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HomeMy WebLinkAboutStaff Report 2604-6307CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, May 04, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     4.City Manager Transmittal of the Fiscal Year 2027 Proposed Operating and Capital Budgets Staff Presentation, Public Comments   City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Administrative Services Meeting Date: May 4, 2026 Report #:2604-6307 TITLE City Manager Transmittal of the Fiscal Year 2027 Proposed Operating and Capital Budgets Will be released on April 24, 2026 on the City’s Budget webpage: https://www.paloalto.gov/Departments/Administrative-Services/City-Budget APPROVED BY: Lauren Lai, Administrative Services Director May 4, 2026 www.paloalto.gov/budget FY 2027 PROPOSED OPERATING AND CAPITAL BUDGETS 1 •Balanced budget utilizing multi- year strategies to navigate fiscal challenges over several years •Preserves most valued City services, Council priorities, and once in a generation investments •Reflects staff’s hard look at all services, service delivery approaches and efficiencies, and use of contracts as a starting point for Council deliberations 2 OVERVIEW Preserving valued city services Community Centers, teen center, Palo Alto Junior Museum & Zoo, parks, playgrounds, open space preserves remain open and maintained Police & Fire response to all priority emergency calls, ensuring health and safety, and implementing single-role EMS Five libraries will remain open with a single day closure of Children’s library Ensure health and safety measures are addressed on our streets, sidewalks, and trees Utility services - water, electric, gas, wastewater, and sewer services will continue including key investments and maintenance Support the Development Center and planning requests, building permits, and code enforcement Manage traffic signals maintenance and timing and youth education through safe routes to school www.paloalto.gov/budget •Budget Conversations & Calendar •City Vision & Council Priorities •Economic Outlook & Budget Highlights •Citywide Budget Overview •General Fund Budget Overview •Capital Budget and 5-Year Capital Improvement Program •Utility Funds •Finance Committee & Community Conversations AGENDA 3 BUDGET CONVERSATIONS & CALENDAR 4 MAY 4 MAY 5 & 6 MAY 11 MAY 19 JUNE 15 Finance Committee Budget Workshops: Review the proposed budgets and recommend amendment(s) Study Session City Council: Finance Committee check- in with the City CouncilCity Council: FY 2027 Proposed Budget Overview: Discuss guidance for Finance Committee colleagues City Council Budget Adoption: Adopt Operating & Capital budgets (as amended by the Finance Committee) Finance Committee Budget Wrap-up: Based on the input from the May budget meetings, recommend final adjustment(s) to proposed budgets for Council adoption www.paloalto.gov/CouncilPriorities 5 Vision The government of the City of Palo Alto exists to promote and sustain a superior quality of life in Palo Alto. In partnership with our community, our goal is to deliver cost-effective services in a personal, responsive and innovative manner. CITY VISION AND COUNCIL PRIORITIES www.paloalto.gov/budget •Operating budget totals $1.05 billion (1.9% increase), with General Fund totals $310.98 million (1.1% decrease) •Capital budget totals $313.6 million in FY 2027 and $1.20 billion over the five-year Capital Improvement Program (CIP) •Multi-year strategy to solve projected General Fund $17.1 million (or 5.5%) budget deficit. •Continues the FY 2026 budget reductions. •Projects Budget Stabilization Reserve between 17.4% to 18%. 6 PROPOSED BUDGET OVERVIEW Expenditure reductions - $6.8M: •Streamlines administration and modernizes technology, and realigns cost allocations to reduce reliance on the General Fund •Relinquishes one-time encumbrance funding with thorough review and reduces ongoing contract appropriations via inter-departmental support. •Proposes a net decrease of 22.25 FTE (2.0%) citywide through vacancy management and potential reassignment of staff in impacted positions, largely avoided layoffs. CITYWIDE BUDGET STRATEGIES – General Fund 7 Revenue enhancements - $1.7M: •New and/or increased fees and rates. •Maximizes investment income with updated policy and portfolio management. •Audit revenue collections and diversify sources to ensure fiscal resilience and maximize existing resources. •Fosters economic development Use of one-time funding - $2.6M: Utilizes funds to bridge the shortfall and maintain service continuity for community and senior programming. •Measure B, SUMC Dev. Agreement ($2.4M), Hamiton Ave Benefit Fund ($0.2M) •Does not use Budget Stabilization Reserve (BSR); however projects balance below target of 18.5% Capital Investments - $1.5 M: Reduces base transfer by $1.5M as part of a broader structural realignment to align capital outlays with ongoing revenue capacity. Total transfer to the Capital Improvement Fund - $34.5M in FY 2027 (including a $14.6M Base and $15.5M TOT). Pension Cost & Liability - $4.5 M: Proactively manages pension: Section 115 Trust disbursement to CalPERS for ADP ($20M) and ADC ($6M). Council leadership and employee contributions through labor contracts address these costs and liabilities. CITYWIDE BUDGET STRATEGIES – General Fund 8 CHALLENGES, RISKS & ASSUMPTIONS 9 •Property Tax •Sales Tax •Doc Tsfr Tax (DTT) •Economic Uncertainty •Tariffs/ Inflation •Supply Chain Disruption •State/ Federal Policy •New Legislative Updates •Maintain 5% vacancy assumption •Strategic investments in core services & Council priorities •Budget Stabilization Reserve •Prefund Liabilities •Infrastructure Investments REVENUES EXPENDITURES RISK MITIGATIONCHALLENGES ALL FUNDS SOURCES & EXPENSES 10 FY 2027 Sources $1.05 Billion FY 2027 Expenses $1.05 Billion Allocated Charges, 7.4% Contract Services, 7.6% Debt Service, 2.2% Facilities & Equipment, 0.1% General Expense, 2.2% Rents & Leases, 1.5% Salary & Benefits, 29.6% Supplies & Material, 1.0% Utility Purchase, 20.7% Capital Improvement Program, 25.4% Net Transfers, 2.4% Business Tax, 0.7% Charges for Services, 4.7% Charges to Other Funds, 1.5% Documentary Transfer Tax, 0.9% From Other Agencies, 4.3% Net Sales, 50.4% Other Revenue, 16.4% Other Taxes and Fines, 0.1% Permits and Licenses, 1.4% Property Taxes, 7.9% Rental Income, 1.7% Return on Investments, 1.5% Sales Taxes, 3.3% Transient Occupancy Tax, 3.1% Utility Users Tax, 2.3% HISTORICAL FULL-TIME STAFFING COMPARISON 11 - 200 400 600 800 1,000 1,200 Citywide Total FTE General Fund FTE Great Recession Pandemic 1,088 FTE Citywide 591 FTE GF -22.5 FTE all funds FTE GENERAL FUND SOURCES & EXPENSESE 12 FY 2027 GF Revenues $310.98 Million FY 2027 GF Expenses $310.98 Million Business Tax, 2.2% Charges for Services, 14.8%Charges to Other Funds, 4.8% Documentary Transfer Tax, 2.9% From Other Agencies, 0.5% Other Revenue, 0.7% Other Taxes and Fines, 0.3% Permits and Licenses, 4.0%Property Taxes, 24.6% Rental Income, 5.2% Return on Investments, 1.5% Sales Taxes, 10.8% Transient Occupancy Tax, 10.2% Utility Users Tax, 7.4% Operating Transfers -In, 10.7% Use of Reserves, - 0.5%Allocated Charges, 10.2% Contract Services, 10.1% Facilities & Equipment, 0.2% General Expense, 3.0% Rents & Leases, 0.6%Salary & Benefits, 61.7% Supplies & Material, 1.2% Transfer to Infrastructure , 11.1% Operating Transfers- Out, 1.8% MULTI-YEAR GENERAL FUND BALANCING •Current service level and revenue portfolio •Disciplined ongoing costs with limited one-time funds use, including ADC in FY27 to FY30 •BSR within range of 15% to 20% but projected to decline to bottom of range (15%) 13 PROJECTIONS ($ million)FY 2027 FY 2028 FY 2029 FY 2030 GENRAL FUND Projected Surplus/(Deficit) 15.1% BSR @18.5% - Policy Target $ (11.48) *Sales Tax prior year adjustment may be more favorable increasing BSR by $2 M to $55.7 M or 18% 14 GENERAL FUND REVENUES – MAJOR TAXES $47 $51 $57 $59 $63 $66 $69 $72 $37 $31 $29 $33 $37 $37 $35 $27 $33 $26 $19 $5 $17 $25 $28 $29 $29 $31 $16 $16 $15 $16 $19 $19 $20 $21 $23 $7 $7 $12 $6 $7 $8 $9 $9 $5 $6 $7 $7 $0 $10 $20 $30 $40 $50 $60 $70 $80 2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Actual 2026 Adjust 2027 Budget MI L L I O N S Property Tax Sales Tax TOT UUT DDT Business Tax 46% FY 2027 PROPOSED BUDGET INVESTMENTS 15 Internal Support & Administration CSA •Proactively funds long-term liabilities with funds reserved for real property investments. •Streamlines administration and support the continued rollout of modernized financial and budget management systems to enhance internal controls, improve reporting accuracy. •Supports organizational resilience with talent recruitment and workforce engagement initiatives. •Includes positive work environment initiatives in professional development, career advancement/ continuity planning, wellness and belonging. •Provides leadership and support for implementation of Council Priority projects FY 2027 PROPOSED BUDGET REDUCTIONS 16 Internal Support & Administration CSA •Eliminates 5.25 full-time equivalent (FTE) positions •Eliminates vacant 3 management and administrative positions in Administrative Services, 1 management position within Information Technology, and 1.25 FTE in Human Resources. Likely leads to longer business cycle times and delayed responsiveness in the near term while systems adapt. •Reduces non-personnel administrative expenditures including specialized training, travel, and supply budgets across the CSA. FY 2027 PROPOSED BUDGET INVESTMENTS 17 Community & Library Services CSA •Funds HSRAP, $200k for allcove and YCS, Environmental Volunteers, and Neighbors Abroad ongoing; additional nonprofit support levels will be discussed at Finance Committee. •Advances the Cubberley community center concept plan and continue pre-existing appropriations. •Maintains seven-day-a-week library services at the Mitchell Park and Rinconada. •Advances staffing plan at 429 Bryant teen & community center. FY 2027 PROPOSED BUDGET REDUCTIONS 18 Community & Library Services CSA •Eliminates 6.00 FTE positions | Add 1.00 FTE •Reduces Children’s Library by 1-day to five days per week, mitigated through enhanced youth services at Rinconada Library. •Eliminates vacant positions, including a Senior Librarian, Library Associates, and a Program Assistant, paired with cross training to staff. •Eliminates parks maintenance lead. •Realigns field maintenance staff to City-owned parks, reduces contracts due to PAUSD agreement termination. •Adds 1.0 FTE for 429 Bryant teen & community center. FY 2027 PROPOSED BUDGET INVESTMENTS 19 Planning & Transportation CSA •Manages Community Development Block Grant (CDBG) and Below Market Rate (BMR) Housing Programs and fund with limited special revenues. •Leverages Measure K funding for the Comprehensive Area Plan along the San Antonio Road corridor to establish a vision for land use, housing, mobility, urban design, and community services that supports cohesive mixed-use neighborhood development. •Leverages Measure B funding for Safe Routes to School. FY 2027 PROPOSED BUDGET REDUCTIONS 20 Planning & Transportation CSA •Eliminates 3 FTE planners for General Fund savings - narrows focus to state-mandated housing objectives, such as Housing Element implementation and deferral of non- mandated zoning updates and additional neighborhood area plans. Impacts cycle times and delays Council priorities. •Eliminates Palo Alto Link service and pursues voucher program. •Allocates CIP and Measure B funding for eligible staffing. FY 2027 PROPOSED BUDGET INVESTMENTS 21 Infrastructure & Environment CSA •Continues commitment to complete 2014 Council Infrastructure Plan projects, while maintaining investment in existing essential infrastructure •Makes generational investments in the City’s electric distribution system to provide additional capacity necessary for building and vehicle electrification. •Advances a multi-year commitment to S/CAP local carbon reduction targets by funding Business Electrification Technical Assistance and Commercial Heat Pump programs. •Sustains enhanced cleaning and pressure washing in the University and California Avenue corridors to keep business districts vibrant and welcoming. •Aligns internal support allocations within PWD and Utilities that support ongoing operations. FY 2027 PROPOSED BUDGET REDUCTIONS 22 Infrastructure & Environment CSA •Eliminates 10.00 FTE | Freezes 3.00 FTE | Adds 3.00 FTEs •Eliminates 5.00 management and technical roles in Public Works and 5.00 Utilities Meter Readers following the successful citywide rollout of Advanced Meter Infrastructure (AMI). •Freezes 3.00 vacant roles in the Utilities Fiber Enterprise to properly manage expenditures while the program develops. •Adds 3.00 FTE for expanding demand at RWQCP. •Reduces janitorial and tree trimming contracts while still maintaining essential hygiene standards and monitoring the health and safety of the City's urban forest canopy. FY 2027 PROPOSED BUDGET INVESTMENTS 23 Public Safety CSA •Funds track crossing monitors through Feb. 2027 •Preserves expansion of emergency medical services with the 12-hour peak medic unit. •Continues funding one PERT clinician. •Fully operationalizes the Public Safety Building (PSB). •Funds Fire Station 4 Replacement Project. •Continues funding technology, equipment and fleet to ensure reliable emergency response. FY 2027 PROPOSED BUDGET REDUCTIONS 24 Public Safety CSA •Eliminates 3.00 FTE | Freezes 3.00 FTE | Adds 1.00 FTE •Freezes 1 Sergeant - Civilianizes shift scheduling to Admin Assistant and redistributes event management to other 13 Sergeants •Freezes vacant EMS Manager and Firefighter Trainee positions to prioritize customer-facing delivery and implementation of 12-hour peak medic unit. •Eliminates vacant Community Service Officer and two Firefighter Trainee positions. •Reduces crossing guard contract from 33 to 29 locations; locations not designated on the High Injury Network. •Procures diesel fire engines instead of electric models in the upcoming cycle to reduce near-term capital costs. CAPITAL IMPROVEMENT PROGRAM (CIP) – OVERVIEW 5-YR PLAN 25 Capital Improvement Funds $392.5M (111 Projects) Enterprise Funds $758.4M (91 Projects) Internal Service Funds $30.3M (15 Projects) 2027-2031 CIP PLANNED FUNDING BY FUND TYPE ($1.2 BILLION) Improvement Funds 111 Projects Enterprise Funds 91 Projects Internal Service Funds 15 Projects 2027-2031 CIP PLANNED PROJECTS BY FUND TYPE (217 PROJECTS) 5-Year CIP: Quiet Zone Improvements, Elwell Court and Development Center Office Space Relocation, Natural Grass Fields, and Water System Master Plan OVERVIEW 5-YR PLAN Complete in FY 27: Mitchell Park Library Repair, Hamilton Ave System Upgrades, Newell Rd Bridge Replacement OTHER FUNDS FY 2026 Adopted FY 2027 Proposed Electric 6%6%** Gas 12%*9% ** Water 10%8% Wastewater 20%16% Refuse 0%3% Storm Drain 2%3% Monthly Bill Amount $441.50 $477.80 Monthly Bill Change 9%* $37.80 8% $36.30 Additional actions included in the Proposed Budget address non-General Fund activities including but not limited to: •Parking Funds •Utility rate changes to the right 27 *Rates reflect rate change update in February 2026 due Cost of Service Analysis (COSA). **On 4/21 Finance Committee recommendation Electric from 6.0% to 4.5%, Gas split 2:1 vote The community is encouraged to join the budget conversations: •Finance Committee Budget Hearings: May 5 at 9:00 A.M. May 6 at 9:00 A.M. May 19 at 1:00 P.M. – Wrap-up •City Council Budget Discussion: May 11 at 4:30 P.M. •City Council Budget Adoption: June 15 at 5:30 P.M. All meeting details listed at https://www.paloalto.gov/budget JOIN THE BUDGET CONVERSATION •Provide general guidance to Finance Committee colleagues for their upcoming detailed work reviewing the budget documents •Clarify understanding of budget process, materials, and the City Council and Finance Committee roles Budget and meeting details listed at All meeting details listed at https://www.paloalto.gov/budget COUNCIL DISCUSSION 29 Thank You. May 4, 2026 www.paloalto.gov/budget From:Lara Buelow To:Council, City Subject:crossing guards PAUSD Date:Monday, May 4, 2026 11:50:05 AM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Hi. I'd like to express my support for keeping all crossing guards for PAUSD. Cars drive way too fast and recklessly, especially in school zones during morning commutes. I worry about my 5 and 6yo constantly. I've literally been next to them in a crosswalk as a person basically turned right into us. With the crosswalk lights on! PROTECT CHILDRENS LIVES. Slow cars the funk down. Thank you for your hard work, Lara Buelow, mom of 2 @ Escondido Lara Buelow (she/her) Author / Career Coach 650.575.6785 @larabuelow www.larabuelow.com/book Click to schedule a meeting Sent via Superhuman This message needs your attention This is their first email to your company. Mark Safe Report From:Lara Buelow To:Council, City Subject:crossing guards PAUSD Date:Monday, May 4, 2026 11:50:05 AM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Hi. I'd like to express my support for keeping all crossing guards for PAUSD. Cars drive way too fast and recklessly, especially in school zones during morning commutes. I worry about my 5 and 6yo constantly. I've literally been next to them in a crosswalk as a person basically turned right into us. With the crosswalk lights on! PROTECT CHILDRENS LIVES. Slow cars the funk down. Thank you for your hard work, Lara Buelow, mom of 2 @ Escondido Lara Buelow (she/her) Author / Career Coach 650.575.6785 @larabuelow www.larabuelow.com/book Click to schedule a meeting Sent via Superhuman This message needs your attention This is their first email to your company. Mark Safe Report From:Meri Gruber To:Council, City Subject:May 4, 2026, Item 4: FY 2027 Budget Study Session, Utility Rate Increases and Affordability Date:Thursday, April 30, 2026 8:01:08 AM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Dear Members of the City Council, I've been following the utility rate proposals closely this budget cycle and I am concerned about the impact on affordability. The City uses profits from its utilities to fund city services, unlike a private utility where profits go to shareholders. This is good. But the story changes if the City raises rates specifically to sustain that transfer. Then it becomes a regressive tax, one that hits every ratepayer equally regardless of income. Has the story changed for us in Palo Alto? Voters authorized a transfer to the General Fund of up to 18%. But we didn't authorize making the maximum transfer a guarantee, paid for by ratepayers. Each year's increase builds on the last, growing both the dollar amount of the General Fund transfer and the Utility Users Tax simultaneously. Electric +6%, Gas +9%, Water +8%. These are significant increases. We are a captive market; residents don't have other options. Council and staff should weigh heavily that these increases are regressive. The Utilities Advisory Commission voted to recommend a lower gas rate, explicitly citing the burden on ratepayers. I would ask Council not to approve the proposed budget until it has a full review of the utility rate increases and a full accounting of the tax burden. Thank you for your consideration of these affordability concerns and for your service to our community. Best regards, Meri Gruber Palo Alto From:Richard Stolee To:Council, City Cc:ctraboard Subject:Crossing Guards near Escondido School Date:Thursday, April 30, 2026 5:06:34 AM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Dear Mayor and Councilmembers, I am writing on behalf of the College Terrace Residents Association to urge you to retain funding for crossing guards at Escondido Road & Stanford Avenue and Stanford Avenue & El Camino Real. These are two of the most heavily used school crossings in our neighborhood. Students and families rely on them daily to walk and bike safely to school. As you know, these streets carry high volumes of fast-moving traffic, which makes safe crossings especially dependent on active management. Crossing guards are not interchangeable with signage or striping. They actively manage conflicts, create predictable gaps in traffic, and give children the confidence to cross safely. When guards are removed, driver yielding becomes less consistent and families shift toward driving, increasing congestion and reducing safety for everyone. If the City is considering reductions, these locations should be among the last considered. Removing guards here would have immediate, visible impacts on student safety and travel behavior. We understand the City is facing difficult budget decisions. We respectfully ask that you prioritize retaining crossing guards at these intersections and identify alternative areas for cost savings. Thank you for your consideration. Sincerely, Richard M Stolee President, College Terrace Residents Association 650-468-9000 This message needs your attention This is a personal email address. Mark Safe Report Powered by Mimecast From:dgoldeen@icloud.com To:City Mgr Cc:Council, City; Friends of Foothills Preserve Subject:Cutting Costs Date:Wednesday, April 29, 2026 9:15:07 PM CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. City Manger proposed reducing irrigation in Foothills Park/Nature Preserve. Why stop there? Why not stop the irrigation in Tramps Valley entirely. City Council changed the name of Foothills Park to Foothills Nature Preserve. If it’s a nature preserve, why is Trampas Valley being irrigated at all? You want to give biodiversity a boost? Restore Trampas Valley to native grasslands (Project for Acterra/Grassroot Ecology/Friends of Foothills, etc…). Keeping it as irrigated, mowed turf is, and always has been, in my opinion, not in keeping with sound ecological management practices nor fiscally responsible. From:Deborah Goldeen To:City Mgr Cc:Council, City; Friends of Foothills Preserve Subject:Cutting Costs Date:Wednesday, April 29, 2026 2:00:47 PM City Manger proposed reducing irrigation in Foothills Park/Nature Preserve. Why stop there? Why not stop the irrigation in Tramps Valley entirely. City Council changed the name of Foothills Park to Foothills Nature Preserve. If it’s a nature preserve, why is Trampas Valley being irrigated at all? You want to give biodiversity a boost? Restore Trampas Valley to native grasslands (Project for Acterra/Grassroot Ecology/Friends of Foothills, etc…). Keeping it as irrigated, mowed turf is, and always has been, in my opinion, not in keeping with sound ecological management practices nor fiscally responsible. From:Lara Anthony To:Council, City Subject:Crossing Guard Funding Date:Wednesday, April 29, 2026 12:18:22 PM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Dear Finance Committee Members, I am the PTA Council Chair for Safe Routes to School, but I am writing today in my individual capacity to urge the Finance Committee to please direct City staff to find alternative budget cuts rather than reducing crossing guards, as currently proposed. Our children and families depend on crossing guards to get to school safely. When crossing guards aren't present, the safety for our children is directly impacted. In addition, having fewer crossing guards results in more families choosing to drive their children to school because they feel less safe walking and biking. That in turn has numerous negative downstream impacts in our community, affecting the environment, traffic congestion, the physical and mental well- being of our children and young people who would otherwise enjoy active commutes, and it makes it less safe for others to walk & bike to school since there are more cars on the road. I recognize and appreciate that you are juggling many important and competing priorities in a difficult budget year, but I implore you to please find alternative cuts as opposed to reducing critical safety infrastructure for our children. Thank you for your service and for prioritizing our children's safety. Best regards, Lara Anthony 513-265-6447 lara.anthony@gmail.com From:Elizabeth Robinson Weingarten To:Council, City Subject:Crossing guard on Louis and North California Date:Wednesday, April 29, 2026 8:32:40 AM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Dear Council Members: I am writing in regard to the elimination of the crossing guard position—particularly the one at North California and Louis. I live on Bret Harte St., and the traffic of Stratford School plus Greene Middle school creates a great deal of traffic at the corner of Louis and North California. That four way stop is guarded well by crossing guard when both schools are getting out at the same time. I am not a parent in either of these schools; just a driver who uses this path frequently. Elementary schools may have your main interest, but middle school children on bicycles are not to be overlooked. The children can be absent minded and ride in groups overlooking everyone’s safety. From my experience as a resident, the statistical evaluation of an intersection has the lowest pedestrian/motor vehicle exposure in the system and is not designated on the High Injury Network according to the July 2025 Transportation Safety Action Plan may not match with the real experience of being on the streets during school time. I request that you reconsider the elimination of the crossing guard at North California and Louis. Sincerely, Elizabeth Weingarten 1889 Bret Harte St. Palo Alto This message needs your attention This is a personal email address. This is their first email to you. Mark Safe Report From:Deborah Goldeen To:City Mgr Cc:Council, City Subject:Palo Alto Online: Proposed Budget Date:Monday, April 27, 2026 1:01:14 PM How much money would the city save if the de-commissioned the HRC and the ARB? And why is the fact that Palo Alto has TWICE as many steps required from building project approval not up for examination? How much money in staff time could be saved, to say nothing of redoing the pain and aggravation of building in Palo Alto, by taking out, say, one or two of those steps? Considering that some, if not all, of the staff positions that are proposed to be cut are truly essential, it serves to reason that the city/city manager has a fiduciary duty to propose tackling the root of the budget bleed. Deb G.