HomeMy WebLinkAboutStaff Report 2511-5452CITY OF PALO ALTO
CITY COUNCIL
Monday, December 15, 2025
Council Chambers & Hybrid
4:30 PM
Agenda Item
13.Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2025, and the
Macias, Gini & O’Connell Management Letter; Approve the FY 2025 Annual
Comprehensive Financial Report (ACFR)and Amendments to the FY 2025 Budget in
Various Funds; CEQA Status – Not a Project.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: December 15, 2025
Report #:2511-5452
TITLE
Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2025, and the Macias,
Gini & O’Connell Management Letter; Approve the FY 2025 Annual Comprehensive Financial
Report (ACFR)and Amendments to the FY 2025 Budget in Various Funds; CEQA Status – Not a
Project.
RECOMMENDATION
Finance Committee and Staff recommend the City Council:
1.Accept the City of Palo Alto’s audited financial statements for the fiscal year ended June
30, 2025, 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 2024,
c.Palo Alto Public Improvement Corporation (a component unit of the City of Palo
Alto) Annual Financial Report for the year ended June 30, 2025,
d.Regional Water Quality Control Plant, Independent Auditor’s Report and
Financial Statements for the year ended June 30, 2025,
e.Independent Accountant’s Report on Applying Agreed-Upon Procedures related
to Article XIII-B Appropriations (GANN) Limit for the year ended June 30, 2025,
and
f.Pedestrian/Bicycles Facilities Grant Metropolitan Transportation Commission
Transportation Development Act Funds, Article III, Independent Auditor’s Report
and Financial Statements, and Supplementary Information for the year ended
June 30, 2025
1 Finance Committee, December 2, 2025; Agenda Item #1; CMR #2510-5389,
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=84150
2.Approve the Fiscal Year (FY) 2025 Annual Comprehensive Financial Report (ACFR). An
electronic copy is available on the City’s website3.
3.Amend the Fiscal Year 2025 Budget Appropriation Ordinance for various funds as
identified Recommended Amendments to the City Manager’s FY 2025 Budget;
referenced as “Attachment B – Exhibit 1 and various capital projects as identified in
Attachment B – Exhibit 2”(Attachment I) in CMR #2508-50364 (Effective on first reading;
five votes required).
Hard copies of these reports were provided to the City Council. If any member of the public
would like, printed copies of the City’s Annual Comprehensive Financial Report (ACFR) are
available from the Administrative Services Department at the rate established in the City’s
Municipal Fee Schedule. Electronic copies are available on the City’s website at no cost.
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 2, 2025, 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 consideration. The Committee also recommends further
review of the formula and process for use of excess Budget Stabilization Reserve (BSR) funds5.
This referral will be considered by Council in January 2026 as a part of the Long Range Financial
Forecast (LRFF) and if approved, will be affirmed in Committee Workplan.
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, 20251.
Administrative Services Department: Recommendation to Approve the Fiscal Year (FY)
2025 ACFR, Approve FY 2025 Budget Amendments in Various Funds.
3 Annual Comprehensive Financial Report, 2025; https://www.paloalto.gov/files/assets/public/v/1/administrative-
services/financial-reporting/annual-comprehensive-financial-reports-acfr/current-2011-acfrs/city-of-palo-alto-acfr-
fye-06.30.2025-final-secured.pdf
4 Finance Committee, December 2, 2025; Agenda Item #2 Attachment B; CMR# 2508-5036,
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83926
4 December 2, 2025, Finance Committee Action Minutes:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=8961&meetingTemplateType=2&comp
iledMeetingDocumentId=17668
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 2024 ACFR.
ANALYSIS
Government-wide
General Fund
3, the net
BSR balance is $58.8 million or $2.0 million above Council’s 18.5% BSR target level. The FY 2025
savings in salary & benefit, contracts services and other expenses contributed to this higher
BSR. Staff recommend that the $2.0 million above the 18.5% BSR target level be kept in BSR for
future budget balancing strategy and projected FY2027 budget shortfall and ensure the City
maintains high quality service level. Consistent with current practice, any budget actions to
allocate the BSR funds above the 18.5% target level will be included in the FY 2026 Mid-Year
Review (February 2026).
Other Funds: Enterprise and Internal Service Activities
Council directed
reserves by policy such as the utility reserve. Discussion can be found in the staff’s December 2,
2025, report to the Finance Committee4.
FISCAL/RESOURCE IMPACT
3 Attachment B, Exhibits 1 and 2, recommend
adjustments to the FY 2025 appropriated level of funds to align budgeted levels with year-end
activities.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Department Adjustment Adjustment
GENERAL FUND (102)
Non-
Departmental
Transient Occupancy Tax Revenue/Transfer to Capital Improvement Fund
This action increases the transfer to the Capital Improvement Fund as it relates to Transient
Occupancy Tax (TOT) revenues earmarked for city-wide infrastructure improvements due to
higher than anticipated TOT collections in FY 2025.
409,000$ 409,000$
Non-
Departmental
Transfer to Capital Improvement Fund (PL-24000 and PL-24001)
This action reduces a transfer of Business Tax funds to support capital projects PL-24000 and PL-
24001, because work was not done on these projects in FY 2025. $270,702 of the funding that
will be returned to the Business Tax Reserve: Transportation in the General Fund to be used for
future Transportation projects.
-$ (1,244,208)$
Police Salaries and Benefits
This action increases the allocation for Salaries and Benefits and Allocated Charges in the Police
Department by $0.2 million, and includes $0.4 million to cover the reduction of funding for the
PERT Program described below. A portion of the increased allocation is due to higher than
anticipated fleet services charges which were impacted by the Department piloting an electric
patrol vehicle. The remaining increase is due to the Department experiencing higher than
anticipated salary and benefit expenses, specifically in overtime costs. This is primarily due to
an above average amount of employee leave for illness and training and the need to maintain
minimum staffing levels in dispatch and patrol operations which requires the use of overtime
for backfill.
-$ 212,000$
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 2025
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 County can provide a clinician.
(366,000)$ (366,000)$
Public Works Departmental Expense Savings
This action reallocates departmental savings within the General Fund in order to offset
departments with higher than anticipated expenses in FY 2025. The Public Works Department
due to delays in several contracts. Key vacancies include Manager of Maintenance Operations,
Facilities Technician, Traffic Control Maintainer, and Cement Finisher. Contracts delays include
the Security Guard contract for the MSC, airplane noise reduction, Foothills fire mitigation, fire
alarm testing and maintenance, and S/CAP implementation.
-$ (212,000)$
Fund Balance Adjustment to Business Tax Reserve: Transportation
This action returns $1,244,208 of unused funding allocated to capital projects PL-24000 and PL-
240001 to the Business Tax Reserve: Transportation in the General Fund to be used for future
Transportation projects.
-$ 1,244,208$
GENERAL FUND (102) SUBTOTAL 43,000$ 43,000$
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
Department Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the net zero budget impact from adjustments to projects as outlined in
Attachment B, Exhibit 2.
-$ 0$
Capital Transfer from California Avenue Parking Fund/California Avenue Parking District Parking
Improvements Project (PF-25000)
This action reduces the transfer of funds to support capital project PF-25000, because work
was not done on this project in FY 2025. The transfer of funds for PF-25000 was
reappropriated to FY 2026 in order to align funding with anticipated project expenses.
(100,000)$ (100,000)$
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 improvment projects, so it will be added to the Streets Maintenance
capital project (PE-86070).
139,226$ 139,226$
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 2025.
409,000$ -$
Capital Transfer from General Fund/Meadow Drive and Charleston Road (PL-24000) and Churchill
Avenue (PL-24001) Rail Grade Separation and Safety Improvements
This action reduces the transfer of Business Tax funds to support capital projects PL-24000 and
PL-24001, because work was not done on these projects in FY 2025. $270,702 of the funding
will be reappropriated to FY 2026 and $973,506 will returned to the Business Tax Reserve:
(1,244,208)$ (1,244,208)$
Capital Transfer from Parkland Dedication Fund/Byxbee Park Completion Project (PG-18006)
This action reduces the transfer of funds to support capital project PG-18006, because work
FY 2027 in order to align funding with anticipated project expenses.
(450,000)$ (450,000)$
Capital Transfer from Utilities Administration Fund/Rinconada Pool Family Changing Room Project
(PE-24004)
This action reduces the transfer of funds to support capital project PE-24004, because work
was not done on this project in FY 2025. The transfer of funds for PE-24004 was
reappropriated to FY 2026 in order to align funding with anticipated project expenses.
(371,165)$ (371,165)$
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 2025. The transfer of funds for PG-19000 was
reappropriated to FY 2026 in order to align funding with anticipated project expenses.
(353,770)$ (353,770)$
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 2025. The transfer of funds for PE-15007 was
reappropriated to FY 2026 in order to align funding with anticipated project expenses.
(13,106,958)$ (13,106,958)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 409,000$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL (15,077,875)$ (15,077,875)$
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
Department Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
CUBBERLEY PROPERTY INFRASTRUCTURE FUND (472)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
-$ 98,690$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (98,690)$
CUBBERLEY PROPERTY INFRASTRUCTURE FUND (472) SUBTOTAL -$ -$
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
-$ 31,497$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (31,497)$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL -$ -$
REFUSE FUND (525)
Capital Transfer to the Technology Fund for Utilities Customer Bill System Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the
project is closing.
-$ (11,500)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 11,500$
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.
-$ 153,388$
Capital Transfer to the Technology Fund for Utilities Customer Bill System Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the
project is closing.
-$ (2,600)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (150,788)$
STORMWATER MANGEMENT FUND (528) SUBTOTAL -$ -$
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
UTILITIES ADMINISTRATION FUND (521)
Capital Transfer to the Technology Fund for Utilities Customer Bill System Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the
project is closing.
-$ (185,900)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 185,900$
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.
40,361$ 40,361$
Utilities Customer Sales Revenue/Charges from Wastewater Treatment Fund
This action reflects an increase in the cost of Treatment Fund charges allocated to the
Wastewater Collection Fund in FY 2024. The variance is primarily attributable to expenditures
associated with the Joint Intercepting Sewer project, increased minor capital activity, and
operating budget components such as staffing, indirect charges, and electricity, which
contributed to higher than anticipated year-end charges.
917,300$ 917,300$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ -$
WASTEWATER COLLECTION FUND (527) SUBTOTAL 957,661$ 957,661$
WASTEWATER TREATMENT FUND (526)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment B, Exhibit 2.
-$ 2,099,618$
Public Works Charges to the Wastewater Collection Fund
This action reflects an increase in the cost of Treatment Fund charges allocated to the
Wastewater Collection Fund in FY 2024. The variance is primarily attributable to expenditures
associated with the Joint Intercepting Sewer project, increased minor capital activity, and
operating budget components such as staffing, indirect charges, and electricity, which
contributed to higher than anticipated year-end charges.
917,300$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (1,182,318)$
WASTEWATER TREATMENT FUND (526) SUBTOTAL 917,300$ 917,300$
Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
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.
450,004$ 450,004$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ -$
WATER FUND (522) SUBTOTAL 450,004$ 450,004$
Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL BENEFITS FUND (687)
Non-
Departmental
Adjust Transfer from General Benefits Fund to Retiree Healthcare Fund
This technical action reduces the Implied Subsidy transfer to the Retiree Healthcare Fund to
align with best Accounting practices. The funds will now reflect the full value of the Implied
Subsidy from the June 30, 2023 Other Post Employment Benefits (OPEB) actuarial valuation.
-$ (254,500)$
Non-
Departmental
Adjust Cost of Implied Subsidy
This technical action reduces the Implied Subsidy expense within the General Benefits Fund to
align with best Accounting practices. The fund will now reflect the full value of the Implied
Subsidy from the June 30, 2023 Other Post Employment Benefits (OPEB) actuarial valuation.
-$ 254,500$
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this
-$ -$
GENERAL BENEFITS FUND (687) SUBTOTAL -$ -$
RETIREE HEALTHCARE FUND (694)
Non-
Departmental
Adjust Transfer from General Benefits Fund to Retiree Healthcare Fund
This technical action reduces the Implied Subsidy transfer to the Retiree Healthcare Fund to
align with best Accounting practices. The funds will now reflect the full value of the Implied
Subsidy from the June 30, 2023 Other Post Employment Benefits (OPEB) actuarial valuation.
(254,500)$ -$
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this
report.
-$ (254,500)$
RETIREE HEALTHCARE FUND (694) SUBTOTAL (254,500)$ (254,500)$
GENERAL LIABILITIES INSURANCE FUND (689)
Non-
Departmental
Charges to Other Funds/Liability Insurance and IBNR Adjustment
This action recognizes expense impacts of FY 2025 increased incurred but not realized (IBNR)
and FY 2026 liability insurance premiums and offsetting revenue from allocated charge
adjustments to maintain General Liability Fund solvency.
539,900$ 539,900$
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this
-$ -$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL 539,900$ 539,900$
INFORMATION TECHNOLOGY FUND (682)
Capital Transfer from the Refuse Fund for Utilities Customer Bill System Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the
project is closing.
(11,500)$ (11,500)$
Capital Transfer from the Stormwater Management Fund for Utilities Customer Bill System
Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the
(2,600)$ (2,600)$
Capital Transfer from the Utilities Administration Fund for Utilities Customer Bill System
Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the
(185,900)$ (185,900)$
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this
INFORMATION TECHNOLOGY FUND (682) SUBTOTAL (200,000)$ (200,000)$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in -$ 60,507$
Public Works Transfer from Supplemental Law Enforcement Services Fund/ Police Vehicle Purchase (VR-
25000)
This action transfers funds from the SLES Fund to the Vehicle fund to record the purchase of a
trailer in capital project VR-25000. The purchase was made in the SLES Fund but needs to be
40,670$ 40,670$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (60,507)$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL 40,670$ 40,670$
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
ASSETS SEIZURE FUND (292)
Police Supplies and Materials
This action increases the allocation in the Assets Seizure Equity Fund due to the Department
using the funds for training expenses.
-$ 4,200$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (4,200)$
ASSETS SEIZURE FUND (292) SUBTOTAL -$ -$
CALIFORNIA AVENUE PARKING FUND (237)
Office of
Transportation
Transfer to the Capital Improvement Fund for California Avenue Parking District Parking
Improvements Project (PF-25000)
This action reduces the transfer of funds to support capital project PF-25000, because work was
not done on this project in FY 2025. The transfer of funds for PF-25000 was reappropriated to
FY 2026 in order to align funding with anticipated project expenses.
-$ (100,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 100,000$
CALIFORNIA AVENUE PARKING FUND (237) 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 improvment projects, so it will be
added to the Streets Maintenance capital project (PE-86070). This action also reduces HUTA
Gas Tax revenue by $13,042 and Gas Tax interest income by $7,251 because those sources
came in lower than budgeted.
118,933$ 139,226$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (20,293)$
GAS TAX FUND (231) SUBTOTAL 118,933$ 118,933$
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
and Subsidies to Avenidas within the fund to align budget levels with actual expenditures in FY
2025.
34,300$ 34,300$
HAMILTON AVENUE-PUBLIC BENFIT FUND (235) SUBTOTAL 34,300$ 34,300$
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
PARKLAND DEDICATION FUND (209)
Community
Services
Transfer to the Capital Improvement Fund for Byxbee Park Completion Project (PG-18006)
This action reduces the transfer of funds to support capital project PG-18006, because work
to FY 2027 in order to align funding with anticipated project expenses.
-$ (450,000)$
Community
Services
Transfer to the Capital Improvement Fund for Rinconada Pool Family Changing Room Project
(PE-24004)
This action reduces the transfer of funds to support capital project PE-24004, because work was
not done on this project in FY 2025. The transfer of funds for PE-24004 was reappropriated to
FY 2026 in order to align funding with anticipated project expenses.
-$ (371,165)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 821,165$
PARKLAND DEDICATION FUND (209) 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
to FY 2026 in order to align funding with anticipated project expenses.
-$ (353,770)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 353,770$
PARKS IMPACT FEE FUND (210) SUBTOTAL -$ -$
PUBLIC ART FUND (207)
Community
Services
Salaries and Benefits
This action increases appropriation for salaries and benefits to offset a minor overage.
-$ 3,800$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (3,800)$
PUBLIC ART FUND (207) SUBTOTAL -$ -$
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 2025
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
-$ (366,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 366,000$
STANFORD UNIVERSITY MEDICAL CENTER FUND (260) SUBTOTAL -$ -$
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
SUPPLEMENTAL LAW ENFORCEMENT SERVICES (SLES) FUND (248)
Police Transfer to the Vehicle Replacement and Maintenance Fund for Vehicle Purchase (VR-25000)
This action transfers funds from the SLES Fund to the Vehicle fund to record the purchase of a
trailer in capital project VR-25000. The purchase was made in the SLES Fund but needs to be
recorded in the Vehicle Fund in order to be recognized as an asset. The action nets to zero in
the SLES Fund because it moves $40,670 from one expenditure account (allocated charges) to
another expenditure account (transfers out).
-$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ -$
SUPPLEMENTAL LAW ENFORCEMENT SERVICES (SLES) FUND (248) 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 2025. The transfer of funds for PE-15007 was reappropriated to
FY 2065 in order to align funding with anticipated project expenses.
-$ (13,106,958)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ 13,106,958$
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 2025.
2,700$ 8,700$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
-$ (6,000)$
EYERLY TRUST FUND (774) SUBTOTAL 2,700$ 2,700$
CITY OF PALO ALTO
ATTACHMENT A, EXHIBIT 1
Project
Number
AS-10000
across capital projects based on actual
expenditures.
PE-12011
Bridge Replacement across capital projects based on actual
expenditures.
PF-16006
Mechanical, and Electrical Improvements across capital projects based on actual
expenditures.
PL-24000
Grade Separation and Safety across capital projects based on actual
expenditures.
PE-24005
across capital projects based on actual
expenditures.
PL-16000
Center Access across capital projects based on actual
expenditures.
PL-24001
and Safety Improvements across capital projects based on actual
expenditures.
PE-15007
across capital projects based on actual
expenditures.
PG-26000
Fields Turf Replacement across capital projects based on actual
PE-19002
across capital projects based on actual
PE-24002
Mechanical Equipment Replacement across capital projects based on actual
expenditures.
PL-17001
Improvements across capital projects based on actual
expenditures.
PE-24004
across capital projects based on actual
expenditures.
PF-93009
Compliance across capital projects based on actual
expenditures.
PG-18000
Replacement across capital projects based on actual
expenditures.
PL-05030
Transportation Systems across capital projects based on actual
expenditures.
PF-00006
across capital projects based on actual
expenditures.
AC-18001
across capital projects based on actual
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM
CAPITAL IMPROVEMENT FUND
Project
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM
PL-25001 Traffic Intersection Accessibility
Improvement Project across capital projects based on actual
expenditures.
PL-25002
Crossing Safety Improvements across capital projects based on actual
expenditures.
PE-15020
Repairs across capital projects based on actual
expenditures.
PE-17010
Charger Installation across capital projects based on actual
expenditures.
PD-25000
across capital projects based on actual
expenditures.
PE-19000
across capital projects based on actual
expenditures.
OS-09001
across capital projects based on actual
expenditures.
PE-13014
across capital projects based on actual
PG-06001
across capital projects based on actual
AC-24001
Curtain across capital projects based on actual
expenditures.
PD-20000
Replacement across capital projects based on actual
expenditures.
PO-05054
across capital projects based on actual
expenditures.
PE-21000
across capital projects based on actual
expenditures.
PE-22000
Authority Ongoing Creek Projects across capital projects based on actual
expenditures.
PL-15003
across capital projects based on actual
expenditures.
PE-09003
across capital projects based on actual
expenditures.
OS-24001
across capital projects based on actual
expenditures.
PL-12000
across capital projects based on actual
PE-17004
across capital projects based on actual
expenditures.
Project
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM
OS-24000 Baylands Nature Preserve Entrance Gate $ (11,298) Adjustment to allocate Salaries and Benefits
across capital projects based on actual
expenditures.
PL-14000
across capital projects based on actual
expenditures.
FD-25000
across capital projects based on actual
expenditures.
PL-00026
across capital projects based on actual
expenditures.
PF-25000
Improvements across capital projects based on actual
expenditures.
PF-23000
across capital projects based on actual
expenditures.
AC-28002
across capital projects based on actual
expenditures.
PE-24003
and House Lighting System Replacement across capital projects based on actual
expenditures.
AC-28003
across capital projects based on actual
expenditures.
PE-24006
across capital projects based on actual
expenditures.
PO-11000
across capital projects based on actual
OS-00002
across capital projects based on actual
PG-17000
Plan across capital projects based on actual
expenditures.
OS-18000
Dock Replacement across capital projects based on actual
expenditures.
PG-25002
across capital projects based on actual
expenditures.
PG-21000
across capital projects based on actual
expenditures.
FD-24000
across capital projects based on actual
expenditures.
PE-19001
across capital projects based on actual
expenditures.
PE-20002
across capital projects based on actual
expenditures.
Project
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM
PL-16002 Parking Management and System
Implementation across capital projects based on actual
expenditures.
PG-18001
across capital projects based on actual
expenditures.
PE-20001
across capital projects based on actual
expenditures.
PG-14002
across capital projects based on actual
expenditures.
PE-15003
across capital projects based on actual
expenditures.
PE-24000
across capital projects based on actual
expenditures.
PF-14003
across capital projects based on actual
expenditures.
PE-20000
Investigation and Repairs across capital projects based on actual
PL-04010
Plan Implementation across capital projects based on actual
PL-23000
across capital projects based on actual
expenditures.
PE-18000
Garage across capital projects based on actual
expenditures.
PE-24001
across capital projects based on actual
expenditures.
PE-18015
across capital projects based on actual
expenditures.
OS-00001
across capital projects based on actual
expenditures.
PE-21004
across capital projects based on actual
expenditures.
LB-21000
across capital projects based on actual
expenditures.
PG-14000
across capital projects based on actual
expenditures.
PF-01003
across capital projects based on actual
PG-19000
across capital projects based on actual
expenditures.
Project
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM
AC-18000 Performing Arts Venues Seat Replacement $ 74,393 Adjustment to allocate Salaries and Benefits
across capital projects based on actual
expenditures.
PF-02022
across capital projects based on actual
expenditures.
PO-12001
across capital projects based on actual
expenditures.
PF-23001
across capital projects based on actual
expenditures.
PE-18016
across capital projects based on actual
expenditures.
PE-08001
across capital projects based on actual
expenditures.
PG-09002
across capital projects based on actual
expenditures.
PG-06003
Landscaping, and Site Amenities across capital projects based on actual
expenditures.
PE-18004
across capital projects based on actual
expenditures.
PL-20000
Crossing Safety Improvements across capital projects based on actual
expenditures.
PL-15002
Systems, Access Controls & Revenue across capital projects based on actual
expenditures.
PE-17005
across capital projects based on actual
expenditures.
PE-13011
across capital projects based on actual
expenditures.
PO-89003
across capital projects based on actual
expenditures.
PE-86070
across capital projects based on actual
expenditures.
PE-15001
across capital projects based on actual
expenditures.
Total $- $0
Project
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM
CB-17002
Total $- $ 98,690
AP-21000
anticipated expenditures.
Total $- $ 31,497
GS-80017
Total $ 11,239 $ 11,239
SD-19000
anticipated expenditures.
SD-25000
Total $- $ 153,388
CUBBERLEY PROPERTY INFRASTRUCTURE FUND
AIRPORT FUND
GAS FUND
STORMWATER MANAGEMENT FUND
Project
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM
VR-22000
Total $- $ 60,507
anticipated expenditures offset by revenue.
Total $ 40,361 $ 40,361
anticipated expenditures.
Total $- $ 2,099,618
Total $ 450,004 $ 450,004
TOTAL CIP ADJUSTMENTS $ 501,604 $ 2,913,807
WASTEWATER TREATMENT FUND
WATER FUND
VEHICLE FUND
WASTEWATER COLLECTION FUND