HomeMy WebLinkAboutStaff Report 2512-5698CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, June 15, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
3.PUBLIC HEARING: Adoption of an Ordinance Adopting the Operating and Capital Budgets,
Revised Table of Organization, and Municipal Fee Schedule for Fiscal Year 2027; Adoption
of a Resolution Proposing the Appropriations Limit for Fiscal Year 2027 - State Law/ City
Charter; Accept the Bi-Annual Actuarial Valuation Report of Palo Alto's Retiree Healthcare
and Other Post-Employment Benefits (OPEB) as of June 30, 2025 and Approve Annual
Actuarially Determined Contribution for Fiscal Years 2027 and 2028; Authorize the City
Manager or their Designee to Negotiate and Execute a Memorandum of Understanding
and Funding Agreement (or Lease Agreement Amendment) with the Palo Alto Museum
to Provide Cost Sharing for Repairs to the Basement and Waterproofing in the Roth
Building and Improvements to Heritage Park Drainage Supplemental Report Added, Staff
Presentation
City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: June 15, 2026
Report #:2512-5698
TITLE
PUBLIC HEARING: Adoption of an Ordinance Adopting the Operating and Capital Budgets,
Revised Table of Organization, and Municipal Fee Schedule for Fiscal Year 2027; Adoption of a
Resolution Proposing the Appropriations Limit for Fiscal Year 2027 - State Law/ City Charter;
Accept the Bi-Annual Actuarial Valuation Report of Palo Alto's Retiree Healthcare and Other
Post-Employment Benefits (OPEB) as of June 30, 2025 and Approve Annual Actuarially
Determined Contribution for Fiscal Years 2027 and 2028; Authorize the City Manager or their
Designee to Negotiate and Execute a Memorandum of Understanding and Funding Agreement
(or Lease Agreement Amendment) with the Palo Alto Museum to Provide Cost Sharing for
Repairs to the Basement and Waterproofing in the Roth Building and Improvements to Heritage
Park Drainage
RECOMMENDATION
The Finance Committee and Staff recommend that the City Council hold a public hearing to:
1. Adopt the Fiscal Year 2027 Budget Ordinance (Attachment A), which includes:
City Manager’s Fiscal Year 2027 Proposed Operating and Capital Budgets, previously
distributed at the May 4th City Council Meeting (Attachment A, Exhibit 1)
Amendments to the City Manager’s Fiscal Year 2027 Proposed Operating Budget
(Attachment A, Exhibit 2)
Amendments to the City Manager’s Fiscal Year 2027 Proposed Capital Budget
(Attachment A, Exhibit 3)
Fiscal Year 2027 City Table of Organization (Attachment A, Exhibit 4)
Fiscal Year 2027 Municipal Fee Changes (Attachment A, Exhibit 5)
2. Accept the Fiscal Year 2027 – 2031 Capital Improvement Program (CIP)
3. Adopt a Resolution determining the Appropriations Limit for Fiscal Year 2027
(Attachment B)
4. Accept the June 30, 2025 actuarial valuation of Palo Alto's Retiree Healthcare Plan and
fund the annual Actuarially Determine Contribution (ADC) for Fiscal Year 2027 and 2028
5. Authorize the City Manager or their designee to negotiate and execute a Memorandum
of Understanding and Funding Agreement (or Lease Agreement Amendment) with the
Palo Alto Museum to provide cost sharing for repairs to the basement and waterproofing in the
Roth Building and improvements to Heritage Park drainage.
EXECUTIVE SUMMARY
1) recommended the City
Council adopt the FY 2027 budget inclusive of the Final Recommended Changes (and technical
changes) section of this memorandum. The Finance Committee voted unanimously (3-0) to
recommend adoption of the Operating and Capital Budgets, the Municipal Fee Schedule, and
the FY 2027-2031 Capital Improvement Program as amended. However, the motion to fund the
approved City Council Administrative Assistant pilot program with FY 2026 funds through
December 2026 was split for the purposes of voting and passed on a 2-1 vote. All changes to
the Proposed Budget recommended by the Finance Committee are detailed for the FY 2027
Operating Budget, by fund and by department, in Attachment A, Exhibits 2 and 3.
1 Finance Committee, May 19 2026; Agenda Item #1; SR #2605-6339
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The City continues to make infrastructure a priority through capital project investments in FY
2027 and through the 2027–2031 Capital Improvement Program (CIP). The FY 2027 budget
includes projects to maintain current infrastructure such as streets, sidewalks, and facilities as
well as enterprise funded capital needs such as electric, gas and water distribution networks
and substantial improvements at the Regional Water Quality Control Plant. The 2027–2031 CIP
also includes projects to upgrade the City’s infrastructure by accelerating design and
construction timelines for key rail crossing Quiet Zone improvements, implementing regional
transportation and bicycle pathway enhancements, and continuing multi-year investments in
grid modernization and public safety facilities.
FY 2027 Appropriation Limit
Actuarial Report of Retiree Healthcare and Other Post-Employment Benefits (OPEB)
3
BACKGROUND
3 Finance Committee, May 19, 2026; Agenda Item #2; SR #2512-5689
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an overview section with descriptions of each of these fund types and detailed information of
the revenues and expenses for each fund as well as for each individual department.
5, will represent the
ratification of the amendments that were approved by vote through the budget hearings. These
amendments include all changes to the Table of Organization. A comprehensive list of meeting
materials issued during Finance Committee budget hearings is available on the City website,
www.paloalto.gov/budget.
5 Finance Committee, May 19, 2026; Agenda Item #1; 2605-6339,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=88191&dbid=0&repo=PaloAlto&searchid=cd9f5ca8-
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ANALYSIS
This report is organized by the following sections:
FY 2027 Final Recommended Changes: A summary of final direction given by the Finance
Committee on May 19th and additional recommended technical and staff adjustments
organized by fund type.
Table of Organization: A summary of additional changes to the Table of Organization
because of adjustments made to the proposed budget that was presented to City Council
on May 4, 2026.
Municipal Fee Schedule: A summary of the changes in the review and recommendations to
Council for the FY 2026 Municipal Fee Schedule for incorporation in the FY 2027 Proposed
Budget (Staff Report #: 2604-6297).7
FY 2027 Utility Rate Changes: A brief overview of the rate changes reviewed by the Utilities
Advisory Commission and Finance Committee and the final decision the City Council will
make on June 15, 2026; each of these rate changes are included in the FY 2027 budget
assumptions.
FY 2027 Appropriation Limit Resolution: Review and approval of a resolution based on
California Article XIIIB to the State Constitution, as amended by Proposition 98 in 1988 and
Proposition 111 in 1990. The provisions of this article place limits on the amount of revenue
that can be appropriated by all entities of government.
Attachments: Attached to this report are several documents as outlined and referenced
throughout the recommendation language and the report. In addition, links to all the
materials presented throughout the budget process to the City Council such as staff reports,
At Places Memorandums, presentations made during the budget hearings, and transcripts
from City Council Budget Hearings are included.
Although Council only adopts the budget for the upcoming Fiscal Year, the FY 2027 Proposed
Budget continues the practice of outlining a long-range balancing strategy, while investing in
priority services, infrastructure, and saving for long-term liabilities. The strategy includes
revenue enhancements, limiting or reducing ongoing costs and looking for innovations to
mitigate the potential for greater future deficits. While there are continued unknowns and
uncertainties ahead, the FY 2027 Budget offers the Council, community, and staff the ability to
address community priorities while reducing expenses working toward an ongoing balanced
financial strategy.
This section reviews amendments to the FY 2027 Proposed Operating and Capital Budgets
presented to the City Council on May 4th, including final adjustments recommended by the
7 Finance Committee, May 6, 2026; Agenda Item #4; SR #2604-6297,
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Finance Committee and technical adjustments recommended by staff. A comprehensive list of
these adjustments by Fund Type, Fund, and Department is included in Attachment A, Exhibit 2
for changes to the FY 2027 Operating Budget, and Attachment A, Exhibit 3 for funding
recommended to be reappropriated from FY 2026 to FY 2027 to continue work on capital
projects. Changes to the Table of Organization are discussed later in this memorandum, and an
updated Table of Organization is included in Attachment A, Exhibit 4.
OPERATING BUDGET
OPERATING BUDGET – General Fund
Budget Stabilization Reserve
Finance Committee Recommended Adjustments
Throughout budget hearings in May, the Finance Committee engaged in several meetings to
review proposed budget documents and recommend tentative adjustments. Two of these
adjustments will leverage FY26 budget funding via reappropriations. They include $30,000 for
the City Council Administrative Assistant pilot program and $150,000 to support oversized
vehicle compliance and enforcement work performed by the Office of Transportation. Table 1
summarizes the Finance Committee General Fund recommended adjustments to the proposed
budget.
TABLE 1: FY 2027 General Fund Recommended Budget Adjustments
Dept Descriptions FY27
Revenue
FY27
Expense
FY27 Net
Revenue/
(Expense)
FY28/
Ongoing
(Savings)
CSD
JMZ Conservation Costs and explore
utilizing existing conservation programs
to fulfill the AZA requirements to the
extent possible | Reduce Hourly Positions
- (64,000)64,000 (64,000)
POL School Crossing Guards | Contingent
upon 50% match from PAUSD 51,250 102,500 (51,250)TBD
POL Track Watch | Contingent upon 50%
match from PAUSD (March - June)307,715 615,430 (307,715)TBD
NON
OSV - Geng Road parking site from Sept-
June ($200k) and additional towing
capacity to include ($184K) for
enforcement and street sweeping.
- 384,000 (384,000)TBD
NON Non-Profit Work Plan - Option C - 124,000 (124,000)TBD
PWD
Adjust Canopy contract with total
reduction of $15,000 instead of the
$43,550 and direct staff to communicate
with Canopy regarding scope reductions
- 28,550 (28,550)28,550
OOT
1.0 FTE Assistant Engineer - Office of
Transportation (leveraging $150K OSV
Reappropriations from FY26)
38,646 38,646 -TBD
OOT Quiet Zone – accelerate design to FY27
and construction to FY28 - 1,000,000 (1,000,000)N/A
NON TOT Revenue Increase and Increase of CIP
Transfer 542,000 542,000 - N/A
NON General Fund Base Transfer to CIP
Decrease - (460,059)460,059 N/A
NON Use of Measure K | Affordable Housing - (384,000)384,000 N/A
NON Use of Measure K | Transportation - (1,000,000)1,000,000 N/A
Dept Descriptions FY27
Revenue
FY27
Expense
FY27 Net
Revenue/
(Expense)
FY28/
Ongoing
(Savings)
NON Technical Adjustments (net aggregated to
balance)- 12,544 (12,544) N/A
Total 939,611 939,611 -
While the City adopts an annual budget, Finance Committee made recommendations for FY
2027 in consideration of our multi-year budget balancing strategy to reduce the City’s multi-
year budget deficit. Table 2 reflects the updated forecast:
TABLE 2: General Fund Long-Range Financial Plan Summary
*FY2029 does not reflect fiscal impact of bi-annual OPEB actuarial fluctuation, which staff roughly estimates an additional
$2 million of expense appropriation.
While the adjustments in Table 1 above outline the immediate balancing framework for Fiscal
Year 2027, there are services and programs not integrated into the City’s formal Long-Range
Financial Forecast (LRFF) beyond the upcoming fiscal year within Table 2, as the formal LRFF is
published annually in December. In the interim, a preliminary LRFF is published and shown as
Table 2. However starting in FY 2028, these programs present an ongoing deficit risk to the
General Fund that varies based on the status of Palo Alto Unified School District matching
funds. With the 50% cost-share maintained, the ongoing deficit exposure to the General Fund
increases by approximately $1.41 million annually, which includes $51,250 for crossing guards
and current $854,156 share of the full $1.70 million full fiscal year cost for the Track Watch
contract, alongside the fully absorbed $384,000 oversized vehicle program and $124,000 non-
profit allocation. Without the school district cost-share, the deficit exposure increases by
approximately $2.31 million annually. These costs will be considered during the next update of
the LRFF and especially FY 2028 budget development.
OPERATING BUDGET – Other Funds
Actuarial Report of Retiree Healthcare and Other Post-Employment Benefits (OPEB)
The City of Palo Alto provides a Retiree Healthcare benefit plan administered by CalPERS. Every
two years, staff contracts with an independent actuary to evaluate the plan's status. This
actuarial report establishes baseline assumptions to calculate the annual Actuarially
Determined Contribution (ADC) and guide trust pre-funding in accordance with Council policy.
Line Item FY 2027
Forecast
FY 2028
Forecast
FY 2029*
Forecast
Revenue $312.0 $318.7 $329.2
Expenses $311.8 $322.7 $331.1
Transfers (Measure K)$0.2 $(2.3)$1.3
Projected Net Surplus / (Deficit)-$(1.7)$(3.2)
On May 19, 2026 the Finance Committee reviewed and accepted the June 30, 2025 actuarial
valuation of Palo Alto’s Retiree Healthcare Plan and recommended funding the annual ADC for
Fiscal Year 2027 and 2028 (Staff Report #: 2512-5689).9 The FY 2027 Budget includes an ADC of
$26.1 million, an increase of $3.5 million from FY 2026 Adopted levels of $22.6 million. These
costs were included in the FY 2027 Proposed Budget so this action does not require additional
appropriation.
Community Development Block Grant (CDBG) Fund
Gas Tax Fund – Gas Tax Revenue Adjustment
CAPITAL BUDGET
Capital Reappropriations
9 Finance Committee, May 19, 2026; Agenda Item #2; 2512-5689,
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Other Capital Project Adjustments
In addition to the reappropriations from FY 2026 to FY 2027, several capital projects need to be
adjusted based on updated information that became available after the release of the FY 2027
Proposed Capital Budget or as a result of actions recommended in this memorandum. These
adjustments are discussed below and summarized in Attachment A, Exhibit 2.
-Art in Public Spaces (AC-86017): Ordinance no. 5301 stipulates that one percent (1%) of
the CIP budget be set aside for public art, with certain exceptions. Annual adjustments to
allocated amounts are made as the CIP budget changes, and the recommended action
does so based on the 2027-31 CIP, reducing the previously programmed FY 2027 budget by
$5,100.
-Bicycle and Pedestrian Transportation Plan Implementation (PL-04010): Consistent with
Finance Committee action on May 5, 2026, the recommended action reallocates $240,000
of previously programmed FY 2027 expenditure and Measure B LSR revenue to the new
Chimalus Shared Use Path (TR-28000) project for use in FY 2028.
-Embarcadero Road Improvements (TR-26000): Consistent with Report #2604-6269, the
recommended action adds $260,000 of expenditure and Measure B LSR revenue as the
second year of funding for the project.
-Quiet Zone Improvements (TR-27000): Consistent with Finance Committee
recommendation on May 5, 2026, the recommended action moves $1.0 million of design
costs and Measure K revenue from FY 2028 to FY 2027.
-Roth Building Rehabilitation Phase 1 (PF-23001): Consistent with Finance Committee
recommendation on May 19, 2026, transfer $250,000 from the Mitchell Park Library (PE-
24006) to Roth Building Rehabilitation (PF-23001) in case needed.
-Heritage Parks Site Amenities Replacement (PG-21000): Consistent with Finance
Committee recommendation on May 19, 2026, the recommended action prioritizes
evaluating and utilizing the remaining funding in the project for Heritage Park drainage
improvements related to Roth Building water intrusion.
-Foothills Rebuild Fire Mitigation (EL-21001): The recommended action increases the
budget by $1.8 million in order to complete the project in December 2026, supporting
substructure work, installation of 10,000 feet of underground wire, and removal of 92
wood poles.
TABLE OF ORGANIZATION
During the budget process, changes to the City Table of Organization were processed through
both Finance Committee policy recommendations and staff technical adjustments. The Finance
Committee recommended adding a 1.00 FTE Assistant Engineer to the Office of Transportation
to support the implementation of street safety and oversized vehicle programs. Separately, a
adjustment was processed to reduce the addition of a part-time temporary 0.48 FTE Zoological
Assistant in the Community Services Department. These specific actions, detailed in Attachment
A, Exhibit 2, modify the baseline to establish a citywide staffing level of 1,089.10 FTE in FY 2027,
which represents a net increase of 1.00 full-time FTE and a reduction of 0.48 part-time FTE from
the previously proposed budget numbers. An updated Table of Organization is included in
Attachment A, Exhibit 4.
MUNICIPAL FEE SCHEDULE
11, included in Attachment A,
Exhibit 5.
FISCAL YEAR 2027 RATE CHANGES
4.5% rate change for Electric (Finance Committee unanimous vote of 4.5% instead of
proposed 6% rate increase change)
3.0% CPI increase for pre-2006 Dark Fiber customers
9.0% rate increase for Gas
3.0% rate change for Refuse
3.0% CPI increase for Stormwater
16.0% rate change for Wastewater
8.0% rate change for Water
STAFF REFERRALS
11 Finance Committee, May 6, 2026; Agenda Item #4; SR #2604-6297,
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Council consideration. Staff will take into consideration their feedback as a part of FY 2028
budget development and/or work that may already be underway.
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2027
FISCAL/RESOURCE IMPACT
TABLE 3: Resource Impact of Amendments to Proposed Budget
(Non-General Funds with Fund Balance Change)
Fund Type Fund Name Fund Balance Change
Capital Capital Improvement Fund ($373.8k)
Capital Infrastructure Fund $1.2k
Airport Fund $10.6k
Electric Funds $9,976.9k
Fiber Fund $13.9k
Gas Fund $2,413.5k
Refuse Fund $12.1k
Stormwater Management Fund $13.8k
Wastewater Collection Fund ($2,871.7k)
Wastewater Treatment Fund $178.3k
Enterprise
Water Fund $1,009.6k
Internal Service General Benefits Fund ($6,183.3k)
Liability Insurance Fund $0.7k
Printing & Mailing Fund $0.6k
Technology Fund $30.0k
Vehicle Replacement & Maintenance Fund $235.4k
Worker’s Compensation Fund $1.2k
Community Development Block Grant Fund ($565.0k)
Gas Tax Fund $132.k
Public Art Fund $1.0k
Housing In-Lieu/Residential Fund $0.1k
Housing In-Lieu/Commercial Fund $0.1k
Residential Preferential Parking Permits
Fund
$1.4k
University Avenue Parking Permits $12.8k
Special Revenue
California Avenue Parking Permits $6.5k
STAKEHOLDER ENGAGEMENT
The budget process is structured around public hearings conducted before City Council adoption
to complete a detailed review of the budget documents and incorporate opportunities for
community input in the decision-making process. The community was encouraged to engage
with the budget process through scheduled public meetings with the Finance Committee and City
Council, a community informational session with City staff, and direct emails to the City Manager
and City Council. Additionally, the City maintains a dedicated webpage for meeting materials and
other budget information13
ENVIRONMENTAL REVIEW
Adoption of the City budget and associated actions is not a project under California
Environmental Quality Act (CEQA) Guidelines because it is a government fiscal activity
which does not involve any commitment to any specific project which may result in a
potentially significant physical impact on the environment. CEQA Guidelines Section
15378(b)(4).
ATTACHMENTS
Attachment A - FY 2027 Budget Adoption Ordinance
Attachment A, Exhibit 1 - Fiscal Year 2027 Proposed Budgets & Municipal Fee Schedule
Attachment A, Exhibit 2 and 3 - Amendments to the Fiscal Year 2027 Proposed Budgets
Attachment A, Exhibit 4 - Table of Organization
Attachment A, Exhibit 5 - Fiscal Year 2027 Municipal Fee Changes
Attachment B - FY 2027 City Appropriations Limit Resolution
Attachment B, Exhibit 1 - Appropriations Limit Calculation
Attachment C - FY 2027 Summary of Stanford Investments
APPROVED BY:
Lauren Lai, Administrative Services Director
13 City’s Budget Website: www.cityofpaloalto.org/budget
1
ATTACHMENT A
ORDINANCE NO. XXXX
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE
BUDGET FOR FISCAL YEAR 2027
SECTION 1. The Council of the City of Palo Alto finds and determines as follows:
A. Pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo
Alto and Chapter 2.28 of the Palo Alto Municipal Code, the City Manager has prepared and
submitted to the City Council, by letter of transmittal, a budget proposal for Fiscal Year 2027; and
B. Pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on
June 15, 2026, hold public hearings on the budget after publication of notice in accordance with
Section 2.28.070 of the Palo Alto Municipal Code; and
C.In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing with
Section 66016 of the Government Code, as applicable, the Council did on June 15, 2026, hold a
public hearing on the proposed amendments to the Municipal Fee Schedule, after publication of
notice and after availability of the data supporting the amendments was made available to the
public at least 10 days prior to the hearing.
SECTION 2. Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following
documents, collectively referred to as “the budget” are hereby approved and adopted for Fiscal
Year 2026:
(a) The budget document (Exhibit “1”) containing the proposed operating and capital
budgets submitted on May 4, 2026, by the City Manager for Fiscal Year 2027,
entitled “City of Palo Alto - City Manager’s Fiscal Year 2027 Proposed Budget”
covering General Government Funds, Enterprise Funds, Special Revenue Funds,
and Internal Service Funds, a copy of which is on file in the Department of
Administrative Services, to which copy reference is hereby made concerning the
full particulars thereof, and by such reference is made a part hereof; and
(b) The Amendments to the City Manager’s Fiscal Year 2027 Proposed Budget,
attached hereto as Exhibit “2” and Exhibit “3” and made a part hereof; and
(c) Changes and revised pages in the Table of Organization, as displayed on pages 515
2
ATTACHMENT A
through 536 in “Exhibit 1,” and amended in Exhibit “4” made a part hereof; and
(d) Fee changes of the Municipal Fee Schedule attached hereto as Exhibit “5”
including changes recommended in the Planning and Municipal Cost of Services
Study attached hereto as Exhibit “6” and the Citywide Cost of Services Study
attached hereto as Exhibit “7
SECTION 3. The sums set forth in the budget for the various departments of the City, as
herein amended, are hereby appropriated to the uses and purposes set forth therein.
SECTION 4. All expenditures made on behalf of the City, directly or through any agency,
except those required by state law, shall be made in accordance with the authorization contained
in this ordinance and the budget as herein amended.
SECTION 5. Appropriations for the Fiscal Year 2026 that are encumbered by approved
purchase orders and contracts for which goods or services have not been received or contract
completed, and/or for which all payments have not been made, by the last day of the Fiscal Year
2026 shall be carried forward and added to the fund or department appropriations for Fiscal Year
2027.
SECTION 6. The City Manager is authorized and directed to make changes in the
department and fund totals and summary pages of the budget necessary to reflect the
amendments enumerated and aggregated in the budget as shown in Exhibit “2” and Exhibit “3”
and the Fiscal Year 2026 appropriations carried forward as provided in Section 5.
SECTION 7. As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority
vote of the City Council is required to adopt this ordinance.
SECTION 8. As specified in Section 2.28.140(b) of the Palo Alto Municipal Code, the Council
of the City of Palo Alto hereby delegates the authority to invest the City’s funds to the Director
of Administrative Services, as Treasurer, in accordance with the City’s Investment Policy for Fiscal
Year 2027.
SECTION 9. The Council of the City of Palo Alto adopts the changes to the Municipal Fee
Schedule as set forth in Exhibit “5” including changes to Impact and In-Lieu Fees in Exhibit “6”.The
amount of the new or increased fees and charges is no more than necessary to cover the
reasonable costs of the governmental activity, and the manner in which those costs are allocated
to a payer bears a fair and reasonable relationship to the payer’s burden on, or benefits received
from, the governmental activity. All new and increased fees shall go into effect immediately;
provided that pursuant to Government Code Section 66017, all Planning & Community
Environment Department fees relating to a “development project” as defined in Government
Code Section 66000 shall become effective sixty (60) days from the date of adoption.
3
ATTACHMENT A
SECTION 10. Fees in the Municipal Fee Schedule are for government services provided
directly to the payor that are not provided to those not charged. The amount of this fee does not
exceed the reasonable costs to the City of providing the services. Consequently, pursuant to Art.
XIII C, Section 1(e)(2), such fees are not a tax.
SECTION 11. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this
ordinance shall become effective upon adoption.
SECTION 12. The Council of the City of Palo Alto hereby finds that this is not a project
under the California Environmental Quality Act and, therefore, no environmental impact
assessment is necessary.
INTRODUCED AND PASSED:Enter Date Here
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM:
APPROVED:
City Attorney
City Manager
Director of Administrative Services
ATTACHMENT A, EXHIBIT 1
Fiscal Year 2027 City Manager’s
Proposed Operating & Capital Budgets and Municipal Fees
These documents were originally distributed on May 4, 2026. Printed copies of
the Proposed Budgets are available upon request for $52 per book (FY 2027 fee).
Printed copies of the Municipal Fees are available upon request for $10 per book.
These documents may be viewed at any City of Palo Alto Library or the City’s
website: www.paloalto.gov/budget
Changes to the Municipal Fee Schedule were distributed in the Finance
Committee Packet on May 6, 2026. The City Manager’s Staff Report (#2604-6297)
can be viewed on the City’s website: CoPA Laserfiche WebLink: Staff Report
2604-6297
In addition, various at places memorandum and presentations were presented
throughout the Finance Committee Hearings in May 2026 to provide additional
information. These documents can be found on the City’s budget website under
“FY 2027 Budget Process”: www.paloalto.gov/budget
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department Adjustment Adjustment Adjustment
GENERAL FUND (102 & 103)
Administrative Staffing Adjustment - $-$-
This action reclasses the Senior Management Analyst in the Real
Non-Departmental Oversized Vehicle Initiative (OSV)
Consistent with Finance Committee's direction, this action allocates
$384,000
funding to the Oversized Vehicle Initiative. Finance Committee
Non-Departmental Use of Measure K Reserve for Housing Affordability
This action utilizes funding from the Reserve for Business Tax
Housing Affordability to support additional funding needs for the
Oversized Vehicle Program (OSV).
$-$(384,000)
Non-Departmental Use of Measure K Reserve for Transportation
This action utilizes funding from the Reserve for Business Tax
Transportation to support the Capital Improvement Program (CIP).
(1,000,000)
Non-Departmental Use of Measure K Reserve for Transportation
This transfers funds to the Capital Improvement Program to
support advancing of the Quiet Zone Improvements (TR-27000)
Project.
Non-Departmental Major Tax Updates Revenue Adjustment (TOT)
This action increases Transient Occupancy Tax (TOT) revenue
estimates, reflecting a ~2.5% increase on projected receipts, and
increases transfers to the Capital Improvement Fund.
$1,000,000
$542,000
Non-Departmental Major Tax Updates Revenue Adjustment (UUT)
This action adjusts Utility Users Tax (UUT) revenue estimates
based on updated model tracking files. This technical correction
decreases the City utility tax baseline by $340,000, partially offset
by a $292,000 increase in telephone tax projected receipts.
(48,000) $-
Non-Departmental Non-Profit Workplan Option C Funding Increase
Finance Committee recommended for FY 2027 Adopted to add a
budget adjustment to approve "Option C" of the Non-Profit
Workplan. This adjustment provides a direct allocation of to three
specific initiatives: Magical Bridge ($150,000), California Avenue
special events ($40,000), and the United Nations Association Film
Festival ($45,000).
Non-Departmental Reduction in General Fund Base Transfer to CIP
Consistent with the direction from the Finance Committee, this
action reduced the General Fund base transfer to the Capital
Improvement Program in Fiscal Year 2027.
$-$124,000
$-(460,059)
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department Adjustment Adjustment Adjustment
GENERAL FUND (102 & 103)
Non-Departmental Early Reappropriation: City Council Executive Assistant
Consistent with Finance Committee's direction, this action
$-$30,000
approves an early reappropriation of unspent prior-year operating
Non-Departmental Early Reappropriation: Engineering Services for Oversized Vehicle 150,000
Consistent with Finance Committee's direction, this action
Human Resources Section 115 ADP UAL Savings Correction
This technical action recognizes the outstanding Unfunded
Actuarial Liability (UAL) savings anticipated from the FY 2027
Additional Discretionary Payment (ADP) for General Fund
operating lines. (Ongoing savings: $499,658)
$(499,658)
Multiple Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations. (Ongoing costs: $145,818)
$-$118,891
Multiple Citywide Allocated Interfund Charges True-Up
Departments This technical correction realigns interfund transfers for
Utilities Equity Transfer Adjustment $(140,000) $-
Multiple Electric Retail Revenue Alignment -$141,379
This technical action updates budgeted transfers to reflect the
Solar and Energy Storage Permit Fee Subsidy ProgramPlanning and $225,000 -
Community Services JMZ Conservation Costs and Program Reduction
Consistent with Finance Committee's direction, this action
eliminates proposed part-time staffing and associated contract &
supplies and materials funding to explore utilizing existing
conservation programs to fulfill the AZA. (On-going savings:
$64,000)
$-$(64,000)
Canopy Contract Reduction AdjustmentPublic Works
As Directed by the Finance Committee, this action adjusts the
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department Adjustment Adjustment Adjustment
GENERAL FUND (102 & 103)
Public Works Tree Contract True Up 0.03 $4,077
This action corrects a clerical error made during budget
Multiple (PDS &Citywide 2.0 FTE Planner Restoration 1.40 $-255,701
This action restores the operating fund allocations for PCN 790
Office of 1.0 FTE Assistant Engineer Staffing Addition 38,646 $
This funds the addition of 1.0 FTE Assistant Engineer to the Office
Fire Salary and Benefit Technical Adjustment 29,216
This action corrects a clerical error made during budget
Police 1.0 FTE Police Sergeant Restoration
This action restores 1.0 FTE Police Sergeant. The position is de-
funded in FY 2027 but will remain in the Table of Organization.
1.00 $-$-
School Crossing Guards Contract Service Restoration 51,250 102,500
Consistent with Finance Committee's direction, this action restores
Police Track Watch Guard Service Extension $307,715 $615,430
Consistent with Finance Committee's direction, this action extends
Fund Balance Adjustment to Fund Balance (Budget Stabilization Reserve)
This action adjusts the fund balance to offset adjustments
recommended in this report.
$-$(180,000)
GENERAL FUND (102 & 103) SUBTOTAL 3.43 $976,611 $976,611
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues
Adjustment Adjustment
Expenses
AdjustmentDepartment
CAPITAL IMPROVEMENT FUNDS
CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Amendments to Proposed $-$130,586
Reappropriations
This action reflects the impact from adjustments to capital
OOT Citywide 2.0 FTE Planner Restoration 0.60 $-$108,234
This action restores the capital fund allocations for PCN 7544
Human Resources Section 115 ADP UAL Savings Correction
This technical action recognizes the outstanding Unfunded
$
$
$
$
(28,003)
Actuarial Liability (UAL) savings anticipated from the FY 2027
Non-Departmental Major Tax Updates Revenue Adjustment (TOT)542,000 -
This action increases Transient Occupancy Tax (TOT) revenue
Non-Departmental Transfer to the Capital Improvement Fund Reduction
Consistent with Finance Committee direction on May 19, 2026,
this action reduces the base transfer from the General Fund to
the Capital Improvement Fund in order to accommodate
operating adjustments in the General Fund.
(460,059) $-
Capital Art in Public Spaces (AC-86017)-$(5,100)
This action reduces the previously programmed FY 2027 budget
Bicycle and Pedestrian Transportation Plan Implementation (PL-
Consistent with Finance Committee direction on May 5, 2026, this
action reallocates $240,000 of previously programmed FY 2027
expenditure and Measure B LSR revenue to the new Chimalus
Shared Use Path (TR-28000) project for use in FY 2028.
$(240,000) $(240,000)
Embarcadero Road Improvements (TR-26000)
Consistent with Report #2604-6269, this action adds $260,000 of
expenditure and Measure B LSR revenue as the second year of
funding for the project.
260,000 $
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department Adjustment Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
Capital Quiet Zone Improvements (TR-27000)
Roth Building Rehabilitation Phase 1 (PF-23001)
$ 1,000,000 $1,000,000
$-
Consistent with Finance Committee direction on May 19, 2026,
Fund Balance Adjustment to Fund Balance (Infrastructure Reserve)
This action adjusts the fund balance to offset adjustments
recommended in this report.
$-$(373,776)
CAPITAL IMPROVEMENT FUND (471) SUBTOTAL 0.60 $ 1,101,941 $1,101,941
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues
Adjustment Adjustment
Expenses
AdjustmentDepartment
CAPITAL IMPROVEMENT FUNDS
CUBBERLEY INFRASTRUCTURE FUND (472)
Human Resources Section 115 ADP UAL Savings Correction $(1,157)
This technical action recognizes the outstanding Unfunded
Actuarial Liability (UAL) savings anticipated from the FY 2027
Fund Balance Adjustment to Fund Balance $-$1,157
This action adjusts the fund balance to offset adjustments
CUBBERLEY INFRASTRUCTURE FUND (472) SUBTOTAL 0.00 $-$-
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department Adjustment Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT FUND (530)
Human Resources Section 115 ADP UAL Savings Correction $-$(5,138)
This technical action recognizes the outstanding Unfunded
Utilities Electric Retail Revenue Alignment $-$(5,313)
This action updates support funding to reflect the finalized 4.5%
Capital Improvement Project Amendments to Proposed -
This action reflects the impact from adjustments to capital projects
Utilities Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations. (Ongoing savings: $12)
$-$(198)
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments
recommended in this report.
-
-
$
$
10,649
-AIRPORT FUND (530) SUBTOTAL 0.00 $
UTILITIES ADMINISTRATION FUND (521)
Human Resources Section 115 ADP UAL Savings Correction $(18,950)
This technical action recognizes the outstanding Unfunded
Utilities Utilities Administration Cost Allocation $(195,876) $-
This action updates Utilities enterprise fund budgets to reflect the
Fund Balance Adjustment to Fund Balance -$(176,926)
This action adjusts the fund balance to offset adjustments
UTILITIES ADMINISTRATION FUND (521) SUBTOTAL 0.00 $(195,876) $(195,876)
ELECTRIC FUND (513 & 523)
Human Resources Section 115 ADP UAL Savings Correction $-$(109,167)
This technical action recognizes the outstanding Unfunded
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department
ENTERPRISE FUNDS
Planning and
Adjustment Adjustment Adjustment
Solar and Energy Storage Permit Fee Subsidy Program $-$275,000
Development Services This action recognizes $225,000 in additional General Fund
Non-Departmental Equity Transfer Adjustment $-$(140,000)
This technical action updates budgeted transfers to reflect the
Electric Retail Revenue AlignmentUtilities (195,584) $This action updates support funding to reflect the finalized 4.5%
Water Sales to City True-Up
: $145,818)
$-$(127)
Reliability and Resiliency Program Support 100,000
This one-time action funds hourly staffing support for outreach,
Utilities Clerical Error Budget Correction $-$ (12,124,009)
This technical action corrects a duplicate expense entry and does
Tree Contract True Up (0.03) $$(4,077)
(92,486)
This action corrects a clerical error made during budget
Multiple Departments Citywide Allocated Interfund Charges True-Up
This technical correction realigns interfund transfers for citywide
$
building facility rentals and municipal utilities. (Ongoing savings:
Capital Foothills Rebuild Fire Mitigation (EL-21001)
This action increases the budget by $1.8 million in order to
complete the project in December 2026, supporting substructure
work, installation of 10,000 feet of underground wire, and
removal of 92 wood poles.
1,750,000
Fund Balance Adjustment to Fund Balance $-$10,153,820
This action adjusts the fund balance to offset adjustments
ELECTRIC FUND (513 & 523) SUBTOTAL (0.03) $(195,584) $(195,584)
FIBER FUND (533)
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department
ENTERPRISE FUNDS
Human Resources
Adjustment Adjustment Adjustment
Section 115 ADP UAL Savings Correction $-$(8,015)
This technical action recognizes the outstanding Unfunded
(Ongoing savings: $8,015)
Utilities Utilities Administration Cost Allocation $-$(5,844)
13,859
This action updates Utilities enterprise fund budgets to reflect the
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments
FIBER FUND (533) SUBTOTAL 0.00 $-$-
GAS FUND (514 & 524)
Human Resources Section 115 ADP UAL Savings Correction $-$(41,690)
This technical action recognizes the outstanding Unfunded
Utilities Water Sales to City True-Up $-$(21)
This technical action adjusts City expenditures to reflect the
Electric Retail Revenue Alignment
This action updates support funding to reflect the finalized 4.5%
Utilities Clerical Error Budget Correction $-$(2,379,750)
This technical action corrects a duplicate expense entry and does
Public Works Street Cut Fees and Water Treatment Charges
This technical action updates charges to reflect the latest
forecasted assumptions.
This action updates Utilities enterprise fund budgets to reflect the
allocation of Utilities Administration Fund costs based on
headcount. (Ongoing savings: $184,000)
$-$50,000
(42,025)
Fund Balance $-$2,413,508
This action adjusts the fund balance to offset adjustments
GAS FUND (514 & 524) SUBTOTAL 0.00 $-$-
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department Adjustment Adjustment Adjustment
ENTERPRISE FUNDS
REFUSE FUND (525)
Human Resources Section 115 ADP UAL Savings Correction $-$(11,194)
This technical action recognizes the outstanding Unfunded
Utilities Electric Retail Revenue Alignment (840)
This action updates support funding to reflect the finalized 4.5%
Utilities Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations. (Ongoing savings: $49)
$-$(110)
Fund Balance Adjustment to Fund Balance 12,144
This action adjusts the fund balance to offset adjustments
REFUSE FUND (525) SUBTOTAL 0.00 $-$-
STORMWATER MANAGEMENT FUND (528)
Human Resources Section 115 ADP UAL Savings Correction $-$(10,721)
This technical action recognizes the outstanding Unfunded
Electric Retail Revenue AlignmentUtilities $-$(2,988)
This action updates support funding to reflect the finalized 4.5%
Utilities Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations. (Ongoing savings: $12)
$-$(104)
Fund Balance Adjustment to Fund Balance 13,813
This action adjusts the fund balance to offset adjustments
STORMWATER MANAGEMENT FUND (528) SUBTOTAL 0.00 $-$-
WASTEWATER COLLECTION FUND (527)
Human Resources Section 115 ADP UAL Savings Correction $-$(21,261)
This technical action recognizes the outstanding Unfunded
Utilities Electric Retail Revenue Alignment $-$(41)
This action updates support funding to reflect the finalized 4.5%
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department
ENTERPRISE FUNDS
Public Works
Adjustment Adjustment Adjustment
Street Cut Fees and Water Treatment Charges
This technical action updates charges to reflect the latest forecasted
assumptions. (Ongoing costs: $2,914,640)
$-$2,914,640
Utilities Utilities Administration Cost Allocation
This action updates Utilities enterprise fund budgets to reflect the
Fund Balance Adjustment to Fund Balance $-$(2,871,733)
This action adjusts the fund balance to offset adjustments
WASTEWATER COLLECTION FUND (527) SUBTOTAL 0.00 $-$-
WASTEWATER TREATMENT FUND (526)
Human Resources Section 115 ADP UAL Savings Correction $-$(60,650)
This technical action recognizes the outstanding Unfunded
Utilities Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations. (Ongoing savings: $12)
$-$(348)
Electric Retail Revenue Alignment (117,332)
This action updates support funding to reflect the finalized 4.5%
Fund Balance Adjustment to Fund Balance $-$178,330
This action adjusts the fund balance to offset adjustments
WASTEWATER TREATMENT FUND (526) SUBTOTAL 0.00 $-$178,330
WATER FUND (522)
Human Resources Section 115 ADP UAL Savings Correction $-$(36,560)
This technical action recognizes the outstanding Unfunded
Utilities Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations. (Ongoing savings: $12)
$(38,016) $(231)
Electric Retail Revenue Alignment -$(26,909)
This action updates support funding to reflect the finalized 4.5%
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
FTE Revenues Expenses
Department
ENTERPRISE FUNDS
Utilities
Adjustment Adjustment Adjustment
Water Financial Forecast Update $-$(1,000,000)
This technical action updates the Water Operating budget to align
Public Works Street Cut Fees and Water Treatment Charges
This technical action updates charges to reflect the latest forecasted
assumptions. (Ongoing costs: $50,0000)
$-$50,000
Utilities Administration Cost Allocation (33,914)
This action updates Utilities enterprise fund budgets to reflect the
Fund Balance Adjustment to Fund Balance $-$1,009,599
This action adjusts the fund balance to offset adjustments
recommended in this report.
WATER FUND (522) SUBTOTAL 0.00 $(38,016) $(38,016)
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Revenues Expenses
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232)
Planning and CDBG FY26-27 Allocation
This action updates the CDBG budget to reflect finalized funding
sources and FY 2026-27 Annual Action Plan expenditures.
$47,139 $612,139
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset the actions
recommended in this report.
-$
$
(565,000)
47,139COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL $47,139
131,999
GAS TAX FUND (231)
Non- Gas Tax Revenue Increase
Departmental This action increases Gas Tax revenue estimates based on the
California Department of Finance's May 2026 updates for
estimated 2025-26 HUTA and RMRA-SB1 taxes.
$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset the actions
recommended in this report.
-
131,999
-
$
$
131,999
131,999GAS TAX FUND (231) SUBTOTAL $
PUBLIC ART FUND (207)
Human Section 115 ADP UAL Savings Correction $
Resources This technical action recognizes the outstanding Unfunded
Actuarial Liability (UAL) savings anticipated from the FY 2027
(Ongoing savings: $1,026)
Fund Balance Adjustment to Fund Balance $-$1,026
This action adjusts the fund balance to offset the actions
PUBLIC ART FUND (207) SUBTOTAL $-$-
HOUSING IN-LIEU/RESIDENTIAL FUND (233)
Human Section 115 ADP UAL Savings Correction
This technical action recognizes the outstanding Unfunded
$-$(140)
Actuarial Liability (UAL) savings anticipated from the FY 2027
Fund. (Ongoing savings: $140)
Fund Balance $-$140This action adjusts the fund balance to offset the actions
HOUSING IN-LIEU/RESIDENTIAL FUND (233) SUBTOTAL $-$-
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Revenues Expenses
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
HOUSING IN-LIEU/COMMERCIAL FUND (234)
Human Section 115 ADP UAL Savings Correction $-$(140)
This technical action recognizes the outstanding Unfunded
Fund Balance -$140This action adjusts the fund balance to offset the actions
HOUSING IN-LIEU/COMMERCIAL FUND (234) SUBTOTAL $-$-
RESIDENTIAL PREFERENTIAL PARKING PERMITS FUND (239)
Human Section 115 ADP UAL Savings Correction $-$(1,411)
Resources This technical action recognizes the outstanding Unfunded
Fund Balance Adjustment to Fund Balance $-$1,411
This action adjusts the fund balance to offset the actions
RESIDENTIAL PREFERENTIAL PARKING PERMITS FUND (239) SUBTOTAL $-$-
UNIVERSITY AVENUE PARKING PERMITS FUND (236)
Utilities Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations.
$-$(203)
Office of Electric Retail Revenue Alignment $(9,684)
Transportation This action updates support funding to reflect the finalized 4.5%
electric retail rate increase and revised cost allocations.
Human Section 115 ADP UAL Savings Correction -$(2,870)
Resources This technical action recognizes the outstanding Unfunded
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Revenues Expenses
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
Fund Balance Adjustment to Fund Balance $-$12,756
This action adjusts the fund balance to offset the actions
UNIVERSITY AVENUE PARKING PERMITS FUND (236) SUBTOTAL $-$-
CALIFORNIA AVENUE PARKING PERMITS FUND (237)
Utilities Water Sales to City True-Up $-$(159)
Office of Electric Retail Revenue Alignment (5,562)
Transportation This action updates support funding to reflect the finalized 4.5%
Human Section 115 ADP UAL Savings Correction $-$(745)
Resources This technical action recognizes the outstanding Unfunded
Fund Balance Adjustment to Fund Balance $-$6,466
This action adjusts the fund balance to offset the actions
CALIFORNIA AVENUE PARKING PERMITS FUND (237) SUBTOTAL $-$-
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Revenues Expenses
Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL BENEFITS FUND (687)
Non-Section 115 ADP UAL Savings Correction $-$(900,658)
Departmental This technical action recognizes the outstanding Unfunded
Non-General Benefits Fund Alignment $ (10,932,048) $ (3,848,113)
Departmental This technical action aligns the revenue and expenses within the
Fund Balance Adjustment to Fund Balance $-$ (6,183,277)
This action adjusts the fund balance to offset adjustments
GENERAL BENEFITS FUND (687) SUBTOTAL $ (10,932,048) $ (10,932,048)
WORKER'S COMPENSATION FUND (688)
Human Resources Section 115 ADP UAL Savings Correction
This technical action recognizes the outstanding Unfunded
$-$(1,189)
Actuarial Liability (UAL) savings anticipated from the FY 2027
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments
recommended in this report.
$-
-
$
$
1,189
-WORKER'S COMPENSATION FUND (688) SUBTOTAL $
LIABILITY INSURANCE FUND (689)
Human Resources Section 115 ADP UAL Savings Correction
This technical action recognizes the outstanding Unfunded
$(678)
Actuarial Liability (UAL) savings anticipated from the FY 2027
Fund Balance Adjustment to Fund Balance $-$678
This action adjusts the fund balance to offset adjustments
LIABILITY INSURANCE FUND (689) SUBTOTAL $-$-
PRINTING & MAILING FUND (683)
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Revenues
Adjustment
Expenses
AdjustmentDepartment
INTERNAL SERVICE FUNDS
Human Resources Section 115 ADP UAL Savings Correction $-$(642)
This technical action recognizes the outstanding Unfunded
Actuarial Liability (UAL) savings anticipated from the FY 2027
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments
recommended in this report.
$-
-
$
$
642
-PRINTING & MAILING FUND (683) SUBTOTAL $
TECHNOLOGY FUND (682)
Human Resources Section 115 ADP UAL Savings Correction
This technical action recognizes the outstanding Unfunded
$(29,652)
Actuarial Liability (UAL) savings anticipated from the FY 2027
Utilities Water Sales to City True-Up
This technical action adjusts City expenditures to reflect the
finalized customer cost allocations. (Ongoing costs: $145,818)
$-$(127)
Utilities Electric Retail Revenue Alignment
This action updates support funding to reflect the finalized 4.5%
Fund Balance Adjustment to Fund Balance 30,050
This action adjusts the fund balance to offset adjustments
TECHNOLOGY FUND (682) SUBTOTAL $-$-
VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Human Resources Section 115 ADP UAL Savings Correction $-$(10,004)
This technical action recognizes the outstanding Unfunded
Actuarial Liability (UAL) savings anticipated from the FY 2027
Utilities Electric Retail Revenue Alignment $-$(419)
This action updates support funding to reflect the finalized 4.5%
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Revenues Expenses
Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
Public Works Fleet Fuel Contract Reduction $-$(225,000)
This action reflects a technical adjustment associated with
Fund Balance Adjustment to Fund Balance $-$235,422
This action adjusts the fund balance to offset adjustments
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL $-$-
ATTACHMENT A, EXHIBIT 3
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Capital Improvement Plan FY 2026 Reappropriations to FY 2027
Expense Expense Expense Revenue Revenue Revenue
Reappropriation Reappropriation Reappropriation Reappropriation Reappropriation Reappropriation
Project Adjustment
(Proposed)
Adjustment Adjustment Adjustment Adjustment Adjustment
Fund Number and Name Project Title
471 - Capital Improvement Fund Americans With Disabilities Act Compliance
Shelter Renovation
In Public Spaces
PF-93009
-19002
-86017
-17000
-09002
-04010
-01003
-23000
-14000
-17010
-18016
-15020
450,000 450,000
2,145,239 2,145,239
Baylands Comprehensive Conservation Plan
Levee Repair for Public Safety Access
and Pedestrian Transportation Plan Implementation
Systems Improvements
Avenue Streetscape Update
Avenue Enhanced Bikeway
Center Electrical Upgrade & EV Charger Installation
Center Fire Life Safety Upgrades
Center Waterproofing Study and Repairs
29,210 29,210
435,000
246,030
241,000
256,000
1,351,085
324,997
941,037
32,898
435,000
246,030
241,000
256,000
1,351,085
324,997
941,037
32,898
86,300 86,300
1,878,328 1,878,328
Downtown Automated Parking Guidance Systems, Access Controls & RPL-15002
Electric Charger Infrastructure Installation
of City Facilities
Station 4 Replacement
Training Facility Replacement
Nature Preserve Dam Seepage Investigation and Repairs
Nature Preserve Improvements
Park Site Amenities Replacement
Renovation
Park Renovation
Automated Material Handling
Stern Community Theater Mechanical Equipment Replacement PE-24002
Stern Community Theatre Fire Curtain
Park Community Center Audio Visual Equipment
Service Center Lighting, Mechanical, and Electrical ImprovemPF-16006
California Avenue Area Parking Garage
Downtown Parking Garage
Public Safety Building
Road/San Francisquito Creek Bridge Replacement
-Road Pathway Resurfacing And Repair
and Open Space Emergency Repairs
Restroom Installation
PF-23000
-24001
-18004
-24000
-20000
-21000
-21000
-18001
-21002
-21000
436,857
626,179
2,349,248
49,988
100,144
494,646
436,857
626,179
2,349,248
49,988
100,144
494,646
77,58677,586
185,000 185,000
25,000
329,248
1,949,713
200,000
340,000
6,165,504
997,012
12,896,981
978,087
976,810
170,000
43,779
319,704
193,900
108,023
1,999,819
101,150
1,158,326
891,958
300,000
54,521
329,248
1,949,713
200,000
340,000
6,165,504
997,012
12,896,981
978,087
976,810
38,000
AC-24001
-26000
PE-18000
-15007
-15001
-12011
-09001
-09002
-19000
-15003
-18000
-17001
-08001
-24004
-18015
-00006
12,896,981 12,896,981
(132,000)
43,779
319,704
193,900
108,023
1,999,819
101,150
1,158,326
891,958
300,000
54,521
319,704 319,704
Parking District Implementation
Performing Arts Venues Seat Replacement
Grade Separation and Safety Improvements
Park Improvements
Pool Family Changing Room
Park Improvements
2,093,843 2,093,843
Roofing Replacement
Francisquito Creek Joint Powers Authority Ongoing Creek Projects PE-22000
Traffic Signal and Intelligent Transportation Systems
Avenue Parking Improvements
Avenue Streetscape Update
Park Library Repair
Alto Art Center Ceramics Equipment
Equipment Replacement
PL-05030
-14003
-21004
-24006
-28003
-25000
-25000
1,350,000 1,350,000 800,000 800,000
262,557 262,557
California Avenue Parking District Parking Improvements
ATTACHMENT A, EXHIBIT 3
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Capital Improvement Plan FY 2026 Reappropriations to FY 2027
Expense Expense Expense Revenue Revenue Revenue
Reappropriation Reappropriation Reappropriation Reappropriation Reappropriation Reappropriation
Project Adjustment
(Proposed)
Adjustment Adjustment Adjustment Adjustment Adjustment
Fund Number and Name Project Title
Baylands Interpretive Signage Program OS-24001 34,163 34,163 34,163 34,163
Meadow Drive and Charleston Road Rail Grade Separation and Safety PL-24000
Charleston Road/Alma Street Railroad Crossing Safety Improvements PL-25002
1,593,463 1,593,463 1,197,619 1,197,619
Churchill Avenue Rail Grade Separation and Safety Improvements
Theatre Facility Upgrade/Repair
Stations Repair and Maintenance
Street Streetscape Update
PL-24001
-28002
-26001
-26002
658,835 658,835 2,000,000 2,000,000
PAAC Auditorium Audio Visual Equipment and Facility Public Announc AC-26001 165,506 165,506
Parking Infrastructure Improvements
Relief Projects
Gate at Foothill and Miranda
PL-12000
-25001
-26003
200,000 200,000
400,000 400,000
471 - Capital Improvement Fund Total
- Cubberley Property Infrastructure Fund Cubberley Community Center Redevelopment
Repairs
50,486,497
305,061
100,000
130,586 50,617,083
305,061
100,000
33,175,475 -33,175,475
CB-26000
-17001
472 - Cubberley Property Infrastructure Fund Total ---
523 - Electric Fund Inter-substation Line Protection Relay
Grid Technology Installation
Facility Improvements
System Rebuild
Substation Upgrade Project
60kV Bus Rebuild
EL-17005
-11014
-89044
-16001
-24001
-17002
-19001
-24000
645,333 645,333
2,957,140
3,498,849
3,780,000
12,762,653
25,499,849
43,310
2,948,211
7,501,748
10,493,269
758,910
2,957,140
3,498,849
3,780,000
12,762,653
25,499,849
43,310
2,948,211
7,501,748
10,493,269
758,910
Colorado Transformer #3 Replacement
Modernization 12kV Distribution Residential Rebuild 39,240,000 39,240,000
523 - Electric Fund Total
- Fiber Optics Fund
-39,240,000 -39,240,000
Fiber Optics Network - System Improvements
Optics Network - System Rebuild
-to-the-Premises (FTTP)
FO-10001
-16000
-24000
533 - Fiber Optics Fund Total
- Gas Fund
--
Gas Distribution System Improvements
Main Replacement - Project 25
Main Replacement - Project 26
Meters and Regulators
GS-11002
-15000
-16000
-80019
-25001
5,138,088 5,138,088 7,500,000 7,500,000
Gas Line Repair at Arastradero Creek 143,916 143,916
524 - Gas Fund Total 8,242,014 -8,242,014 7,500,000 -7,500,000
528 - Stormwater Management Fund Corporation Way System Upgrades and Pump Station
Stormwater Infrastructure
Drainage System Replacement And Rehabilitation
Bayshore Road Trunk Line Improvements
Drive Capacity Upgrades
SD-21000
-22001
-06101
-23000
-26001
-25000
201,333
1,030,250
882,265
19,236
65,200
201,333
1,030,250
882,265
19,236
65,200
1,030,250 1,030,250
Hamilton Avenue System Upgrades 98,292 98,292
528 - Stormwater Management Fund Total
- Wastewater Collection Fund
2,296,576
927,852
334,530
1,262,382
2,988,974
15,166,602
10,593,300
1,112,320
1,000,000
-2,296,576
927,852
334,530
1,262,382
2,988,974
15,166,602
10,593,300
1,112,320
1,000,000
1,030,250 -1,030,250
Sewer Lateral/Manhole Rehabilitation and Replacement
Collection System Rehabilitation/Augmentation Project 3 WC-20000
WC-99013
527 - Wastewater Collection Fund Total
- Wastewater Treatment Fund
-
2,988,974
15,166,602
10,582,800
1,112,320
1,000,000
-
2,988,974
15,166,602
10,582,800
1,112,320
1,000,000
Headworks Facility Replacement
Laboratory And Environmental Services Building
Line Construction
Treatment Upgrades
Advanced Water Purification System
WQ-16002
-14002
-19000
-19001
-19003
ATTACHMENT A, EXHIBIT 3
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2027 PROPOSED BUDGET
Capital Improvement Plan FY 2026 Reappropriations to FY 2027
Expense Expense Expense Revenue Revenue Revenue
Reappropriation Reappropriation Reappropriation Reappropriation Reappropriation Reappropriation
Project Adjustment
(Proposed)
Adjustment Adjustment Adjustment Adjustment Adjustment
Fund Number and Name
526 - Wastewater Treatment Fund Total
522 - Water Fund
Project Title
30,861,196 -30,861,196 30,850,696 -30,850,696
Water Distribution System Improvements
Main Replacement - Project 30
Meters
Service and Hydrant Replacement
System Supply Improvements
Tank Seismic Upgrade and Rehabilitation
WS-11003
-16001
-80015
-80014
-11004
-09000
96,300
4,366,839
154,630
50,000
1,061,540
100,000
96,300
4,366,839
154,630
50,000
1,061,540
100,000
5,829,309
1,641,440
126,841
894,907
365,281
522 - Water Fund Total
- Technology Fund
5,829,309
1,641,440
126,841
894,907
365,281
---
City Council Chambers Upgrade
Aided Dispatch (CAD) Upgrade
Resource Planning Upgrade
Management System
Data Center Upgrade
TE-19001
-23000
-19000
-13004
-25000 980,000 980,000
682 - Technology Fund Total 4,008,469
1,987,783
625,812
-4,008,469
1,987,783
625,812
2,613,595
142,128,803
681 - Vehicle Replacement & Maintenance FundScheduled Vehicle and Equipment Replacement - Fiscal Year 2024
Vehicle and Equipment Replacement - Fiscal Year 2025
- Vehicle Replacement & Maintenance Fund Total
VR-24000
-25000
2,613,595
141,998,217
---
All Funds Total 130,586 111,796,421 111,796,421
TABLE OF ORGANIZATION
Table of Organization
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
General Fund
Administrative Services
Account Specialist 4.13 4.13 4.13 4.13 ——%
Account Specialist-Lead 3.45 3.45 3.45 3.45 ——%
Accountant 2.00 2.00 2.00 2.00 ——%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 1.00 1.00 1.00 —(1.00)(100.0)%
Administrative Associate III 1.00 1.00 1.00 1.00 ——%
Assistant Director Administrative Services 1.65 1.65 1.65 1.65 ——%
Buyer 2.00 2.00 2.00 2.00 ——%
Chief Procurement Officer 1.00 1.00 1.00 1.00 ——%
Contracts Administrator 3.70 3.70 2.70 2.70 ——%
Director Administrative Services/CFO 0.80 0.80 0.80 0.80 ——%
Director Office of Management and Budget 1.00 1.00 1.00 1.00 ——%
Management Analyst**2.00 3.00 2.00 2.00 ——%
Manager Budget 2.00 2.00 2.00 2.00 ——%
Manager Real Property 1.00 1.00 1.00 1.00 ——%
Manager Revenue Collections 0.62 0.62 0.62 —(0.62)(100.0)%
Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 ——%
Manager, Finance 1.00 1.00 1.00 1.00 ——%
Payroll Analyst 2.00 2.00 2.00 2.00 ——%
Senior Accountant 3.00 3.00 3.00 3.00 ——%
Senior Buyer 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst**2.30 2.30 3.40 2.40 (1.00)(29.4)%
Storekeeper 2.00 2.00 2.00 2.00 ——%
Storekeeper-Lead 0.20 0.20 0.20 0.20 ——%
Attachment A, Exhibit 4
Page 1 of 22
TABLE OF ORGANIZATION
Warehouse Supervisor 0.20 0.20 0.20 0.20 ——%
Total Administrative Services 40.65 41.65 40.75 38.13 (2.62)(6.4)%
City Attorney
Assistant City Attorney 4.00 4.00 4.00 3.75 (0.25)(6.3)%
Chief Assistant City Attorney 1.00 1.00 1.00 1.00 ——%
City Attorney 1.00 1.00 1.00 1.00 ——%
Claims Investigator 1.00 1.00 1.00 1.00 ——%
Deputy City Attorney 0.50 0.50 0.50 0.50 ——%
Legal Fellow 1.00 1.00 1.00 0.75 (0.25)(25.0)%
Secretary to City Attorney 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total City Attorney 10.50 10.50 10.50 10.00 (0.50)(4.8)%
City Clerk
Administrative Associate III 2.00 2.00 2.00 1.75 (0.25)(12.5)%
Assistant City Clerk 2.00 2.00 2.00 2.00 ——%
City Clerk 1.00 1.00 1.00 1.00 ——%
Total City Clerk 5.00 5.00 5.00 4.75 (0.25)(5.0)%
City Manager
Administrative Assistant 3.00 3.00 3.00 3.00 ——%
Assistant City Manager 1.00 1.00 1.00 0.80 (0.20)(20.0)%
Assistant to the City Manager 3.00 3.00 3.00 3.00 ——%
Chief Communications Officer 1.00 1.00 1.00 1.00 ——%
City Manager 1.00 1.00 1.00 1.00 ——%
Deputy City Manager 1.00 1.00 1.00 1.00 ——%
Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 ——%
Management Fellow ——0.20 0.20 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 2 of 22
TABLE OF ORGANIZATION
Management Specialist —1.00 ————%
Manager Communications 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total City Manager 13.00 14.00 13.20 13.00 (0.20)(1.5)%
Community Services
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Animal Caretaker —4.00 4.00 4.00 ——%
Assistant Director Community Services 2.00 2.00 2.00 2.00 ——%
Building Serviceperson 2.00 2.00 2.00 2.00 ——%
Building Serviceperson-Lead 2.00 2.00 2.00 2.00 ——%
Coordinator Recreation Programs 5.75 5.75 6.00 6.00 ——%
Director Community Services 1.00 1.00 1.00 1.00 ——%
Division Manager Open Space, Parks & Golf 1.00 1.00 1.00 1.00 ——%
Inspector, Field Services 2.00 2.00 2.00 2.00 ——%
Junior Museum & Zoo Educator 4.85 4.85 5.85 5.85 ——%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Management Assistant 1.00 1.00 1.00 1.00 ——%
Manager Community Services 5.00 5.00 5.00 5.00 ——%
Manager Community Services Senior Program 4.00 4.00 4.00 4.00 ——%
Manager Human Services 1.00 1.00 1.00 1.00 ——%
Park Maintenance Person 6.00 6.00 6.00 5.40 (0.60)(10.0)%
Park Maintenance-Lead 1.00 1.00 1.00 —(1.00)(100.0)%
Park Ranger 6.00 6.00 6.00 6.00 ——%
Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 ——%
Producer Arts/Science Program 9.50 9.50 9.50 7.50 (2.00)(21.1)%
Program Assistant I 3.75 4.75 5.75 6.75 1.00 17.4%
Program Assistant II 4.00 4.00 4.00 3.00 (1.00)(25.0)%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 3 of 22
TABLE OF ORGANIZATION
Project Manager 0.10 0.10 0.10 0.10 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Sprinkler System Representative 4.00 4.00 4.00 3.60 (0.40)(10.0)%
Superintendent Community Services 2.00 2.00 2.00 2.00 ——%
Theater Specialist 5.00 5.00 5.00 7.00 2.00 40.0%
WGW Heavy Equipment Operator 0.07 0.07 0.07 0.07 ——%
Total Community Services 78.02 83.02 85.27 83.27 (2.00)(2.3)%
Fire
40-Hour Captain 0.20 —————%
40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 ——%
40-Hour Training Captain 1.00 1.00 1.00 1.00 ——%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 2.20 3.00 3.00 3.00 ——%
Administrative Associate III 0.20 1.00 2.00 2.00 ——%
Assistant Fire Marshal —1.00 1.00 1.00 ——%
Battalion Chief 3.00 3.00 3.00 3.00 ——%
Business Analyst 0.80 0.80 0.80 0.80 ——%
Deputy Director Technical Services Division 0.20 0.20 0.20 0.20 ——%
Deputy Fire Chief 2.00 2.00 2.00 2.00 ——%
Emergency Medical Service Director 1.00 1.00 1.00 1.00 ——%
Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 ——%
Fire Apparatus Operator 26.00 26.00 26.00 26.00 ——%
Fire Captain 20.00 20.00 23.00 23.00 ——%
Fire Chief 1.00 1.00 1.00 1.00 ——%
Fire Fighter 34.00 37.00 37.00 37.00 ——%
Fire Fighter Trainee*3.00 3.00 3.00 1.00 (2.00)(66.7)%
Fire Inspector 2.40 3.20 3.20 3.20 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 4 of 22
TABLE OF ORGANIZATION
Fire Marshal 0.05 0.75 0.75 0.75 ——%
Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——%
Hazardous Materials Inspector 0.70 3.93 3.93 3.93 ——%
Manager, EMS*——1.00 1.00 ——%
Plans Check Engineer —0.50 0.50 0.50 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Single Role EMT ——2.00 2.00 ——%
Single Role Paramedic ——2.00 2.00 ——%
Total Fire 102.25 112.88 121.88 119.88 (2.00)(1.6)%
Human Resources
Administrative Assistant 0.75 0.75 0.75 0.50 (0.25)(33.3)%
Assistant Director Human Resources 1.00 1.00 1.00 1.00 ——%
Director Human Resources/CPO 1.00 1.00 1.00 1.00 ——%
Human Resources Representative 4.00 4.00 4.00 4.00 ——%
Human Resources Technician 2.00 2.00 2.00 1.00 (1.00)(50.0)%
Management Fellow ——0.30 0.30 ——%
Manager Employee Benefits 1.00 1.00 ————%
Manager Employee Relations 1.00 1.00 1.00 1.00 ——%
Recruitment Division Manager —1.00 1.00 1.00 ——%
Senior Human Resources Administrator 4.00 4.00 3.00 3.00 ——%
Senior Management Analyst 2.00 2.00 2.00 2.00 ——%
Total Human Resources 16.75 17.75 16.05 14.80 (1.25)(7.8)%
Library
Administrative Assistant 1.00 1.00 1.00 0.50 (0.50)(50.0)%
Coordinator Library Programs 5.00 5.00 5.00 5.00 ——%
Director Libraries 1.00 1.00 1.00 1.00 ——%
Division Head Library Services 2.00 2.00 2.00 2.00 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 5 of 22
TABLE OF ORGANIZATION
Librarian 4.00 4.00 4.00 4.00 ——%
Library Associate 10.00 10.00 10.00 8.00 (2.00)(20.0)%
Library Specialist 8.00 8.00 8.00 7.50 (0.50)(6.3)%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Manager Library Services 3.00 3.00 3.00 3.00 ——%
Senior Business Analyst 1.00 1.00 1.00 1.00 ——%
Senior Librarian 8.00 8.00 8.00 7.00 (1.00)(12.5)%
Supervising Librarian 5.00 5.00 5.00 5.00 ——%
Total Library 49.00 49.00 49.00 45.00 (4.00)(8.2)%
Office of Emergency Services
Director Office of Emergency Services 1.00 1.00 1.00 1.00 ——%
Office of Emergency Services Coordinator 2.00 2.00 2.00 2.00 ——%
Total Office of Emergency Services 3.00 3.00 3.00 3.00 ——%
Office of Transportation
Administrative Assistant 0.60 0.60 0.60 0.50 (0.10)(16.7)%
Assistant Engineer**———1.00 1.00 —%
Associate Engineer 0.35 0.35 0.35 0.35 ——%
Associate Planner 0.40 1.40 1.40 1.40 ——%
Chief Transportation Official 0.70 0.70 0.70 0.50 (0.20)(28.6)%
Coordinator Transportation Systems
Management
0.65 —————%
Parking Operations-Lead 0.05 0.05 0.05 0.05 ——%
Planner**—0.40 0.40 0.40 ——%
Principal Transportation Engineer ——0.20 0.20 ——%
Project Engineer 0.25 0.25 0.35 0.35 ——%
Senior Engineer 0.55 0.55 0.35 0.35 ——%
Senior Management Analyst 0.50 0.50 0.50 0.40 (0.10)(20.0)%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 6 of 22
TABLE OF ORGANIZATION
Senior Planner 1.40 1.65 1.65 1.65 ——%
Transportation Planning Manager 1.00 1.00 1.00 1.00 ——%
Total Office of Transportation 6.45 7.45 7.55 8.15 0.60 7.9%
Planning and Development Services
40-Hour Captain 0.80 —————%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 0.80 —————%
Administrative Associate III 7.80 6.00 6.00 4.00 (2.00)(33.3)%
Assistant Chief Building Official 2.00 1.00 1.00 1.00 ——%
Assistant Director PCE 1.00 1.00 1.00 1.00 ——%
Associate Engineer 0.50 0.50 0.50 0.50 ——%
Associate Planner 1.25 1.25 1.25 1.25 ——%
Building/Planning Technician 2.50 2.50 2.50 2.50 ——%
Chief Building Official 1.00 1.00 1.00 1.00 ——%
Chief Planning Official 1.00 —————%
Code Enforcement Officer 1.00 1.00 1.00 1.00 ——%
Code Enforcement-Lead 1.00 1.00 1.00 1.00 ——%
Development Project Coordinator I ———2.00 2.00 —%
Development Project Coordinator II 2.00 2.00 2.00 2.00 ——%
Development Project Coordinator III 3.00 3.00 3.00 3.00 ——%
Director Planning/Community Environment 1.00 1.00 1.00 1.00 ——%
Division Manager Planning —1.00 1.00 1.00 ——%
Engineer 0.52 0.52 0.52 0.52 ——%
Engineering Technician III 1.00 1.00 1.00 1.00 ——%
Fire Inspector 1.60 0.80 0.80 0.80 ——%
Fire Marshal 0.80 0.25 0.25 0.25 ——%
Hazardous Materials Inspector 3.20 0.07 0.07 0.07 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 7 of 22
TABLE OF ORGANIZATION
Industrial Waste Investigator 0.35 0.35 0.35 0.35 ——%
Inspector, Field Services 0.68 0.68 0.68 0.68 ——%
Landscape Architect Park Planner 0.50 0.50 0.50 0.50 ——%
Manager Planning 4.00 4.00 5.00 5.00 ——%
Plan Review Manager —1.00 ————%
Planner**5.00 5.00 5.00 3.00 (2.00)(40.0)%
Plans Check Engineer 1.00 0.50 0.50 0.50 ——%
Principal Planner 2.00 3.00 4.00 4.00 ——%
Project Manager 0.50 0.50 0.50 0.50 ——%
Senior Building Inspector 8.00 8.00 8.00 8.00 ——%
Senior Business Analyst 1.00 —————%
Senior Engineer 0.45 0.45 0.45 0.45 ——%
Senior Management Analyst 2.00 2.00 2.00 2.00 ——%
Senior Plan Check Engineer 2.00 3.00 3.00 3.00 ——%
Senior Planner 7.65 8.75 8.75 7.75 (1.00)(11.4)%
Senior Program Manager —1.00 1.00 1.00 ——%
Senior Technologist —1.00 1.00 1.00 ——%
Supervisor Inspection and Surveying 0.25 0.25 0.25 0.25 ——%
Supervisor of Code Enforcement 1.00 1.00 1.00 1.00 ——%
Technologist —1.00 1.00 1.00 ——%
Transportation Planning Manager 0.05 0.05 0.05 0.05 ——%
Total Planning and Development Services 71.20 67.92 68.92 65.92 (3.00)(4.4)%
Police
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 3.00 3.00 3.00 3.00 ——%
Animal Control Officer 2.00 2.00 2.00 2.00 ——%
Animal Control Officer-Lead 1.00 1.00 1.00 1.00 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 8 of 22
TABLE OF ORGANIZATION
Assistant Police Chief 1.00 1.00 1.00 1.00 ——%
Business Analyst 2.20 2.20 2.20 2.20 ——%
Code Enforcement Officer 1.00 1.00 1.00 1.00 ——%
Community Service Officer 5.63 4.69 4.69 3.69 (1.00)(21.3)%
Court Liaison Officer 2.00 2.00 2.00 2.00 ——%
Crime Analyst 1.00 1.00 1.00 1.00 ——%
Deputy Director Technical Services Division 0.80 0.80 0.80 0.80 ——%
Forensic Coordinator —1.00 1.00 1.00 ——%
Forensic Specialist —1.00 1.00 1.00 ——%
Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——%
Police Agent 19.00 19.00 19.00 19.00 ——%
Police Captain 2.00 2.00 2.00 2.00 ——%
Police Chief 1.00 1.00 1.00 1.00 ——%
Police Lieutenant 4.00 5.00 5.00 5.00 ——%
Police Officer 45.00 45.00 45.00 45.00 ——%
Police Records Specialist II 6.00 6.00 6.00 6.00 ——%
Police Records Specialist-Lead 1.00 1.00 1.00 1.00 ——%
Police Sergeant*,**14.00 14.00 14.00 14.00 ——%
Program Assistant II 1.00 1.00 1.00 2.00 1.00 100.0%
Property Evidence Technician 2.00 —————%
Public Safety Communications Manager 1.00 1.00 1.00 1.00 ——%
Public Safety Dispatcher 16.00 16.00 16.00 16.00 ——%
Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 ——%
Public Safety Program Manager 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total Police 139.13 139.19 139.19 139.19 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 9 of 22
TABLE OF ORGANIZATION
Public Works
Administrative Assistant 0.50 0.50 0.75 0.55 (0.20)(26.7)%
Administrative Associate II 2.65 2.65 2.65 1.62 (1.03)(38.9)%
Assistant Director Public Works 0.73 0.73 0.73 0.73 ——%
Associate Engineer 0.45 0.45 0.45 0.45 ——%
Building Serviceperson-Lead 1.00 1.00 1.00 1.00 ——%
Building/Planning Technician 0.50 0.50 0.50 0.50 ——%
Cement Finisher 2.00 2.00 2.00 2.00 ——%
Cement Finisher-Lead 0.26 0.26 0.26 0.26 ——%
Coordinator Public Works Projects 1.50 1.50 0.70 0.70 ——%
Director Public Works/City Engineer 1.00 1.00 1.00 1.00 ——%
Electrician 0.80 0.80 0.80 0.80 ——%
Engineer 0.48 0.48 0.48 0.48 ——%
Engineering Technician III 1.80 1.80 1.80 1.80 ——%
Environmental Specialist 0.33 0.33 0.33 0.33 ——%
Equipment Operator 2.46 2.46 2.46 2.46 ——%
Facilities Carpenter 1.00 1.00 1.00 1.00 ——%
Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 ——%
Facilities Painter 1.75 1.75 1.75 1.75 ——%
Facilities Technician 5.05 5.05 5.05 5.05 ——%
Heavy Equipment Operator 2.10 2.10 2.10 2.10 ——%
Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 ——%
Inspector, Field Services 0.11 0.11 0.11 0.11 ——%
Landscape Architect Park Planner 0.60 0.60 0.60 0.60 ——%
Management Analyst 0.70 0.80 0.80 0.80 ——%
Manager Environmental Control Program 0.33 0.33 0.33 0.33 ——%
Manager Facilities 0.90 0.90 0.90 0.50 (0.40)(44.4)%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 10 of 22
TABLE OF ORGANIZATION
Manager Maintenance Operations 1.20 1.20 1.20 0.50 (0.70)(58.3)%
Manager Urban Forestry 1.00 1.00 1.00 0.96 (0.04)(4.0)%
Manager Watershed Protection 0.05 0.05 0.05 0.05 ——%
Project Manager 2.85 2.85 2.85 2.78 (0.07)(2.5)%
Senior Engineer 0.60 0.60 0.60 0.60 ——%
Senior Management Analyst 1.11 1.11 1.11 1.11 ——%
Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 ——%
Surveyor, Public Works 0.33 0.33 0.33 —(0.33)(100.0)%
Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 ——%
Traffic Controller Maintainer II 1.00 1.00 2.00 2.00 ——%
Tree Maintenance Person 1.00 1.00 1.00 1.02 0.02 2.0%
Tree Trim/Line Clear 7.00 7.00 7.00 5.88 (1.12)(16.0)%
Tree Trim/Line Clear-Lead 1.00 1.00 1.00 0.98 (0.02)(2.0)%
WGW Heavy Equipment Operator 0.23 0.23 0.23 0.23 ——%
Total Public Works 51.11 51.21 51.66 47.77 (3.89)(7.5)%
Total General Fund 586.06 602.57 611.97 592.86 (19.11)(3.1)%
Enterprise Fund
Public Works
Accountant 0.70 0.70 0.70 0.70 ——%
Administrative Assistant ———0.30 0.30 —%
Administrative Associate I 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 2.15 2.15 2.15 2.15 ——%
Administrative Associate III 0.20 0.20 0.20 0.20 ——%
Airport Specialist II 2.50 2.50 2.50 2.50 ——%
Assistant Director Public Works 1.30 1.30 1.30 1.30 ——%
Assistant Manager WQCP 2.00 2.00 2.00 2.00 ——%
Associate Engineer 3.05 3.05 3.05 3.05 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 11 of 22
TABLE OF ORGANIZATION
Chemist 3.00 3.00 3.00 3.00 ——%
Electrician 3.00 3.00 3.00 3.00 ——%
Electrician-Lead 2.00 2.00 2.00 2.00 ——%
Engineer 1.90 1.90 1.90 1.90 ——%
Engineering Technician III 0.20 0.20 0.20 0.20 ——%
Environmental Specialist 2.33 2.33 3.33 3.33 ——%
Equipment Operator 0.54 0.54 0.54 0.54 ——%
Facilities Maintenance Lead 1.00 1.00 1.00 1.00 ——%
Fire Marshal 0.07 —————%
Hazardous Materials Inspector 0.04 —————%
Heavy Equipment Operator 0.90 0.90 0.90 0.90 ——%
Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 ——%
Industrial Waste Inspector 3.00 3.00 3.00 3.00 ——%
Industrial Waste Investigator 1.15 1.15 1.15 1.15 ——%
Instrumentation Electrician ——1.00 1.00 ——%
Laboratory Technician WQC 3.00 3.00 3.00 3.00 ——%
Landfill Technician 2.00 2.00 2.00 2.00 ——%
Management Analyst 2.30 2.90 2.90 2.90 ——%
Manager Airport 1.00 1.00 1.00 1.00 ——%
Manager Environmental Control Program 5.33 5.33 5.33 5.33 ——%
Manager Information Technology ———1.00 1.00 —%
Manager Laboratory Services 1.00 1.00 1.00 1.00 ——%
Manager Maintenance Operations 1.96 1.96 1.96 2.96 1.00 51.0%
Manager Solid Waste 1.00 1.00 1.00 1.00 ——%
Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 ——%
Manager Watershed Protection 0.95 0.95 0.95 0.95 ——%
Plant Mechanic 7.00 7.00 7.00 7.00 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 12 of 22
TABLE OF ORGANIZATION
Program Assistant I 1.00 1.00 1.00 1.00 ——%
Program Assistant II 2.00 2.00 2.00 2.00 ——%
Project Engineer 2.83 2.83 2.83 2.83 ——%
Project Manager 1.35 1.35 1.35 1.35 ——%
Senior Accountant 0.30 0.30 0.30 0.30 ——%
Senior Buyer 1.00 1.00 1.00 1.00 ——%
Senior Chemist 2.00 2.00 2.00 2.00 ——%
Senior Engineer 3.76 3.76 3.76 3.76 ——%
Senior Industrial Waste Investigator 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 0.21 0.21 0.61 0.61 ——%
Senior Mechanic 1.00 1.00 1.00 1.00 ——%
Senior Operator WQC 6.00 6.00 7.00 8.00 1.00 14.3%
Senior Technologist 1.00 1.00 1.00 1.00 ——%
Storekeeper 1.00 1.00 1.00 1.00 ——%
Street Sweeper Operator 1.63 1.63 1.63 1.63 ——%
Supervisor WQCP Operations 3.00 3.00 3.00 3.00 ——%
Surveyor, Public Works 0.12 0.12 0.12 —(0.12)(100.0)%
Technologist 1.00 1.00 1.00 1.00 ——%
Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 ——%
WQC Plant Operator II 16.00 16.00 16.00 16.00 ——%
Zero Waste Coordinator 1.00 1.00 1.00 1.00 ——%
Total Public Works 106.98 107.47 110.87 114.05 3.18 2.9%
Utilities
Account Specialist 1.00 1.00 1.00 1.00 ——%
Accountant 1.30 1.30 1.30 1.30 ——%
Administrative Assistant 1.00 1.00 1.75 1.75 ——%
Administrative Associate II 6.00 6.00 6.00 6.03 0.03 0.5%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 13 of 22
TABLE OF ORGANIZATION
Administrative Associate III ———0.25 0.25 —%
Assistant City Attorney 2.00 2.00 2.00 2.25 0.25 12.5%
Assistant City Manager ———0.20 0.20 —%
Assistant Director Administrative Services 0.25 0.25 0.25 0.25 ——%
Assistant Director Sustainability and Climate
Action
1.00 1.00 1.00 1.00 ——%
Assistant Director Utilities Customer Support
Services*
2.00 2.00 2.00 2.00 ——%
Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 ——%
Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 ——%
Assistant Director Utilities/Resource
Management
1.00 1.00 1.00 1.00 ——%
Associate Sustainability Program Administrator 1.00 2.00 2.00 2.00 ——%
Business Analyst 6.00 6.00 6.00 6.00 ——%
Cathodic Protection Technician Assistant 1.00 1.00 ————%
Cathodic Technician 1.00 1.00 2.00 2.00 ——%
Cement Finisher 2.00 3.00 3.00 3.00 ——%
Contracts Administrator 0.70 0.70 0.70 0.70 ——%
Coordinator Utilities Projects 8.00 10.00 10.00 10.00 ——%
Customer Service Representative 7.00 7.00 7.00 7.00 ——%
Customer Service Specialist 2.00 2.00 2.00 2.00 ——%
Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 ——%
Deputy City Attorney 0.50 0.50 0.50 0.50 ——%
Director Administrative Services/CFO 0.20 0.20 0.20 0.20 ——%
Electric Heavy Equipment Operator 1.00 1.00 1.00 1.00 ——%
Electric Project Engineer 8.00 10.00 10.00 10.00 ——%
Electric Underground Inspector 2.00 2.00 2.00 2.00 ——%
Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 ——%
Electrical Equipment Technician 1.00 1.00 1.00 1.00 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 14 of 22
TABLE OF ORGANIZATION
Electrician Assistant I 3.00 3.00 3.00 3.00 ——%
Electrician-Lead —1.00 1.00 1.00 ——%
Engineer 5.00 5.00 5.00 5.00 ——%
Engineering Manager - Electric 1.00 1.00 1.00 1.00 ——%
Engineering Manager - WGW 1.00 1.00 1.00 1.00 ——%
Engineering Technician III 3.00 3.00 3.00 3.00 ——%
Environmental Specialist 0.34 0.34 0.34 0.34 ——%
Equipment Operator 1.00 1.00 2.00 2.00 ——%
Fire Marshal 0.08 —————%
Gas and Water Meter Measurement and
Control Technician
4.00 5.00 5.00 5.00 ——%
Gas and Water Meter Measurement and
Control Technician - Lead
1.00 1.00 1.00 1.00 ——%
Hazardous Materials Inspector 0.06 —————%
Heavy Equipment Operator - Install/Repair 4.00 5.00 5.00 5.00 ——%
Human Resources Representative 1.00 1.00 1.00 1.00 ——%
Industrial Waste Investigator 0.50 0.50 0.50 0.50 ——%
Inspector, WGW Utilities Field Svc 5.00 5.00 6.00 6.00 ——%
Legal Fellow ———0.25 0.25 —%
Lineperson/Cable Specialist 10.00 10.00 10.00 10.00 ——%
Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 ——%
Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 ——%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Management Fellow ——0.50 0.50 ——%
Manager Communications 1.00 1.00 1.00 1.00 ——%
Manager Customer Service 1.00 1.00 1.00 1.00 ——%
Manager Electric Operations 1.00 1.00 1.00 1.00 ——%
Manager Environmental Control Program 0.34 0.34 0.34 0.34 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 15 of 22
TABLE OF ORGANIZATION
Manager Information Technology*1.00 1.00 1.00 1.00 ——%
Manager Treasury, Debt & Investments 0.40 0.40 0.40 0.40 ——%
Manager Urban Forestry ———0.04 0.04 —%
Manager Utilities Compliance 1.00 1.00 1.00 1.00 ——%
Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 ——%
Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 ——%
Manager Utilities Program Services 2.00 2.00 2.00 2.00 ——%
Manager Utilities Strategic Business 1.00 1.00 1.00 1.00 ——%
Manager Utilities Telecommunications*3.00 3.00 3.00 3.00 ——%
Meter Reader 5.00 5.00 5.00 1.00 (4.00)(80.0)%
Meter Reader-Lead 1.00 1.00 1.00 —(1.00)(100.0)%
Metering Technician 2.00 2.00 2.00 2.00 ——%
Metering Technician-Lead 1.00 1.00 1.00 1.00 ——%
Offset Equipment Operator 0.48 0.98 0.48 0.48 ——%
Overhead Underground Troubleman 2.00 2.00 2.00 2.00 ——%
Principal Business Analyst 1.00 1.00 1.00 1.00 ——%
Program Assistant I 2.00 2.00 2.00 2.00 ——%
Project Engineer 5.00 5.00 5.00 5.00 ——%
Project Manager 0.75 0.75 0.75 0.82 0.07 9.3%
Resource Planner 5.00 5.00 5.00 5.00 ——%
Restoration Lead 1.00 1.00 1.00 1.00 ——%
Senior Accountant 0.70 0.70 0.70 0.70 ——%
Senior Business Analyst 3.00 3.00 3.00 3.00 ——%
Senior Buyer ——1.00 1.00 ——%
Senior Electrical Engineer 5.00 5.00 5.00 5.00 ——%
Senior Engineer 5.00 5.00 5.00 5.00 ——%
Senior Management Analyst 0.70 0.70 1.00 1.00 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 16 of 22
TABLE OF ORGANIZATION
Senior Marketing Analyst 1.00 1.00 1.00 1.00 ——%
Senior Mechanic 1.00 1.00 1.00 1.00 ——%
Senior Resource Planner 7.00 7.00 7.00 7.00 ——%
Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 ——%
Senior Utilities System Operator 1.00 1.00 1.00 1.00 ——%
Senior Water Systems Operator 2.00 2.00 2.00 2.00 ——%
Storekeeper 1.00 1.00 1.00 1.00 ——%
Storekeeper-Lead 0.80 0.80 0.80 0.80 ——%
Street Light, Traffic Signal & Fiber Technician 4.00 4.00 4.00 4.00 ——%
Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 ——%
Substation Electrician 6.00 6.00 6.00 6.00 ——%
Substation Electrician-Lead 2.00 2.00 2.00 2.00 ——%
Sustainability Programs Administrator 5.00 5.00 5.00 5.00 ——%
Tree Maintenance Person 1.00 1.00 1.00 0.98 (0.02)(2.0)%
Tree Trim/Line Clear ———0.12 0.12 —%
Tree Trim/Line Clear-Lead ———0.02 0.02 —%
Utilities Chief Operating Officer 1.00 1.00 1.00 1.00 ——%
Utilities Compliance Technician 3.00 3.00 3.00 3.00 ——%
Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 ——%
Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 ——%
Utilities Director 1.00 1.00 1.00 1.00 ——%
Utilities Engineer Estimator 5.00 5.00 5.00 5.00 ——%
Utilities Field Services Representative 5.00 5.00 5.00 5.00 ——%
Utilities Install Repair-Lead-Welding Certified 3.00 3.00 3.00 3.00 ——%
Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 ——%
Utilities Install/Repair 10.00 11.00 11.00 11.00 ——%
Utilities Install/Repair Assistant 1.00 1.00 ————%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 17 of 22
TABLE OF ORGANIZATION
Utilities Install/Repair-Lead 4.00 4.00 3.00 3.00 ——%
Utilities Key Account Representative 3.00 3.00 3.00 3.00 ——%
Utilities Locator 3.00 3.00 3.00 3.00 ——%
Utilities Safety Officer 1.00 1.00 1.00 1.00 ——%
Utilities Supervisor 12.00 12.00 12.00 12.00 ——%
Utilities System Analyst 2.00 2.00 2.00 2.00 ——%
Utilities System Operator 5.00 5.00 5.00 5.00 ——%
Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 ——%
Warehouse Supervisor 0.80 0.80 0.80 0.80 ——%
Water System Operator II 4.00 4.00 4.00 4.00 ——%
WGW Heavy Equipment Operator 4.70 4.70 4.70 4.70 ——%
Total Utilities 273.60 283.96 286.01 282.22 (3.79)(1.3)%
Total Enterprise Fund 380.58 391.43 396.88 396.27 (0.61)(0.2)%
Other Funds
Capital Project Fund
Administrative Assistant 0.65 0.65 0.65 0.55 (0.10)(15.4)%
Administrative Associate III 0.80 0.80 0.80 0.80 ——%
Assistant Director Public Works 0.72 0.72 0.72 0.72 ——%
Associate Engineer 1.65 1.65 1.65 1.65 ——%
Associate Planner 0.35 0.35 0.35 0.35 ——%
Cement Finisher-Lead 0.74 0.74 0.74 0.74 ——%
Chief Transportation Official 0.30 0.30 0.30 0.50 0.20 66.7%
Contracts Administrator 0.60 0.60 0.60 0.60 ——%
Coordinator Public Works Projects 1.30 1.30 1.30 1.30 ——%
Coordinator Transportation Systems
Management
1.35 —————%
Engineer 3.10 3.10 3.10 2.10 (1.00)(32.3)%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 18 of 22
TABLE OF ORGANIZATION
Engineering Technician III 0.50 0.50 0.50 0.50 ——%
Facilities Technician 1.50 1.50 1.50 1.50 ——%
Inspector, Field Services 1.21 1.21 1.21 1.21 ——%
Landscape Architect Park Planner 0.90 0.90 0.90 0.90 ——%
Management Analyst 0.80 0.90 0.90 0.90 ——%
Manager Facilities 0.10 0.10 0.10 0.50 0.40 400.0%
Manager Maintenance Operations 0.65 0.65 0.65 0.50 (0.15)(23.1)%
Park Maintenance Person ———0.60 0.60 —%
Parking Operations-Lead 0.30 0.30 0.30 0.30 ——%
Planner**—0.60 0.60 0.60 0.60 —%
Principal Transportation Engineer ——0.80 0.80 ——%
Project Engineer 7.92 7.92 8.82 8.82 ——%
Project Manager 1.45 1.45 1.45 1.45 ——%
Senior Engineer 4.64 4.64 3.84 3.84 ——%
Senior Management Analyst 0.75 0.75 0.75 0.85 0.10 13.3%
Senior Planner 1.55 2.30 2.30 2.30 ——%
Sprinkler System Representative ———0.40 0.40 —%
Supervisor Inspection and Surveying 0.65 0.65 0.65 0.65 ——%
Surveyor, Public Works 0.55 0.55 0.55 —(0.55)(100.0)%
Transportation Planning Manager 0.45 0.45 0.45 0.45 ——%
Total Capital Project Fund 35.48 35.58 36.48 36.38 (0.10)(0.3)%
General Benefits Fund
Human Resources Technician ——0.50 0.50 ——%
Manager Employee Benefits ——0.75 0.75 ——%
Senior Human Resources Administrator ——0.75 0.75 ——%
Total General Benefits Fund ——2.00 2.00 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 19 of 22
TABLE OF ORGANIZATION
General Liabilities Insurance Program Fund
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total General Liabilities Insurance Program
Fund
1.00 1.00 1.00 1.00 ——%
Printing and Mailing Services
Manager Revenue Collections 0.10 0.10 0.10 —(0.10)(100.0)%
Offset Equipment Operator 1.52 2.02 1.52 1.52 ——%
Total Printing and Mailing Services 1.62 2.12 1.62 1.52 (0.10)(6.2)%
Special Revenue Funds
Account Specialist 1.37 1.37 1.37 1.37 ——%
Account Specialist-Lead 0.55 0.55 0.55 0.55 ——%
Administrative Assistant 0.25 0.25 0.25 0.25 ——%
Administrative Associate II 0.20 0.20 0.20 0.20 ——%
Community Service Officer 0.37 0.31 0.31 0.31 ——%
Coordinator Public Works Projects 0.20 0.20 ————%
Electrician 0.20 0.20 0.20 0.20 ——%
Facilities Maintenance-Lead 0.15 0.15 0.15 0.15 ——%
Facilities Painter 0.25 0.25 0.25 0.25 ——%
Facilities Technician 0.45 0.45 0.45 0.45 ——%
Manager Community Services Senior Program 1.00 1.00 1.00 1.00 ——%
Manager Maintenance Operations 0.19 0.19 0.19 0.04 (0.15)(78.9)%
Manager Revenue Collections 0.28 0.28 0.28 —(0.28)(100.0)%
Parking Operations-Lead 0.65 0.65 0.65 0.65 ——%
Senior Management Analyst 0.35 0.35 0.35 0.35 ——%
Senior Planner 0.40 0.30 0.30 0.30 ——%
Street Maintenance Assistant 2.00 2.00 2.00 2.00 ——%
Street Sweeper Operator 0.37 0.37 0.37 0.37 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 20 of 22
TABLE OF ORGANIZATION
Transportation Planning Manager 0.50 0.50 0.50 0.50 ——%
Total Special Revenue Funds 9.73 9.57 9.37 8.94 (0.43)(4.6)%
Technology Fund
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Assistant Director Administrative Services 0.10 0.10 0.10 0.10 ——%
Assistant Director Information Technology —1.00 1.00 1.00 ——%
Business Analyst 1.00 1.00 1.00 1.00 ——%
Desktop Technician 6.00 4.00 4.00 4.00 ——%
Director Information Technology/CIO 1.00 1.00 1.00 1.00 ——%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Manager Information Technology 3.00 3.00 4.00 3.00 (1.00)(25.0)%
Senior Business Analyst 2.00 2.00 2.00 2.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Senior Technologist 17.00 17.00 16.00 16.00 ——%
Technologist —2.00 2.00 2.00 ——%
Total Technology Fund 33.10 34.10 34.10 33.10 (1.00)(2.9)%
Vehicle Replacement and Maintenance Fund
Administrative Assistant ———0.10 0.10 —%
Assistant Director Public Works 0.25 0.25 0.25 0.25 ——%
Assistant Fleet Manager 1.00 1.00 1.00 1.00 ——%
Equipment Maintenance Service Person 2.00 2.00 2.00 2.00 ——%
Fleet Services Coordinator 2.00 2.00 2.00 2.00 ——%
Management Analyst 0.20 0.40 0.40 0.40 ——%
Management Assistant 1.00 1.00 1.00 1.00 ——%
Manager Fleet 1.00 1.00 1.00 1.00 ——%
Motor Equipment Mechanic II 5.00 5.00 5.00 5.00 ——%
Motor Equipment Mechanic-Lead 1.00 1.00 1.00 1.00 ——%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 21 of 22
TABLE OF ORGANIZATION
*The Table of Organization includes positions that have been frozen. These positions have been defunded. The affected
classifications are denoted by a single asterisk (*) following the job classification title.
**Position adjustments recommended by Finance Committee and technical corrections made subsequent to the presentation of the
FY 2027 Proposed Budget. The technical corrections include:
•1.00 Planner, OOT
•1.00 Planner, PDS
•1.00 Police Sergeant, POL
The Finance Committee recommended adjustment is to add 1.00 Assistant Engineer, OOT.
***The prior year adopted budget does not include City Council actions to amend staffing levels approved subsequent to the
adoption of the budget. If applicable, these positions appear as a base adjustment in the current year budget.
Project Manager 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 0.08 0.08 0.28 0.28 ——%
Total Vehicle Replacement and
Maintenance Fund
14.53 14.73 14.93 15.03 0.10 0.7%
Workers' Compensation Program Fund
Human Resources Technician ——0.50 0.50 ——%
Manager Employee Benefits ——0.25 0.25 ——%
Senior Human Resources Administrator 1.00 1.00 1.25 1.25 ——%
Total Workers' Compensation Program
Fund
1.00 1.00 2.00 2.00 ——%
Total Other Funds 96.46 98.10 101.50 99.97 (1.53)(1.5)%
Total Citywide Positions**1,063.10 1,092.10 1,110.35 1,089.10 (21.25)(1.9)%
FY 2024
Actuals
FY 2025
Actuals
FY 2026
Adopted
Budget
FY 2027
Proposed
Budget
FY 2027
Change
FTE
FY 2027
Change %
Attachment A, Exhibit 4
Page 22 of 22
Item No. 4. Page 1 of 7
Finance Committee
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: May 6, 2026
Report #:2604-6297
TITLE
FY 2027 Proposed Municipal Fee Schedule
RECOMMENDATION
Staff recommends that the Finance Committee review amendments to the Municipal Free
schedule for FY 2027 and make recommendations to Council for incorporation into the FY 2027
budget.
EXECUTIVE SUMMARY
This report presents the annual update to over 950 fees as part of the budget
process and highlights proposed changes to the FY 2027 Municipal Fee Schedule. The
proposed changes include 13 new fees, the deletion of 62 fees, and adjustments to
existing fees.
Most fees are adjusted annually by the General Rate Increase (GRI) of 4.59% or applicable cost
indices to reflect changes in the cost of service. This year’s adjustments also include the
implementation of a credit card processing fee to recover merchant service costs and the
incorporation of select Utility fees1 and all Airport fees into the Citywide Municipal Fee Schedule.
Upon Council approval, the recommended Municipal Fees included here will be incorporated into
the FY 2027 Adopted Budget and take effect July 1, 2026.
BACKGROUND
The City charges fees for a variety of services, including parking permits, building inspection
services, and facility rentals, to ensure that the cost of service is borne by the users receiving
the benefit. As part of the annual budget process, departments review and propose updates to
1 Council previously approved these connection and capacity fees on October 20, 2025, and the accompanying
staff report explained how these fees would be incorporated into the Municipal Fe Schedule starting in FY 2027;
Agenda Item #1, #2505-4736: https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=f6825375-
8aac-44fd-bc66-1fde8593eeb3
Attachment A, Exhibit 5
Page 1 of 76
Item No. 4. Page 2 of 7
the Municipal Fee Schedule, which are presented for Finance Committee review and
subsequently adopted by the City Council.
To ensure fees reflect the cost of service, the City periodically conducts cost of services studies
in addition to making annual adjustments. Last year, the City completed a citywide Cost of
Services Study and a focused Planning and Development Services fee study. Since their
adoption, departments have continued to evaluate fees and, where appropriate, adjust them to
better align with the full cost of providing services or move closer to established cost recovery
targets, including through efforts such as the Palo Alto Airport Rates and Charges Study.3 In
addition, the City is implementing a credit card processing fee to align transaction costs with
users who elect to pay by credit card, applied where costs are not otherwise recovered.
At the same time, the City recognizes that not all fees are intended to achieve full cost
recovery. Recent discussions related to Planning and Development Services fees4 highlighted
that, while fees can be established at full cost recovery based on cost of service analysis, the
City Council retains discretion to subsidize certain fees based on policy objectives. In such cases,
fees may be set below full cost to support policy objectives, improve accessibility, or incentivize
desired outcomes. These policy-driven decisions are evaluated on a case-by-case basis and are
reflected in the proposed fee adjustments.
Utilities Department connection and capacity rate schedules (Utility Rate Schedule E-15
(Electric Service Connection Charges), G-5 (Gas Service Connection Charges), S-5 (Wastewater
Service Connection Charges), W-5 (Water Service Connection Charges), and portions of C-1
(Miscellaneous Charges) will be incorporated into the Municipal Fee Schedule as part of this
update, with no changes in the fee amounts. The connection and capacity fee rate schedules
will be repealed as part of Council’s adoption of the Municipal Fee Schedule. Approved by
Council on October 20, 2025, beginning in FY 2027, utility connection and service-related fee
adjustments will follow the California Construction Cost Index (CCCI) as published by the
California Department of General Services (DGS). Two new service call fees for unscheduled
disconnection of gas services and removal of the meters have also been added. These fees
reflect the Utility’s cost to disconnect gas service prior to construction to discourage unsafe or
hazardous construction activities within 10 feet of a live gas service or meter. The responsible
party will be responsible for the disconnection and/or removal fees and penalties.
3 Finance Committee recommended that Council approve the FY 2027 Airport Rates and Charges Schedule, accept
the Palo Alto Airport Rates and Charges Study, and authorize annual fee adjustments based on the Airport
Benchmark Index (ABI) on April 21, 2026; Agenda Item #3, #2602-5923
4 Finance Committee discussed Planning and Development Services fee structures and cost recovery
considerations on April 7, 2026; Agenda Item #2, #2511-5562:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87767&dbid=0&repo=PaloAlto
Attachment A, Exhibit 5
Page 2 of 76
Item No. 4. Page 3 of 7
Additionally, the Staff recommended Airport Fees updates that were reviewed and
recommended by Finance Committee on April 21, 2026 will be incorporated into the Municipal
Fee Schedule as a part of this update, repealing previously separate rate schedules.
These updates are guided by the City’s User Fee Cost Recovery Level Policy, which was last
updated by Council in FY 2019 and establishes the framework for aligning fees with the cost of
service.
Table 1: Summary of Municipal Fee Cost Recovery Policy
This annual report brings forward amendments to the Municipal Fee Schedule organized into
three categories
(1) New fees,
(2) Deletion of existing fees, and
(3) Changed fees to attain a cost recovery level consistent with other fees or based on a
market study for similar services.
Attachment A, Exhibit 5
Page 3 of 76
Item No. 4. Page 4 of 7
ANALYSIS
The development of the Municipal Fee Schedule for FY 2027 reflects some department service
realignments as most fees across the City have been updated to maintain cost recovery levels.
The General Rate Increase (GRI) for FY 2027 is 4.59% and reflects a combination of increases in
salaries and benefits as well as inflationary factors. This rate is applied to most fees to maintain
current cost recovery levels, consistent with City policy. Fees that were updated by a factor
greater or less than 4.59% to achieve a different cost recovery level or based on staff
recommendation are further detailed in Attachment A.
New Fees
As identified in Table 2 below, thirteen (13) new fees are recommended to be added to the FY
2027 Municipal Fee Schedule.
For Airport and Utilities, this table includes only newly established fees; other fees are
incorporated into the Municipal Fee Schedule as part of this update.
Table 2. New Fees for FY 2027
Department Fee Title FY 2027 Proposed Fee Cost
Recovery
Level
Administrative
Services
Credit Card Service Fee 2-3% of transaction; actual
amount will be based on
percentage charged to City
High
Community
Services
Leptospirosis Vaccine $45.00 per pet High
Community
Services
FeLV Vaccine $45.00 per pet High
Community
Services
Fluid Therapy - SQ $50.00 - 75.00 each High
Community
Services
Medication $15.00 - $250.00 each High
Community
Services
Sedation/Anesthesia $150.00 - $350.00 High
Community
Services
Surgery, Preparation and Recovery $550.00 - $1,650.00 per hour High
Utilities Unscheduled Gas Disconnection Service Call
- After Hours
$9,798 per mobilization High
Utilities Unscheduled Gas Disconnection Service Call
- Weekend
$13,065 per mobilization High
Airport Transient Aircraft Landing Fee $3/1000lbs MTOW per landing High
Attachment A, Exhibit 5
Page 4 of 76
Item No. 4. Page 5 of 7
Department Fee Title FY 2027 Proposed Fee Cost
Recovery
Level
Airport Automobile Parking Citation Fee $57 per occurance High
Airport Hangar Ground Lease Origination / Transfer
Fee
2% of sale of assessed value
per agreement
High
Airport Expired Certification of Insurance Fee $50 per month High
Deleted Fees
A total of 62 fees are proposed for deletion as part of this update. These fees are no longer
applicable, have been consolidated, or are administered by external entities. Examples include
the veterinary and massage establishment fees. A complete list of deleted fees and associated
justifications is provided at the end of Attachment A.
Changed Fees
241 fees are recommended to be adjusted by a factors other than the General Rate of Increase
or applicable cost indices, including, but not limited to:
(1)Attain a cost recovery level consistent with other fees;
(2)Align with a market study;
(3)Modify the fee structure to align with current service delivery; or
(4)Hold the fee flat to avoid discouraging use of the service of activity
Consistent with ongoing cost-of-service efforts, departments have continued to evaluate service
costs and revenues and, where appropriate, adjust fees to better align with cost recovery targets;
as a result, some fees in this section reflect increases.
Each fee is listed by name along with the Adopted FY 2026 rate, the Proposed FY 2027 rate, and
the fee change justification in Attachment A.
Parking In-Lieu fees
Palo Alto Municipal Code (PAMC) Chapter 16.57.030 requires that the Parking In-Lieu Fee be
recalculated in the event the City Council approved the construction of a public parking structure.
Per the Municipal Code, the fee shall be adjusted at the time the construction contract is awarded
to include actual costs to date, plus the projected construction cost, and authorized contingency.
A second recalculation must occur after the project is completed, based on actual design and
construction costs incurred. The recalculated fee may be higher or lower than the initial fee.
In December 2018, Council awarded a construction contract to Swinerton Builders (CMR 9688)
for the California Avenue Area Parking Garage. The total project cost was calculated per PAMC
16.57.030 and includes design costs plus additional services, the construction bid with authorized
Attachment A, Exhibit 5
Page 5 of 76
Item No. 4. Page 6 of 7
contingency, and all other staff and administrative costs incurred. This calculation was done and
approved as part of the Fiscal Year 2020 budget development process (CMR 10225). The cost per
parking space was calculated at $106,171 for the Fiscal Year 2020 Adopted Municipal Fee
Schedule.
The California Avenue Parking Garage was completed and opened in December 2020. Staff has
completed all project close-out documents and recalculated the Parking In-Lieu Fee at $105,811.
After adding the appropriate construction cost indexes for the San Francisco Bay Area for Fiscal
Year 2021 through Fiscal Year 2026, the revised fee was set at $130,823. Adding the respective
construction cost index for FY 2027 brings the fee to $131,634.
Development Impact and In-Lieu Fees
In the Planning and Development Services Department, impact fees (i.e., community center,
park, library, and citywide transportation impact fees) and in-lieu fees were increased by 0.62%
percent to reflect the most recently published Construction Cost Index (CCI) for the San Francisco
Bay Area, as calculated by the Engineering News Record. This is in accordance with Municipal
Code 16.64.110, as amended on November 28, 2016 (CMR 7518), to standardize when these fees
are paid, bring uniformity to the calculation in effect, bring uniformity to the annual adjustment
rate, and other updates. Since these fees are governed by the applicable Municipal Code section,
they are not discussed in Attachment A.
FISCAL/RESOURCE IMPACT
This action aligns fees with expense increases associated with these services. It works to ensure
the City can maintain cost recovery levels, and is part of the FY 2027 Proposed Operating Budget.
POLICY IMPLICATIONS
These recommendations are consistent with existing City policies. Where a fee or charge is
subject to Proposition 26, voter approval is required to adopt the fee, unless the amount of the
new or increased fee is no more than necessary to cover the reasonable cost of the City service,
and the fee represents a reasonable relationship to the payer’s burden on, or benefits received
from, the City service funded by the fee. Certain types of fees, such as fines, penalties and/or late
charges, or charges imposed for entrance to or use of, as well as the purchase, rental, or lease of
local government property, are generally not limited to the actual costs of providing service.
Instead, these types of fees are more typically governed by local market rates, reasonableness,
and policy factors. These types of fees may have rates that are higher than the full cost recovery
level.
STAKEHOLDER ENGAGEMENT
Attachment A, Exhibit 5
Page 6 of 76
Item No. 4. Page 7 of 7
Staff has coordinated internally with budget and management staff in each department citywide
to develop the recommendations in this report. Conversations with the City Council throughout
May and June prior to the adoption of the FY 2027 Operating and Capital Budgets and Municipal
Fee Schedule allow for public participation in this annual process.
ENVIRONMENTAL REVIEW
Adjustment to the Municipal Fee Schedule is a governmental fiscal activity that does not involve
any commitment to any specific project, and therefore does not constitute a “project” pursuant
to CEQA regulation 15378(b)(4).
ATTACHMENTS
Attachment A: Municipal Fee Schedule Amendments for FY 2027 Changed and Deleted Fees
Attachment B: List of all Utility Fees Moved to Citywide Municipal Fee Schedule
Attachment C: Palo Alto Airport Rates and Charges Study Summary of Fee Changes to be
Incorporated into the Municipal Fee Schedule
APPROVED BY:
Lauren Lai, Administrative Services Director
Attachment A, Exhibit 5
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ATTACHMENT B
1
RESOLUTION NO.XXXX
Resolution of the Council of the City of Palo Alto Establishing the City’s Appropriations Limit for
Fiscal Year 2027
WHEREAS, under Article XIIIB of the Constitution of the State of California, the City of Palo
Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit; and
WHEREAS, since fiscal year 1991, the City is permitted to adjust its appropriations limit
annually based on inflation and population adjustment factors; and
WHEREAS, pursuant to Government Code Section 37200, the calculation of the
appropriations limit and the total appropriations subject to the limit were set forth in the annual
budget of the City for Fiscal Year 2027, which was adopted by ordinance of the Council on June
15, 2026; and
WHEREAS, pursuant to Government Code sections 7901 and 7910, the final calculation of
the appropriations limit has been determined, and the adjustment factors on which the
calculation is based are a 4.95% percent change in California per capita income and a 0.23%
percent change in the population growth for the County of Santa Clara; and
WHEREAS, the documentation used in the determination of the appropriations limit has
been made available to the general public for fifteen (15) days prior to the date of adoption of
this resolution; and
WHEREAS, according to the final calculation, the City’s net appropriations subject to
limitation are approximately $168.21 million.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year 2027, the
final calculation of the appropriations limit of the City of Palo Alto has been determined in
accordance with the adjustment factors referred to above, the documentation used in the
determination of the calculation has been made available to the general public for the period of
fifteen days as required by law, and the City’s appropriations are under the appropriations limit
by approximately $78.59 million.
SECTION 2. The Council hereby adopts the final calculation of the appropriations limit of
the City for Fiscal Year 2027, a copy of which is attached hereto as Exhibit 1.
ATTACHMENT B
2
SECTION 3. The Council finds that the adoption of this resolution does not constitute a
project under the Section 15378(b)(4) of California Environmental Quality Act Guidelines because
establishing the annual appropriations limit is a fiscal activity, and, therefore, no environmental
assessment is necessary.
INTRODUCED AND PASSED: Enter Date Here
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
City Attorney
Director of Administrative Services
Attachment B, Exhibit 1
FY 2027 Adopted Budget 311.83$ 107.85$ 30.43$ 11.91$ 462.02$
Less:
Interfund Transfers (41.26)$ (7.40)$ (22.47)$ -$ (71.13)$
Allocated Charges (31.93)$ (0.69)$ (0.69)$ -$ (33.31)$
Non-Proceeds (63.92)$ (102.20)$ (11.42)$ (11.84)$ (189.37)$
Net Appropriations Subject to Limit 174.71$ (2.43)$ (4.15)$ 0.07$ 168.21$
FY 2026 Per Capita Income Change (CA Department of Finance)4.95%
Factor A 1.0495
FY 2026 Population Change (County of Santa Clara)0.23%
Factor B 1.0023
234.62$
1.0519
$246.80
Net Appropriations Subject to Limit $168.21
2026 1.0644 1.0031 1.0677 234.62$ 178.01$ 56.61$
2025 1.0362 1.0002 1.0364 219.74$ 173.10$ 46.64$
2024*1.0444 0.9975 1.0418 212.02$ 157.94$ 54.08$
2023*1.0755 1.0007 1.0763 203.52$ 138.39$ 65.13$
2022*1.0573 0.9944 1.0514 189.10$ 127.09$ 62.01$
2021 1.0373 1.0037 1.0411 179.86$ 113.06$ 66.80$
2020 1.0385 1.0033 1.0419 172.75$ 127.42$ 45.33$
2019 1.0367 1.0099 1.0470 165.80$ 114.94$ 50.86$
2018 1.0369 1.0082 1.0454 158.36$ 131.49$ 26.87$
2017 1.0537 1.0130 1.0674 151.48$ 109.51$ 41.97$
2016 1.0382 1.0113 1.0499 141.92$ 100.60$ 41.32$
* FY 2022-2024 Appropriation Limits restated to correct for Total Adjustment Factor calculation error in those fiscal years.
** Excludes the $0.2m in General Fund transfers.
($ IN MILLIONS)
Total Budgeted Appropriations General Fund **Projects Funds Revenue Funds Fund Funds
On November 6, 1979, California voters approved Proposition 4, an initiative that added Article XIIIB to the state Constitution. The
provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The
Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified
population and inflationary growth factors.
Factor A x Factor B
FY 2027 Adopted Appropriations Limit
The City of Palo Alto remains well within its appropriations limit in FY 2027. Future year limit trends can be made based on the
average change in regional population and income growth. The appropriations subject to limitation includes proceeds of
taxes from the General Fund, Capital Projects Fund, and Special Revenue Funds.
Fiscal Year Per Capita Income
Factor
Population
Change Factor Adjustment Appropriations
Limit
Appropriations
Subject to Limit
Amount Under
the Limit
Attachment C: FY 2027 Summary of Stanford Related Programs and Services
Fund
Dept. or
Project Description
Operating Fire Fire Services Contract with Stanford University
Stanford reimburses the City for providing Fire services to the
University based on an agreement between the City and the
University.
Operating Office of
Transp.
Palo Alto Link (PAL) On Demand Transit Services
Palo Alto Link services provide on-demand transit services, and
Stanford provides funding for a portion of this service.
Operating Police Dispatch Communication Services Contract with Stanford University
Stanford reimburses the City for providing dispatcher communication
services to the University based on an agreement between the City
and the University.
Capital PL- 16000 Quarry Road Improvements and Transit Center Access
Stanford is the lead on this project, and in order to continue with it,
Palo Alto voters must undedicate a portion of El Camino Park (which
is owned by Stanford and leased to the City) so that the land can be
used for transit center access. A ballot measure proposing this action
is expected in 2024.
Capital FD-24000 Fire Training Facility Replacement
This project will identify an appropriate site and construct a new fire
training facility in Palo Alto. The current training facility is located on
the Stanford University campus and is not owned by the City. A
feasibility study will be conducted to determine the facility needs as
well as an appropriate and available location for the new facility.
Capital FD-25000 Fire Equipment Replacement
This project will replace variety of equipment required for different
types of emergency response and training, a portion of which is
funded by Stanford and used to provide services to the University.
The Fire Department completed a comprehensive assessment of all
current primary equipment categories, as well as estimated costs
and replacement schedules.
Item No. 3. Page 1 of 2
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City Council
Supplemental Report
From: Lauren Lai, Administrative Services Director
Meeting Date: June 15, 2026
Item Number: 3
Report #:2606-6464
TITLE
PUBLIC HEARING: Adoption of an Ordinance Adopting the Operating and Capital Budgets,
Revised Table of Organization, and Municipal Fee Schedule for Fiscal Year 2027; Adoption of a
Resolution Proposing the Appropriations Limit for Fiscal Year 2027 - State Law/ City Charter;
Accept the Bi-Annual Actuarial Valuation Report of Palo Alto's Retiree Healthcare and Other
Post-Employment Benefits (OPEB) as of June 30, 2025 and Approve Annual Actuarially
Determined Contribution for Fiscal Years 2027 and 2028; Authorize the City Manager or their
Designee to Negotiate and Execute a Memorandum of Understanding and Funding Agreement
(or Lease Agreement Amendment) with the Palo Alto Museum to Provide Cost Sharing for
Repairs to the Basement and Waterproofing in the Roth Building and Improvements to Heritage
Park
BACKGROUND
The Palo Alto Municipal Code requires the Planning and Transportation Commission to review
the City’s capital improvement program, review each project for consistency with the City’s
Comprehensive Plan, and submit an annual report to the City Council. The Council considers
this report as part of budget adoption process.
The Finance Committee unanimously recommended adoption of the proposed Fiscal Year 2027
Operating and Capital Budgets at its May 19, 2026 meeting. At the time , the Planning and
Transportation Commission (PTC) had not yet reviewed the new projects in the 2027-2031
Capital Improvement Program for each of the projects’ consistency with the City’s 2030
Comprehensive Plan. The PTC reviewed the 2027-2031 Capital Improvement Program at its
May 27, 2026 meeting, and determined that the new projects are consistent with the
Comprehensive Plan 2030 policies and programs. The letter attached to this supplemental
report includes the PTC’s recommendation to forward this finding to the Finance Committee
and City Council.
Item No. 3. Page 2 of 2
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ATTACHMENTS
APPROVED BY:
June 3, 2026
Honorable City Council
C/O City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
RE: Review of 2027-2031 Capital Improvement Projects
The Planning and Transportation Commission (PTC) reviewed the proposed 2027-2031 Capital
Improvement Projects (CIPs) on Wednesday May 27, 2026. The PTC determined that the new projects
included in the 2027-2031 Capital Budget are consistent with the Comprehensive Plan 2030 policies and
programs. The PTC recommends forwarding this finding to the Finance Committee and City Council at
this time.
The motion was made by Vice Chair Kevin Ji and it was seconded by Commissioner Allen Akin. The
motion was approved by a vote of 6-0.
Respectfully,
Bryna Chang, Chair
Planning and Transportation Commission
Docusign Envelope ID: 9B578808-90FA-817C-81DC-54A50D132816
6/3/2026
Attachment A
June 15, 2026 www.paloalto.gov/budget1
ADOPTION OF FY 2027OPERATING & CAPITAL BUDGETS, MUNICIPAL FEE SCHEDULE, &APPROPRIATION LIMITS
Item #3
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Order of Proceedings
1.Staff presentation of the FY 2027 Budget
2.One round of technical questions from City Council, excluding Attachment C
3.Public Comments
4.Recusals
5.Council discusses and approves items in Attachment C
6.Those recused from Attachment C rejoin
7.Council discuss and approve the remaining FY 2027 Budget
CITY COUNCIL FY 2027 BUDGET ADOPTION OVERVIEW
Tonight’s meeting concludes the FY 2027 budget process
•Summary of Finance Committee deliberations
•Review final balancing actions
•Other actions in annual process
GOAL:Adopt the FY 2027 Operating & Capital Budgets and
Municipal Fee Schedule and other actions above.
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BUDGET CONVERSATIONS & CALENDAR
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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 2026
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
FY 2027 Budget Summary
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•Citywide Operating budget totals $1.04 billion
•Capital budget totals $316.8 million in FY 2027 and $1.2 billion over the five-year CIP
General Fund Reserves
•Budget Stabilization Reserve (BSR) ~ $53.7 million projected FY 2027 balance (17.2% of expenses)
Staffing Levels:Net elimination of 21.25 Full-time FTE or 1.9% decrease from the FY 2027 Budget (Citywide)
FY 2024
Actuals
FY 2025
Actuals
FY 2026
ADOPTED
FY 2027
ADOPTED
GF Revenue $278.3 $290.9 $301.2 $312.0
GF Expense $281.1 $302.2 $313.0 $311.8
GF Full-time Staffing
Citywide FT Staffing
586
1,063
603
1,092
614
1,110
593
1,089
www.paloalto.gov/budget
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FY 2027 Finance Committee Recommendations (General Fund Uses or Expenses)
Revenue
FY
Revenue/(Expense)
FY 2028
CSD JMZ Conservation Costs and explore utilizing existing conservation programs to fulfill the AZA requirements to the extent possible | Reduce Hourly Positions $-$64,000
(51,250)
(307,715)
– Geng Road parking site from Sept-June ($200k) and -(384,000)
-Profit Work Plan – Option C -(124,000)
-(28,550)
– Office of Transportation -
– accelerate design to FY 2027 and construction -(1,000,000)N/A
www.paloalto.gov/budget
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FY
Revenue/(Expense)2028
NON TOT Revenue Increase and Increase of CIP Transfer $542,000 $542,000 $N/A
N/A
N/A
N/A
N/A
Total
FY 2027 Finance Committee Recommendations (General Fund Uses or Expenses)
www.paloalto.gov/budget
With the $312.0 million General Fund budget, the BSR is maintained at $53.7 million (17.2%), within the 15-20% target. A
favorable sales tax adjustment may add $2.0 million, raising it to $55.7 million (17.9%).
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Long Range Forecast & Budget Stabilization Reserve
www.paloalto.gov/budget
Line Item FY 2027
Forecast
FY 2028
Forecast
FY 2029*
Forecast
Revenue $312.0 $318.7 $329.2
Expenses 311.8 322.7 331.1
Transfers (Measure K)0.2 (2.3)1.3
Projected Net Surplus / (Deficit)0 (1.7)(3.2)
*FY2029 does not reflect fiscal impact of bi-annual OPEB actuarial fluctuation, which staff roughly estimates an
additional $2 million of expense appropriation.
While these actions successfully balance the total $312.0 million General Fund budget for FY 2027, they introduce an ongoing
risk of approximately $1.41 million to $2.31 million in annual deficit exposure starting in FY 2028 – related to PAUSD cost
sharing assumption.
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OTHER FUNDS
FY 2026 Adopted FY 2027 Adopted
Electric 6%4.5%**
Gas 12%*9% **
Water 10%8%
Wastewater Collection 20%16%
Refuse 0%3%
Stormwater 2%3%
Monthly Bill Amount $441.50 $476.70
Monthly Bill Change 9%*
$37.80
8%
$35.20
Additional actions included in the Budget address non-General Fund activities including but not limited to:
•Utility rate changes to the right
*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
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Capital, Table of Organization & Municipal Fees
>Capital Funding
•Authorize $142.1 million in reappropriations to continue
capital projects in FY 2027.
>Table of Organization
•Office of Transportation: Add a 1.00 FTE Assistant Engineer to
support the implementation of street safety and oversized vehicle programs, with future year funding TBD.
•Community Services Department: Reduce the addition of a
part-time temporary 0.48 FTE Zoological Assistant.
•Citywide staffing level of 1,089.10 FTE in FY 2027.
>Municipal Fees
•Adopt the FY 2027 Proposed Municipal Fee Schedule, which
incorporates updates to existing fees and previously
approved fee actions
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Other Actions
>OPEB
•Accept the June 30, 2025 actuarial valuation and fund the annual Actuarially Determined Contribution (ADC) for Fiscal Years 2027 and 2028, with the FY 2027 budget including an ADC of $26.1 million.
>MOU with Palo Alto Museum – Roth Building
•Authorize the City Manager to negotiate and execute an MOU and Funding Agreement with the Palo Alto Museum to provide cost sharing for repairs to the basement and waterproofing in the Roth Building and improvements to Heritage Park drainage.
>Appropriations Limit
•Adopt a Resolution determining the statutory Fiscal Year 2027 Appropriations Limit of $246.8 million with $168.21 million in net budgeted appropriations subject to the limit.
>Receive Support Letter from the Planning & Transportation Commission
www.paloalto.gov/budgetwww.paloalto.gov/budget 11
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DRAFT MOTION FOR CITY COUNCIL CONSIDERATION
1)Adopt the Fiscal Year 2027 Budget Ordinance which includes the Operating and Capital
Budgets, Table of Organization, and Municipal Fee Schedule, as amended by the actions
outlined in this report;
2)Accept the FY 2027-2031 Capital Improvement Program (CIP) as amended by the actions
outlined in this report;
3)Adopt a Resolution determining the Appropriations Limit for Fiscal Year 2027;
4)Accept the June 30, 2025 actuarial valuation of Palo Alto's Retiree Healthcare Plan and
fund the annual Actuarially Determine Contribution (ADC) for Fiscal Year 2027 and 2028,
and
5)Authorize the City Manager or their designee to negotiate and execute a Memorandum
of Understanding and Funding Agreement (or Lease Agreement Amendment) with the
Palo Alto Museum to provide cost sharing for repairs to the basement and
waterproofing in the Roth Building and improvements to Heritage Park drainage.
www.paloalto.gov/budget
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Order of Proceedings
1.Staff presentation of the FY 2027 Budget
2.One round of technical questions from City Council, excluding Attachment C
3.Public Comments
4.Recusal
5.Council discusses and approves items in Attachment C
6.Those recused from Attachment C rejoin
7.Council discuss and approve the remaining FY 2027 Budget
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Order of Proceedings
1.Staff presentation of the FY 2027 Budget
2.One round of technical questions from City Council, excluding Attachment C
3.Public Comments
4.Recusals
5.Council discusses and approves items in Attachment C
6.Those recused from Attachment C rejoin
7.Council discuss and approve the remaining FY 2027 Budget
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Order of Proceedings
1.Staff presentation of the FY 2027 Budget
2.One round of technical questions from City Council, excluding Attachment C
3.Public Comments
4.Recusals
5.Council discusses and approves items in Attachment C
6.Those recused from Attachment C rejoin
7.Council discuss and approve the remaining FY 2027 Budget