HomeMy WebLinkAboutStaff Report 2406-3118CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, December 16, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
20.Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2024 and the
Macias, Gini & O’Connell Management Letter; Approve the FY 2024 Annual
Comprehensive Financial Report; and Amend the FY 2024 Budget in Various Funds, as
Recommended by the Finance Committee; CEQA Status – Not a Project
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: December 16, 2024
Report #:2406-3118
TITLE
Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2024 and the Macias,
Gini & O’Connell Management Letter; Approve the FY 2024 Annual Comprehensive Financial
Report; and Amend the FY 2024 Budget in Various Funds, as Recommended by the Finance
Committee; CEQA Status – Not a Project
RECOMMENDATION
Finance Committee and Staff recommend that the City Council:
1.Accept the City of Palo Alto’s audited financial statements for the fiscal year ended June 30,
2024, and the accompanying reports prepared by Macias Gini & O’Connell LLP (“MGO”)1.
Reports include:
a.Report to the City Council (the “Management Letter”),
b.Cable TV Franchise, Independent Auditor’s Report and Statements of Franchise
Revenues and Expenses for the years ended December 31, 2023, and 2022,
c.Palo Alto Public Improvement Corporation (a component unit of the City of Palo
Alto) Annual Financial Report for the year ended June 30, 2024,
d.Regional Water Quality Control Plant, Independent Auditor’s Report and Financial
Statements for the year ended June 30, 2024,
e.Pedestrian/Bicycle Facilities Grant Metropolitan Transportation Commission
Transportation Development Act Funds, Article III, Independent Auditor’s Reports,
Financial Statements and Supplementary Information for the year ended June 30,
2024, and
f.Independent Accountant’s Report on Applying Agreed-Upon Procedures related to
the Article XIII-B Appropriations (GANN) Limit for the year ended June 30, 2024.
1 Finance Committee, 12/3/2024, Item #1A – CMR# 2405-3095 Finance Committee Staff Report, Discussion and
Recommendation to the City Council to Accept the Macias Gini & O’Connell’s Audit of the City of Palo Alto’s
Financial Statements as of June 30, 2024:
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=64755
2.Approve the Fiscal Year (FY) 2024 Annual Comprehensive Financial Report (ACFR) and
reports collectively referred to as the Single Audit in CMR #2404-29122. An electronic copy
is available on the City’s website3;
3.Amend the Fiscal Year 2024 Budget for various funds as identified Recommended
Amendments to the City Manager’s FY 2024 Budget; referenced as “Attachment B – Exhibit
1 and various capital projects as identified in Attachment B – Exhibit 2” (Attachment I) in
CMR #2404-29122 PDF pp.26-40 (Effective on first reading; five votes required).
BACKGROUND
Every year, the fiscal year is closed out and the City Council publishes the City’s financial report
(Palo Alto Municipal Code 2.28.200). At the December 3, 2024 Finance Committee meeting, the
Committee reviewed two staff reports: one transmitted by the City Auditor’s Office and one by
the City Manager’s Office via the Administrative Services Department, and unanimously
approved both reports for City Council consideration4:
•Office of the City Auditor: Discussion and Recommendation to the City Council to Accept
the MGO Audit of the City of Palo Alto’s Financial Statements as of June 30, 20241.
•Administrative Services Department: Recommendation to Approve the Fiscal Year (FY)
2024 ACFR and Approve FY 2024 Budget Amendments in Various Funds2.
MGO issued a clean opinion on each audit report. The City also received the Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance Officers
Association (GFOA) for its FY 2023 ACFR.
ANALYSIS
Government-wide
As outlined in the staff report to the Finance Committee, at the close of FY 2024, the City’s total
Net Position was $1.5 billion, an increase of $98.1 million or 7.2% over the prior fiscal year. The
total increase of $98.1 million consists of $35.1 million from governmental activities and $63.0
million from business-type activities. Approximately 75% of this increase is attributable to net
investment in capital assets (Public Safety Building, Secondary Treatment Upgrades,
2 Finance Committee, 12/3/2024, Item #1B – CMR# 2404-2912 Finance Committee Staff Report, Approval of the FY
2024 ACFR, and Year-End Budget Amendments in Various Funds:
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=64722
3 https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/financial-reporting/annual-
comprehensive-financial-reports-acfr/current-2011-cafrs/city-of-palo-alto-acfr-single-audit-fy2024-final-
unsercured.pdf
4 December 3, 2024, Finance Committee Action Minutes:
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=39016
Wastewater Collection Rehabilitation and Augmentation projects, and Smart Grid Technology
installation) are the primary drivers and restricted funds (i.e., grants, impact fees, pension trust
fund), primarily due to additional pension trust contributions and increase of its fair market
value. Recoveries in fair market value of investment portfolio primarily accounts for the
remaining growth in unrestricted net position. The 95% of citywide net position is comprised of
net investment in capital assets of $1.2 billion (86%) and restricted net position of $104 million
(9%), leaving unrestricted net position of $48.9 million or 5%.
General Fund
Overall, at the end of the current fiscal year, the General Fund’s fund balance was $106.7
million, of which $53.7 million is unassigned fund balance. The main difference between the
BSR balance ($65.9 million) and unassigned fund balance is the investment unrealized loss
adjustment, as required by Governmental Accounting Standards Board (GASB) Statement No.
31. Discussion can be found in staff’s December 3, 2024 report to the Finance Committee2.
The Finance Committee discussed the status of the General Fund and the Budget Stabilization
Reserve (BSR) balance. By policy, the City maintains a BSR balance of 15-20% of the annual
operating expense, with a target level of 18.5%. After adjusting the BSR for FY 2025 uses
approved by Council5, the net BSR balance was $63.3 million, or $8.9 million above Council’s
18.5% BSR target level. The $8.9 million is comprised of $7.9 million or a 1.5% budget variance
compared to the total FY 2024 actual General Fund revenues and expenditures, well within
acceptable standard deviation given the complexity, size, and fluctuation of the General Fund
budget. In addition, the remaining $1 million variance is due to an isolated misclassification of
prior year reappropriation, which staff discovered in the year-end close reconciliation.
Additional discussion and detail can be found in the December 3rd Finance Committee staff
report2.
Staff recommends that the $8.9 million above the 18.5% BSR target level be allocated between
the Capital Fund Infrastructure Reserve (IR) ($3.0 million) and Budget Uncertainty Reserve ($5.9
million). The budget actions to allocate the BSR funds above the 18.5% target level will be
included in the FY 2025 Mid-Year Review (February 2025).
Enterprise Funds
As of June 30, 2024, the City’s Enterprise Funds reported a total net position of $882.5 million,
an increase of $55.3 million or 6.7% from the prior fiscal year. Discussion can be found in staff’s
December 3, 2024 report to the Finance Committee2.
5 City Council Meeting, June 17 2024, Staff Report 2406-3140:
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82926
FISCAL/RESOURCE IMPACT
2 Attachment B, both Exhibits 1 and 2,
recommend adjustments to the FY 2024 appropriated level of funds to align budgeted levels
with year-end activities.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Department Adjustment Adjustment
GENERAL FUND (102)
City Manager's
Office
Salaries and Benefits
This action aligns budget levels with actual expenditures. First, to increase the Salaries and
Benefits allocation due to unbudgeted hourly positions that are specifically focused on
economic development initiatives on California Ave. and University Avenue and sustainability
and climate action communications. Second, to align budget with costs reflected in CMR that
are shared with another department, causing vacancy savings in other departments (i.e.
Administrative Services) that offset these additional costs.
-$ 337,000$
Non-
Departmental
Transient Occupancy Tax Revenue/Transfer to Capital Improvement Fund
This action increases the transfer to the Capital Improvement Fund as it relates to Transient
Occupancy Tax (TOT) revenues earmarked for city-wide infrastructure improvements due to
higher than anticipated TOT collections in FY 2024.
1,570,000$ 1,570,000$
Planning &
Development
Services
Transfer from Housing Funds/525 East Charleston Road/Mitchell Park Place
This action reverses a previously approved transfer outlined in Staff Report #2310-2167 from
the Housing In-Lieu/Residential Fund ($1.5M) and the Local Housing Trust Fund Grant Fund
($1.5M) to the General Fund. Undoing this transfer will redirect the distribution of $3.0M for
the Eden Housing 525 E. Charleston Rd. project through the Housing In-Lieu/Residential Fund
and the Local Housing Trust Fund Grant Fund instead of the General Fund to align with best
practices for disbursing state housing grant funds.
(3,000,000)$ (3,000,000)$
Police Salaries and Benefits
This action increases the allocation for Salaries and Benefits in the Police Department by $0.8
million, and includes $0.4 million to cover the reduction of funding for the PERT Program
described below. A portion of the increased allocation ($0.3 million) is due to reimbursable
grant-related overtime that was actualized in the General Fund and not charged to the
Supplemental Law Enforcement Services Fund. The remaining $0.1 million is due to the
Department experiencing higher than anticipated salary and benefit expenses, specifically in
overtime costs. This is primarily due to an above average amount of employee leave for illness
and training and the need to maintain minimum staffing levels in dispatch and patrol
operations which requires the use of overtime for backfill.
-$ 805,000$
Police Transfer from Stanford University Medical Center (SUMC) Fund/Psychiatric Emergency
Response Team (PERT) Program
This action reduces the transfer of funds related to the Council-authorized contract with the
Santa Clara County Behavioral Health (Staff Report 2305-1410) and recognized in the FY 2024
Adopted Budget for a mental health clinician to support the PERT Program. The funds were
unspent due to the inability to source and supply a clinician, so the funds will be returned to
the SUMC Fund and recommended to be used in the future to support the PERT Program when
the County can provide a clinician.
(366,000)$ (366,000)$
Public Works Departmental Expense Savings
This action reallocates departmental savings of $1.1 million within the General Fund in order to
offset departments with higher than anticipated expenses in FY 2024. The Public Works
Department realized a net savings, primarily in Salary and Benefits due to vacancies and in
Contract Services due to delays in several contracts. Key vacancies include a Project Manager, a
Manager of Maintenance Operations, an Electrician, and several tree maintenance positions.
Contracts delays include the Security Guard contract for the MSC, S/CAP consultant services;
fire alarm, sprinkler, and extinguisher contracts; and several Urban Forestry contracts.
-$ (1,142,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ -$
GENERAL FUND (102) SUBTOTAL (1,796,000)$ (1,796,000)$
CITY OF PALO ALTO
Department Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment B, Exhibit 2.
344,793$ 344,793$
Capital Transfer from Community Development Block Grant Fund/Sidewalk Repairs (PO-89003)
This action reduces the transfer of funds to support capital project PO-89003, because work
was not done on this project in FY 2024. The transfer of funds for PO-89003 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
(511,673)$ -$
Capital Transfer from Gas Tax Fund/Streets Maintenance (PE-86070)
This action increases the transfer from the Gas Tax Fund as a result of SB1 Gas Tax revenue
from the State of California that came in higher than budgeted levels. SB1 funding is
designated for street improvement projects, so it will be added to the Streets Maintenance
capital project (PE-86070).
128,000$ -$
Capital Transfer from General Fund
This action increases the transfer from the General Fund related to TOT revenue Council
earmarked to use for city-wide infrastructure improvements due to actual revenue collected
being higher than budgeted in FY 2024.
1,570,000$ -$
Capital Transfer from Library Impact Fee Fund/Library Project (LB-21000)
This action reduces the transfer of funds to support capital project LB-21000, because work
was not done on this project in FY 2024. The transfer of funds for LB-21000 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
(382,983)$ -$
Capital Transfer from Parks Impact Fee Fund/Park Restroom Installation Project (PG-19000)
This action reduces the transfer of funds to support capital project PG-19000, because work
was not done on this project in FY 2024. The transfer of funds for PG-19000 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
(629,570)$ -$
Capital Transfer from Refuse Fund/MSC Lighting Project (PF-16006)
This action reduces the transfer of funds to support capital project PF-16006, because work
was not done on this project in FY 2024. The transfer of funds for PF-16006 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
(10,000)$ -$
Capital Transfer from University Avenue Parking in Lieu Fee Fund/Downtown Parking Garage
Project (PE-15007)
This action reduces the transfer of funds to support capital project PE-15007, because work
was not done on this project in FY 2024. The transfer of funds for PE-15007 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
(5,398,600)$ -$
Capital Transfer from Utilities Administration Fund/MSC Lighting Project (PF-16006)
This action reduces the transfer of funds to support capital project PF-16006, because work
was not done on this project in FY 2024. The transfer of funds for PF-16006 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
(315,000)$ -$
Capital Transfer from Vehicle Replacement and Maintenance Fund/MSC Lighting Project (PF-16006)
This action reduces the transfer of funds to support capital project PF-16006, because work
was not done on this project in FY 2024. The transfer of funds for PF-16006 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
(175,000)$ -$
CITY OF PALO ALTO
Department Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
CITY OF PALO ALTO
Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL (5,380,033)$ (5,380,033)$
Department Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT ENTERPRISE FUND (530)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
-$ 59,429$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL -$ 59,429$
ELECTRIC FUND (513 & 523)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment B, Exhibit 2.
-$ 2,507,491$
ELECTRIC FUND (513 & 523) SUBTOTAL -$ 2,507,491$
REFUSE FUND (525)
Public Works Transfer to the Capital Improvement Fund for MSC Lighting Project (PF-16006)
This action reduces the transfer of funds to support capital project PF-16006, because work
was not done on this project in FY 2024. The transfer of funds for PF-16006 was
-$ (10,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 10,000$
REFUSE FUND (525) SUBTOTAL -$ -$
STORMWATER MANGEMENT FUND (528)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment B, Exhibit 2.
-$ 88,014$
STORMWATER MANGEMENT FUND (528) SUBTOTAL -$ 88,014$
UTILITIES ADMINISTRATION FUND (521)
Utilities Transfer to the Capital Improvement Fund for MSC Lighting Project (PF-16006)
This action reduces the transfer of funds to support capital project PF-16006, because work
was not done on this project in FY 2024. The transfer of funds for PF-16006 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
-$ (315,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 315,000$
UTILITIES ADMINISTRATION FUND (521) SUBTOTAL -$ -$
WASTEWATER COLLECTION FUND (527)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment B, Exhibit 2.
-$ 285$
WASTEWATER COLLECTION FUND (527) SUBTOTAL -$ 285$
WASTEWATER TREATMENT FUND (526)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
-$ 569,941$
CITY OF PALO ALTO
Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
WATER FUND (522)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment B, Exhibit 2.
-$ 888,267$
WATER FUND (522) SUBTOTAL -$ 888,267$
Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL LIABILITIES INSURANCE FUND (689)
Non-
Departmental
Excess Insurance Reimbursement/Liability Claims
This action recognizes revenue and expense related to a settlement of $12.0 million that was
resolved in FY 2024. The City is self-insured up to $1.0 million and received the remaining
11,000,000$ 11,000,000$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL 11,000,000$ 11,000,000$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in -$ 72,773$
Public Works Transfer to the Capital Improvement Fund for MSC Lighting Project (PF-16006)
This action reduces the transfer of funds to support capital project PF-16006, because work
was not done on this project in FY 2024. The transfer of funds for PF-16006 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
-$ (175,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 102,227$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL -$ -$
CITY OF PALO ALTO
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
COMMUNITY DEVELOPMENT BLOCK GRANT FUND (232)
Planning &
Development
Services
Transfer to the Capital Improvement Fund for Sidewalk Repair Project (PO-89003)
This action reduces the transfer of funds to support capital project PO-89003, because work
was not done on this project in FY 2024. The transfer of funds for PO-89003 was
-$ (511,673)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 511,673$
COMMUNITY DEVELOPMENT BLOCK GRANT FUND (232) SUBTOTAL -$ -$
GAS TAX FUND (231)
Administrative
Services
Revenue from the State of California/Transfer to Capital Improvement Fund for Streets
Repair Project (PE-86070)
This action recognizes SB1 Gas Tax revenue from the State of California that came in higher
than budgeted levels and appropriates funding to increase the transfer to the Capital
Improvement Fund. SB1 funding is designated for street improvement projects, so it will be
128,000$ 128,000$
GAS TAX FUND (231) SUBTOTAL 128,000$ 128,000$
HAMILTON AVENUE-PUBLIC BENFIT FUND (235)
Planning and
Development
Services
Investment Income/Grants & Subsidies
This action recognizes higher unit resale revenue and increases the appropriation for Grants
2024.
27,200$ 27,200$
HAMILTON AVENUE-PUBLIC BENFIT FUND (235) SUBTOTAL 27,200$ 27,200$
HOUSING IN-LIEU/RESIDENTIAL FUND (233)
Planning and
Development
Services
Transfer to the General Fund
This action reverses the previously approved transfer outlined in Staff Report #2310-2167,
from the Housing In-Lieu/Residential Fund to the General Fund. Undoing this transfer will
redirect the distribution of $1.5M for the Eden Housing 525 E. Charleston Rd. project through
the Housing In-Lieu/Residential Fund instead of the General Fund to align with best practices
for disbursing state housing grant funds.
-$ (1,500,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 1,500,000$
HOUSING IN-LIEU/RESIDENTIAL FUND (233) SUBTOTAL -$ -$
LIBRARY IMPACT FEE FUND (212)
Library Transfer to the Capital Improvement Fund for Library Project (LB-21000)
This action reduces the transfer of funds to support capital project LB-21000, because work
was not done on this project in FY 2024. The transfer of funds for LB-21000 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
-$ (382,983)$
CITY OF PALO ALTO
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
LIBRARY IMPACT FEE FUND (212) SUBTOTAL -$ (382,983)$
LOCAL HOUSING TRUST FUND GRANT FUND (252)
Planning and
Development
Services
Transfer to the General Fund
This action reverses the previously approved transfer outlined in Staff Report #2310-2167,
from the Local Housing Trust Fund Grant Fund to the General Fund. Undoing this transfer will
redirect the distribution of $1.5M for the Eden Housing 525 E. Charleston Rd. project through
the Local Housing Trust Fund Grant Fund instead of the General Fund to align with best
practices for disbursing state housing grant funds.
-$ (1,500,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 1,500,000$
LOCAL HOUSING TRUST FUND GRANT FUND (252) SUBTOTAL -$ -$
PARKS IMPACT FEE FUND (210)
Community
Services
Transfer to the Capital Improvement Fund for Park Restroom Installation Project (PG-19000)
This action reduces the transfer of funds to support capital project PG-19000, because work
was not done on this project in FY 2024. The transfer of funds for PG-19000 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
-$ (692,570)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 692,570$
PARKS IMPACT FEE FUND (210) SUBTOTAL -$ -$
RESIDENTIAL PARKING PERMIT PROGRAMS FUND (239)
Office of
Transportation
Residential Parking Permit Revenue/Contract Services
This action increases parking permit revenue to recognize additional permits sold above the
budgeted estimate to partially offset increased contract services expenses. This action also
increases the appropriation for parking enforcement contract services
90,600$ 128,300$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (37,700)$
RESIDENTIAL PARKING PERMIT PROGRAMS FUND (239) SUBTOTAL 90,600$ 90,600$
STANFORD UNIVERSITY MEDICAL CENTER FUND (260)
Planning and
Development
Services
Transfer from Stanford University Medical Center (SUMC) Fund/Psychiatric Emergency
Response Team (PERT) Program
This action reduces the transfer of funds related to the Council-authorized contract with the
Santa Clara County Behavioral Health (Staff Report 2305-1410) and recognized in the FY 2024
Adopted Budget for a mental health clinician to support the PERT Program. The funds were
unspent due to the inability to source and supply a clinician, so the funds will be returned to
the SUMC Fund and recommended to be used in the future to support the PERT Program
-$ (366,000)$
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
STANFORD UNIVERSITY MEDICAL CENTER FUND (260) SUBTOTAL -$ -$
UNIVERSITY AVENUE IN-LIEU PARKING FUND (247)
Planning and
Development
Services
Transfer to the Capital Improvement Fund for Downtown Parking Garage Project (PE-15007)
This action reduces the transfer of funds to support capital project PE-15007, because work
was not done on this project in FY 2024. The transfer of funds for PE-15007 was
reappropriated to FY 2025 in order to align funding with anticipated project expenses.
-$ (5,398,600)$
Administrative
Services
Fee Refund for Hamilton and High LLC v City of Palo Alto
This action increases funding for General Expenses ($669,300) and Interest Expenses ($58,000)
to refund impact fees collected by the City and interest earned on those fees as a result of a
legal decision in the case of Hamilton and High LLC v. City of Palo Alto.
-$ 727,300$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 4,671,300$
UNIVERSITY AVENUE IN-LIEU PARKING FUND (247) SUBTOTAL -$ -$
Revenues Expenses
Department Adjustment Adjustment
DEBT SERVICE & AGENCY TRUST FUNDS
EYERLY TRUST FUND (774)
Administrative
Services
Investment Income/General Expenses
This action recognizes higher investment returns and increases the appropriation for General
Expenses within the fund for interest income distribution to designated recipients to align
budget levels with actual expenditures in FY 2024.
$9,500 $9,500
EYERLY TRUST FUND (774) SUBTOTAL 9,500$ 9,500$
UNIVERSITY AVENUE PARKING ASSESSMENT AGENCY FUND (775)
Administrative
Services
Contract Services
This action increases the appropriation for Contract Services within the fund to align budget
levels with actual expenditures in FY 2024.
-$ 12,600$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (12,600)$
UNIVERSITY AVENUE PARKING ASSESSMENT AGENCY FUND (775) SUBTOTAL -$ -$
CITY OF PALO ALTO
Project
Number
AC-18001
across capital projects based on actual
AC-24001
Curtain across capital projects based on actual
OS-09001
across capital projects based on actual
OS-18000
Dock Replacement across capital projects based on actual
PD-20000
Replacement across capital projects based on actual
PE-09003
across capital projects based on actual
PE-13014
across capital projects based on actual
PE-17010
Charger Installation across capital projects based on actual
PE-19000
across capital projects based on actual
PE-20002
across capital projects based on actual
PE-22000
Authority Ongoing Creek Projects across capital projects based on actual
PE-24003
and House Lighting System Replacement across capital projects based on actual
expenditures.
PF-00006
across capital projects based on actual
PF-16006
Mechanical, and Electrical Improvements across capital projects based on actual
expenditures.
PF-93009
Compliance across capital projects based on actual
PG-14001
across capital projects based on actual
PG-14002
across capital projects based on actual
PG-17000
Plan across capital projects based on actual
PG-18000
Replacement across capital projects based on actual
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 CAPITAL IMPROVEMENT PROGRAM
CAPITAL IMPROVEMENT FUND
Project
PO-11001 Thermoplastic Lane Marking and Striping $ (7,938) Adjustment to allocate Salaries and Benefits
across capital projects based on actual
AS-10000
across capital projects based on actual
FD-24000
across capital projects based on actual
LB-21000
across capital projects based on actual
OS-00002
across capital projects based on actual
PE-12011
Bridge Replacement across capital projects based on actual
PE-15007
across capital projects based on actual
PE-15020
Repairs across capital projects based on actual
PE-19002
across capital projects based on actual
PF-01003
across capital projects based on actual
PF-02022
across capital projects based on actual
PF-23000
across capital projects based on actual
PG-06001
across capital projects based on actual
PG-14000
across capital projects based on actual
PG-24000
across capital projects based on actual
PL-00026
across capital projects based on actual
PL-04010
Plan Implementation across capital projects based on actual
PL-05030
Transportation Systems across capital projects based on actual
PL-12000
across capital projects based on actual
PL-14000
across capital projects based on actual
Project
PL-17001 Railroad Grade Separation and Safety
Improvements across capital projects based on actual
PL-20000
Crossing Safety Improvements across capital projects based on actual
PL-23000
across capital projects based on actual
PL-24000
Grade Separation and Safety across capital projects based on actual
expenditures.
PL-24001
and Safety Improvements across capital projects based on actual
PO-11000
across capital projects based on actual
PO-12001
across capital projects based on actual
PE-18000
Garage across capital projects based on actual
PE-19001
across capital projects based on actual
PE-24004
across capital projects based on actual
PE-24006
across capital projects based on actual
PG-09002
across capital projects based on actual
AC-18000
across capital projects based on actual
OS-24000
across capital projects based on actual
PE-18004
across capital projects based on actual
PE-24002
Mechanical Equipment Replacement across capital projects based on actual
PE-24005
Benefits across capital projects based on actual
expenditures; $52,078 of additional
PG-06003
Landscaping, and Site Amenities across capital projects based on actual
PO-05054
across capital projects based on actual
Project
OS-00001 Open Space Trails and Amenities $ 197,346 Adjustment to allocate Salaries and Benefits
across capital projects based on actual
PE-08001
across capital projects based on actual
PE-15003
across capital projects based on actual
PE-17005
across capital projects based on actual
PE-18015
across capital projects based on actual
PE-18016
across capital projects based on actual
PE-20000
Investigation and Repairs across capital projects based on actual
PE-20001
across capital projects based on actual
PE-21000
across capital projects based on actual
PE-24001
across capital projects based on actual
PE-86070
across capital projects based on actual
expenditures, partially offset by additional
PF-23001
across capital projects based on actual
PG-19000
across capital projects based on actual
PL-15002
Systems, Access Controls & Revenue across capital projects based on actual
expenditures.
PO-89003
across capital projects based on actual
PG-18001
PL-16002
funds which will be liquidated in FY 2025.
PE-13011
across capital projects based on actual
PE-21004
across capital projects based on actual
PE-24000
across capital projects based on actual
Project
PE-15001 New Public Safety Building $ 1,646,643 Adjustment to allocate Salaries and Benefits
across capital projects based on actual
Total $ 344,793 $ 344,793
AP-21000
Total $ - $ 59,429
EL-89028
encumbrance which carried forward to FY 2025.
Error corrected in FY 2025 (Report # 2405-3061).
EL-17007
anticipated expenditures.
EL-21001
Total $ - $ 2,507,491
SD-22002
Total $ - $ 88,014
VR-22000
Total $ - $ 72,773
anticipated expenditures.
Total $ - $ 285
future years of a multi-year contract.
Total $ - $ 569,941
Total $ - $ 888,267
TOTAL CIP ADJUSTMENTS $ 344,793 $ 4,471,564
WATER FUND
WASTEWATER COLLECTION FUND
VEHICLE FUND
ELECTRIC FUND
STORMWATER MANAGEMENT FUND
WASTEWATER TREATMENT FUND
AIRPORT FUND