HomeMy WebLinkAbout2025-05-07 Finance Committee Action MinutesFINANCE COMMITTEE
ACTION MINUTES
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Special Meeting
May 7, 2025
The Finance Committee of the City of Palo Alto met on this date in the Community Meeting Room
and by virtual teleconference at 9:00 A.M.
Present In-Person: Burt (Chair), Lythcott-Haims, Reckdahl
Absent:
Call to Order
Public Comment
Agenda Items
1. Overview of the May 6, 2025 Finance Committee Special Meeting – Budget Hearing (9:00 AM
– 9:30 AM)
NO ACTION TAKEN
2. Infrastructure and Environment: (9:30 AM – 11:00 AM)
a) Utilities: Operating
1) Electric Fund (O: 429-444)
2) Fiber Optics Fund (O: 445-452)
3) Gas Fund (O: 453-466)
a) Gas Fund
b) Recommendation to the City Council to Adopt a Resolution Approving
the FY 2026 Gas Utility Financial Forecast and Reserve Transfers, the
Natural Gas Cost of Service and Rate Study, and General Fund Transfer;
and Amending Rate Schedules G-1 (Residential Gas Service), G-2
ACTION MINUTES
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Sp. Finance Committee Meeting
Action Minutes: 05/07/25
(Residential Master-Metered and Commercial Gas Service), G-3 (Large
Commercial Gas Service), and G-10 (Compressed Natural Gas Service)
and Implement a Climate Credit in FY 2026
4) Wastewater Collection Fund (O: 467-478)
5) Water Fund (O: 479-492)
b) Public Works: Operating
1) General Fund (O: 345-362)
2) Airport Fund (O: 363-372)
3) Refuse Fund (O: 373-384)
4) Stormwater Management Fund (O: 385-398)
5) Vehicle Replacement and Maintenance Fund (O: 399-408)
c) Wastewater Treatment Fund (O: 409-420)
MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Burt, to
recommend the City Council
a) Revise the proposed FY 2026 rates to retain the current FY 2025 rate structure, with rate
increases to meet the revenue requirement for FY 2026 in the gas utility;
b) In FY 2026 only, apply a combination of climate credit and interest income to G2
customers (small and medium meter capacities) in the amount of $1.1 million in total,
and
c) Refer staff to return to the UAC to further review the 2025 COSA assumptions and
principles.
MOTION PASSED: 3-0
Lunch Break
The Finance Committee unanimously agreed to tentatively recommend that the City Council
approve Agenda Item #2.
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3. Infrastructure and Environment: Capital Improvement Program (continued), Enterprise Fund
Projects & Internal Service Fund Projects (11:00 AM – 12:00 PM)
a) Information Technology (C: 651-676)
1) Technology Fund
b) Public Works
1) Airport Fund [Public Works] (C: 373-396)
2) Stormwater Management Fund [Public Works] (C: 513-538)
3) Wastewater Treatment Fund [Public Works] (C: 573-608)
4) Vehicle Replacement and Maintenance Fund (C: 677-714)
c) Utilities
1) Electric Fund (C: 397-456)
2) Fiber Optics Fund (C: 457-478)
3) Gas Fund (C: 479-512)
4) Wastewater Collection Fund (C: 539-572)
5) Water Fund (C: 609-648)
The Finance Committee unanimously agreed to tentatively recommend that the City Council
approve Agenda Item #3.
4. FY 2026 Proposed Municipal Fees & Charges
The Finance Committee unanimously agreed to tentatively recommend that the City Council
approve Agenda Item #4.
5. Planning and Transportation (2:00 PM – 3:00 PM)
a) Planning and Development Services (O: 315-330)
b) Office of Transportation (O: 303-314)
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1) Parking Special Revenue Funds
The Finance Committee unanimously agreed to tentatively recommend that the City Council
approve Agenda Item #5.
6. Citywide Internal Support and Administration (continued) (3:00 PM – 3:30 PM)
a) Information Technology (O: 267-280)
b) Administrative Services (including Printing & Mailing Fund) (O: 185-204)
1) Debt Service Funds (O: 123-126; C: 54-60)
c) Human Resources
1) General Fund (O: 241-254)
2) General Liabilities Insurance Program (O: 255-260)
3) Workers Compensation Fund (O: 261-266)
4) General Benefits Fund (O: 501-510)
5) Retiree Health Benefit Fund (O: 511-514)
d) Non-Departmental (O: 493-500)
The Finance Committee unanimously agreed to tentatively recommend that the City Council
approve Agenda Item #6.
7. Closing Summary
MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl, to recommend
the City Council
• Include funding for Project Safety Net, Magical Bridge, Third Thursdays, United Nations
Association Film Festival, and Environmental Volunteers in general human service
contracts
• Allocate $50,000 for Youth Connectedness Initiative
• Allocate an additional $111,000 toward the Nonprofit Workplan Phase I
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• Add an additional $50,000 ongoing funding for community events in the Community
Services Department Operating Budget
MOTION PASSED: 3-0
MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims, to
recommend that the City Council approve the proposed adjustments to the Fiscal Year 2026
Proposed Operating and Capital Budgets and Municipal Fee Schedule in alignment with the work
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completed by the Finance Committee on May 6, 2025 and May 7, 2025 and refer the following
parking lot items to City Council for consideration:
MOTION PASSED: 3-0
Adjournment: The meeting was adjourned at 5:45 P.M.