employee Benefits $ 58,177 --- Materials $ 454,755 --- Contract Services $ 71,308 --- Cost Allocation $ 46,440 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 829,810 --- Fund Balance ---- General Fund Costs $ 193,902 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 347 Facilities Budget Unit 100-64-630 General Fund - Senior Programs - Facilities Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 348 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 115,954 --- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 115,954 --- Expenditures Employee Compensation ---- Employee Benefits ---- Materials $ 2,582 --- Contract Services ---- Cost Allocation ---- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 2,582 --- Fund Balance ---- General Fund Costs $ (113,372)--- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 349 Community Outreach & Neighborhood Watch Budget Unit 100-65-632 General Fund - Community Services - Community Outreach & Neighborhood Watch Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 350 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 62,983 --- Employee Benefits $ 28,345 --- Materials $ 7,648 --- Contract Services $ 9,037 --- Cost Allocation $ 7,992 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 116,005 --- Fund Balance ---- General Fund Costs $ 116,005 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 351 Disaster Preparedness Budget Unit 100-65-633 General Fund - Community Services - Disaster Preparedness Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 352 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue $ (1,387)--- Charges for Services $ 9,132 --- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 7,745 --- Expenditures Employee Compensation $ 31,577 --- Employee Benefits $ 863 --- Materials $ 35,536 --- Contract Services $ 138 --- Cost Allocation ---- Capital Outlay ---- Special Projects $ 3,484 --- Appropriations for Contingency ---- Total Expenditures $ 71,599 --- Fund Balance ---- General Fund Costs $ 63,854 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 353 Neighborhood Watch Budget Unit 100-65-635 General Fund - Community Services - Neighborhood Watch Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 354 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 26,056 --- Employee Benefits $ 713 --- Materials $ 2,882 --- Contract Services $ 79 --- Cost Allocation ---- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 29,730 --- Fund Balance ---- General Fund Costs $ 29,730 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 355 Library Services Budget Unit 100-65-636 General Fund - Community Services - Library Services Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview In FY 2016, 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 There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 356 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 408,888 --- Cost Allocation ---- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 408,888 --- Fund Balance ---- General Fund Costs $ 408,888 --- Staffing Total current authorized positions - 0.00 Total recommended positions - 0.00 357 This page intentionally left blank. 358 Planning and Community Development Planning & Community Development Planning Housing Services Building Planning and Community Development Budget Unit Program 2019 Adopted Budget Planning & Community Development $ 786,755 100-70-700 Community Development Administration $ 786,755 Planning $ 3,826,263 100-71-701 Current Planning $ 2,854,250 100-71-702 Mid and Long Term Planning $ 739,478 100-71-704 Annexations $ 903 100-71-705 Economic Development $ 231,632 Housing Services $ 1,246,183 260-72-707 CDBG Administration $ 65,871 260-72-709 Affordable Housing $ 210,892 260-72-710 Public Service Grants $ 47,983 265-72-711 BMR Housing $ 818,427 100-72-712 Human Service Grants $ 103,010 Building $ 3,616,855 100-73-713 General Building $ 854,205 100-73-714 Building Plan Review $ 1,341,586 100-73-715 Building Code Enforcement $ 1,158,840 100-73-718 Muni Code Enforcement $ 262,224 Total $ 9,476,056 359 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 4,656,408 Total Expenditures $ 9,476,056 Fund Balance $ (825,265) General Fund Costs $ 3,994,383 % Funded by General Fund 42.2 % Total Staffing 28.13 FTE Organization Aarti Shrivastava, Assistant City Manager and Director of Community Development Performance Measures Goal: Review and guide development activity to ensure compliance with relevant codes and policies, and alignment with community values to promote and enhance Cupertino’s community-wide quality of life. Benefit: Cupertino is a thriving city to live, work, learn and play. 360 Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target Department cost recovery 93.18%32.16% 96% Website Updates Completed on Schedule N/A 100%100% Planning application reviews completed 5 days before 30 day deadline 65%50%50% Building permit applications reviewed over-the- counter (OTC)76.55%78.73%80% Average number of days to initiate investigation of code complaints 0.97 2.39 < 7 Code enforcement cases resolved without issuance of citations 98.30%96.55%80% Landlord-tenant counseling and dispute resolution cases provided 115 28 100 per year Below market rate rental and purchase vacancies filled 22 20 15 per year Housing resources and referrals provided 600 1200 400 per year Economic Development Business Buzz Readers 489 462 700 in FY 2018 Economic Development Business Workshops & Events 15 10 12 per year During the first half of FY 2018, the Below Market Rate Housing Division paid out a $3,672,000 loan. If we remove that loan from the expense ledger, then cost recovery for the same period is 62.38%. Revenue from Apple Park contracts was delayed until the second half of the year. We will be able to report the percentage of building plan reviews completed within 15 business days and the percentage of building inspections requested online when the new land use and permitting software goes live. Adopted Budget On June 5, 2018, City Council approved a budget of $9,476,056 for the Planning and Community Development department. This represents a decrease of $7,074,446 (-42.7%) from the FY 2018 Adopted Budget. The decrease is mainly due to the fact that instead of budgeting the full grant amount made available through the Notice of Funding Opportunity (NOFA), the City of Cupertino will first assess NOFA applications and then amend the budget accordingly. While $8,000,000 was included in FY 2018 Adopted budget and offered through the NOFA in FY 2018, only $160,000 was granted and spent. 1 1 2 361 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 40.4% 38.2% 13.2% 8.3% Planning Building Housing Services Planning & Community Development $12.1M $13.0M $16.6M $9.48M 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 362 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes -$ 3,000 $ 1,000,000 $ 3,000 Licenses and Permits $ 3,051,462 $ 2,513,489 $ 2,121,000 $ 2,661,000 Use of Money and Property ---$ 2,966 Intergovernmental Revenue --$ 314,590 $ 311,942 Charges for Services $ 11,231,682 $ 8,181,778 $ 4,005,000 $ 1,550,000 Fines and Forfeitures ---- Miscellaneous Revenue $ 613,461 $ 866,473 $ 7,500 $ 127,500 Interdepartmental Revenue ---- Total Revenues $ 14,896,605 $ 11,564,739 $ 7,448,090 $ 4,656,408 Expenditures Employee Compensation $ 2,611,412 $ 2,816,088 $ 3,481,608 $ 3,444,529 Employee Benefits $ 1,003,679 $ 1,157,412 $ 1,420,103 $ 1,383,973 Materials $ 764,944 $ 578,573 $ 771,912 $ 955,765 Contract Services $ 1,240,920 $ 922,985 $ 668,151 $ 550,450 Cost Allocation $ 481,860 $ 1,841,670 $ 1,926,627 $ 3,022,110 Capital Outlay ---- Special Projects $ 5,951,008 $ 5,673,285 $ 8,175,000 $ 100,000 Appropriations for Contingency --$ 107,101 $ 19,229 Total Expenditures $ 12,053,824 $ 12,990,013 $ 16,550,502 $ 9,476,056 Fund Balance $ (853,978)$ (991,255)$ (7,716,620)$ (825,265) General Fund Costs $ (3,696,759)$ 434,019 $ 1,385,792 $ 3,994,383 363 Community Development Administration Budget Unit 100-70-700 General Fund - Planning & Community Development - Community Development Administration Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 786,755 Fund Balance - General Fund Costs $ 786,755 % Funded by General Fund 100.0 % Total Staffing 0.55 FTE Program Overview The Community Development Administration program manages general office and oversight functions for the Community Development Department. Service Objectives Coordinate and direct general office affairs related to community development functions. Manage professional and administrative staff. Prepare and implement the department budget. Coordinate as necessary with other departments in the City. Review and evaluate City and department goals and objectives. Adopted Budget On June 5, 2018, City Council approved a budget of $786,755 for the Community Development Administration program. This represents an increase of $441,078 (127.6%) from the FY 2018 Adopted Budget. Community Development held a series of public events in Community Hall in FY 2018, which increased the department's share for facility cost allocation by $392,579. Another $100,000 in Contract Services is for credit card processing fees and was moved to Community Development Administration from Building Code Enforcement (100-73-715). Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 364 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 150,060 $ 89,927 $ 99,243 $ 103,703 Employee Benefits $ 53,687 $ 48,437 $ 38,749 $ 40,676 Materials $ 14,572 $ 14,222 $ 26,450 $ 30,450 Contract Services $ 2,100 $ 2,215 $ 31,144 $ 107,000 Cost Allocation $ 10,620 $ 65,577 $ 146,586 $ 498,053 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 3,505 $ 6,873 Total Expenditures $ 231,040 $ 220,378 $ 345,677 $ 786,755 Fund Balance ---- General Fund Costs $ 231,040 $ 220,378 $ 345,677 $ 786,755 Staffing Total current authorized positions - 0.55 There are no changes to the current level of staffing. Total recommended positions - 0.55 365 Current Planning Budget Unit 100-71-701 General Fund - Planning - Current Planning Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,462,500 Total Expenditures $ 2,854,250 Fund Balance - General Fund Costs $ 1,391,750 % Funded by General Fund 48.8 % Total Staffing 8.13 FTE 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 an 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 5, 2018, City Council approved a budget of $2,854,250 for the Current Planning program. This represents an increase of $703,242 (32.7%) from the FY 2018 Adopted Budget. The increase is mainly due to the introduction of new accounts to beQer track pass-through expenses and recovery costs. Based on prior years, $750,000 is budgeted to cover contracts and expenses for routine Planning applications. All costs are recovered as revenue with a 15% administrative fee. In prior years, a shared pot of money was carried over but it was difficult to distinguish which funds were earmarked for which project. Revenues and Expenditures 366 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 5,610,192 $ 2,696,004 $ 2,795,000 $ 1,350,000 Fines and Forfeitures ---- Miscellaneous Revenue $ 107,395 $ 44,856 -$ 112,500 Interdepartmental Revenue ---- Total Revenues $ 5,717,587 $ 2,740,859 $ 2,795,000 $ 1,462,500 Expenditures Employee Compensation $ 620,399 $ 770,528 $ 1,057,462 $ 1,082,667 Employee Benefits $ 228,977 $ 306,148 $ 410,435 $ 391,998 Materials $ 16,774 $ 24,665 $ 41,830 $ 42,330 Contract Services $ 58,346 $ 100,953 $ 15,098 $ 20,750 Cost Allocation $ 114,708 $ 801,190 $ 601,827 $ 1,313,601 Capital Outlay ---- Special Projects $ 595,353 $ 104,618 -- Appropriations for Contingency --$ 24,356 $ 2,904 Total Expenditures $ 1,634,558 $ 2,108,101 $ 2,151,008 $ 2,854,250 Fund Balance ---- General Fund Costs $ (4,083,029)$ (632,759)$ (643,992)$ 1,391,750 Staffing Total current authorized positions - 8.13 There are no changes to the current level of staffing. Total recommended positions - 8.13 367 Mid and Long Term Planning Budget Unit 100-71-702 General Fund - Planning - Mid and Long Term Planning Budget at a Glance 2019 Adopted Budget Total Revenues $ 215,000 Total Expenditures $ 739,478 Fund Balance - General Fund Costs $ 524,478 % Funded by General Fund 70.9 % Total Staffing 2.45 FTE Program Overview The Mid and Long-Term Planning program assists the community in preparing, reviewing and amending documents including the General Plan, Specific Plans, Conceptual Plans, and the Municipal Code, including the Zoning Ordinance. Additionally, the program anticipates and evaluates trends, and develops strategies and plans to help the City address change. Service Objectives Review and amend the City's General Plan, Housing Element, and Municipal Code, including the Zoning Ordinance, Specific, Conceptual and Master Plans. Ensure City processes and regulations are in compliance with State and Federal regulations. 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 Council's annual community development goals and objectives. Adopted Budget On June 5, 2018, City Council approved a budget of $739,478 for the Mid and Long Term Planning program. This represents an increase of $13,890 (1.9%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Special Projects The following table shows the special projects for the fiscal year. 368 Special Project Appropriation Revenue Funding Source Description General Plan Amendment Authorization Applications $100,000 $115,000 General Fund General Plan Amendment Authorization applications require contracts to assess potential impacts of the amendment. Staff estimates that up to $100,000 per year will be spent on these contracts. All expenses are cost-recovered from the applicant with a 15% administrative fee. Total $100,000 $115,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 369 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 26,350 $ 1,050,000 $ 200,000 Fines and Forfeitures ---- Miscellaneous Revenue -$ 2,904 $ 7,500 $ 15,000 Interdepartmental Revenue ---- Total Revenues -$ 29,254 $ 1,057,500 $ 215,000 Expenditures Employee Compensation $ 239,185 $ 244,400 $ 325,830 $ 340,279 Employee Benefits $ 90,909 $ 96,177 $ 133,055 $ 133,587 Materials $ 4,576 $ 4,359 $ 8,110 $ 5,210 Contract Services $ 238,141 $ 140,821 $ 103,350 $ 2,350 Cost Allocation $ 39,876 $ 194,605 $ 151,267 $ 157,674 Capital Outlay ---- Special Projects $ 608,259 $ 62,988 -$ 100,000 Appropriations for Contingency --$ 3,976 $ 378 Total Expenditures $ 1,220,946 $ 743,350 $ 725,588 $ 739,478 Fund Balance ---- General Fund Costs $ 1,220,946 $ 714,097 $ (331,912)$ 524,478 Staffing Total current authorized positions - 2.50 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 2.45 370 Annexations Budget Unit 100-71-704 General Fund - Planning - Annexations Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 903 Fund Balance - General Fund Costs $ 903 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The Annexations program was created in FY 2014-15 to account for annexations of property from outside city limits. Service Objectives Identify and process annexations Adopted Budget On June 5, 2018, City Council approved a budget of $903 for the Annexations program. This represents a decrease of $9,238 (-91.1%) from the FY 2018 Adopted Budget. The decrease is mainly due to the decrease of $10,000 in the Appropriation for Contingency. Most of the funds associated with this program are encumbered for a specific annexation and are carried over to the next fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 371 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation ---- Employee Benefits ---- Materials ---- Contract Services ---- Cost Allocation -$ 837 $ 141 $ 903 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 10,000 - Total Expenditures -$ 837 $ 10,141 $ 903 Fund Balance ---- General Fund Costs -$ 837 $ 10,141 $ 903 Staffing Total current authorized positions - 0.00 There are no changes to the current level of staffing. Total recommended positions - 0.00 372 Economic Development Budget Unit 100-71-705 General Fund - Planning - Economic Development Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 231,632 Fund Balance - General Fund Costs $ 231,632 % Funded by General Fund 100.0 % Total Staffing 1.0 FTE Program Overview The Economic Development program specifically targets business retention, expansion, and aQraction with a focus on small business development. The Economic Development program was transferred to the City Manager Department in Fiscal Year 2014 but was transferred back to the Community Development Department in FY 2017 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 5, 2018, City Council approved a budget of $231,632 for the Economic Development program. This represents a decrease of $276,915 (-54.5%) from the FY 2018 Adopted Budget. The decrease is mainly due to the decrease of $175,000 for Special Projects. The $175,000 was budgeted in FY 2018 for the Economic Development Specific Plan Implementation and contracts and any balance will be carried over into FY 2019. There is also a decrease of $109,482 in employee compensation to correct for over-budgeting in FY 2018. Revenues and Expenditures 373 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 74,722 $ 87,571 $ 150,693 $ 79,390 Employee Benefits $ 22,257 $ 26,680 $ 63,082 $ 24,903 Materials $ 35,862 $ 32,981 $ 30,650 $ 40,570 Contract Services $ 66,822 $ 403 $ 49,000 $ 49,000 Cost Allocation $ 16,272 $ 2,345 $ 28,270 $ 33,676 Capital Outlay ---- Special Projects --$ 175,000 - Appropriations for Contingency --$ 11,852 $ 4,093 Total Expenditures $ 215,934 $ 149,980 $ 508,547 $ 231,632 Fund Balance ---- General Fund Costs $ 186,330 $ 149,980 $ 508,547 $ 231,632 Staffing Total current authorized positions - 1.00 There are no changes to the current level of staffing. Total recommended positions - 1.00 374 CDBG Administration Budget Unit 260-72-707 CDBG - Housing Services - CDBG Administration Budget at a Glance 2019 Adopted Budget Total Revenues $ 62,388 Total Expenditures $ 65,871 Fund Balance $ (3,483) General Fund Costs - % Funded by General Fund - Total Staffing 0.394 FTE 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 5, 2018, City Council approved a budget of $65,871 for the CDBG Administration program. This represents a decrease of $22,943 (-25.8%) from the FY 2018 Adopted Budget. The budget covers staff time and benefits to administer the CDBG grants and is determined by a percentage of total CDBG funding. The decrease is mainly due to the fact that the HUD CDBG entitlements change each year, and 20% of the total CDBG entitlement and program income can be used for administration expenses. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 375 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue --$ 62,918 $ 62,388 Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues --$ 62,918 $ 62,388 Expenditures Employee Compensation $ 39,957 $ 42,151 $ 54,531 $ 43,007 Employee Benefits $ 16,071 $ 21,457 $ 29,215 $ 22,864 Materials ---- Contract Services $ 295 $ 283 -- Cost Allocation --$ 5,068 - Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 56,323 $ 63,890 $ 88,814 $ 65,871 Fund Balance $ (56,323)$ (61,948)$ (25,896)$ (3,483) General Fund Costs -$ 1,942 -- Staffing Total current authorized positions - 0.33 The position allocation for this program is determined by 20% of the CDBG entitlement, which varies year to year. Total recommended positions - 0.39 376 Affordable Housing Budget Unit 260-72-709 CDBG - Housing Services - Affordable Housing Budget at a Glance 2019 Adopted Budget Total Revenues $ 205,729 Total Expenditures $ 210,892 Fund Balance $ (5,163) General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE 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 the 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 5, 2018, City Council approved a budget of $210,892 for the Affordable Housing program. This represents a decrease of $73,592 (-25.9%) from the FY 2018 Adopted Budget. The decrease is mainly due to the fact that the HUD CDBG entitlements change each year and 65% of the entitlement and program income, as well as all of the loan interest income, can be used to support affordable housing programming. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 377 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---$ 2,966 Intergovernmental Revenue --$ 204,484 $ 202,763 Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues --$ 204,484 $ 205,729 Expenditures Employee Compensation ---- Employee Benefits ---- Materials $ 366,928 $ 284,484 $ 284,484 $ 210,892 Contract Services ---- Cost Allocation ---- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 366,928 $ 284,484 $ 284,484 $ 210,892 Fund Balance $ (366,928)$ (284,484)$ (80,000)$ (5,163) General Fund Costs ---- Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 378 Public Service Grants Budget Unit 260-72-710 CDBG - Housing Services - Public Service Grants Budget at a Glance 2019 Adopted Budget Total Revenues $ 46,791 Total Expenditures $ 47,983 Fund Balance $ (1,192) General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview This portion 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. Present funding recommendations to City Council. On an annual basis, prepare grant agreements or amend grant agreements for each grantee. Adopted Budget On June 5, 2018, City Council approved a budget of $47,983 for the Public Service Grants program. This represents an increase of $795 (1.7%) from the FY 2018 Adopted Budget. The increase is mainly due to the fact that the HUD CDBG entitlements change each year, and 15% of the total CDBG entitlement and program income can be used for public service expenses. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 379 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue --$ 47,188 $ 46,791 Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues --$ 47,188 $ 46,791 Expenditures Employee Compensation ---- Employee Benefits ---- Materials $ 45,982 $ 47,187 $ 47,188 $ 47,983 Contract Services ---- Cost Allocation ---- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 45,982 $ 47,187 $ 47,188 $ 47,983 Fund Balance $ (45,982)$ (47,187)-$ (1,192) General Fund Costs ---- Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 380 BMR Housing Budget Unit 265-72-711 BMR Housing - Housing Services - BMR Housing Budget at a Glance 2019 Adopted Budget Total Revenues $ 3,000 Total Expenditures $ 818,427 Fund Balance $ (815,427) General Fund Costs - % Funded by General Fund - Total Staffing 0.406 FTE 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 the administrator. Process quarterly reimbursement requests from the administrator. Provide technical assistance to the administrator in the administration of the BMR program. Review lot book reports prepared by an 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 5, 2018, City Council approved a budget of $818,427 for the BMR Housing program. This represents a decrease of $7,792,297 (-90.5%) from the FY 2018 Adopted Budget. The decrease is mainly due to the fact that instead of budgeting the full grant amount made available through the Notice of Funding Opportunity (NOFA), the City of Cupertino will first assess NOFA applications and then add those amounts to the budget accordingly. Although $8,000,000 was offered through the NOFA in FY 2018, only $160,000 was granted. The increase in employee compensation and benefits is a result of a position reallocation approved in the FY 2018 Mid-Year Financial Report. The increase in materials is due to $175,000 in funding for a BMR Economic Feasibility Study to review increasing linkage fees for residential and non-residential projects. The fee increase would be used to provide funding for BMR affordable housing. 381 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes -$ 3,000 $ 1,000,000 $ 3,000 Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 3,000 $ 1,000,000 $ 3,000 Expenditures Employee Compensation $ 34,382 $ 21,473 $ 28,779 $ 44,817 Employee Benefits $ 13,522 $ 10,950 $ 14,883 $ 23,530 Materials $ 239,411 $ 130,808 $ 227,580 $ 413,180 Contract Services $ 96,279 $ 439,077 $ 336,900 $ 336,900 Cost Allocation $ 1,152 -$ 2,582 - Capital Outlay ---- Special Projects --$ 8,000,000 - Appropriations for Contingency ---- Total Expenditures $ 384,745 $ 602,308 $ 8,610,724 $ 818,427 Fund Balance $ (384,745)$ (597,636)$ (7,610,724)$ (815,427) General Fund Costs -$ 1,672 -- Staffing Total current authorized positions - 0.48 This account covers the balance of the Housing Planner position allocation that is not covered by the administration portion of the CDBG entitlement, which changes every year. Total recommended positions - 0.41 382 Human Service Grants Budget Unit 100-72-712 General Fund - Housing Services - Human Service Grants Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 103,010 Fund Balance - General Fund Costs $ 103,010 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The City of Cupertino sets aside $100,000 from its General Fund for non-profit agencies providing services to low and very-low-income Cupertino residents. 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 agreements for each grantee. Adopted Budget On June 5, 2018, City Council approved a budget of $103,010 for the Human Service Grants program. This represents an increase of $61,174 (146.2%) from the FY 2018 Adopted Budget. Staff recommend an increase in grant availability from $40,000 in FY 2018 to $100,000 in FY 2019 due to the increase in homeless service needs in our community. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 383 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation ---- Employee Benefits ---- Materials --$ 40,000 $ 100,000 Contract Services $ 39,882 $ 39,999 -- Cost Allocation -$ 1,910 $ 1,836 $ 3,010 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 39,882 $ 41,909 $ 41,836 $ 103,010 Fund Balance ---- General Fund Costs $ 39,882 $ 41,909 $ 41,836 $ 103,010 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 384 General Building Budget Unit 100-73-713 General Fund - Building - General Building Budget at a Glance 2019 Adopted Budget Total Revenues $ 460,000 Total Expenditures $ 854,205 Fund Balance - General Fund Costs $ 394,205 % Funded by General Fund 46.1 % Total Staffing 2.9 FTE 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 5, 2018, City Council approved a budget of $854,205 for the General Building program. This represents an increase of $62,243 (7.9%) from the FY 2018 Adopted Budget. The $55,286 increase in IT cost allocation is due to new one-time project expenses and a change in allocation methodology for IT charges. Increases in compensation and benefits are due to negotiated salary and benefit changes to take effect in July 2018. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 385 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits $ 1,978,792 $ 827,887 $ 721,000 $ 460,000 Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 286 $ 599,583 -- Fines and Forfeitures ---- Miscellaneous Revenue $ 125 $ 89,737 -- Interdepartmental Revenue ---- Total Revenues $ 1,979,203 $ 1,517,206 $ 721,000 $ 460,000 Expenditures Employee Compensation $ 299,039 $ 329,712 $ 375,719 $ 394,220 Employee Benefits $ 114,572 $ 132,365 $ 145,524 $ 156,152 Materials $ 16,649 $ 20,740 $ 24,895 $ 23,900 Contract Services $ 35,302 $ 7,200 $ 6,736 $ 7,850 Cost Allocation $ 70,224 $ 193,138 $ 236,112 $ 270,495 Capital Outlay ---- Special Projects $ 75,559 $ 27,020 -- Appropriations for Contingency --$ 2,976 $ 1,588 Total Expenditures $ 611,345 $ 710,175 $ 791,962 $ 854,205 Fund Balance ---- General Fund Costs $ (1,367,858)$ (807,031)$ 70,962 $ 394,205 Staffing Total current authorized positions - 2.90 There are no changes to the current level of staffing. Total recommended positions - 2.90 386 Building Plan Review Budget Unit 100-73-714 General Fund - Building - Building Plan Review Budget at a Glance 2019 Adopted Budget Total Revenues $ 751,000 Total Expenditures $ 1,341,586 Fund Balance - General Fund Costs $ 590,586 % Funded by General Fund 44.0 % Total Staffing 5.9 FTE 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 proposed 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 5, 2018, City Council approved a budget of $1,341,586 for the Building Plan Review program. This represents an increase of $57,732 (4.5%) from the FY 2018 Adopted Budget. Increased costs in cost allocation are due to one-time project expenses and a change in allocation methodology for IT charges. Revenues and Expenditures 387 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits -$ 535,637 $ 200,000 $ 751,000 Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 1,064,615 $ 847,914 $ 135,000 - Fines and Forfeitures ---- Miscellaneous Revenue $ 99,311 $ 127,187 -- Interdepartmental Revenue ---- Total Revenues $ 1,163,926 $ 1,510,738 $ 335,000 $ 751,000 Expenditures Employee Compensation $ 510,584 $ 538,905 $ 631,006 $ 641,202 Employee Benefits $ 196,911 $ 218,927 $ 269,478 $ 301,147 Materials $ 8,960 $ 7,333 $ 10,475 $ 10,600 Contract Services $ 136,128 $ 97,678 $ 9,167 $ 9,400 Cost Allocation $ 54,312 $ 231,492 $ 322,065 $ 378,237 Capital Outlay ---- Special Projects $ 1,043,616 $ 1,042,907 -- Appropriations for Contingency --$ 41,663 $ 1,000 Total Expenditures $ 1,950,512 $ 2,137,242 $ 1,283,854 $ 1,341,586 Fund Balance ---- General Fund Costs $ 786,586 $ 626,504 $ 948,854 $ 590,586 Staffing Total current authorized positions - 5.90 There are no changes to the current level of staffing. Total recommended positions - 5.90 388 Building Code Enforcement Budget Unit 100-73-715 General Fund - Building - Building Code Enforcement Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,450,000 Total Expenditures $ 1,158,840 Fund Balance - General Fund Costs $ (291,160) % Funded by General Fund - Total Staffing 5.15 FTE 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 5, 2018, City Council approved a budget of $1,158,840 for the Building Code Enforcement program. This represents a decrease of $190,757 (-14.1%) from the FY 2018 Adopted Budget. The decrease is mainly due to the fact that $100,000 budgeted for credit card fees was moved to the Community Development Administration budget (100-70-700). There is also a $67,526 decrease in employee compensation and benefits due to the fact that a more experienced employee left Cupertino in FY 2018 and a new employee 389 was hired in his place. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits $ 1,072,670 $ 1,149,965 $ 1,200,000 $ 1,450,000 Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 4,526,986 $ 4,011,928 $ 25,000 - Fines and Forfeitures ---- Miscellaneous Revenue $ 406,630 $ 601,789 -- Interdepartmental Revenue ---- Total Revenues $ 6,006,285 $ 5,763,682 $ 1,225,000 $ 1,450,000 Expenditures Employee Compensation $ 535,388 $ 575,808 $ 628,356 $ 587,187 Employee Benefits $ 221,719 $ 248,290 $ 259,949 $ 233,592 Materials $ 13,584 $ 9,423 $ 22,500 $ 24,700 Contract Services $ 537,990 $ 80,926 $ 109,456 $ 9,400 Cost Allocation $ 109,560 $ 262,655 $ 321,872 $ 302,256 Capital Outlay ---- Special Projects $ 3,628,220 $ 4,435,753 -- Appropriations for Contingency --$ 7,464 $ 1,705 Total Expenditures $ 5,046,460 $ 5,612,855 $ 1,349,597 $ 1,158,840 Fund Balance ---- General Fund Costs $ (959,824)$ (150,827)$ 124,597 $ (291,160) Staffing Total current authorized positions - 5.15 There are no changes to the current level of staffing. Total recommended positions - 5.15 390 Muni Code Enforcement Budget Unit 100-73-718 General Fund - Building - Muni Code Enforcement Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 262,224 Fund Balance - General Fund Costs $ 262,224 % Funded by General Fund 100.0 % Total Staffing 1.25 FTE Program Overview The Community Development Code Enforcement program provides enforcement of various provisions of the municipal code relating to nonconforming land use and building code compliance. These activities include building without permits, unpermiQed 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 5, 2018, City Council approved a budget of $262,224 for the Muni Code Enforcement program. This represents a decrease of $48,858 (-15.7%) from the FY 2018 Adopted Budget. The $42,948 decrease in cost allocation for equipment reimbursement is due to the winding down of vehicle and equipment purchases as the City completes the replacement of items that were past their useful life. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 391 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 107,697 $ 115,613 $ 129,989 $ 128,057 Employee Benefits $ 45,053 $ 47,981 $ 55,733 $ 55,524 Materials $ 1,647 $ 2,372 $ 7,750 $ 5,950 Contract Services $ 29,636 $ 13,431 $ 7,300 $ 7,800 Cost Allocation $ 65,136 $ 87,921 $ 109,001 $ 64,205 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 1,309 $ 688 Total Expenditures $ 249,168 $ 267,318 $ 311,082 $ 262,224 Fund Balance ---- General Fund Costs $ 249,168 $ 267,318 $ 311,082 $ 262,224 Staffing Total current authorized positions - 1.25 There are no changes to the current level of staffing. Total recommended positions - 1.25 392 Public Works Administration Environmental Programs Developmental Services Service Center Grounds Streets Trees and Right of Way Facilities and Fleet Transportation Fixed Asset Acquisition Public Works Budget Unit Program 2019 Adopted Budget Public Works Administration $ 1,088,583 100-80-800 Public Works Administration $ 1,088,583 Environmental Programs $ 4,221,886 520-81-801 Resource Recovery $ 3,501,101 230-81-802 Non-Point Source $ 720,785 Developmental Services $ 2,037,012 100-82-804 Plan Review $ 1,297,073 100-82-806 CIP Administration $ 739,939 Service Center $ 1,234,946 100-83-807 Service Center Administration $ 1,234,946 Grounds $ 4,530,150 100-84-808 McClellan Ranch Park $ 84,009 100-84-809 Memorial Park $ 760,345 100-84-812 School Site Maintenance $ 1,128,886 100-84-813 Neighborhood Parks $ 1,629,502 100-84-814 Sport Fields Jollyman, Creekside $ 665,541 100-84-815 Civic Center Maintenance $ 261,867 Streets $ 11,543,751 100-85-818 Storm Drain Maintenance $ 476,503 270-85-820 Sidewalk Curb and Gutter $ 1,195,876 270-85-821 Street Pavement Maintenance $ 6,832,574 270-85-822 Street Sign Marking $ 661,889 100-85-848 Street Lighting $ 588,241 630-85-849 Equipment Maintenance $ 1,593,660 100-85-850 Environmental Materials $ 195,008 Trees and Right of Way $ 2,915,737 100-86-824 Overpasses and Medians $ 1,251,274 100-86-825 Street Tree Maintenance $ 1,194,987 100-86-826 Weekend Work Program $ 469,476 Total $ 34,629,686 393 Facilities and Fleet $ 4,099,897 100-87-827 City Hall Maintenance $ 619,750 100-87-828 Library Maintenance $ 338,834 100-87-829 Service Center Maintenance $ 262,132 100-87-830 Quinlan Community Center Maintenance $ 466,416 100-87-831 Senior Center Maintenance $ 241,686 100-87-832 McClellan Ranch Maintenance $ 178,993 100-87-833 Monta Vista Community Center Maintenance $ 227,890 100-87-834 Wilson Park Maintenance $ 63,164 100-87-835 Portal Park Maintenance $ 37,207 570-87-836 Sports Center Maintenance $ 490,076 100-87-837 Creekside Park Maintenance $ 65,790 100-87-838 Community Hall Maintenance $ 251,328 100-87-839 Teen Center Maintenance $ 96,024 100-87-840 Park Bathrooms Maintenance $ 168,860 100-87-841 Blackberry Farm Maintenance $ 556,114 100-87-852 Franco Traffic Operations Center $ 35,633 Transportation $ 2,419,724 100-88-844 Traffic Engineering $ 1,446,695 100-88-845 Traffic Signal Maintenance $ 526,530 100-88-846 Safe Routes 2 School $ 446,499 Non-Departmental $ 538,000 210-90-978 Minor Storm Drain Improvement - 630-90-985 Fixed Assets Acquisition $ 538,000 Total $ 34,629,686 Budget Unit Program 2019 Adopted Budget 394 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues $ 10,144,763 Total Expenditures $ 34,629,686 Fund Balance $ (3,011,554) General Fund Costs $ 21,483,369 % Funded by General Fund 62.0 % Total Staffing 84.95 FTE Organization Timm Borden, Director of Public Works 395 Performance Measures Capital Project Delivery Goal: Deliver capital projects on time and within budget. Benefit: Residents and businesses are assured their community is being improved by efficient use of taxes and fees. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target Projects are on budget 100% (5)100% (7)80% Projects are on time 80% (4)100% (7)80% Development Services Goal: Provide timely review and permitting of privately completed improvements within the public right of way. Benefit: Customers receive quality reviews and permitting on a defined schedule. Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target Respond to complete plan submittals or applications within two (2) weeks 98%99%100% Respond to public inquiries at the Public Works counter in City Hall within 15 minutes.100%100%95% Dependable Infrastructure Goal: Maintain timely levels of service to meet community and environment requirements at optimal life-cycle costs. Benefit: Cupertino has well maintained infrastructure and programs that meets the needs of the community. 396 Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target Pavement condition index (PCI) > or equal to 82 78 81 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% 100% 100% 100% 100% 100% 100% 100% 100% Respond to reported issues within two (2) business days: Remove graffiti Streetlight outages 100% 100% 100% 100% 100% 100% Respond within one (1) hour on any reported safety issue regarding traffic signals 100%100%100% Environment Goal: Protect our natural environment for current and future generations. Benefit: Current and future residents enjoy a healthy, sustainable environment. 397 Measure FY 2017 Jul-Jun FY 2018 Jul-Dec Ongoing Target Respond to reports of actual or potential discharge the same business day 97%95%80% Percent of businesses in compliance during annual proactive inspections 87%N/A 75% Tons of waste entering landfill (does not include self-haul or material to landfills other than Newby Island) 30,140 14,917 <= 27,000 Diversion Rates rate By employment : By population : Commercial only : 72% 56% 47% N/A 21% 55% 75% 75% 60% Number of all business and multifamily accounts separating organics 28% (135/488) 30% (144/483)50% Number of outreach site visits, workshops, events and activities to inform residents and businesses 198 65 150 % of street, median, and park trees maintained according to the Urban Forest Workplan 164%68%100% Number of trees planted compared to number of trees removed Removed: 68 Planted: 118 173% Removed: 67 Planted: 53 79% 110% All new vehicle purchases are to be hybrid and/or electric only models 90%90%90% CalRecycle has a 12 month lag in reporting. Data is for calendar year 2016. Does not include business donations, back haul, or other source reduction, etc. For FY 2018, Recology began breaking out multi-family from commercial tonnage. Our data for FY 2018 July- Dec displays the diversion rates for the multi-family and commercial sector respectively. Urban Forest Workplan Updated November 2016 Proactive inspections are primarily conducted during Q3 and Q4 each year Adopted Budget On June 5, 2018, City Council approved a budget of $34,629,686 for the Public Works department. This represents a decrease of $164,533 (-0.5%) from the FY 2018 Adopted Budget. The decrease is primarily due to the completion of various special projects and changes in how the city applied cost allocation charges. This decrease is offset by the addition of a full-time Engineering Technician, increases in training and instruction, as well as gas, electric and water service rate increases. Capital outlay for the annual asphalt program is adjusted for SB1 grant revenue. 5 1 1 2 3 3 4 1 2 3 4 5 398 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 33.3% 13.1% 12.2% 11.8% 8.4% 7.0% 5.9%Streets Grounds Environmental Programs Facilities and Fleet Trees and Right of Way Transportation Developmental Services Service Center PW Administration Citywide - Non Departmental 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 399 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 177,122 $ 201,564 $ 236,700 $ 196,500 Intergovernmental Revenue -$ 245,288 $ 1,816,000 $ 2,547,439 Charges for Services $ 5,853,628 $ 8,921,040 $ 6,821,074 $ 7,089,624 Fines and Forfeitures $ 6,387 $ 10,071 $ 6,000 $ 9,000 Miscellaneous Revenue $ 167,843 $ 778,328 $ 211,460 $ 302,200 Interdepartmental Revenue ---- Total Revenues $ 6,204,979 $ 10,156,291 $ 9,091,234 $ 10,144,763 Expenditures Employee Compensation $ 6,638,218 $ 6,909,698 $ 7,944,977 $ 8,323,673 Employee Benefits $ 3,096,342 $ 3,981,715 $ 3,721,114 $ 3,826,260 Materials $ 2,689,509 $ 2,793,264 $ 3,558,012 $ 3,906,934 Contract Services $ 4,436,018 $ 4,720,719 $ 5,273,301 $ 5,507,001 Cost Allocation $ 2,667,888 $ 4,465,674 $ 3,470,186 $ 3,725,691 Capital Outlay $ 768,785 $ 930,147 $ 1,969,400 $ 1,771,379 Special Projects $ 11,403,533 $ 9,384,259 $ 8,436,269 $ 7,220,000 Appropriations for Contingency --$ 420,960 $ 348,748 Total Expenditures $ 31,700,292 $ 33,185,476 $ 34,794,219 $ 34,629,686 Fund Balance $ (6,913,651)$ (4,599,336)$ (4,220,221)$ (3,011,554) General Fund Costs $ 18,581,662 $ 18,429,849 $ 21,482,764 $ 21,483,369 400 Public Works Administration Budget Unit 100-80-800 General Fund - Public Works Administration - Public Works Administration Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 1,088,583 Fund Balance - General Fund Costs $ 1,088,583 % Funded by General Fund 100.0 % Total Staffing 3.25 FTE Program Overview The Public Works Department is comprised of the following eight divisions: Development Services (including inspection services) Capital Improvement Program Administration Environmental Programs Transportation Facilities and Fleet Trees and Right-of-Way Grounds Streets Service Objectives Provide capital project delivery, development plan check, permiQing and inspection, solid waste and recycling services, stormwater quality compliance, and public works maintenance services in a responsive and efficient manner by continuously adapting programs and resources to meet the community’s expectations. Provide a response within 24 hours to the community on complaints and requests for services. Plan and program maintenance of the City’s public facilities and infrastructure. Program and deliver Capital Improvement Projects in a timely and cost-efficient manner. Work with operating departments and the community to ensure projects meet expectations. Collaborate with Community Development to efficiently deliver predictable, responsive and efficient development services. Represent the City on county and regional issues such as congestion management, and mobility and transit planning. Manage and adapt traffic operations to efficiently move traffic and protect neighborhoods. Oversee and manage stormwater, solid waste and recycling programs. Adopted Budget 401 Adopted Budget On June 5, 2018, City Council approved a budget of $1,088,583 for the Public Works Administration program. This represents an increase of $321,868 (42.0%) from the FY 2018 Adopted Budget. The increase in compensation and benefits is due to negotiated salary and benefit changes due to take effect in July 2018. This program is also adding a part-time Human Resources Technician to assist with Public Works recruitment, interviewing, onboarding and managing the Public Works Department training program. The increase in contract services is due to an adjustment for janitorial services for the minimum wage increase in January 2017 and $150,000 in funding for a conceptual study of automated guideway transit on State Route 85. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 209,628 -- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 209,628 -- Expenditures Employee Compensation $ 390,476 $ 443,380 $ 496,848 $ 548,195 Employee Benefits $ 158,765 $ 199,386 $ 177,553 $ 181,962 Materials $ 14,438 $ 15,171 $ 18,839 $ 24,339 Contract Services $ 2,297 $ 2,073 $ 2,000 $ 254,800 Cost Allocation $ 57,828 $ 801,902 $ 69,802 $ 72,830 Capital Outlay $ 115,000 $ 18,077 -- Special Projects ---- Appropriations for Contingency --$ 1,673 $ 6,457 Total Expenditures $ 738,804 $ 1,479,987 $ 766,715 $ 1,088,583 Fund Balance ---- General Fund Costs $ 738,804 $ 1,270,359 $ 766,715 $ 1,088,583 402 Staffing Total current authorized positions - 3.25 There are no changes to the current level of staffing. Total recommended positions - 3.25 403 Resource Recovery Budget Unit 520-81-801 Resource Recovery - Environmental Programs - Resource Recovery Budget at a Glance 2019 Adopted Budget Total Revenues $ 2,268,000 Total Expenditures $ 3,501,101 Fund Balance $ (1,233,101) General Fund Costs - % Funded by General Fund - Total Staffing 4.3 FTE Program Overview The Resource Recovery program manages the City’s garbage and recycling franchised hauler contract and provides garbage and recycling customer service for residents and business owners; develops and implements programs and policy to comply with AB 939 source reduction and recycling mandates; manages the City’s state- permiQed 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 commiQees. The public education and outreach programs led by this division include visits to businesses and apartment complexes to provide recycling instruction, kitchen containers, and visual materials; presentations at events and schools and employee training for businesses on-site as needed. The program coordinates many complimentary activities with the Sustainability program in the Office of the City Manager. Service Objectives Meet State AB 939 requirements to divert a minimum of 50% of Citywide waste from landfill and achieve the State (AB 341) goal of 75% diversion by 2020. Help businesses implement the City’s Mandatory Organics Recycling ordinance (6.24.037) which ensures compliance with AB 1826. Assist businesses and multi-family properties with preparations to recycle organics. Provide landlords and property owners with support and educational materials for their tenants. Visit the management of each multi-family complex via a knock and talk campaign to distribute free kitchen pails and guidance to help residents sort kitchen waste for their central garbage and recycling area. Conduct waste characterization studies to determine future services. Provide contract oversight and customer service for garbage and recycling collection, yard waste processing, composting and household hazardous waste collection. Manage community events such as the citywide Garage Sale and the spring and summer free compost giveaway for residents. Assist CUSD and high school teachers and students with student recycling and composting projects related to teachers’ curriculum and the City’s environmental initiatives. Adopted Budget 404 Adopted Budget On June 5, 2018, City Council approved a budget of $3,501,101 for the Resource Recovery program. This represents an increase of $231,339 (7.1%) from the FY 2018 Adopted Budget. The increase is due primarily to special projects described in the table below. Increases in compensation and benefits are due to negotiated salary and benefit changes due to take effect in July 2018. Increases in cost allocations are due to a change in allocation methodology for IT charges. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Waste Characterization Study $105,000 $105,000 Resource Recovery Study to determine future services Waste Tonnage Audit $45,000 $45,000 Resource Recovery Audit to more accurately track annual tonnage Total $150,000 $150,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 405 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property --$ 25,000 $ 30,000 Intergovernmental Revenue --$ 15,000 $ 15,000 Charges for Services $ 2,514,936 $ 2,650,895 $ 2,150,000 $ 2,157,000 Fines and Forfeitures ---- Miscellaneous Revenue --$ 56,000 $ 66,000 Interdepartmental Revenue ---- Total Revenues $ 2,514,936 $ 2,650,895 $ 2,246,000 $ 2,268,000 Expenditures Employee Compensation $ 391,163 $ 436,602 $ 470,408 $ 512,003 Employee Benefits $ 133,047 $ 287,981 $ 208,450 $ 218,021 Materials $ 23,280 $ 22,872 $ 23,410 $ 28,410 Contract Services $ 2,368,232 $ 2,087,822 $ 2,401,000 $ 2,406,000 Cost Allocation $ 81,476 $ 155,904 $ 166,494 $ 186,667 Capital Outlay ---- Special Projects ---$ 150,000 Appropriations for Contingency ---- Total Expenditures $ 2,997,198 $ 2,991,181 $ 3,269,762 $ 3,501,101 Fund Balance $ (482,262)$ (287,072)$ (1,023,762)$ (1,233,101) General Fund Costs -$ 53,215 -- Staffing Total current authorized positions - 4.30 There are no changes to the current level of staffing. Total recommended positions - 4.30 406 Non-Point Source Budget Unit 230-81-802 Env Mgmt Cln Creek Storm Drain - Environmental Programs - Non-Point Source Budget at a Glance 2019 Adopted Budget Total Revenues $ 379,000 Total Expenditures $ 720,785 Fund Balance $ 94,215 General Fund Costs $ 436,000 % Funded by General Fund 60.5 % Total Staffing 1.9 FTE Program Overview The Non-Point Source program manages the City’s compliance with its State-mandated Municipal Regional Stormwater NPDES Permit; provides program and policy development and implementation of state-mandated activities including complaint response and enforcement programs; conducts annual interdepartmental staff training, scheduled business and construction site inspections and review of private development plans to ensure compliance with low impact development (LID); and new Green Infrastructure Plan development requirements. The program is responsible for calculating storm drain fees annually to submit to the County for collection on property tax bills, writing an annual report to the Regional Water Quality Control Board to verify and document the City’s compliance with Clean Water Act mandates; and engaging and educating the public via articles in the Cupertino Scene, webpage development, visits to businesses and presentations at local schools, De Anza College and community events. Public participation events include two or more annual volunteer creek cleanup days, a water quality monitoring day at Blackberry Farm, Earth Day and various countywide collaborative events. Implementation and annual progress assessment of the City’s eight-year liQer reduction plan are among the requirements of the City’s Non-Point Source program. Service Objectives Oversee the City’s compliance with the Municipal Regional Stormwater Permit (MRP 2.0) with regard to water pollution prevention, erosion control, conserving water as a resource (e.g. infiltration rather than runoff), and low impact development (LID) via the City's permit application process and conditions of approval. Coordinate urban runoff pollution and erosion prevention activities with other departments divisions and private businesses. Mandated activities include: catch basin cleaning; postconstruction oversight of permanent stormwater treatment measures installed at private new and redeveloped sites; implementation of, and annual progress assessments for the eight-year liQer reduction plan; oversight of construction best management practices during private and public construction; inspection of grease- generating and wet-waste food facilities and other businesses to prevent water polluting discharges; complaint response and investigation to protect water quality; and education of staff and local businesses on best management practices for outdoor storage and activities. Represent the City on county and regional commiQees to prevent creek and San Francisco Bay pollution, 407 erosion and illegal dumping. Adopted Budget On June 5, 2018, City Council approved a budget of $720,785 for the Non-Point Source program. This represents a decrease of $40,935 (-5.4%) from the FY 2018 Adopted Budget. The decrease in salary and benefits is due to the position reallocation of staff time to beQer reflect actual time spent in this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 159,743 $ 380,000 $ 370,000 Fines and Forfeitures $ 6,387 $ 10,071 $ 6,000 $ 9,000 Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 6,387 $ 169,814 $ 386,000 $ 379,000 Expenditures Employee Compensation $ 164,321 $ 193,261 $ 225,172 $ 216,320 Employee Benefits $ 72,062 $ 93,366 $ 135,524 $ 100,686 Materials $ 6,119 $ 2,717 $ 8,027 $ 8,027 Contract Services $ 201,567 $ 236,357 $ 307,000 $ 307,000 Cost Allocation $ 52,980 $ 68,655 $ 66,387 $ 73,001 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 19,610 $ 15,751 Total Expenditures $ 497,048 $ 594,356 $ 761,720 $ 720,785 Fund Balance $ (361,985)$ (267,708)$ (291,598)$ 94,215 General Fund Costs $ 128,676 $ 156,834 $ 84,122 $ 436,000 Staffing 408 Staffing Total current authorized positions - 1.87 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 1.90 409 Plan Review Budget Unit 100-82-804 General Fund - Developmental Services - Plan Review Budget at a Glance 2019 Adopted Budget Total Revenues $ 556,000 Total Expenditures $ 1,297,073 Fund Balance - General Fund Costs $ 741,073 % Funded by General Fund 57.1 % Total Staffing 5.5 FTE Program Overview The Development Services Division is comprised of two areas: Development Services - reviews plans for private developments and utility encroachments to ensure conformance with City standards and policies. Inspection Services - ensures compliance with City standards and approved plans on all public and private developments and utility projects. Service Objectives Ensure that private development projects provide necessary supporting infrastructure and potential impacts on the community are mitigated. Place safety of the general public, City employees and construction workers as the highest priority on construction sites. Inspect utility encroachment permits for work within the City right-of-way and return streets and sidewalks to City standards. Ensure compliance with stormwater permits and prevent runoff from polluting nearby watersheds. Work closely with the Environmental Programs Division to continue inspecting job sites before, during and after each rain event and conduct annual inspections of all Post Construction Treatments and Stormwater Pollution Prevention Plan (SWPPP) compliance. Respond to public inquiries or complaints in a timely manner. Provide aid and information to other City Divisions and Departments, including Community Development, Building, Capital Improvements, City AQorney’s Office, Service Center and Recreation and Community Services, as needed to facilitate private developments and public infrastructure projects. Adopted Budget On June 5, 2018, City Council approved a budget of $1,297,073 for the Plan Review program. This represents a decrease of $820,643 (-38.8%) from the FY 2018 Adopted Budget. 410 The decrease in special projects is aQributed to the near completion of the Apple Campus 2 project. The increase in compensation and benefits is due to the addition of an Engineering Technician to assist the City Engineer with development and permit center tasks. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Apple Campus 2 $20,500 $20,500 Pass through revenues Apple Campus 2 Total $20,500 $20,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 411 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 2,046,228 $ 1,372,398 $ 1,233,069 $ 531,500 Fines and Forfeitures ---- Miscellaneous Revenue $ 129,330 $ 158,167 $ 141,460 $ 24,500 Interdepartmental Revenue ---- Total Revenues $ 2,175,557 $ 1,530,565 $ 1,374,529 $ 556,000 Expenditures Employee Compensation $ 514,173 $ 499,174 $ 566,226 $ 703,106 Employee Benefits $ 235,705 $ 240,399 $ 247,636 $ 321,042 Materials $ 14,342 $ 14,163 $ 13,768 $ 18,868 Contract Services $ 102,565 $ 148,639 $ 62,000 $ 58,400 Cost Allocation $ 60,408 $ 162,021 $ 179,733 $ 171,369 Capital Outlay ---- Special Projects $ 1,158,550 $ 1,024,916 $ 1,043,069 $ 20,500 Appropriations for Contingency --$ 5,284 $ 3,788 Total Expenditures $ 2,085,742 $ 2,089,312 $ 2,117,716 $ 1,297,073 Fund Balance ---- General Fund Costs $ (89,815)$ 558,746 $ 743,187 $ 741,073 Staffing Total current authorized positions - 4.50 The increase in staffing is due to the addition of a full-time Engineering Technician position to assist the City Engineer with development and permit center tasks. In addition, the 3-year limited-term Associate Engineer position, funded 25% in this program, will be converted to a full-time permanent position. In the 2016 Budget, a 3 year limited-term Associate Engineer position was created to manage and assist with various new active transportation efforts included in the adopted 2018 Pedestrian Master Plan, the Traffic Impact Fee development, and the Bicycle Transportation Plan implementation. In the 2018 Budget, the City Council added additional funding of $3 million to an already aggressive implementation schedule for the 2016 Bicycle Transportation Plan. This includes implementation of notable projects such as the McClellan Avenue Protected Bike Lanes, the Junipero Serra Trail, the UPRR Trail, the Regnart Trail, and the Bike Boulevard network. In the 412 fall of 2017, a donation of an additional $1.8 million was made for the implementation of the first phase of the Stevens Creek Boulevard Protected Bike Lanes. Additionally, with the completion of the Pedestrian Master Plan and follow-on projects, and the eventual programming of revenues generated from the Transportation Impact Fee, this position is necessary and sustainable within the organization for the foreseeable future. Total recommended positions - 5.50 413 CIP Administration Budget Unit 100-82-806 General Fund - Developmental Services - CIP Administration Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 739,939 Fund Balance - General Fund Costs $ 739,939 % Funded by General Fund 100.0 % Total Staffing 3.0 FTE 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 5, 2018, City Council approved a budget of $739,939 for the CIP Administration program. This represents a decrease of $114,490 (-13.4%) from the FY 2018 Adopted Budget. This decrease is primarily aQributed to reallocating preliminary planning and design funds to the Capital Improvement program fund. Increases in compensation and benefits are due to negotiated salary and benefit changes due to take effect in July 2018. Decreases in cost allocation are due to a change in methodology for equipment, IT, finance and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 414 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 383,109 $ 374,231 $ 476,833 $ 499,204 Employee Benefits $ 131,209 $ 112,010 $ 155,321 $ 169,383 Materials $ 8,365 $ 7,185 $ 13,300 $ 13,300 Contract Services $ 199,300 $ 99,025 $ 103,000 $ 3,000 Cost Allocation $ 44,796 $ 306,973 $ 87,944 $ 54,237 Capital Outlay -$ 5,000 -- Special Projects ---- Appropriations for Contingency --$ 18,031 $ 815 Total Expenditures $ 766,779 $ 904,424 $ 854,429 $ 739,939 Fund Balance ---- General Fund Costs $ 760,029 $ 904,424 $ 854,429 $ 739,939 Staffing Total current authorized positions - 3.00 There are no changes to the current level of staffing. Total recommended positions - 3.00 415 Service Center Administration Budget Unit 100-83-807 General Fund - Service Center - Service Center Administration Budget at a Glance 2019 Adopted Budget Total Revenues $ 50,000 Total Expenditures $ 1,234,946 Fund Balance - General Fund Costs $ 1,184,946 % Funded by General Fund 96.0 % Total Staffing 2.55 FTE Program Overview The Service Center Administration 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 guQer, 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 of trees, sidewalk repair, striping and legends, street signs, vehicle and equipment, streetlights and stormwater pollution. Maintain records of all complaints and requests for services by tracking responses through computer programs and written service request forms. Maintain productivity units of measure for key tasks performed. Support Public Works Engineering in the collection of field data, review of improvement drawings and development of capital improvement projects. Timely manage completion of employee performance reviews, as well as provide timely progressive discipline per City policy when necessary. Maintain, lead and implement all elements of the Injury and Illness Prevention Program. Maintain positive, accountable relations with employee bargaining groups. Adopted Budget On June 5, 2018, City Council approved a budget of $1,234,946 for the Service Center Administration program. This represents a decrease of $569,966 (-31.6%) from the FY 2018 Adopted Budget. 416 This decrease is primarily aQributed to the crossing guard contract services moved to the Safe Routes 2 School program budget as well as a decrease in special project requests. Decreases in compensation and benefits are due to staff time being reallocated to better reflect actual time spent in this program. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Office Improvements (Capital Outlay)$175,000 $175,000 General Fund City-wide work area improvements Total $175,000 $175,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 417 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 30,853 $ 58,706 $ 69,000 $ 25,000 Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue -$ 410,000 -$ 25,000 Interdepartmental Revenue ---- Total Revenues $ 30,853 $ 468,706 $ 69,000 $ 50,000 Expenditures Employee Compensation $ 319,502 $ 319,515 $ 406,163 $ 369,310 Employee Benefits $ 128,424 $ 171,300 $ 168,973 $ 135,667 Materials $ 56,236 $ 61,268 $ 74,845 $ 84,045 Contract Services $ 161,961 $ 239,519 $ 217,500 $ 121,000 Cost Allocation $ 150,276 $ 554,100 $ 644,091 $ 339,672 Capital Outlay $ 266 $ 239,087 $ 70,000 $ 175,000 Special Projects --$ 200,000 - Appropriations for Contingency --$ 23,340 $ 10,252 Total Expenditures $ 816,665 $ 1,584,789 $ 1,804,912 $ 1,234,946 Fund Balance ---- General Fund Costs $ 785,812 $ 1,116,084 $ 1,735,912 $ 1,184,946 Staffing Total current authorized positions - 2.55 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 2.55 418 McClellan Ranch Park Budget Unit 100-84-808 General Fund - Grounds - McClellan Ranch Park Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 84,009 Fund Balance - General Fund Costs $ 84,009 % Funded by General Fund 100.0 % Total Staffing 0.3 FTE Program Overview McClellan Ranch Park is one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Service Objectives The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. Provide daily general clean up, trash removal, and graffiti removal. Provide twice annually the mowing of fire breaks per Fire Marshal request in a manner in which wildlife is least impacted. Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup programs of garden plots. Provide logistical support to the Recreation and Community Services Department for all of the City’s special events. Adopted Budget On June 5, 2018, City Council approved a budget of $84,009 for the McClellan Ranch Park program. This represents an increase of $1,162 (1.4%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 419 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 23,472 $ 26,137 $ 28,466 $ 29,587 Employee Benefits $ 11,499 $ 14,777 $ 15,262 $ 14,587 Materials $ 12,038 $ 13,072 $ 16,577 $ 18,713 Contract Services $ 6,530 $ 18,750 $ 8,000 $ 8,000 Cost Allocation $ 3,336 $ 4,228 $ 956 $ 11,786 Capital Outlay --$ 12,000 - Special Projects ---- Appropriations for Contingency --$ 1,586 $ 1,336 Total Expenditures $ 56,875 $ 76,964 $ 82,847 $ 84,009 Fund Balance ---- General Fund Costs $ 56,875 $ 76,964 $ 82,847 $ 84,009 Staffing Total current authorized positions - 0.30 There are no staffing changes to the current level of staffing. Total recommended positions - 0.30 420 Memorial Park Budget Unit 100-84-809 General Fund - Grounds - Memorial Park Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 760,345 Fund Balance - General Fund Costs $ 760,345 % Funded by General Fund 100.0 % Total Staffing 3.0 FTE Program Overview Memorial Park is one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Memorial Park is the largest and most utilized park in Cupertino. Service Objectives The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and basic play structure inspections and maintenance. Provide weekly maintenance that may include mowing and edging of turf areas, tennis court cleaning and general maintenance, basketball court maintenance and programmed play structure inspections and maintenance. Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing, and pruning of trees and shrubs. Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications, playground woodchip replenishing and preparation of athletic fields for seasonal use. Maintain all playgrounds in accordance with California playground safety requirements. Minimize the negative effects of waterfowl to park patrons. Reduce water consumption wherever practicable. Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. Provide logistical support to the Recreation and Community Development Department for all the City’s special events. Oversight of contracted tree trimming and fence repairs. Adopted Budget On June 5, 2018, City Council approved a budget of $760,345 for the Memorial Park program. This represents an increase of $13,248 (1.8%) from the FY 2018 Adopted Budget. 421 This budget remains relatively unchanged from the prior fiscal year. The increase in compensation is due to a request to add one part-time position to provide continuity of service in the grounds division. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue --$ 14,000 - Interdepartmental Revenue ---- Total Revenues --$ 14,000 - Expenditures Employee Compensation $ 201,483 $ 213,740 $ 238,386 $ 265,139 Employee Benefits $ 98,722 $ 126,841 $ 126,360 $ 126,643 Materials $ 134,821 $ 113,597 $ 166,231 $ 233,774 Contract Services $ 7,821 $ 67,602 $ 37,550 $ 37,550 Cost Allocation $ 49,668 $ 42,976 $ 29,474 $ 83,673 Capital Outlay -$ 6,829 $ 135,000 - Special Projects ---- Appropriations for Contingency --$ 14,096 $ 13,566 Total Expenditures $ 492,515 $ 571,584 $ 747,097 $ 760,345 Fund Balance ---- General Fund Costs $ 492,515 $ 571,584 $ 733,097 $ 760,345 Staffing Total current authorized positions - 3.00 There are no changes to the current level of full-time staffing positions. One part-time Maintenance Worker I position is requested to provide continuity of service in the Grounds Division. Total recommended positions - 3.00 422 School Site Maintenance Budget Unit 100-84-812 General Fund - Grounds - School Site Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 135,000 Total Expenditures $ 1,128,886 Fund Balance - General Fund Costs $ 993,886 % Funded by General Fund 88.0 % Total Staffing 4.3 FTE Program Overview Under a joint use agreement with Cupertino Union School District, nine athletic fields and landscape areas, constituting approximately 52 acres, are managed by the Grounds Division of the Public Works Department. These sites include Hyde and Kennedy Middle Schools, Collins, Eaton, Lincoln, Regnart, Faria, Stevens Creek and Garden Gate Elementary Schools. Service Objectives The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas / athletic fields in the Bay Area. Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. Provide weekly maintenance that may include mowing and edging of turf areas and other maintenance. Provide quarterly maintenance that may include fertilization, aerating, over-seeding, top dressing, and pruning of trees and shrubs. Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications and preparing athletic fields for seasonal use. Maintain school sites for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports. Reduce water consumption wherever practicable. Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. Provide logistical support to the Park and Recreation Department for all the City’s special events. Adopted Budget On June 5, 2018, City Council approved a budget of $1,128,886 for the School Site Maintenance program. This represents an increase of $131,994 (13.2%) from the FY 2018 Adopted Budget. This increase is due to a 3% cost of inflation increase on general supplies, an increase in training budget, and special projects described in the table below. Increases in cost allocation are due to a change in methodology for equipment and IT charges. 423 Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Baseball Field Renovation (Capital Outlay) $35,000 $35,000 General Fund Hyde, Kennedy and Regnart Schools Total $35,000 $35,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue --$ 135,000 $ 135,000 Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues --$ 135,000 $ 135,000 Expenditures Employee Compensation $ 275,904 $ 269,451 $ 319,050 $ 321,950 Employee Benefits $ 144,726 $ 160,860 $ 170,335 $ 170,579 Materials $ 149,970 $ 250,176 $ 314,458 $ 437,660 Contract Services $ 8,087 $ 12,000 $ 20,500 $ 33,500 Cost Allocation $ 122,388 $ 60,537 $ 85,733 $ 106,639 Capital Outlay $ 10,000 -$ 25,000 $ 35,000 Special Projects --$ 50,000 - Appropriations for Contingency --$ 11,816 $ 23,558 Total Expenditures $ 711,075 $ 753,023 $ 996,892 $ 1,128,886 Fund Balance ---- General Fund Costs $ 711,075 $ 753,023 $ 861,892 $ 993,886 424 Staffing Total current authorized positions - 4.30 There are no changes to the current level of staffing. Total recommended positions - 4.30 425 Neighborhood Parks Budget Unit 100-84-813 General Fund - Grounds - Neighborhood Parks Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 1,629,502 Fund Balance - General Fund Costs $ 1,629,502 % Funded by General Fund 100.0 % Total Staffing 8.3 FTE 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 (LiQle 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, tennis court cleaning and general maintenance, basketball court maintenance and programmed play structure inspections and maintenance. Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing, and pruning of trees and shrubs. Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications, playground woodchip replenishing and prepare athletic fields for seasonal use. Maintain all playgrounds in accordance with California playground safety requirements. Reduce water consumption wherever practicable. Utilize Weekend Work furlough program as needed to assist in weekend and weekday cleanup. Provide logistical support to the Recreation and Community Services Department for all the City’s special events. Adopted Budget On June 5, 2018, City Council approved a budget of $1,629,502 for the Neighborhood Parks program. This represents an increase of $74,704 (4.8%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. 426 Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Baseball Field Renovation (Capital Outlay) $35,000 General Fund Wilson Park Cement mow band (Capital Outlay)$12,000 General Fund Sterling Barnhart Park Total $47,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 427 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue $ 1,755 $ 2,548 -- Interdepartmental Revenue ---- Total Revenues $ 1,755 $ 2,548 -- Expenditures Employee Compensation $ 540,786 $ 508,284 $ 577,040 $ 596,485 Employee Benefits $ 296,827 $ 307,028 $ 304,154 $ 303,765 Materials $ 294,425 $ 288,310 $ 357,671 $ 400,798 Contract Services $ 130,361 $ 152,412 $ 72,000 $ 72,000 Cost Allocation $ 198,540 $ 115,540 $ 105,213 $ 165,814 Capital Outlay -$ 32,861 $ 110,000 $ 47,000 Special Projects ---$ 20,000 Appropriations for Contingency --$ 28,720 $ 23,640 Total Expenditures $ 1,460,938 $ 1,404,435 $ 1,554,798 $ 1,629,502 Fund Balance ---- General Fund Costs $ 1,459,184 $ 1,401,887 $ 1,554,798 $ 1,629,502 Staffing Total current authorized positions - 8.10 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 8.30 428 Sport Fields Jollyman, Creekside Budget Unit 100-84-814 General Fund - Grounds - Sport Fields Jollyman, Creekside Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 665,541 Fund Balance - General Fund Costs $ 665,541 % Funded by General Fund 100.0 % Total Staffing 3.1 FTE Program Overview The sports fields at Jollyman and Creekside parks are among the 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Sports fields at these two parks are heavily used and enjoyed by the community. Service Objectives The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas and sports fields in the Bay Area. Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. Provide weekly maintenance that may include mowing and edging of turf areas, programmed play structure inspections, and other maintenance. Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing, and pruning of trees and shrubs. Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications and preparing sports fields for seasonal use. Maintain sports fields for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports. Maintain all playgrounds in accordance with California playground safety requirements. Reduce water consumption wherever practicable. Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. Provide logistical support to the Recreation and Community Services Department for all the City’s special events. Adopted Budget On June 5, 2018, City Council approved a budget of $665,541 for the Sport Fields Jollyman, Creekside program. This represents an increase of $71,937 (12.1%) from the FY 2018 Adopted Budget. 429 Increases in compensation and benefits are due to negotiated salary and benefit changes due to take effect in July 2018. The general supplies budget was increased by 3% to account for inflation. Contract services increased for tree work and concrete bench pads. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Cement mowband (Capital Outlay)$10,000 $10,000 General Fund Creekside Park Total $10,000 $10,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 430 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 197,408 $ 174,057 $ 213,745 $ 221,793 Employee Benefits $ 103,371 $ 101,740 $ 107,631 $ 108,479 Materials $ 159,866 $ 151,535 $ 174,238 $ 223,972 Contract Services $ 12,774 $ 38,038 $ 16,000 $ 22,000 Cost Allocation $ 71,292 $ 40,885 $ 42,072 $ 66,998 Capital Outlay $ 42,378 -$ 28,000 $ 10,000 Special Projects ---- Appropriations for Contingency --$ 11,918 $ 12,299 Total Expenditures $ 587,088 $ 506,255 $ 593,604 $ 665,541 Fund Balance ---- General Fund Costs $ 587,088 $ 506,255 $ 593,604 $ 665,541 Staffing Total current authorized positions - 2.90 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 3.10 431 Civic Center Maintenance Budget Unit 100-84-815 General Fund - Grounds - Civic Center Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 193,990 Total Expenditures $ 261,867 Fund Balance - General Fund Costs $ 67,877 % Funded by General Fund 25.9 % Total Staffing 1.0 FTE Program Overview The Civic Center grounds are one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Due to the close proximity to City Hall, Community Hall, and the Library, the Civic Center grounds are well utilized. Civic Center maintenance includes the adjacent Library Field. Service Objectives The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. Provide weekly maintenance that may include mowing and edging of turf areas and general maintenance. Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing, and pruning of trees and shrubs. Provide semi-annual maintenance that may include replacement of planting material and pre-emergent applications. Maintain Library Field for recreational activities including soccer, cricket and a variety of other sports. Reduce water consumption wherever practicable. Provide logistical support to all City Departments for special events. Adopted Budget On June 5, 2018, City Council approved a budget of $261,867 for the Civic Center Maintenance program. This represents an increase of $70,425 (36.8%) from the FY 2018 Adopted Budget. The increase is primarily due to the 20% water service rate increase and a 3% cost of inflation increase for general supplies. Increases in cost allocation are due to a change in allocation methodology for equipment and IT charges. Revenues and Expenditures 432 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 180,929 $ 175,467 $ 193,990 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 180,929 $ 175,467 $ 193,990 Expenditures Employee Compensation $ 74,304 $ 72,628 $ 82,966 $ 82,722 Employee Benefits $ 39,124 $ 44,116 $ 46,850 $ 46,435 Materials $ 31,089 $ 40,891 $ 48,760 $ 102,364 Contract Services -$ 5,800 $ 3,000 $ 3,000 Cost Allocation $ 16,056 $ 368,947 $ 7,006 $ 22,078 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 2,860 $ 5,268 Total Expenditures $ 160,573 $ 532,383 $ 191,442 $ 261,867 Fund Balance ---- General Fund Costs $ 160,573 $ 351,454 $ 15,975 $ 67,877 Staffing Total current authorized positions - 1.00 There are no changes to the current level of staffing. Total recommended positions - 1.00 433 Storm Drain Maintenance Budget Unit 100-85-818 General Fund - Streets - Storm Drain Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 476,503 Fund Balance - General Fund Costs $ 476,503 % Funded by General Fund 100.0 % Total Staffing 1.2 FTE Program Overview Maintenance of storm drain system to provide the efficient flow of stormwater and to comply with stormwater pollution prevention requirements. Service Objectives Provide effective and timely inspection and maintenance of the storm drain system including inlet and outfall structures, 2,216 storm drain inlets and collection system. Provide annual cleaning and inspection of all inlets. Adopted Budget On June 5, 2018, City Council approved a budget of $476,503 for the Storm Drain Maintenance program. This represents an increase of $26,553 (5.9%) from the FY 2018 Adopted Budget. The increase in cost allocation is due to a change in allocation methodology for equipment, IT, finance and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 434 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 1,259 $ 1,700 - Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 1,259 $ 1,700 - Expenditures Employee Compensation $ 112,993 $ 131,084 $ 121,029 $ 127,538 Employee Benefits $ 46,263 $ 62,203 $ 50,051 $ 51,389 Materials $ 7,441 $ 7,408 $ 16,260 $ 16,720 Contract Services $ 122,423 $ 176,410 $ 225,000 $ 225,000 Cost Allocation $ 14,448 $ 31,359 $ 33,530 $ 43,770 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 4,080 $ 12,086 Total Expenditures $ 303,568 $ 408,465 $ 449,950 $ 476,503 Fund Balance ---- General Fund Costs $ 303,568 $ 407,206 $ 448,250 $ 476,503 Staffing Total current authorized positions - 1.20 There are no changes to the current level of staffing. One part-time Maintenance Worker I position is requested to provide continuity of service in the Storm Drain Maintenance program. Total recommended positions - 1.20 435 Sidewalk Curb and Gutter Budget Unit 270-85-820 Transportation Fund - Streets - Sidewalk Curb and Gutter Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,057,060 Total Expenditures $ 1,195,876 Fund Balance $ 661,184 General Fund Costs $ 800,000 % Funded by General Fund 66.9 % Total Staffing 1.3 FTE Program Overview Maintain sidewalks, curb and guQer 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 5, 2018, City Council approved a budget of $1,195,876 for the Sidewalk Curb and GuQer program. This represents an increase of $110,351 (10.2%) from the FY 2018 Adopted Budget. The increase is primarily due to special projects described in the table below. Increases in compensation and benefits are due to negotiated salary and benefit changes due to take effect in July 2018. A decrease in cost allocation is due to changes in allocation methodology for equipment, IT, city clerk, city manager, finance and human resources charges. Special Projects The following table shows the special projects for the fiscal year. 436 Special Project Appropriation Revenue Funding Source Description Annual Sidewalk Curb & Gutter Project $850,000 $850,000 Transportation Fund Annual sidewalk, curb and gutter maintenance Sidewalk Grinding $50,000 $50,000 Transportation Fund Annual sidewalk, curb and gutter maintenance Total $900,000 $930,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property --$ 1,200 - Intergovernmental Revenue -$ 21,104 $ 209,600 $ 1,057,060 Charges for Services -$ 19,183 -- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 40,288 $ 210,800 $ 1,057,060 Expenditures Employee Compensation $ 69,900 $ 71,599 $ 104,240 $ 129,339 Employee Benefits $ 34,970 $ 39,037 $ 59,175 $ 67,319 Materials $ 4,935 $ 142 $ 3,729 $ 3,729 Contract Services ---$ 31,000 Cost Allocation $ 66,816 $ 44,435 $ 68,111 $ 62,753 Capital Outlay --$ 850,000 - Special Projects $ 815,555 $ 825,140 -$ 900,000 Appropriations for Contingency --$ 270 $ 1,736 Total Expenditures $ 992,176 $ 980,352 $ 1,085,525 $ 1,195,876 Fund Balance $ (992,176)$ (133,087)$ (24,725)$ 661,184 General Fund Costs -$ 806,977 $ 850,000 $ 800,000 437 Staffing Total current authorized positions - 1.30 There are no changes to the current level of staffing. Total recommended positions - 1.30 438 Street Pavement Maintenance Budget Unit 270-85-821 Transportation Fund - Streets - Street Pavement Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,525,379 Total Expenditures $ 6,832,574 Fund Balance $ (307,195) General Fund Costs $ 5,000,000 % Funded by General Fund 73.2 % Total Staffing 3.35 FTE Program Overview This program maintains streets to a standard that balances preventative maintenance with stop-gap measures while minimizing liability. Service Objectives Perform preventative maintenance activities of fog seal and crack fill. Perform stop-gap maintenance of arterial, collector and residential streets. Oversee and manage contracted pavement maintenance projects. Adopted Budget On June 5, 2018, City Council approved a budget of $6,832,574 for the Street Pavement Maintenance program. This represents an increase of $88,190 (1.3%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Pavement maintenance (Special Project)$5,000,000 $5,000,000 Transportation Fund Annual asphalt project Pavement maintenance (Capital Outlay)$978,379 $978,379 SB1 Grant Funding Annual asphalt project Total $5,978,379 $5,978,379 Revenues and Expenditures 439 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue -$ 224,184 $ 1,324,000 $ 1,340,379 Charges for Services -$ 3,096 $ 4,100 - Fines and Forfeitures ---- Miscellaneous Revenue $ 1,709 $ 148,639 -$ 185,000 Interdepartmental Revenue ---- Total Revenues $ 1,709 $ 375,919 $ 1,328,100 $ 1,525,379 Expenditures Employee Compensation $ 254,714 $ 254,147 $ 254,727 $ 289,040 Employee Benefits $ 126,995 $ 138,331 $ 134,377 $ 141,026 Materials $ 46,648 $ 37,675 $ 62,080 $ 62,080 Contract Services $ 8,916 $ 137,388 $ 136,000 $ 176,000 Cost Allocation $ 89,364 $ 149,849 $ 145,640 $ 174,145 Capital Outlay $ 37,315 $ 51,830 -$ 978,379 Special Projects $ 8,192,611 $ 6,625,393 $ 6,000,000 $ 5,000,000 Appropriations for Contingency --$ 11,560 $ 11,904 Total Expenditures $ 8,756,565 $ 7,394,614 $ 6,744,384 $ 6,832,574 Fund Balance $ (2,754,856)$ (1,999,208)$ 583,716 $ (307,195) General Fund Costs $ 6,000,000 $ 5,019,487 $ 6,000,000 $ 5,000,000 Staffing Total current authorized positions - 3.35 There are no changes to the current level of staffing. Total recommended positions - 3.35 440 Street Sign Marking Budget Unit 270-85-822 Transportation Fund - Streets - Street Sign Marking Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 661,889 Fund Balance $ (661,889) General Fund Costs - % Funded by General Fund - Total Staffing 3.5 FTE Program Overview This program maintains street regulatory and informational signs, street striping, markings, and legends, as well as removes graffiti within street right-of-way in a timely manner. Service Objectives Respond to regulatory and informational sign issues in a timely manner. Coordinate and respond to work orders from the Traffic Engineer. Maintain street sign and traffic marking assets in compliance with the Manual of Uniform Traffic Control Devices. Remove graffiti in a timely manner. Adopted Budget On June 5, 2018, City Council approved a budget of $661,889 for the Street Sign Marking program. This represents a decrease of $170,101 (-20.4%) from the FY 2018 Adopted Budget. The decrease is primarily due to a change in cost allocation methodology for equipment, IT, finance and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 441 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property --$ 800 - Intergovernmental Revenue --$ 132,400 - Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues --$ 133,200 - Expenditures Employee Compensation $ 273,014 $ 272,138 $ 269,284 $ 268,072 Employee Benefits $ 138,601 $ 149,858 $ 138,319 $ 145,723 Materials $ 102,840 $ 98,676 $ 109,228 $ 109,228 Contract Services $ 4,870 $ 8,596 $ 17,000 $ 17,000 Cost Allocation $ 243,384 $ 116,492 $ 268,028 $ 115,555 Capital Outlay ---- Special Projects --$ 22,000 - Appropriations for Contingency --$ 8,131 $ 6,311 Total Expenditures $ 762,709 $ 645,761 $ 831,990 $ 661,889 Fund Balance $ (762,709)$ (622,243)$ (698,790)$ (661,889) General Fund Costs -$ 23,518 -- Staffing Total current authorized positions - 3.50 There are no changes to the current level of staffing. Total recommended positions - 3.50 442 Street Lighting Budget Unit 100-85-848 General Fund - Streets - Street Lighting Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 588,241 Fund Balance - General Fund Costs $ 588,241 % Funded by General Fund 100.0 % Total Staffing 0.95 FTE Program Overview Maintain city-owned streetlights (2,950), parking lot lights and park lighting. Service Objectives Respond to outages in a timely manner. Conserve electricity through the conversion of older less efficient light technology to current and tested technologies. Replace direct buried wiring with wiring in conduits as failures occur. Adopted Budget On June 5, 2018, City Council approved a budget of $588,241 for the Street Lighting program. This represents a decrease of $17,119 (-2.8%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Street light pole replacement $80,000 General Fund Park pathway light poles $17,000 General Fund Linda Vista & Wilson Parks Total $97,000 Revenues and Expenditures 443 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue -$ 14,385 -- Interdepartmental Revenue ---- Total Revenues -$ 14,385 -- Expenditures Employee Compensation $ 29,014 $ 32,362 $ 92,841 $ 90,688 Employee Benefits $ 14,907 $ 16,544 $ 44,907 $ 44,497 Materials $ 218,774 $ 237,323 $ 256,476 $ 277,769 Contract Services $ 19,928 $ 3,367 $ 50,500 $ 24,000 Cost Allocation $ 12,108 $ 19,259 $ 22,437 $ 39,199 Capital Outlay $ 127,890 $ 35,260 $ 118,000 $ 97,000 Special Projects ---- Appropriations for Contingency --$ 20,199 $ 15,088 Total Expenditures $ 422,620 $ 344,115 $ 605,360 $ 588,241 Fund Balance ---- General Fund Costs $ 422,620 $ 329,730 $ 605,360 $ 588,241 Staffing Total current authorized positions - 0.95 There are no changes to the current level of staffing. Total recommended positions - 0.95 444 Equipment Maintenance Budget Unit 630-85-849 Vehicle/Equip Replacement - Streets - Equipment Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,056,968 Total Expenditures $ 1,593,660 Fund Balance $ (536,692) General Fund Costs - % Funded by General Fund - Total Staffing 3.0 FTE Program Overview The Fleet Division maintains all fleet equipment, including small power equipment. Equipment includes vehicles (103), 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 be approved for the equipment mechanics and welding. Adopted Budget On June 5, 2018, City Council approved a budget of $1,593,660 for the Equipment Maintenance program. This represents an increase of $342,421 (27.4%) from the FY 2018 Adopted Budget. The increase is primarily due to a change in cost allocation methodology for equipment, IT, finance and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 445 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---$ 1,056,968 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---$ 1,056,968 Expenditures Employee Compensation $ 174,354 $ 230,249 $ 275,327 $ 278,161 Employee Benefits $ 89,303 $ 492,022 $ 121,280 $ 126,268 Materials $ 252,632 $ 460,611 $ 323,639 $ 331,679 Contract Services $ 125,268 $ 147,496 $ 140,000 $ 140,000 Cost Allocation $ 470,242 $ 141,965 $ 358,774 $ 693,968 Capital Outlay -$ 10,486 -- Special Projects $ 24,809 --- Appropriations for Contingency --$ 32,219 $ 23,584 Total Expenditures $ 1,136,608 $ 1,482,830 $ 1,251,239 $ 1,593,660 Fund Balance $ (1,136,608)$ (1,473,362)$ (1,251,239)$ (536,692) General Fund Costs -$ 9,468 -- Staffing Total current authorized positions - 3.00 There are no changes to the current level of staffing. Total recommended positions - 3.00 446 Environmental Materials Budget Unit 100-85-850 General Fund - Streets - Environmental Materials Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 195,008 Fund Balance - General Fund Costs $ 195,008 % Funded by General Fund 100.0 % Total Staffing 0.65 FTE Program Overview This program manages Service Center solid waste disposal, Service Center safety inspections, handling/disposal/reporting of City generated hazardous waste and materials – including waste that may be illegally deposited upon the right-of-way. Provide street cleaning for unforeseen events such as debris from trucks or other sources. Service Objectives Coordinate disposal of solid waste. Adhere to the requirements of hazardous waste/materials storage, handling and reporting. Comply with Fire Marshal safety inspection requirements for Service Center facilities. Inspect and maintain below ground fuel tanks as required. Clean up traffic debris that may become deposited on streets while reducing traffic hazards. Adopted Budget On June 5, 2018, City Council approved a budget of $195,008 for the Environmental Materials program. This represents an increase of $9,792 (5.3%) from the FY 2018 Adopted Budget. The increase is primarily due to a change in cost allocation methodology for equipment, IT, finance and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 447 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 46,032 $ 46,095 $ 52,920 $ 56,542 Employee Benefits $ 20,306 $ 21,334 $ 28,170 $ 28,383 Materials $ 24,545 $ 29,460 $ 44,480 $ 44,480 Contract Services $ 4,474 $ 5,354 $ 4,500 $ 5,000 Cost Allocation $ 31,560 $ 21,986 $ 52,137 $ 58,129 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 3,009 $ 2,474 Total Expenditures $ 126,918 $ 124,230 $ 185,216 $ 195,008 Fund Balance ---- General Fund Costs $ 126,918 $ 124,230 $ 185,216 $ 195,008 Staffing Total current authorized positions - 0.65 There are no changes to the current level of staffing. Total recommended positions - 0.65 448 Overpasses and Medians Budget Unit 100-86-824 General Fund - Trees and Right of Way - Overpasses and Medians Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 1,251,274 Fund Balance - General Fund Costs $ 1,251,274 % Funded by General Fund 100.0 % Total Staffing 6.3 FTE Program Overview The Overpasses and Medians program maintains 31.54 developed acres of median island hardscapes and softscapes as well as 21.69 undeveloped acres of city right-of-way and the landscaped area of the Don BurneQ Bridge. Service Objectives Maintain and improve median islands, landscape strips, trails, landscaped roadsides and public right-of- ways. Maintain and improve water efficient programming of irrigation systems. Meet all Department of Pesticide Regulation requirements for weed and pest control. Timely pruning of plant material to promote plant health, maximize aesthetics and to reduce future maintenance requirements. Plant and care for new plant stock to help ensure future plant health and reduce future maintenance requirements. Conserve water through the planting of appropriate plant stock. Adopted Budget On June 5, 2018, City Council approved a budget of $1,251,274 for the Overpasses and Medians program. This represents a decrease of $202,519 (-13.9%) from the FY 2018 Adopted Budget. The decrease is primarily due to a reallocation of water service costs to beQer reflect costs in programs. Decreases in cost allocation are due to a change in allocation methodology for equipment, IT, finance and human resources. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 449 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 23,107 --- Fines and Forfeitures ---- Miscellaneous Revenue -$ 25,900 -- Interdepartmental Revenue ---- Total Revenues $ 23,107 $ 25,900 -- Expenditures Employee Compensation $ 472,409 $ 433,708 $ 492,530 $ 474,434 Employee Benefits $ 248,076 $ 240,466 $ 249,277 $ 250,023 Materials $ 233,581 $ 149,526 $ 353,920 $ 201,920 Contract Services $ 14,841 $ 67,654 $ 83,000 $ 83,000 Cost Allocation $ 181,872 $ 298,283 $ 248,423 $ 227,651 Capital Outlay -$ 288 -- Special Projects ---- Appropriations for Contingency --$ 26,643 $ 14,246 Total Expenditures $ 1,150,779 $ 1,189,925 $ 1,453,793 $ 1,251,274 Fund Balance ---- General Fund Costs $ 1,127,672 $ 1,164,025 $ 1,453,793 $ 1,251,274 Staffing Total current authorized positions - 6.30 There are no changes to the current level of staffing. Total recommended positions - 6.30 450 Street Tree Maintenance Budget Unit 100-86-825 General Fund - Trees and Right of Way - Street Tree Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 12,000 Total Expenditures $ 1,194,987 Fund Balance - General Fund Costs $ 1,192,987 % Funded by General Fund 99.8 % Total Staffing 7.4 FTE 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 be approved 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 5, 2018, City Council approved a budget of $1,194,987 for the Street Tree Maintenance program. This represents a decrease of $56,155 (-4.5%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. The decrease in cost allocation is due to a change in methodology for equipment, IT, finance, and human resources charges. Revenues and Expenditures 451 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 5,880 $ 14,616 $ 10,000 $ 12,000 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 5,880 $ 14,616 $ 10,000 $ 12,000 Expenditures Employee Compensation $ 388,394 $ 442,495 $ 510,300 $ 503,748 Employee Benefits $ 195,900 $ 247,231 $ 265,583 $ 296,273 Materials $ 57,596 $ 110,534 $ 123,000 $ 118,000 Contract Services $ 23,673 $ 18,241 $ 20,000 $ 27,400 Cost Allocation $ 244,584 $ 104,808 $ 253,459 $ 232,296 Capital Outlay $ 4,645 $ 8,107 -- Special Projects $ 4,408 $ 5,315 $ 70,000 $ 10,000 Appropriations for Contingency --$ 8,800 $ 7,270 Total Expenditures $ 919,200 $ 936,730 $ 1,251,142 $ 1,194,987 Fund Balance ---- General Fund Costs $ 913,320 $ 922,114 $ 1,241,142 $ 1,192,987 Staffing Total current authorized positions - 7.40 There are no changes to the current level of staffing. Total recommended positions - 7.40 452 Weekend Work Program Budget Unit 100-86-826 General Fund - Trees and Right of Way - Weekend Work Program Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 469,476 Fund Balance - General Fund Costs $ 469,476 % Funded by General Fund 100.0 % Total Staffing 2.3 FTE 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 sandbag filling. Offset manual work currently performed by skilled labor so as to increase overall productivity at the Service Center. Adopted Budget On June 5, 2018, City Council approved a budget of $469,476 for the Weekend Work Program program. This represents an increase of $28,198 (6.4%) from the FY 2018 Adopted Budget. The increase is primarily due to a change in cost allocation methodology for equipment, IT, finance, and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 453 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 217,292 $ 233,914 $ 249,050 $ 266,225 Employee Benefits $ 109,488 $ 115,487 $ 103,848 $ 96,495 Materials $ 9,674 $ 4,225 $ 10,760 $ 10,600 Contract Services -$ 45 -$ 2,300 Cost Allocation $ 63,516 $ 74,860 $ 76,840 $ 93,211 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 780 $ 645 Total Expenditures $ 399,971 $ 428,531 $ 441,278 $ 469,476 Fund Balance ---- General Fund Costs $ 399,971 $ 428,531 $ 441,278 $ 469,476 Staffing Total current authorized positions - 2.70 Staff time is being reallocated to better reflect actual time spent in this program. Total recommended positions - 2.30 454 City Hall Maintenance Budget Unit 100-87-827 General Fund - Facilities and Fleet - City Hall Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 303,250 Total Expenditures $ 619,750 Fund Balance - General Fund Costs $ 316,500 % Funded by General Fund 51.1 % Total Staffing 1.0 FTE Program Overview Maintain City Hall building to ensure efficient operations, employee satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and city employees. Respond to requests made by City Hall staff. Manage and responsibly coordinate work completed by contractors. Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 5, 2018, City Council approved a budget of $619,750 for the City Hall Maintenance program. This represents a decrease of $9,988 (-1.6%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Partial exterior painting $15,000 General Fund City Hall Total $15,000 Revenues and Expenditures 455 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 718,539 $ 382,657 $ 303,250 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 718,539 $ 382,657 $ 303,250 Expenditures Employee Compensation $ 91,678 $ 92,865 $ 92,691 $ 99,201 Employee Benefits $ 45,063 $ 49,491 $ 47,282 $ 46,712 Materials $ 186,787 $ 172,426 $ 216,670 $ 229,935 Contract Services $ 182,624 $ 114,738 $ 157,000 $ 157,000 Cost Allocation $ 23,472 $ 58,577 $ 34,135 $ 52,555 Capital Outlay $ 1,235 $ 4,300 $ 55,000 $ 15,000 Special Projects ---- Appropriations for Contingency --$ 26,960 $ 19,347 Total Expenditures $ 530,859 $ 492,397 $ 629,738 $ 619,750 Fund Balance ---- General Fund Costs $ 530,859 $ (226,142)$ 247,081 $ 316,500 Staffing Total current authorized positions - 1.00 There are no changes to the current level of staffing. Total recommended positions - 1.00 456 Library Maintenance Budget Unit 100-87-828 General Fund - Facilities and Fleet - Library Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 550,800 Total Expenditures $ 338,834 Fund Balance - General Fund Costs $ (211,966) % Funded by General Fund - Total Staffing 0.8 FTE Program Overview Maintain Library building to ensure public and employee satisfaction and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and County employees. Respond to requests made by County staff. Manage and responsibly coordinate work completed by contractors. Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 5, 2018, City Council approved a budget of $338,834 for the Library Maintenance program. This represents an increase of $4,229 (1.3%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Window replacements $10,000 $10,000 General Funds Library Granite polishing $6000 $6000 General Funds Library Total $16,000 $16,000 Revenues and Expenditures 457 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property $ 146,269 $ 142,858 $ 140,700 $ 141,500 Intergovernmental Revenue ---- Charges for Services $ 2,700 $ 586,459 $ 152,921 $ 409,300 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 148,969 $ 729,317 $ 293,621 $ 550,800 Expenditures Employee Compensation $ 57,107 $ 60,200 $ 63,430 $ 65,911 Employee Benefits $ 32,229 $ 35,744 $ 34,551 $ 34,540 Materials $ 12,307 $ 3,406 $ 14,356 $ 14,356 Contract Services $ 5,965 $ 47,863 $ 175,000 $ 175,000 Cost Allocation $ 12,972 $ 263,432 $ 11,541 $ 23,259 Capital Outlay $ 17,338 $ 113,890 $ 23,000 $ 10,000 Special Projects $ 432 --$ 6,000 Appropriations for Contingency --$ 12,727 $ 9,768 Total Expenditures $ 138,349 $ 524,536 $ 334,605 $ 338,834 Fund Balance ---- General Fund Costs $ (10,620)$ (204,781)$ 40,984 $ (211,966) Staffing Total current authorized positions - 0.80 There are no changes to the current level of staffing. Total recommended positions - 0.80 458 Service Center Maintenance Budget Unit 100-87-829 General Fund - Facilities and Fleet - Service Center Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 323,466 Total Expenditures $ 262,132 Fund Balance - General Fund Costs $ (61,334) % Funded by General Fund - Total Staffing 0.7 FTE Program Overview This program maintains the Service Center buildings to ensure employee satisfaction and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by Service Center staff. Manage and responsibly coordinate work completed by contractors. Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 5, 2018, City Council approved a budget of $262,132 for the Service Center Maintenance program. This represents a decrease of $52,522 (-16.7%) from the FY 2018 Adopted Budget. The decrease is primarily due to the completion of special projects as well as decreased costs in cost allocation for vehicle and equipment replacements and a change in allocation methodology for IT charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 459 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 511,696 $ 429,314 $ 323,466 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 511,696 $ 429,314 $ 323,466 Expenditures Employee Compensation $ 58,748 $ 58,659 $ 58,102 $ 59,410 Employee Benefits $ 31,788 $ 33,395 $ 30,932 $ 30,638 Materials $ 52,383 $ 59,199 $ 98,215 $ 103,269 Contract Services $ 31,522 $ 35,366 $ 40,000 $ 40,000 Cost Allocation $ 63,624 $ 65,008 $ 63,292 $ 21,652 Capital Outlay $ 150,339 $ 3,149 $ 15,000 - Special Projects ---- Appropriations for Contingency --$ 9,113 $ 7,163 Total Expenditures $ 388,404 $ 254,775 $ 314,654 $ 262,132 Fund Balance ---- General Fund Costs $ 388,404 $ (256,921)$ (114,660)$ (61,334) Staffing Total current authorized positions - 0.70 There are no changes to the current level of staffing. Total recommended positions - 0.70 460 Quinlan Community Center Maintenance Budget Unit 100-87-830 General Fund - Facilities and Fleet - Quinlan Community Center Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 181,950 Total Expenditures $ 466,416 Fund Balance - General Fund Costs $ 284,466 % Funded by General Fund 61.0 % Total Staffing 0.8 FTE Program Overview This program maintains Quinlan Community Center building to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $466,416 for the Quinlan Community Center Maintenance program. This represents a decrease of $38,231 (-7.6%) from the FY 2018 Adopted Budget. The decrease is primarily due to the completion of special projects. Increased costs in gas, electric and water services are due to rate increases. Increases in cost allocation are due to a change in allocation methodology for equipment and IT charges. Special Projects The following table shows the special projects for the fiscal year. 461 Special Project Appropriation Revenue Funding Source Description Changing tables $10,000 General Fund Automated bottle fillers $12,000 General Fund Track lighting $12,000 General Fund Historical Society Museum Office window $15,000 General Fund Automatic door opener $20,000 General Fund ADA upgrade Total $69,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 462 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 251,129 $ 228,304 $ 181,950 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 251,129 $ 228,304 $ 181,950 Expenditures Employee Compensation $ 61,616 $ 65,784 $ 64,479 $ 67,958 Employee Benefits $ 31,274 $ 32,024 $ 31,176 $ 30,721 Materials $ 130,898 $ 123,144 $ 142,962 $ 153,700 Contract Services $ 96,777 $ 107,885 $ 100,000 $ 100,000 Cost Allocation $ 10,872 $ 19,502 $ 8,793 $ 32,352 Capital Outlay $ 30,464 $ 64,729 $ 140,000 $ 69,000 Special Projects ---- Appropriations for Contingency --$ 17,237 $ 12,685 Total Expenditures $ 361,901 $ 413,067 $ 504,647 $ 466,416 Fund Balance ---- General Fund Costs $ 361,901 $ 161,938 $ 276,343 $ 284,466 Staffing Total current authorized positions - 0.80 There are no changes to the current level of staffing. Total recommended positions - 0.80 463 Senior Center Maintenance Budget Unit 100-87-831 General Fund - Facilities and Fleet - Senior Center Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 181,950 Total Expenditures $ 241,686 Fund Balance - General Fund Costs $ 59,736 % Funded by General Fund 24.7 % Total Staffing 0.8 FTE Program Overview Maintain Senior Center building to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $241,686 for the Senior Center Maintenance program. This represents a decrease of $6,971 (-2.8%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 464 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 270,705 $ 241,641 $ 181,950 Fines and Forfeitures ---- Miscellaneous Revenue -$ 18,689 -- Interdepartmental Revenue ---- Total Revenues -$ 289,394 $ 241,641 $ 181,950 Expenditures Employee Compensation $ 57,197 $ 48,692 $ 58,731 $ 56,694 Employee Benefits $ 29,359 $ 26,807 $ 32,192 $ 30,975 Materials $ 54,039 $ 59,700 $ 61,040 $ 67,916 Contract Services $ 55,048 $ 78,520 $ 60,000 $ 66,000 Cost Allocation $ 9,888 $ 39,661 $ 1,912 $ 13,387 Capital Outlay $ 8,984 $ 87,214 $ 26,000 - Special Projects ---- Appropriations for Contingency --$ 8,782 $ 6,714 Total Expenditures $ 214,515 $ 340,595 $ 248,657 $ 241,686 Fund Balance ---- General Fund Costs $ 214,515 $ 51,202 $ 7,016 $ 59,736 Staffing Total current authorized positions - 0.80 There are no changes to the current level of staffing. Total recommended positions - 0.80 465 McClellan Ranch Maintenance Budget Unit 100-87-832 General Fund - Facilities and Fleet - McClellan Ranch Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 1,700 Total Expenditures $ 178,993 Fund Balance - General Fund Costs $ 177,293 % Funded by General Fund 99.1 % Total Staffing 0.6 FTE Program Overview This program maintains McClellan Ranch buildings to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $178,993 for the McClellan Ranch Maintenance program. This represents an increase of $32,549 (22.2%) from the FY 2018 Adopted Budget. The increase is primarily due to special projects described in the table below. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Repaint building exterior $12,000 General Fund Environmental Education Center Rodent controls-gift shop $30,000 General Fund Building reinforcement Total $42,000 Revenues and Expenditures 466 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---$ 1,700 Interdepartmental Revenue ---- Total Revenues ---$ 1,700 Expenditures Employee Compensation $ 43,541 $ 45,976 $ 47,945 $ 47,885 Employee Benefits $ 21,454 $ 23,585 $ 24,296 $ 23,964 Materials $ 12,762 $ 11,378 $ 20,867 $ 22,392 Contract Services $ 30,501 $ 35,456 $ 26,000 $ 26,000 Cost Allocation $ 5,448 $ 8,432 $ 5,736 $ 12,832 Capital Outlay $ 7,410 $ 10,942 $ 18,000 $ 12,000 Special Projects ---$ 30,000 Appropriations for Contingency --$ 3,600 $ 3,920 Total Expenditures $ 121,116 $ 135,770 $ 146,444 $ 178,993 Fund Balance ---- General Fund Costs $ 121,116 $ 135,770 $ 146,444 $ 177,293 Staffing Total current authorized positions - 0.60 There are no changes to the current level of staffing. Total recommended positions - 0.60 467 Monta Vista Community Center Maintenance Budget Unit 100-87-833 General Fund - Facilities and Fleet - Monta Vista Community Center Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 121,300 Total Expenditures $ 227,890 Fund Balance - General Fund Costs $ 106,590 % Funded by General Fund 46.8 % Total Staffing 0.4 FTE Program Overview This program maintains Monta Vista Community Center and adjacent buildings to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $227,890 for the Monta Vista Community Center Maintenance program. This represents an increase of $77,203 (51.2%) from the FY 2018 Adopted Budget. The increase is primarily due to an increase in special projects. The increase in cost allocation is due to a change in allocation methodology for equipment and IT charges. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Replace gymnastic area floors $48,000 General Fund Monta Vista Community Center Preschool kitchenette remodel $45,000 General Fund Monta Vista Community Center Total $93,000 468 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 166,597 $ 151,450 $ 121,300 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 166,597 $ 151,450 $ 121,300 Expenditures Employee Compensation $ 32,121 $ 33,138 $ 34,502 $ 35,911 Employee Benefits $ 16,886 $ 18,101 $ 17,318 $ 16,993 Materials $ 24,796 $ 23,784 $ 30,959 $ 33,573 Contract Services $ 31,236 $ 31,084 $ 35,000 $ 35,000 Cost Allocation $ 5,448 $ 23,099 $ 2,868 $ 9,984 Capital Outlay $ 7,040 $ 11,849 $ 25,000 $ 93,000 Special Projects ---- Appropriations for Contingency --$ 5,040 $ 3,429 Total Expenditures $ 117,527 $ 141,055 $ 150,687 $ 227,890 Fund Balance ---- General Fund Costs $ 117,527 $ (25,542)$ (763)$ 106,590 Staffing Total current authorized positions - 0.40 There are no changes to the current level of staffing. Total recommended positions - 0.40 469 Wilson Park Maintenance Budget Unit 100-87-834 General Fund - Facilities and Fleet - Wilson Park Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 63,164 Fund Balance - General Fund Costs $ 63,164 % Funded by General Fund 100.0 % Total Staffing 0.2 FTE Program Overview This program maintains Wilson Park poQery building to ensure efficient operations, user satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $63,164 for the Wilson Park Maintenance program. This represents a decrease of $4,327 (-6.4%) from the FY 2018 Adopted Budget. The decrease is primarily due to the completion of special projects. The increase in cost allocation is due to a change in allocation methodology for equipment and IT charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 470 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 18,104 $ 17,999 $ 17,831 $ 18,167 Employee Benefits $ 8,768 $ 9,890 $ 10,168 $ 10,361 Materials $ 11,533 $ 12,594 $ 13,959 $ 15,217 Contract Services $ 22,565 $ 12,506 $ 10,000 $ 10,000 Cost Allocation $ 3,228 $ 2,814 $ 5,737 $ 8,158 Capital Outlay -$ 1,200 $ 8,000 - Special Projects ---- Appropriations for Contingency --$ 1,796 $ 1,261 Total Expenditures $ 64,199 $ 57,002 $ 67,491 $ 63,164 Fund Balance ---- General Fund Costs $ 64,199 $ 57,002 $ 67,491 $ 63,164 Staffing Total current authorized positions - 0.20 There are no changes to the current level of staffing. Total recommended positions - 0.20 471 Portal Park Maintenance Budget Unit 100-87-835 General Fund - Facilities and Fleet - Portal Park Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 37,207 Fund Balance - General Fund Costs $ 37,207 % Funded by General Fund 100.0 % Total Staffing 0.1 FTE Program Overview This program maintains Portal Park building to ensure user efficient operations, satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $37,207 for the Portal Park Maintenance program. This represents a decrease of $21,559 (-36.7%) from the FY 2018 Adopted Budget. The decrease is primarily due to the completion of special projects. The increase in gas and water services is due to rate increases. The increase in cost allocation is due to a change in allocation methodology for equipment and IT charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 472 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 8,887 $ 8,939 $ 8,815 $ 8,909 Employee Benefits $ 4,336 $ 4,930 $ 5,084 $ 5,182 Materials $ 4,424 $ 3,789 $ 7,613 $ 8,606 Contract Services $ 2,955 $ 3,123 $ 8,251 $ 8,251 Cost Allocation $ 2,112 $ 1,420 $ 2,869 $ 5,416 Capital Outlay -$ 2,200 $ 25,000 - Special Projects ---- Appropriations for Contingency --$ 1,134 $ 843 Total Expenditures $ 22,713 $ 24,401 $ 58,766 $ 37,207 Fund Balance ---- General Fund Costs $ 22,713 $ 24,401 $ 58,766 $ 37,207 Staffing Total current authorized positions - 0.10 There are no changes to the current level of staffing. Total recommended positions - 0.10 473 Sports Center Maintenance Budget Unit 570-87-836 Sports Center - Facilities and Fleet - Sports Center Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 490,076 Fund Balance $ (490,076) General Fund Costs - % Funded by General Fund - Total Staffing 0.7 FTE Program Overview This program maintains Sport Center facilities to ensure efficient operations, employee satisfaction, user satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $490,076 for the Sports Center Maintenance program. This represents an increase of $5,453 (1.1%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Special Projects The following table shows the special projects for the fiscal year. 474 Special Project Appropriation Revenue Funding Source Description Paint lower level floor & stairwell $30,000 Sport Center Enterprise Fund Paint racquetball and gym $30,000 Sport Center Enterprise Fund Panel replacement in lower level $15,000 Sport Center Enterprise Fund Total $75,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 475 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 65,935 $ 66,612 $ 63,612 $ 65,543 Employee Benefits $ 27,338 $ 30,439 $ 34,254 $ 34,021 Materials $ 101,913 $ (36,612)$ 145,167 $ 158,778 Contract Services $ 52,493 $ 67,112 $ 60,000 $ 60,000 Cost Allocation $ 100,543 $ 68,055 $ 71,054 $ 86,476 Capital Outlay $ 45,826 $ 16,450 $ 95,000 - Special Projects ---$ 75,000 Appropriations for Contingency --$ 15,536 $ 10,258 Total Expenditures $ 394,048 $ 212,055 $ 484,623 $ 490,076 Fund Balance $ (394,048)$ 192,562 $ (484,623)$ (490,076) General Fund Costs -$ 404,617 -- Staffing Total current authorized positions - 0.70 There are no changes to the current level of staffing. Total recommended positions - 0.70 476 Creekside Park Maintenance Budget Unit 100-87-837 General Fund - Facilities and Fleet - Creekside Park Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 60,650 Total Expenditures $ 65,790 Fund Balance - General Fund Costs $ 5,140 % Funded by General Fund 7.8 % Total Staffing 0.2 FTE Program Overview This program maintains Creekside Park building to ensure efficient operations, user satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $65,790 for the Creekside Park Maintenance program. This represents a decrease of $70,123 (-51.6%) from the FY 2018 Adopted Budget. The decrease is primarily due to the completion of special projects. The increases in electric and water service is due to rate increases. The increase in cost allocation is due to a change in allocation methodology for equipment and IT charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 477 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 89,958 $ 81,781 $ 60,650 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 89,958 $ 81,781 $ 60,650 Expenditures Employee Compensation $ 17,574 $ 18,722 $ 19,509 $ 20,025 Employee Benefits $ 8,784 $ 9,813 $ 10,022 $ 9,616 Materials $ 9,688 $ 8,889 $ 13,755 $ 16,324 Contract Services $ 10,483 $ 13,168 $ 10,000 $ 10,000 Cost Allocation $ 3,336 $ 12,290 $ 2,868 $ 8,509 Capital Outlay $ 14,617 $ 192 $ 78,000 - Special Projects ---- Appropriations for Contingency --$ 1,759 $ 1,316 Total Expenditures $ 64,481 $ 63,074 $ 135,913 $ 65,790 Fund Balance ---- General Fund Costs $ 64,481 $ (26,884)$ 54,132 $ 5,140 Staffing Total current authorized positions - 0.20 There are no changes to the current level of staffing. Total recommended positions - 0.20 478 Community Hall Maintenance Budget Unit 100-87-838 General Fund - Facilities and Fleet - Community Hall Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 202,167 Total Expenditures $ 251,328 Fund Balance - General Fund Costs $ 49,161 % Funded by General Fund 19.6 % Total Staffing 0.5 FTE Program Overview This program maintains Community Hall and interactive fountain to ensure efficient operations, employee satisfaction, user satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by City Hall staff. Manage and responsibly coordinate work completed by contractors. Ensure water quality and functionality of interactive fountain. Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 5, 2018, City Council approved a budget of $251,328 for the Community Hall Maintenance program. This represents a decrease of $15,931 (-6.0%) from the FY 2018 Adopted Budget. The decrease is primarily due to the completion of special projects. The increase in electric and water services is due to rate increases. The increase in cost allocation is due to a change in allocation methodology for equipment and IT charges. This budget includes $10,000 in annual maintenance for the Civic Center fountain. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 479 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 275,140 $ 250,130 $ 202,167 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 275,140 $ 250,130 $ 202,167 Expenditures Employee Compensation $ 35,133 $ 32,122 $ 36,837 $ 36,262 Employee Benefits $ 19,576 $ 19,386 $ 20,717 $ 20,686 Materials $ 41,646 $ 44,090 $ 59,800 $ 66,425 Contract Services $ 23,102 $ 33,471 $ 95,000 $ 105,000 Cost Allocation $ 5,556 $ 7,020 $ 3,825 $ 14,384 Capital Outlay $ 1,410 $ 54,296 $ 45,000 - Special Projects ---- Appropriations for Contingency --$ 6,080 $ 8,571 Total Expenditures $ 126,424 $ 190,385 $ 267,259 $ 251,328 Fund Balance ---- General Fund Costs $ 126,424 $ (84,755)$ 17,129 $ 49,161 Staffing Total current authorized positions - 0.50 There are no changes to the current level of staffing. Total recommended positions - 0.50 480 Teen Center Maintenance Budget Unit 100-87-839 General Fund - Facilities and Fleet - Teen Center Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 80,867 Total Expenditures $ 96,024 Fund Balance - General Fund Costs $ 15,157 % Funded by General Fund 15.8 % Total Staffing 0.1 FTE Program Overview This program maintains the Teen Center area below the Sports Center to ensure efficient operations, employee satisfaction, user satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by 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 5, 2018, City Council approved a budget of $96,024 for the Teen Center Maintenance program. This represents an increase of $48,991 (104.2%) from the FY 2018 Adopted Budget. The increase is primarily due to gas, electric and water service rate increases, special projects and cost allocation increases due to a change in allocation methodology for equipment and IT charges. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description Painting $30,000 General Fund Teen Center Carpet replacement $20,000 General Fund Teen Center Total $50,000 Revenues and Expenditures 481 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 44,312 $ 97,866 $ 80,867 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 44,312 $ 97,866 $ 80,867 Expenditures Employee Compensation $ 8,887 $ 9,270 $ 9,015 $ 9,009 Employee Benefits $ 4,319 $ 4,981 $ 5,084 $ 5,182 Materials $ 11,513 $ 11,581 $ 9,446 $ 10,173 Contract Services $ 20,914 $ 19,411 $ 14,000 $ 14,000 Cost Allocation $ 1,116 $ 6,082 $ 2,869 $ 3,951 Capital Outlay --$ 5,000 - Special Projects ---$ 50,000 Appropriations for Contingency --$ 1,619 $ 3,709 Total Expenditures $ 46,748 $ 51,325 $ 47,033 $ 96,024 Fund Balance ---- General Fund Costs $ 46,748 $ 7,012 $ (50,833)$ 15,157 Staffing Total current authorized positions - 0.10 There are no changes to the current level of staffing. Total recommended positions - 0.10 482 Park Bathrooms Maintenance Budget Unit 100-87-840 General Fund - Facilities and Fleet - Park Bathrooms Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 168,860 Fund Balance - General Fund Costs $ 168,860 % Funded by General Fund 100.0 % Total Staffing 0.2 FTE Program Overview This program maintains park restrooms to ensure efficient operations, user satisfaction, and community pride. Service Objectives Provide clean and functioning restrooms at various park locations. Respond to requests made by the users of the park. Manage and responsibly coordinate work completed by contractors. Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 5, 2018, City Council approved a budget of $168,860 for the Park Bathrooms Maintenance program. This represents an increase of $13,895 (9.0%) from the FY 2018 Adopted Budget. The increase is due primarily to special projects. The increase in cost allocation is due to a change in allocation methodology for IT charges. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description New floor, plumbing fixtures, paint and wallcovering $30,000 General Fund Creekside Park Restrooms Total $30,000 Revenues and Expenditures 483 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 14,108 $ 15,689 $ 16,290 $ 16,897 Employee Benefits $ 6,402 $ 7,346 $ 8,283 $ 8,477 Materials $ 18,743 $ 26,196 $ 25,080 $ 25,080 Contract Services $ 22,637 $ 28,604 $ 75,000 $ 75,000 Cost Allocation -$ 2,932 $ 1,912 $ 8,402 Capital Outlay $ 2,000 $ 3,305 $ 20,400 $ 30,000 Special Projects ---- Appropriations for Contingency --$ 8,000 $ 5,004 Total Expenditures $ 63,889 $ 84,071 $ 154,965 $ 168,860 Fund Balance ---- General Fund Costs $ 63,889 $ 84,071 $ 154,965 $ 168,860 Staffing Total current authorized positions - 0.20 There are no changes to the current level of staffing. Total recommended positions - 0.20 484 Blackberry Farm Maintenance Budget Unit 100-87-841 General Fund - Facilities and Fleet - Blackberry Farm Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues $ 444,766 Total Expenditures $ 556,114 Fund Balance - General Fund Costs $ 111,348 % Funded by General Fund 20.0 % Total Staffing 0.9 FTE Program Overview This program maintains Blackberry Farm buildings and facilities to ensure efficient operations, employee satisfaction, user satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for the public and employees. Timely response to requests made by Recreation and Community Services Department staff. Manage and responsibly coordinate work completed by contractors. Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 5, 2018, City Council approved a budget of $556,114 for the Blackberry Farm Maintenance program. This represents an increase of $257,906 (86.5%) from the FY 2018 Adopted Budget. The increase is primarily due to gas, electric and water service rate increases, special projects and increases in cost allocation due to a change in allocation methodology for equipment charges. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Replaster pools $200,000 General Fund Blackberry Farm Park Total $200,000 Revenues and Expenditures 485 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services -$ 380,515 $ 568,674 $ 444,766 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ 380,515 $ 568,674 $ 444,766 Expenditures Employee Compensation $ 52,402 $ 55,440 $ 64,595 $ 66,363 Employee Benefits $ 27,040 $ 33,282 $ 37,810 $ 38,538 Materials $ 100,054 $ 97,435 $ 95,882 $ 104,601 Contract Services $ 63,569 $ 54,148 $ 55,000 $ 55,000 Cost Allocation $ 2,220 $ 52,724 $ 8,606 $ 83,822 Capital Outlay $ 57,988 $ 16,288 $ 25,000 $ 200,000 Special Projects ---- Appropriations for Contingency --$ 11,315 $ 7,790 Total Expenditures $ 303,273 $ 309,317 $ 298,208 $ 556,114 Fund Balance ---- General Fund Costs $ 303,273 $ (71,198)$ (270,466)$ 111,348 Staffing Total current authorized positions - 0.90 There are no changes to the current level of staffing. Total recommended positions - 0.90 486 Franco Traffic Operations Center Budget Unit 100-87-852 General Fund - Facilities and Fleet - Franco Traffic Operations Center Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 35,633 Fund Balance - General Fund Costs $ 35,633 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview This program maintains the Traffic Operations Center on Franco Court to ensure efficient operations, user satisfaction, and community pride. Service Objectives Provide a safe, clean and productive working environment for city employees. Respond to requests made by Traffic Operations Center staff. Manage and responsibly coordinate work completed by contractors. Perform improvements that responsibly conserve the resources of water, electricity, and gas. Adopted Budget On June 5, 2018, City Council approved a budget of $35,633 for the Franco Traffic Operations Center program. This represents an increase of $17,633 (98.0%) from the FY 2018 Adopted Budget. The increase is due primarily to a change in allocation methodology for equipment and IT charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 487 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation ---- Employee Benefits ---- Materials ---- Contract Services ---- Cost Allocation ---$ 35,633 Capital Outlay --$ 18,000 - Special Projects ---- Appropriations for Contingency ---- Total Expenditures --$ 18,000 $ 35,633 Fund Balance ---- General Fund Costs --$ 18,000 $ 35,633 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 488 Traffic Engineering Budget Unit 100-88-844 General Fund - Transportation - Traffic Engineering Budget at a Glance 2019 Adopted Budget Total Revenues $ 458,500 Total Expenditures $ 1,446,695 Fund Balance - General Fund Costs $ 988,195 % Funded by General Fund 68.3 % Total Staffing 3.5 FTE Program Overview The Transportation Division oversees traffic operations, traffic studies, transportation planning, and transportation capital improvements to safely and efficiently manage all modes of travel within the City’s street and trail network. This includes responding to citizen requests and concerns regarding traffic issues, developing plans for the installation of traffic signals, traffic signs, and pavement markings, and developing design standards. The Division assists in the preparation of the General Plan, street plan lines and the capital improvement program related to street improvements. Division staff are active on Santa Clara Valley Transportation Authority (VTA) subcommiQees 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 paQerns, and neighborhood traffic issues and respond as needed. Cooperate with neighboring jurisdictions on regional issues that affect both traffic safety and traffic efficiency at City boundaries. Continue training personnel in traffic engineering by encouraging attendance at classes and seminars. Encourage the use of alternate modes of transportation to the single occupancy vehicle through the implementation of recommendations from the Bicycle and Pedestrian Transportation Plans. Supports transit initiatives, ride-share programs, carpool programs, and transportation planning work for all modes of transportation. Adopted Budget 489 Adopted Budget On June 5, 2018, City Council approved a budget of $1,446,695 for the Traffic Engineering program. This represents an increase of $445,671 (44.5%) from the FY 2018 Adopted Budget. The increase in compensation and benefits is due to negotiated salary and benefit changes due to take effect in July 2018. The increase in meeting and training costs will support staff development and certifications. The increase in cost allocation is due to a change in allocation methodology for IT, finance and human resources charges. In addition, the budget includes $22,000 in funding for the RYDE (Reach Your Destination Easily) program which provides transportation services to seniors. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Traffic Signal System Upgrade $400,000 General Funds Replace obsolete traffic signal hardware AC2 Staff Time Pass Through $20,500 $20,500 Pass Through Total $400,000 $20,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 490 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 1,230,461 $ 924,468 $ 282,000 $ 458,500 Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 1,230,461 $ 924,468 $ 282,000 $ 458,500 Expenditures Employee Compensation $ 297,999 $ 395,224 $ 462,698 $ 466,791 Employee Benefits $ 114,510 $ 165,368 $ 183,851 $ 193,270 Materials $ 8,512 $ 8,492 $ 9,655 $ 11,555 Contract Services $ 153,013 $ 271,058 $ 216,700 $ 236,800 Cost Allocation $ 22,991 $ 82,633 $ 92,467 $ 106,461 Capital Outlay ---- Special Projects $ 1,200,000 $ 898,279 $ 22,000 $ 420,500 Appropriations for Contingency --$ 13,653 $ 11,318 Total Expenditures $ 1,797,024 $ 1,821,054 $ 1,001,024 $ 1,446,695 Fund Balance ---- General Fund Costs $ 566,563 $ 896,587 $ 719,024 $ 988,195 Staffing Total current authorized positions - 3.50 There are no changes to the current level of staffing. The 3-year limited-term Associate Engineer position, funded 75% in this program, will be converted to a full-time permanent position. In the 2016 Budget, a 3 year limited-term Associate Engineer position was created to manage and assist with various new active transportation efforts included in the adopted 2018 Pedestrian Master Plan, the Traffic Impact Fee development, and the Bicycle Transportation Plan implementation. In the 2018 Budget, the City Council added additional funding of $3 million to an already aggressive implementation schedule for the 2016 Bicycle Transportation Plan. This includes implementation of notable projects such as the McClellan Avenue Protected Bike Lanes, the Junipero Serra Trail, the UPRR Trail, the Regnart Trail, and the Bike Boulevard network. In the fall of 2017, a donation of an additional $1.8 million was made for the implementation of the first phase of the 491 Stevens Creek Boulevard Protected Bike Lanes. Additionally, with the completion of the Pedestrian Master Plan and follow-on projects, and the eventual programming of revenues generated from the Transportation Impact Fee, this position is necessary and sustainable within the organization for the foreseeable future. Total recommended positions - 3.50 492 Traffic Signal Maintenance Budget Unit 100-88-845 General Fund - Transportation - Traffic Signal Maintenance Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 526,530 Fund Balance - General Fund Costs $ 526,530 % Funded by General Fund 100.0 % Total Staffing 2.0 FTE Program Overview The Traffic Signal Maintenance Division oversees the operation and maintenance of the City’s 60 traffic signals, including eight traffic signals owned by the State of California. The Division also maintains the traffic signal communication infrastructure, such as the fiber optic network and the traffic operation center hub. Service Objectives Ensure the continuous and safe operation of the City’s traffic signal system on a continuous 24-hour basis with full-time and on-call staff, which is accomplished by regularly performing preventative maintenance, diagnosing malfunctions and repairs, investigating citizen complaints, replacing or upgrading obsolete hardware, inspecting the work of contractors, responding to knockdowns and power outages, and adjusting signal timing parameters. Continue training, maintaining proficiency of traffic signal technicians and on-call staff by encouraging attendance at classes and seminars. Adopted Budget On June 5, 2018, City Council approved a budget of $526,530 for the Traffic Signal Maintenance program. This represents a decrease of $187,203 (-26.2%) from the FY 2018 Adopted Budget. Increases in compensation and benefits are due to negotiated salary and benefit changes due to take effect in July 2018. Decreases in contract services are due to reallocating budget to beQer reflect actual expenses in this program. Decreases in cost allocation are due to a change in allocation methodology for IT, finance, and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 493 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services $ 30,316 $ 89,777 -- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues $ 30,316 $ 89,777 -- Expenditures Employee Compensation $ 202,968 $ 206,118 $ 215,420 $ 227,033 Employee Benefits $ 88,927 $ 94,818 $ 92,563 $ 100,910 Materials $ 43,855 $ 47,234 $ 56,690 $ 61,984 Contract Services $ 104,728 $ 94,617 $ 201,000 $ 42,000 Cost Allocation $ 68,124 $ 66,029 $ 127,856 $ 84,404 Capital Outlay $ 36,499 $ 128,318 -- Special Projects ---- Appropriations for Contingency --$ 20,204 $ 10,199 Total Expenditures $ 545,100 $ 637,134 $ 713,733 $ 526,530 Fund Balance ---- General Fund Costs $ 514,784 $ 547,357 $ 713,733 $ 526,530 Staffing Total current authorized positions - 2.00 There are no changes to the current level of staffing. Total recommended positions - 2.00 494 Safe Routes 2 School Budget Unit 100-88-846 General Fund - Transportation - Safe Routes 2 School Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 446,499 Fund Balance - General Fund Costs $ 446,499 % Funded by General Fund 100.0 % Total Staffing 1.0 FTE Program Overview Safe Routes 2 School seeks to engage local schools, school districts, parent organizations, community groups, and the Santa Clara County Sheriff’s Office in the mission of reducing Singular Occupancy Vehicle (SOV) travel to and from school in order to reduce carbon emission and car traffic and increase student safety. The program seeks to achieve these objectives through education, encouragement, enforcement, and engineering infrastructure changes in and around Cupertino schools. Service Objectives Help to improve the health and well-being of children by increasing the number of students who walk or bike to school. Develop partnerships with school administrators, staff, parents, and children. Encourage and empower more students and families to walk, bike, carpool, and take alternative transit to school. Adjust signage and infrastructure surrounding Cupertino schools to facilitate a safer environment for bicycle and pedestrian travel. Educate students and families about the benefits of walking and bicycling to school; health, environmental protection, academic improvements, community building and more. Minimize gaps in communication between City, School Districts, and Schools and collaborate on efforts to increase student safety. Adopted Budget On June 5, 2018, City Council approved a budget of $446,499 for the Safe Routes 2 School program. This represents an increase of $299,738 (204.2%) from the FY 2018 Adopted Budget. Safe Routes 2 School is a new program that was funded by the Traffic Engineering program in previous fiscal years. Increase in contract services is aQributed to the crossing guard contract being moved from the Service Center Administration program. Increases in compensation and benefits are due to negotiated salary and benefit changes due to take effect in July 2018. In previous fiscal years, all materials and supplies were budgeted in 700- 495 702, general contract services. The increase in materials is due to the budget being reallocated to line items where the expenses actually occur. Increases in cost allocation are due to a change in allocation methodology for IT, finance and human resources charges. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property ---- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues ---- Expenditures Employee Compensation --$ 86,924 $ 106,103 Employee Benefits --$ 36,495 $ 40,829 Materials --$ 2,200 $ 32,575 Contract Services --$ 9,800 $ 235,000 Cost Allocation --$ 9,562 $ 18,613 Capital Outlay ---- Special Projects ---- Appropriations for Contingency --$ 1,780 $ 13,379 Total Expenditures --$ 146,761 $ 446,499 Fund Balance ---- General Fund Costs --$ 146,761 $ 446,499 Staffing Total current authorized positions - 1.00 There are no changes to the current level of staffing. Total recommended positions - 1.00 496 Minor Storm Drain Improvement Budget Unit 210-90-978 Storm Drain Improvement - Non-Departmental - Minor Storm Drain Improvement Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview This program provides funding for drainage repairs as needed in various locations. Service Objectives Provide storm drain repairs throughout the City on an annual basis. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 497 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 ---- Cost Allocation ---- Capital Outlay $ 50,141 $ 4,000 -- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 50,141 $ 4,000 -- Fund Balance $ (21,841)$ (4,000)-- General Fund Costs ---- Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 498 Fixed Assets Acquisition Budget Unit 630-90-985 Vehicle/Equip Replacement - Non-Departmental - Fixed Assets Acquisition Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 538,000 Fund Balance $ (538,000) General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview This program purchases equipment having a value greater than $5,000 and expected life of more than one year. Equipment users are charged for the use of these assets through a depreciation schedule. Equipment used by Special Revenue and Enterprise funds are charged to the respective funds. Service Objectives Obtain quality equipment through competitive bidding. Purchase energy efficient vehicles whenever practical. Purchase quiet, ergonomic and environmentally friendly equipment whenever practical. Adopted Budget On June 5, 2018, City Council approved a budget of $538,000 for the Fixed Assets Acquisition program. This represents a decrease of $491,200 (-47.7%) from the FY 2018 Adopted Budget. The decrease is aQributed to replacement of several vehicles in past fiscal years. Replacement vehicles and equipment are described in the table below. Special Projects The following table shows the special projects for the fiscal year. 499 Replacement Vehicles Cost Replace #37 Crown Victoria $35,000 Replace #23 Ranger $55,000 Replace #44 F350 $55,000 Replace #26 Crown Victoria $35,000 Replace #43 Crown Victoria $50,000 Replace #33 F250 $45,000 Replace #1 F150 $35,000 Replace #164 Dingo $30,000 Replace #39 F350 $80,000 Replace #84 F350 $80,000 Total Replacement Vehicle $500,000 Replacement Equipment Replace #146 mower $25,000 Replace #105 aerator attachment $13,000 Total Replacement Equipment $38,000 Grand Total $538,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 500 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 7,167 $ 5,217 $ 1,029,200 $ 538,000 Appropriations for Contingency ---- Total Expenditures $ 7,167 $ 5,217 $ 1,029,200 $ 538,000 Fund Balance $ (7,167)$ (5,217)$ (1,029,200)$ (538,000) General Fund Costs ---- Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 501 This page intentionally left blank. 502 Non-Departmental Non-Departmental Budget Unit Program 2019 Adopted Budget Non-Departmental $ 25,254,850 100-90-001 Transfers Out $ 11,358,912 429-90-001 Transfers Out $ 10,726,500 365-90-500 Facility Lease Debt Service $ 3,169,438 100-90-502 Employee Housing Assistance - Total $ 25,254,850 503 Department Overview Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 25,254,850 Fund Balance $ (10,726,500) General Fund Costs $ 14,528,350 % Funded by General Fund 57.5 % Total Staffing 0 FTE Adopted Budget On June 5, 2018, City Council approved a budget of $25,254,850 for the Non-Departmental department. This represents a decrease of $8,864,422 (-26.0%) from the FY 2018 Adopted Budget. The decrease is primarily due to a decrease in Enterprise and Internal Service funds requiring subsidies from the General Fund to meet the 15% minimum projected fund balance for the fiscal year. In addition, there is a decrease in transfers out from the Capital Reserve due to the costs of projects and alternative funding available for those projects. 504 Adopted Expenditures by Division Department Expenditure History Revenues and Expenditures 100.0% Citywide - Non Departmental $21.5M $40.9M $34.1M $25.3M 2016 Actual 2017 Actual 2018 Adopted 2019 Adopted 505 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property -$ (44,388)-- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ (44,388)-- Expenditures Employee Compensation ---- Employee Benefits ---- Materials $ (384,004)$ 7,471 $ 10,000 - Contract Services ---- Cost Allocation $ 21,883,803 $ 40,842,577 $ 34,109,272 $ 25,254,850 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 21,499,798 $ 40,850,047 $ 34,119,272 $ 25,254,850 Fund Balance $ (5,927,306)$ 6,246,305 $ (15,184,000)$ (10,726,500) General Fund Costs $ 15,572,493 $ 47,140,740 $ 18,935,272 $ 14,528,350 506 Transfers Out Budget Unit 100-90-001 General Fund - Non-Departmental - Transfers Out Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 11,358,912 Fund Balance - General Fund Costs $ 11,358,912 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview Transfers represent transfers of monies between various funds. These transfers provide subsidies and resources and to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies to other funds and funding of capital projects are included in transfers. Service Objectives Transfers out are evaluated each year to ensure funds outside of the General Fund remain with a minimum fund balance of 15% of budgeted operating expenses. These transfers are normally for Special Revenue and Enterprise funds requiring a subsidy due to revenues falling short of full program costs. In addition, the City has reoccurring transfers to the Transportation Fund of $5.8 million annually for pavement maintenance costs in addition to funding the total budget costs associated with Annual Debt Payment, Compensated Absences, and Retiree Health. Adopted Budget On June 5, 2018, City Council approved a budget of $11,358,912 for the Transfers Out program. This represents a decrease of $4,398,822 (-27.9%) from the FY 2018 Adopted Budget. The General Fund transfers out for FY 2019 are as follows: Transfer Out from the General Fund Description Amount Special Revenue Storm Drain, Non Point Source, Sidewalk, Curb and Gutters Maintenance $6,611,000 Debt Service Annual Debt Payment $3,169,438 Internal Service Funds General Fund subsidy of Compensated Absences and Retiree Medical $1,578,474 Total General Fund Transfers Out $11,358,912 507 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ (391,424)--- Contract Services ---- Cost Allocation $ 13,163,945 $ 28,965,731 $ 15,757,734 $ 11,358,912 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 12,772,521 $ 28,965,731 $ 15,757,734 $ 11,358,912 Fund Balance ---- General Fund Costs $ 12,772,521 $ 28,965,731 $ 15,757,734 $ 11,358,912 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 508 Transfers Out Budget Unit 429-90-001 Capital Reserve - Non-Departmental - Transfers Out Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 10,726,500 Fund Balance $ (10,726,500) General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview Transfers represent transfers of monies between various funds. These transfers provide subsidies and resources and to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies to other funds and funding of capital projects are included in transfers. Service Objectives Transfers out from the Capital Reserve vary from year to year depending on the projects selected in the Capital Improvement Plan. In addition, funding sources for each project are reviewed and then allocated appropriately. After this review, the remaining balance of the project left to fund is then transferred from the Capital Reserve Fund. Adopted Budget On June 5, 2018, City Council approved a budget of $10,726,500 for the Transfers Out program. This represents a decrease of $4,457,500 (-29.4%) from the FY 2018 Adopted Budget. The Capital Reserve transfers out for FY 2019 are as follows: Transfer Out from the Capital Reserve Description Amount Special Revenue Fund Capital Improvement Projects $1,600,000 Capital Fund Capital Improvement Projects $9,051,500 Enterprise Fund Capital Improvement Projects $75,000 Total Capital Reserve Transfers Out $10,726,500 Revenues and Expenditures 509 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted Budget Revenues Taxes ---- Licenses and Permits ---- Use of Money and Property -$ (44,388)-- Intergovernmental Revenue ---- Charges for Services ---- Fines and Forfeitures ---- Miscellaneous Revenue ---- Interdepartmental Revenue ---- Total Revenues -$ (44,388)-- Expenditures Employee Compensation ---- Employee Benefits ---- Materials ---- Contract Services ---- Cost Allocation $ 5,549,993 $ 8,704,608 $ 15,184,000 $ 10,726,500 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 5,549,993 $ 8,704,608 $ 15,184,000 $ 10,726,500 Fund Balance $ (2,758,268)$ 6,251,004 $ (15,184,000)$ (10,726,500) General Fund Costs $ 2,791,725 $ 15,000,000 -- Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 510 Facility Lease Debt Service Budget Unit 365-90-500 Public Facilities Corp - Non-Departmental - Facility Lease Debt Service Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures $ 3,169,438 Fund Balance - General Fund Costs $ 3,169,438 % Funded by General Fund 100.0 % Total Staffing 0 FTE Program Overview The Debt Service Program provides for the payment of principal and interest and associated administrative costs incurred with the issuance of debt instruments for the City’s Public Facilities Corporation. The budget funds the Corporation’s annual payment of principal and interest on the City Hall/Library, Wilson/Memorial Open Space and Library Certificates of Participation (COP) that will be paid off by the year 2030. Service Objectives The majority of the borrowings occurred in early 1990 to acquire additional park real estate and expand community facilities. A breakdown of the capital acquisitions follows: Increased 90 acres of park real estate to 190 acres, a 111% increase Increased 26,031 sq ft of recreation building space to 84,460 sq ft, a 224% increase Specific purchases included: Blackberry Farm - $18 million, voter-approved debt; Creekside Park - $12 million voter-approved debt; Sports Center - $8 million; Quinlan Community Center, including park real estate - $6.1 million; Wilson Park and improvements - $5.6 million; Jollyman Park development - $1 million; City Hall renovation/improvements - $1.7 million; Library renovation/improvements - $1.7 million; New library/community center - $10 million. In May 2012, the Corporation refinanced its $44 million in outstanding debt to lower the interest rate and save approximately $350,000 per year in debt payments. 511 Schedule of Lease Payments Payment Date Principal Component Interest Component Total Lease Payment Annual Lease 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 12/15/27 136,243.75 136,243.75 512 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 Payment Date Principal Component Interest Component Total Lease Payment Annual Lease Payment Adopted Budget On June 5, 2018, City Council approved a budget of $3,169,438 for the Facility Lease Debt Service program. This represents an increase of $1,900 (0.1%) from the FY 2018 Adopted Budget. This budget remains relatively unchanged from the prior fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 513 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 3,169,038 $ 3,172,238 $ 3,167,538 $ 3,169,438 Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 3,169,038 $ 3,172,238 $ 3,167,538 $ 3,169,438 Fund Balance $ (3,169,038)$ (4,700)-- General Fund Costs -$ 3,167,538 $ 3,167,538 $ 3,169,438 Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 514 Employee Housing Assistance Budget Unit 100-90-502 General Fund - Non-Departmental - Employee Housing Assistance Budget at a Glance 2019 Adopted Budget Total Revenues - Total Expenditures - Fund Balance - General Fund Costs - % Funded by General Fund - Total Staffing 0 FTE Program Overview The recruitment and hiring of top quality department heads are essential to the efficient operation of the City. Housing costs in Silicon Valley tend to act as a disincentive to persons relocating to the area, and therefore, as an obstacle to the recruitment, hiring, and retention of such top quality personnel. To assist in this end, the Council adopted the housing assistance program for department heads. Service Objectives The housing assistance program for department heads provides housing loans for their primary residence at interest rates indexed with the 11th District cost of funds with an optional deferred interest feature for the first five years. There is assistance with half of the closing costs. The City may assist in the purchase by acquiring up to thirty percent of the equity share in the residence. Adopted Budget There is no budget requested for this program. The City anticipates closing out the only loan under this program in Fiscal Year 2018 and this budget will be phased out in future years should no additional employees choose to participate. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year: 515 Category 2016 Actual 2017 Actual 2018 Adopted Budget 2019 Adopted 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 $ 7,419 $ 7,471 $ 10,000 - Contract Services ---- Cost Allocation $ 827 --- Capital Outlay ---- Special Projects ---- Appropriations for Contingency ---- Total Expenditures $ 8,246 $ 7,471 $ 10,000 - Fund Balance ---- General Fund Costs $ 8,246 $ 7,471 $ 10,000 - Staffing Total current authorized positions - 0.00 There is no staffing associated with this program. Total recommended positions - 0.00 516 Personnel Summary Fiscal Year 2018-19 Adopted Budget Personnel Summary FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Change FY 18-19 CITY COUNCIL/COMMISSIONS City Council 0.50 0.50 0.50 0.45 0.30 1.15 -0.10 1.05 Sister Cities 0.00 0.00 0.10 0.05 0.05 0.10 0.00 0.10 Fine Arts Commission 0.10 0.10 0.15 0.15 0.15 0.15 0.00 0.15 Technology, Information & Communications Commission 0.10 0.10 0.10 0.10 0.10 0.00 0.00 0.00 Parks and Recreation Commission 0.10 0.10 0.05 0.10 0.10 0.10 0.00 0.10 Teen Commission 0.15 0.25 0.25 0.25 0.30 0.30 0.00 0.30 Housing Commission 0.05 0.05 0.15 0.15 0.15 0.15 0.00 0.15 Library Commission 0.07 0.05 0.05 0.05 0.05 0.05 0.00 0.05 Sustainability Commission 0.00 0.00 0.00 0.00 0.10 0.10 0.00 0.10 Public Safety Commission 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.05 Planning Commission 0.45 0.42 0.30 0.30 0.25 0.25 0.05 0.30 1.52 1.57 1.55 1.60 1.55 2.35 0.00 2.35 ADMINISTRATION City Manager 1.40 2.55 2.55 3.30 3.02 3.37 0.25 3.62 Sustainability 0.00 0.60 0.60 1.55 1.55 1.80 0.00 1.80 Public Affairs 0.00 0.00 0.00 0.00 0.00 1.85 0.30 2.15 City Clerk 0.00 3.60 3.60 3.00 3.00 3.10 -0.20 2.90 Community Outreach 0.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Economic Development 0.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 City Attorney 2.90 3.00 3.00 3.00 3.00 4.00 1.00 5.00 5.05 10.75 10.75 10.85 10.57 14.12 1.35 15.47 INNOVATION & TECHNOLOGY Administration 1.60 1.80 1.80 1.15 2.45 0.85 -0.15 0.70 Video (formerly Government Channel)3.20 3.15 3.15 2.95 3.40 3.25 -0.05 3.20 Applications (formerly City Website)0.95 0.95 0.95 0.95 0.80 3.20 0.25 3.45 GIS 0.00 0.00 0.00 2.00 2.30 2.65 0.55 3.20 Infrastructure (formerly Information Technology)0.00 4.00 4.00 4.00 4.70 4.60 -0.10 4.50 Cupertino Scene 0.35 0.35 0.35 0.35 0.30 0.00 0.00 0.00 Community Outreach 0.00 0.75 0.00 0.00 0.00 0.00 0.00 0.00 Environmental Affairs 0.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.90 11.00 10.25 11.40 13.95 14.55 0.50 15.05 ADMINISTRATIVE SERVICES Administration 1.93 2.70 1.80 2.50 2.50 2.80 1.00 3.80 Accounting 4.33 4.50 5.60 5.20 5.75 5.40 1.00 6.40 Business Licensing 0.50 0.50 0.50 1.10 0.55 0.60 0.00 0.60 City Clerk 2.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Duplicating and Printing 0.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Human Resources 3.50 2.95 3.75 3.15 3.15 2.85 0.00 2.85 Insurance Administration 0.50 0.35 0.35 0.35 0.35 0.35 0.00 0.35 Code Enforcement 4.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Information Technology 4.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22.26 11.00 12.00 12.30 12.30 12.00 2.00 14.00 RECREATION AND COMMUNITY SERVICES Administration 2.00 2.05 3.05 2.95 2.85 2.90 0.95 3.85 Business and Community Services 9.60 9.80 9.85 8.85 9.55 10.60 -0.30 10.30 Recreation and Education 4.88 4.58 4.53 5.58 11.85 10.70 -0.70 10.00 Sports, Safety and Outdoor Recreation 6.00 6.05 6.00 6.00 8.83 10.93 -0.28 10.65 Senior Center/Stevens Creek Trail/Blue Pheasant 7.05 7.00 7.10 8.10 0.00 0.00 0.00 0.00 Blackberry Farm 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Community Outreach 0.00 0.00 0.75 0.70 0.00 0.00 0.00 0.00 29.53 29.48 31.28 32.18 33.08 35.13 -0.33 34.80 517 Fiscal Year 2018-19 Adopted Budget Personnel Summary FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Change FY 18-19 COMMUNITY DEVELOPMENT Administration 1.39 1.41 0.90 0.90 0.55 0.55 0.00 0.55 Planning 7.89 8.84 9.10 8.60 10.63 10.63 -0.05 10.58 Housing Services 0.68 0.68 0.80 0.80 0.80 0.80 0.00 0.80 Building 11.90 12.25 12.25 13.30 13.95 13.85 0.10 13.95 Economic Development/RDA Successor Agency 2.04 0.00 0.00 1.00 1.00 1.00 0.00 1.00 Muni/Building Code Enforcement 0.00 1.65 1.75 2.70 1.25 1.25 0.00 1.25 23.90 24.83 24.80 27.30 28.18 28.08 0.05 28.13 PUBLIC WORKS Administration 3.25 10.15 3.25 3.25 3.25 3.25 0.00 3.25 Environmental Programs 3.17 3.67 4.17 6.22 6.22 6.27 -0.07 6.20 Development Services 6.82 0.00 7.40 7.40 7.40 7.50 1.00 8.50 Service Center 2.00 2.00 2.30 2.70 3.70 3.05 -0.50 2.55 Grounds 18.95 18.75 19.75 19.75 19.75 19.60 0.40 20.00 Streets 11.25 13.15 13.10 13.65 13.65 13.95 0.00 13.95 Trees and Right of Way 16.80 15.40 16.40 16.40 16.40 16.40 -0.40 16.00 Facilities and Fleet 7.20 7.15 7.15 8.15 8.15 8.00 0.00 8.00 Transportation 4.15 3.85 3.60 4.60 5.60 6.50 0.00 6.50 73.59 74.12 77.12 82.12 84.12 84.52 0.43 84.95 LAW ENFORCEMENT Code Enforcement 0.00 2.00 2.00 2.00 2.00 2.00 0.00 2.00 0.00 2.00 2.00 2.00 2.00 2.00 0.00 2.00 Total Benefitted Positions 162.75 164.75 169.75 179.75 185.75 192.75 4.00 196.75 Total Benefitted Positions (including councilmembers)167.75 169.75 174.75 184.75 190.75 197.75 4.00 201.75 518