City
0C
Cupertino
200605
CITY OF
CUPEIQ1NO
Citizens
ofCupertino
City
Counei
Citizen Adivisory
Commissions and
Committee
City Treasurer
Carol Atwood
City Manager
David Knapp
City Attorney
Charles Kilian
Public Infonna å on Officer
Rick Kitson
D ˛ rectoro
Public Works
Ralph Qualls
D ˛ rectorof
Parks and Recreation
Therese Smilh
Director of
Community Development
Steve Piasecki
Director of
Administrative Service
CarolAtwood
Assistant Director
of Public Works Eng
GlennGoepfert
CityArchitecl
TenyGreene
Recreation Supervisor
Senior Center
Julia Lamy
Recreation Supervisor
Sports Center
Don McCarthy
Building Official
Greg Casteel
City Clerk
Kimberly Smith
Environmenta
Programs Manager
LaveniaMillar
Public Works
Project Manager
Cannen Lynaugh
Recreation Supervisol
Youth Programs
Christine Hanel
Recreation Supervisor
Blackberry Fann
MikeQDowd
City Planner
CiddyWordel
HumanResources
Director
Sandy Abe
Assistant Director
of Public Works Maint
BobRizzo
Recreation Superviso
Quinlan Center
Tom Walters
Finance Director
David Woo
Pub tic Works
Supervisor
Ron Silva
Streets
Supervisor
Diane Mahan
Facilitie
Supervisor
Jim Davis
Parks
Supervisor
John Bisely
CITY OF CUPERTINO CALIFORNIA
Fiscal Year 200065
CITY COUNCIL
Richard Lowenthal
Vice Mayor
Sandra James
Councilmember
Patrick Kwok
Mayor
Dolly Sandoval
Councilmember
Kris Wang
Councilmember
DIRECTORY OF CITY OFFICIALS
DavidW Knapp City Manager
Charles TKilian City Attorney
Carol Atwood Director of Administrative Services
Rick Kitson Public Infonnation Officer
Steve Piasecki Director of Community Development
Ralph Qualls Director of Public Works
Kimberly Smith City Clerk
Therese Smith Director ofParks and Recreation
iii
AUDIT COMMITTEE
Myoung Kang
Dolly Sandoval
Garrett Wade
Kris Wang
Jim Weber
CITY OF CUPERTINO CALIFORNIA
Fiscal Year 200065
COMMISSIONS AND COMMITTEES
HOUSING COMMISSION
Richard Abdalah
Sarah HFatheawiaty
Kim Mosleh
Mahesh Nihalani
Frances Seward
FINE ARTS COMMISSION
Martha Bills
Nancy Canter
Robert Harrison
Hema Kundargi
Janet Mohr
PUBLIC SAFETY COMMISSION
Charles Caldwell
Jay Cena
Barry Chang
Nolan Chen
Hugh Riddell
TEEN COMMISSION
Nathaniel Fung
Andrew Grossman
Vrinda Gupta
Cordelia Jiang
Diane Keng
June Kim
Benjamin Lin
Natasha Pradhan
Roya Rahgozar
Apoorva Rajagopal
Rukmani Sahay
Ana Yglesias
Sinan Zafar
BICYCLE PEDESTRIAN COMMISSION
David Greenstein
May Koski
Geoffrey Paulsen
Joseph Walton
James Wiant
PARKS RECREATION COMMISSION
Rod Brown
Jeanne Bradford
Cary Chien
Frank Jelinch
Roger Peng
TELECOMMUNICATIONS COMMISSION
L T Guttadauro
Eric Klein
Charlon McIntosh
Andrew Radle
Steven Ting
LIBRARY COMMISSION
Ronald Miller
Sheila Mohan
Janet Riddell
Katherine Stakey
Susanna Tsai
PLANNING COMMISSION
Angela Chen
Lisa Giefer
Marty Miller
Taghi Saadati
Gilbert Wong
ECONOMIC DEVELOPMENT
Carol Atwood
Angela Chen
Christine Giusiana
Shawna Holmes
Jack Hubby
Sandra James
David Knapp
Richard Lowenthal
Mark McKenna
Steve Piasecki
Ralph Qualls
SENIOR CITIZENS COMMISSION
Estelle Incociati
Christine Kennedy Pierce
Mavis Smith
Linda Walker
Frank Yap
IV
California Society of
unicipal Jinance Officers
Certificate of Award
Excellence in Operational Budgeting 200054
Presented to
City ofCupertino
This certificate recognizes Excellent Achievementin Operational Budgeting and reflects an outstanding budget document
and the underlying budgetingprocess through which the budget is implemented
February 24 2005
Þ J tJ
Agnes Walker
CbalrBudgeting Financial Management
Dedicated to Excellence in Municipal Financial Management
The California Society of Municipal Finance Officers issues annual awards for outstanding
achievement and contributions to the profession The City of Cupertino received the award
shown above for its 200054 annual operating budget In bestowing this honor the Society
acknowledges the Cityfor its outstanding presentation offinancial and budgetary data
Our 200065 budget document is intended to meet the Ssociety high standards and will be
submitted again this year to determine eligibility for another award
v
RESOLUTION1N00O53
ARESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ADOPTING AN OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR
FISCAL YEAR 200065BY RATIFYING ESTIMATES OF REVENUES TO BE
RECEIVED IN EACH FUND AND APPROPRlATING MONIES THEREFROM FOR
SPECIFIED ACTIVITIES AND ACCOUNTS AND SETTING FORTH
CONDITIONS OF ADMINISTERING SAID BUDGET
WHEREAS the orderly administration ofmunicipal government is dependent on the
establishment ofa sound fiscal policy of maintaining a proper ration of expenditures within
anticipated revenues and available monies and
WHEREAS the extent ofany project or program and the degree ofits accomplishment
as well as the efficiency ofperfonning assigned duties and responsibilities is likewise dependent
on the monies made available for that purpose and
WHEREAS the City Manager has submitted his estimates of anticipated revenues and
fund balances and has recommended the allocation ofmonies for specified program activities
NOW THEREFORE BE IT RESOLVED that the City Council does hereby adopt the
following sections as a part ofits fiscal policy
Section I The estimates of available fund balances and anticipated resources to be
received in each ofthe several funds during fiscal year 200065as submitted by the City
Manager in his proposed budget and as have been amended during the budget study sessions are
hereby ratified
Section 2 There is appropriated from each ofthe several funds the sum ofmoney as
determined during the budget sessions for the purposes as expressed and estimated for each
department
Section 3 The City Manager is hereby authorized to administer and transfer
appropriations between Budget Accounts within the Operating Budget when in his opinion such
transfers become necessary for administrative purposes
Section 4 The Director ofAdministrative Services shall prepare and submit to City
Council quarterly a revised estimate of Operating Revenues
Section 5 The Director ofAdministrative Services is hereby authorized to continue
unexpended appropriations for Capital Improvement projects
vi
Section 6 The Director ofAdministrative Services is hereby authorized to continue
appropriations for operating expenditures that are encumbered or scheduled to be encumbered at
yeenadr
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 21st day of June 2005 by the following vote
Vote Members ofthe City Council
AYES
NOES
ABSENT
ABSTAIN
Kwok Sandoval Wang James
None
Lowenthal
None
ATTEST
7L
City Clerk I
THIS IS TO CIEFrrIF THATiHØ WITHIN
INSTRUMENT IS ATRUE AND CORRECT COpy
OF THE ORIGINAL ON FILE IN THIS OFFICE
ATTEST fLVry 20 Or
CITY CLERK OF THE CI1Y CUPERTIN
BY
vii
TABLE OF CONTENTS
FISCAL YEAR 200065
PAGE
TITLE PAGE
ORGANIZATION CHART
DIRECTORY OF CITY OFFICIALS
CCOOMMMMIISTSTIOEENSS
EXCELLENCE IN OPERATIONALBUDGETING 200054
ADOPTED BUDGET RESOLUTION
BUDGET MESSAGE
BUDGET STRATEGIES
Mission Statement
Financial Values Statements
City Council GoalslWork Program
Services vs Resources
Change in Program Levels
Performance Measures
I
11
111
IV
V
VI
I
3
4
5
10
11
12
BUDGET GUIDE
Elements of the Budget Document
Structure of the Csity Finances
The Annual Budget Process
Glossary of Budget Terminology
COMMUNITY PROFILE
History of Cupertino
Community Economic Profile
15
16
18
19
23
24
FINANCIAL AND PERSONNEL SUMMARIES
Budget Summary
Revenue and Expenditure Charts
Revenue Summary
Personnel Summary
Five Year Budget Forecast
Appropriations Limit 31 32
36
49
57
81
DEPARTMENTALOPERATING BUDGETS
COUNCIL AND COMMISSIONS
City Council
Telecommunications Commission
Library Commission
Fine Arts Commission
Public Safety Commission
Bicycle and Pedestrian Commission
Parks and Recreation Commission
Teen Commission
Senior Commission
Planning Commission
Housing Commission 8 90
92
94
96
98
100
102
104
106
108
PAGE
ADMINISTRATION
City Manager
Community Outreach
City Manager Discretionary Fund
Legal Services
114
116
118
120
LAW ENFORCEMENT
LawEnforcement 126
PUBLIC INFORMATION
Community Relations
Cupertino Scene
Government Channel
City Website 132 134
136
138
ADMINISTRATIVE SERVICES
Administration
Economic Development
Accounting
Business Licensing
City Clerk
Duplicating and Mail Service
Elections
Emergency Preparedness
Human Resources
Retiree Medical Liability
Code Enforcement
Insurance Administration
Information Technology 14 146
148
ISO
152
154
156
158
160
162
164
166
168
PARKS AND RECREATION
Administration
Cultural PQruoginralamns CCoemmnutneitry Hall
Youth andTMeonetna Vista Recreation CTeenetenr Center
Sports and Physical Recreation
Senior PSroegnraimosrCenter
Blackberry Farm Nature Programs
176
178
180
182
184
186
COMMUNITY DEVELOPMENT
Administration
Planning
Housing Services
Building 192 194
196
198
PUBLIC WORKS
Administration
Environmental Programs
Engineering Services
Service Center
Grounds
Streets
Facilities
Transportation
General Services
Fixed Assets Acquisition 206 208
210
212
214
216
218
220
222
224
PAGE
DNEPAORTMNENTAL OPERATING BUDGETS
Interfund Transfers
Debt Service 223302
CAPITAL IMPROVEMENTS
Five Year Capital Improvements Program 235
fml J
F
CUPElQ1NO
May 31 2005
To the Citizens ofCupertino Honorable Mayor and
Members of the City Council
As with many parts of the nation that have begun to recover from the recession Csupertino
recovery continues to be very slow Our current fiscal year has shown moderate increases in
sales tax transient occupancy tax and property tax However these monies will be offset by
declines in utility users tax and investment earnings The State also recovering slowly will be
taking another 060203from our General Fund
The budget before you is a hold the line budget which provides the fiscal year 200054 level
of service to our community General Fund operating revenues are still not keeping pace with
our operating expenditures and debt service obligations by approximately15 million per year
This shortfall will be offset with toimnee revenues each ofthe next three years
Highlights ofthe 200065budget include
The mandatory esmployer share ofthe PERS retirement program is up048 increasing
costs by approximately 0400per year
The Ssheriff Office will continue to operate without a DARE program The Community
Resources Sergeant in charge of our Neighborhood Watch program will be replaced next
month by a snwoornn tpimaret coordinator to save the city 01040per year The
second school resource officer funding is contingent on award of the State COPS grant
with the salary augmented by CUSD and FUHSD
Expanded facilities coming on line for the full year including the Library and
Community Hall increasing our maintenance costs by020801
Eleven positions are currently frozen with four ofthese positions unfunded for the next 5
years This represents a savings of 03050 per year which was instrumental in
balancing the budget I will continue to leave positions vacant wherever it is feasible to
do so I amfilling some vacant positions in the Community Development Department to
restore service levels there
The SCC Library System is working on aplan to stay open six days per week including
four hours on Saturday and four hours on Sunday This will ensure that the Library
Excess Hours budget can be used to pay back the FFELoan to the Resource Recovery
Fund
I
Printedon Recycled Paper
The savings of0300 from the Library Capital Project wastransferred back to the crp
reserve and then used to fund the cost of a City Hall Emergency Generator in the
upcoming fiscal year
In order to provide the high level of service the community expects within the revenues we have
available we will be presenting to you a cwiidtye Strategic Plan with your goal setting session
next January The plan will propose both revenue egnhoancaemlensts and epxrpoegndriatumre
reductions aimed at providing a balanced budget that can accommodate planned growth for
maintenance of facilities appropriate staffing levels for high customer service and funding for
future capital projects
KmJRnaip City Manager
2
City of Cupertino
MISSION STATEMENT
The environment within our City is interdependent upon a partnership of City Employees
Elected Officials and the Community To jitrther this partnership the City of Cupertino has
agreed upon certain basic values within the framework of the Csity policies to better serve the
Community
Provide prompt courteous and equitable service that responds to individual needs
Treat each customer and employee with respect dignity and sensitivity
Support and encourage individual professional growth and innovation to enhance customer
service and employee satisfaction
Create apositive professional environment based upon teamwork
As a team it is our objective to provide the highest level of satisfaction in all programs and
services
We are proud to be part of the City of Cupertino team and will strive to provide the best service
possible
3
BUDGET STRATEGIES
FINANCIAL VALUES STATEMENTS
The City of Cupertino adheres to the following guidelines and principles in preparing its budget
and conducting itstdoayand ltoernmgfiscal affairs
I Revenue Levels
To the extent possible maximize investment yield while maintaining a high level of
liquidity for the Csity anticipated capital costs
Identify and recommend sources ofrevenue necessary to maintain the services desired by
the community and to maintain the Csity quality oflife
Perform ongoing evaluations of existing sources of revenue to maximize the Csity
revenue base
Recover costs of special services through user fees
Allocate all internal service charges to appropriate user departments
Ensure that Enterprise activities remain ssupeportlinfg in the long term
2 Expenditure Control
Maintain operating activities at levels which are offset by revenues
Evaluate expenditures at the department and project levels to ensure control
Reduce costs and improve productivity through the use of efficiency measures
Structure debt refinancing to provide the necessary capital while minimizing future debt
service costs
3 LToenrmgFinancial Stability
Ensure ongoing productivity through employee training and retention programs
Pursue consolidation of resources and activities with other agencies and jurisdictions
where beneficial
Ensure financial planning flexibility by maintaining adequate fund balances and reserves
Provide for major maintenance and repair of City buildings and facilities on a timely
basis
Provide for infrastructure asset preservation that maximizes the performance of these
assets at minimum lciyfcele costs
Continually evaluate and implement ltoernmg financial planning including technology
automation multiple year capital improvement programs revenue and expenditure
forecasting
4
BUDGET STRATEGIES
CITY COUNCIL GOALS WORK PROGRAM
1 Library and Civic Center
Refurbish and relocate the Morion to the Civic Center Complex
Design and install the Memorial Grove
Convert Old Council Chamber to conference room
2 Trails Plan
Stevens Creek Corridor Plan
Continue to work on the corridor plan including
Pursuing rYoeunadruse
Incorporating aumsuletitrail
Working with the Cupertino Historical Society on the Center
for Living History
Reducing the size of the picnic grounds
Changing the fee collection system
Complete the master plan and seek funding to implement it
Regnart Creek Trail
Mary Avenue Pedestrian Footbridge
3 Parks
Stevens Creek Corridor Park
Complete the Stevens Creek Corridor Master Plan
Complete the environmental review for the Stevens Creek
Corridor Master Plan including a review of alternative trail
alignments
Support the Cupertino Historical Society in its efforts to create
a Center for Living History
Work with the Santa Clara Valley Water District on a
Partnership to complete the riparian planning and
restoration for Stevens Creek Corridor Park
Apply for grant funding
5
Budget Reference
Pages 60 238
Pages26318
Pages2634108
BUDGET STRATEGIES
CITY COUNCIL GOALS WORKPROGRAM
Rancho Rinconada Park
Commence work on a park for the Rancho Rinconada area
Do community outreach to determine what the park should be
Budget for the project
Pursue funding options
Explore the possibility ofa neighborhood park in the Homestead
area
Explore the possibility of a Vallco Neighborhood park
Explore the possible purchase ofthe Sterling Barnhart parcels
4 Youth Issues
Continue to support the Teen Commission
Operate the Teen Center
5 Pursue Downtown Opportunities
Implement the streetscape plan for the Crossroads block of
Stevens Creek Boulevard from DeAnza Boulevard to Stelling
Road
Work with the Town Center developer to plan a mixed use
walkable plan
6 Street Safety Walkable Community
Ensure that walkable city concept is present in all City
rdeedveeveloloppmmeenntt projects
Design and build the Mary Avenue Pedestrian Crossing
6
Budget Reference
Page 237
Page 1789
Pages 1923
Pages 1239238
BUDGET STRATEGIES
CITY COUNCIL GOALS WORKPROGRAM
7 Building CUomnmiutnyity
Continue to offer opportunities and programs to promote
cultural understanding and address the needs ofour
diverse community
Continue to identify translation needs in our community
Hold public forums in other languages for major capital
improvement projects as needed
Evaluate methods for communicating electronically and in
writing to Ennoglisnh speaking population regarding crime
prevention emergency preparedness and civic activities
Plan and implement the Golden Jubilee celebration
8 Economic Development
Encourage retain and support healthy environment for retail growth
Assist Valleo Fashion Park in their redevelopment efforts
Investigate a revenue enhancement incentive policy component of
review for new development and means to supplement
revenues for snaolens tax generating developments
Evaluate ttrarnaspnortastiointimplications of an economic
development strategy
9 General Plan
Complete the General Plan update
7
Budget Reference
Page 113024
176
Page 14904
Page 1902
BUDGET STRATEGIES
CITY COUNCIL GOALS WORKPROGRAM
10 Public Safety
Review traffic safety issues
Complete Safe Routes to School Program
Install a traffic signal at McClellan and DeAnza
Implement the Street Smarts Program
Study the traffic impact of removing the gate at Kim Avenue
Install the pedestrian crossing at Alves and Stelling
Continue emphasis and expansion ofNeighborhood Watch
Establish an eCap Merchant Watch Program
Provide education on red light runners
Continue emphasis on emergency response and preparedness
Continue expanding the CERT program
Develop high school emergency response training
Cupertino Amateur Radio Emergency Services
Offer emergency response skills to 6th to Ith grade
Develop City evacuation plan
Develop emergency response training forbsucshioneoslss
Expand volunteer program
Develop and conduct Code Red training for the school
districts in Cupertino
Hold a Mandarin CERTinfonnation class to assess interest
in a Mandarin CERT program
11 Affordable Housing
Provide housing opportunities for Cupertino workers
Review Below Market Rate Program criteria
Develop teacher housing assistance program
Perfonn a Nexus study for housing mitigation fees
Pursue an affordable housing project on Cleo Avenue
8
Budget Reference
Pages 112546
123628
Page 194
BUDGET STRATEGIES
CITY COUNCIL GOALS WORK PROGRAM
12 Annexation
Annex individual contiguous parcels when redevelopment
occurs in the Creston neighborhood
Pursue annexation of the land under San STaormatoagsa Creek
trail
Develop a comprehensive annexation strategy
13 Sports Center Building Strategy
Work with DACA on a strategy for upgrading the pool and
bath house
14 School Partnerships
Pursue partnership opportunities with the three school districts
15 Other
Provide weekly recycling
Pursue a community rsehcreydcdliinngg day
Sell surplus City lots
9
Budget Reference
Page 192
Page 123807
Page 1294
Pages 2046
BUDGET STRATEGIES
SERVICES VS RESOURCES
The following chart shows how service levels have changed over the past five years The Csity
population has grown from 05000 to approximately 05040 and program demand has risen to
106 while there has been adecline in the number of employees available to meet the increased
service levels
Additional impacts to service levels include a selective hiring freeze three to three and a half
percent salary cut unpaid furlough days deferred maintenance increased retirement and medical
costs and new community issues
Despite these challenges the overall customer satisfaction rate has remained at 84 to 86
between 2002 and 2004 Should Csupertino economic vitality decline and demand for services
continues to increase it will not be possible to maintain the current satisfaction levels It is with
this in mind that the City is embarking on a strategic plan to ensure that community needs are
met while maintaining adequate staffing to provide quality services
TRENDS SERVICE V RESOURCES
Program
Demand
106
Staff
Population
100
05040
105
Optimal Base FY 2000
05000
150
140
1 per 400
130
2000 2001 2002 2003 2004 2005
10
BUDGET STRATEGIES
CHANGE IN PROGRAM LEVELS
The fiscal year 045budget did not fund several enxeistiwng programs These programs are
listed for your infonnation To fund any or all of the following would require a reduction of
another budget item Staffrecommends that these programs not be reinstated at this time
ENxeistwinlrParmosl Unfunded
Vacant Positions
Leadership CTupeLrtinoT
Travel and Conference citywide
EGovPhase II
Community Resource Sergeant
DARE Officers
Cut one issue of the Scene
Cut Cinema at Sundown
Cut 5 Cs Support
Cut Attorney Contract Services
Cupertino Day at BBF
YToeuetnhProgram Reductions
Senior Center Program Reductions
Summer Concert Series Reductions
CIP See CIP Unfunded List
Cut Festival Out of Pocket Expense
Cut Public Works Budget
Cut Youth Special Events
Cut Block Party Rec Leaders
Keep Skate Park at Creekside
Reduce Rec StaffUnifonns
Reduce Teen Volunteer Program Support
Cut Trailblazer Cshildren Races
Reduce Shakespeare
Cut Holiday Tree Lighting
Cut Saturday Drop in Nature Museum
Reduce Translation Services
050101 II positions vacant with new budget
02000
01050 Funded in FY 056
0100 Funded in FY 056
01040
07000
6000
02000
2000
02000
9000
64070
65060
4500
73050
0100 Funded in FY 056
2000
500
6500
2500
1500
800
01000
1500
6000
01050 0500added back in FY 056
II
BUDGET STRATEGIES
PERFORMANCE MEASURES
DDeepsacrrtipmteionnt OGbjoecativel Actual
Public Information
Access Cupertino Response Time 3 Davs 3 Days
Law Enforcement
Sheriff Response Time Priority I 5 Minutes Priority I 537
Priority 2 9 Minutes Priority 2 861
Priority 3 20 Minutes Prioritv 3 1928
Administrative Services
Investment Portfolio Rate ofRetum ROR Greater than LAIF ROR Greater than LAIF ROR
Accounts Payable Processing 5 Days 15Days
Archival Research Requests 5 Days 15Days
Duplication Requests Routine I Day I Day
Special 3 Days 13Days
Recruitments Qualification Lists to Depts 60 Days 4605Days
Parks and Recreation
Cultural Programs Revenue 200054 03006 030702
Youth Teen Programs Revenue 200054 070205 070105
Provide Middle School Dances 8 Dances 10 Dances
Teen Center Membership 274 441
Sports Center Revenue 200054 0720205 0420206
Sports Center Membership 850 916
Senior Center Revenue 200054 040304 040605
Senior Center Membership 3100 Members 5004Members
Senior Center Volunteer Service 01040 Hours 21950 Hours
Senior Trips 90 36
Community Development
Planning Applications 130 165
Building Pennit Applications 1990 2252
Building Inspections 01270 21493
Revenues through02658
January 2005 through June 2005
12
BUDGET STRATEGIES
PERFORMANCE MEASURES
DepartmentJDescription OGbieoctaivel
Public Works
Street Sweeping
Street Maintenance
Sidewalk MRaientepnaanicre
Graffiti Cleanup
Streetli ts Maintenance
696 Curb MMoilneths
Win 24 Hours ofCall
Emergencies 24 Hours
48 Hours ofCall
5 Da s ofCall
Community Outreach
Block Leader Captains
Block Parties
Active Neighborhood Watch Groups
Trained Emer enc Res onse Team Members
102
21
73 Groups
634
13
Actual
696 Curb MMoilneths
Win 24 Hours of Call
Within 24 Hours
48 Hours of Call
5 Da s of Call
160
25
85 Groups
668
NOTES
14
BUDGET GUIDE
The budget is the Csity fundamental policy document It describes the Csity goals and details
how resources are allocated to achieve these goals In addition the budget serves as the annual
financial plan an operations guide and acommunications tool
The budget guide provides an overview of the elements of the budget document It describes the
structure of the Csity finances and the annual budget process and includes a glossary of budget
tenninology
ELEMENTS OF THE BUDGET DOCUMENT
The budget document includes the following key elements
I Budget Message The Budget Message is the City Msanager transmittal letter submitting
the budget to the City Council The Budget Message summarizes the Csity current and long
tenn financial position highlights new programs and organizational changes addressed in the
budget and outlines both short and ltoennnggoals of our city government
2 Budget Strategies The Budget Strategies section includes the Csity mission statement the
Financial Values of the City and identified City Council goals for the fiscal year The 2005
06 operating budget addresses the implementation of these goals and explores various
revenue enhancements and cost reduction measures
3 Financial Summaries The Financial Summaries section provides financial infonnation on
projected revenues expenditures fund balances and reserves This section includes the
Budget Summary of Funds as well as detailed fund descriptions and infonnation on all
revenue sources and expenditure projections
In addition to 200065 infonnation this section includes fund balance trends and detailed
revenues and expenditures projections for the next five years
This section includes an analysis of all City revenues by category Our major revenue
projections are based on trends current economic indicators and other agency input Sales
tax projections are based on input from our sales tax consultants industry trends and major
company forecasts Property tax revenues are projected by the county and adjusted by staff
based on known trends Park dedication fees are estimated based on current development
projects and other taxes are reviewed monthly and budgets are based on this trend analysis
4 Departmental Operating Budgets The Departmental Operating Budgets section details
historical and proposed expenditures by operating department The City is organized into
eight key operating functions including the Administration Law Enforcement Public
Infonnation Administrative Services Parks and Recreation Community Development and
Public Works Each department budget includes a summary narrative financial infonnation
regarding the department and each of its major divisions and personnel infonnation
15
BUDGET GUIDE
Expenditures for employee compensation are based on negotiated contracts The materials
category of expenditures are based on trends Contract services and capital outlay are
justified each year by the departments
Departmental expenditures are divided into five categories which include the following charges
Emplovee Compensation represents pennanent tfiumlel and tpimaret salary costs overtime
PERS retirement health insurance costs and other benefits
Materials represents items purchased for repair and maintenance operational activities such
as books uniforms and recreation supplies and office supplies
Contract Services represents legal consulting and other professional services contract repair
and maintenance utility charges training and memberships equipment rentals insurance and
employment services
Capital Outlav represents expenditures for tangible fixed assets including land buildings
furniture equipment and City vehicles
Debt SOetrhviecer represents principal and interest payments on outstanding debt and
interfund transfers
5 DNeparotmenntal Operating Budgets The DNeparotmenntal Operating Budgets section
details historical and proposed expenditures for the functions of interfund transfers and debt
service
6 Capital Improvements The Capital Improvements section details the proposed capital
projects for 200065 through 2009 I O These projects are organized into six categories
Parks Buildings Medians and Overpasses Streets Traffic and Storm The fyievaerbudget
denotes funding sources and a description of each project
The City Council approves funding of the Capital Improvements on a yearly basis
STRUCTURE OF THE CSITY FINANCES
The Csity finances are structured in a variety of funds that are the basic accounting and reporting
entities in governmental accounting The funds that comprise the 200065budget are grouped
into two major categories Governmental Funds and Proprietary Funds The purpose of each of
the various funds within these two categories is described below
16
BUDGET GUIDE
GOVERNMENTAL FUNDS
Goven1mental Funds include Tax Supported Funds Special Revenue Funds and Federal Grant
Funds They are accounted for under the modified accrual basis of accounting
Tax Supported Funds include the General and Capital Improvement Funds The General Fund is
the primary operating fund for governmental services funding traditional stuapporxted activities
such as law enforcement and community development The Capital Improvements Fund is
utilized for the acquisition or construction ofmajor capital facilities
Special Revenue Funds include the Park Dedication Gas Tax Stonn Drain Environmental
Management and Leadership Cupertino funds The use of Special Revenue Fund resources is
legally restricted for specific purposes
Federal Grant Funds include the Federal Housing and Community Development Block Grant
programs The Community Development Block Grant is a federally funded program for housing
assistance and public improvements
PROPRIETARY FUNDS
Proprietary Funds include Enterprise Funds and Internal Service Funds They are accounted for
under the full accrual basis of accounting
Enterprise Funds including the Resource Recovery Sports Center Blackberry Fann Recreation
and Senior Center funds are used to account for operations that are ssupeportlinfg with user fees
covering expenditures
Internal Service Funds include the Workers Compensation Management Infonnation Services
Equipment and LToengn Disability funds Internal Service Funds are similar to Enterprise
Funds except that fees are charged to user City departments to cover the costs of services
provided by the activity
COST ACCOUNTING
By using this financial technique the City is able to assess the true cost of providing a service
and benefits The Internal Service Funds and Enterprise Funds capture the full cost of a
psrogram activities Internal users of infonnation management fleet and equipment and
insurance are assessed rental rates through their programs for the use and eventual replacement of
such services and equipment Employee benefits such as leave usage retirement and insurances
are also recovered as revenue of the funds by charging the programs that use personnel services
17
BUDGET GUIDE
THE ANNUAL BUDGET PROCESS
The Csity annual budget is prepared on a July I to June 30 fiscal year basis The budget process
is an ongoing process that includes the phases of development proposal adoption and
monitoring
The budget development phase begins in February with the preparation of budget instructions
and goal setting sessions by the City Council and City Manager During March departments
prepare the budgets for which they are responsible These proposed department budgets are
reviewed by the Finance Division and compared to current and prior year trends The City
Manager then reviews the proposals with the City Treasurer and departmental staff and makes
final adjustments The proposed budget is then submitted to the City Council in May
During the months of May and June the Council considers the budget proposals at a series of
City Council Study Sessions and meetings At this time the Council hears ITom Boards
Commissions and community groups regarding budget requests and recommendations Prior to
June 30 the City Council holds public hsearing on the budget and then adopts the final budget
by resolution The adopted budget takes effect on July I the first day of the new fiscal year
After the budget is adopted the City enters the budget monitoring phase Throughout the year
expenditures are monitored by the Finance Division staff and department managers to ensure that
funds are used in an approved manner Adjustments to expenditures within or between
departmental budgets are accomplished on an naeedsed basis administratively throughout the
year The City Manager and Department Heads can transfer funds between their line items
aonrd divisions as needed City Council approval is required for additional appropriations ITom
fund balances or for new revenue sources
18
BUDGET GUIDE
GLOSSARY OF BUDGET TERMINOLOGY
The Csity budget contains specialized and technical terminology that is unique to public finance
and budgeting To help the reader understand the terms a glossary of budgetary terminology has
been included in the document
Adopted Budget Revenues and appropriations approved by the City Council in June for the
following fiscal year
Allocated Costs An expense charged by one ddeipvairstmioennt to another for services
performed or expenditures of a general nature that are charged to one main account and allocated to
other ddeipvaisrtmioenntss by a specified formula
Appropriation An authorization made by the City Council that permits the City to incur
obligations and to make expenditures of resources
Budget A financial plan for a specific period of time fiscal year that matches all planned
revenues and expenditures with various municipal services
Budget Amendment A legal procedure utilized by the City Manager to revise a budget
appropriation Adjustments to expenditures within or between departmental budgets may be
accomplished administratively City Council approval is required for additional appropriations
ITom fund balance or new revenue sources
Capital Improvement Program A plan for capital expenditures to provide for the acquisition
expansion or rehabilitation of an element of the Csity physical plant to be incurred over a fixed
period of several future years
Capital Outlay Expenditures relating to the purchase of equipment land and other fixed assets
Cost Recovery The establishment ofuser fees that is equal to the full cost ofproviding services
Department A major administrative segment of the City that indicates overall management
responsibility for an operation or a group ofrelated operations within a functional area
Division A unit of organization that reports to a department
19
BUDGET GUIDE
Enterprise Fund A fund established to account for activities that are financed and operated in a
manner similar to private business enterprises in which costs of providing services are primarily
recovered through user fees
Estimated Budget The status of appropriations between July I and June 30 Includes the adopted
budget budget amendments prior year encumbrances approved carryovers and transfers between
objects divisions and departments
Expenditure Utilization of fund resources Expenditures include operating expenses debt
service and capital outlays
Expenditure Category A basis for distinguishing types of expenditures The major expenditure
categories used by the City are employee compensation materials contract services capital outlay
and debt service
Fiscal Year Atmwoenlvthetime period signifying the beginning and ending period for recording
financial transactions The City has specified July I through June 30 for its fiscal year
Fund A fiscal and accounting entity for which the recording of financial transactions is made for
the purpose of carrying on specific activities in accordance with the requirements placed upon the
use of financial resources
Fund Balance The net effect of assets less liabilities at any given point in time
General Fund The fund used to account for the major operating revenues and expenditures ofthe
City except for those financial resources that are required to be accounted for in another fund
category General Fund revenues are derived primarily from property and other taxes
Goal Broad mission statements that define the purpose of a department
Infrastructure Long lived capital assets that nonnally are stationary in nature and can be
preserved for a significantly greater number of years than most capital assets Examples include
roadways bridges and drainage systems
Internal Service Fund A fund used to account for the services provided by one department to
other departments on arceimobursesmentt basis
20
BUDGET GUIDE
Operating Budget A financial plan for the provision of direct service and support functions that
provide basic governmental services The operating budget contains appropriations for such
expenditures as employee compensation materials contract services capital outlay and debt
service Itdoes not include Capital Improvement Project expenditures
Reserve An account used to designate a portion of the fund balance for a specific future use and
is therefore not available for general appropriation
Revenue Increases in fund resources Revenues include income from user fees taxes pennits
and other sources
Section A unit or organization that reports to a division
SSuppeortlinfg Activity An enterprise activity where all service costs including principal and
interest debt payments are primarily covered solely from the earnings ofthe enterprise
Subsidy Supplemental resources provided to ensure adequate funding when anticipated
expenditures exceed revenues
User Fees Fees charged to users of a particular service provided by the City
21
NOTES
22
H í story
Cupertino owes its name and earliest mention in recorded history
to the 1776 expedition led by the Spaniard Don Juan Bautista de
Anza from Sonora Mexico to the Port of San Francisco to found
the presidio of St Francis
Leaving the majority of the party ofmen women and children in
Monterey to rest from their travels deAnza his diarist and
cartographer Petrus Font and 18 other men pressed on through
the Santa Clara Valley in late March to their San Francisco
destination
With the expedition encamped in what is now Cupertino Font
christened the creek next to the encampment the Arroyo San
Joseph Cupertino in honor of his patron San Guiseppe San
Joseph ofCupertino Italy The arroyo is now known as Stevens
Creek
The village of Cupertino sprang up at the crossroads of Saratoga
Sunnyvale Road now DeAnza Boulevard and Stevens Creek
Boulevard It was first known as West Side but by 1898 the post
office at the Crossroads needed a new name to distinguish it from
other similarly named towns John T Doyle a San Francisco lawyer and historian had given the name Cupertino to his
winery in recognition ofthe name bestowed on the nearby creek by Petrus Font In 1904 the name was applied to the
Crossroads and to the post office when the Home Union Store incorporated under the name The Cupertino Stores Inc
Many ofCsupertino pioneer European settlers planted their
land in grapes Vineyards and wineries proliferated on
Montebello Ridge on the lower foothills and on the flat
lands below
After 1906 a lot more than grape growing was going on in
Cupertino Orchards were thriving and new businesses
were being started In the late 1940s Cupertino was swept
up in Santa Clara Vsalley postwar population explosion
Concerned by unplanned development higher taxes and
piecemeal annexation to adjacent cities Csupertino
community leaders began a drive in 1954 for incorporation
Cupertino rancher Norman Nathanson the Cupertino
Monta Vista Improvement Association and the Fact
Finding Committee played important roles in this
movement Incorporation was approved in the September
129575 election Cupertino officiallyhecame Santa Clara Csounty 13th City on October 119505
A major milestone in Csupertino development was the creation by some of the csity largest landowners of Valleo
Business and Industrial Park in the early 1s960 Ofthe 25 property owners 17 decided to pool their land to form Valleo
Park six sold to Varian Associates a thriving young electronics firm founded by Russell Varian and two opted for
transplanting to farms elsewhere The name Valleo was derived from the names ofthe principal developers Varian
Associates and the Leonard Lester Craft and Orlando families
23
2005 Cy ð mmUntJ EPC ò YI ò Wr Ú l
Cupertino with a population just over 05020 and city limits stretching across II square miles is considered to be one of
the San Francisco Bay Asrea most prestigious cities in which to live and work
Economic health is an essential component to maintaining a balanced environment which provides lheivgehl
opportunities and services that create and help sustain a sense ofcommunity and quality of life Public and private
interests must be mutual in that our success as a partnership is a direct reflection ofour success as a community The
cornerstone of this partnership is that of a cooperative and responsive government that provides an environment for
business and residential prosperity and fosters strong working relationships with all sectors of the community
Our economic development strategies are tailored to address the specific needs of the community As the City of
Cupertino is a mature city with over90buildout our focus concentrates more on business retention and revitalization
Business recruitment is site specific and targeted to industries that enhance rather than draw from our existing business
base
Town Center Complex 2004
As home to many kwnoewlnltheigchcompanies Cupertino offers a dynamic and exciting business climate Apple
Computer is headquartered in the city along with Symantec and Portal Software In addition key divisions ofHewlett
Packard Sun Microsystems and Borland are also located in Cupertino
The Csity proactive economic development efforts have resulted in a number of innovative mutually beneficial
partnerships with local companies The City strives to retain and attract local companies through policies of balanced
growth and streamlined pennitting
Valleo Fashion Park includes Msacy Psenney and Sears as anchors and features popular chain stores such as Vsictoria
Secret Express and Natural Wonders Shoppers can also enjoy iceskating at the msall ice skating rink or a nice meal at
Todai Restaurant The mall is undergoing major changes in the next two years with the addition ofa s1cre6en movie
theater and many new shops and restaurants Valleo Mall is becoming a vibrant exciting place for residents and visitors
to enjoy
The City of Cupertino has a history ofproviding lheivgehl municipal services to complement the sense ofcommunity
and quality oflife enjoyed by our constituents The City will continue to enhance and promote a strong local economy to
provide municipal services that make Cupertino a place that people are proud to call home
24
2005 CUypy
The City of Cupertino operates as a general law city with a city ccoiutnycil manager form of government Five council
members serve four year overlapping terms with elections held every two years The council meets twice a month on the
first and third Tuesday at645pmin the Community Hall
The City has 155 authorized tfiumellbenefited employees Due to a hiring freeze 138 tfiumellemployees provide
municipal services for the community City departments include administrative services finance human resources IT
city clerk emergency preparedness code enforcement and economic development community development planning
and building parks and recreation public works engineering maintenance transportation and enviromnental and
public inform à tion Police service is provided by the Santa Clara County Sheriffs Department and fire service is
provided through the Santa Clara County Fire District
Assisting the city council are several citizen advisory ccoommmmisitstieoenss which include housing
telecommunications fme arts library planning audit parks and recreation bicycle and pedestrian teen senior and
public safety Members of the volunteer boards are appointed by the city council and vacancies are announced so that
interested residents may apply for the positions Residents are kept informed about city services and programs through
the Cupertino Scene a monthly newsletter Csupertino government access cable TV channel The City Channel and the
csity website
Housing
Rentals for one and two bedroom apartments and duplexes
range from1100 to2100 per month Rent for a two
bedroom house ranges from2200 to3250 per month
The average price of existing single family homes is
09050 as of June 2004 The average condo
tmowinnihmouusmesale price is 574927
Community Health Care Facilities
Cupertino is served by the Cupertino Medical Clinic
NovaCare Occupational Health Services Nearby hospitals
include El Camino Hospital in Mountain ViewOConnor
Hospital in San Jose San Jose Hospital Community
Hospital ofLos Gatos Kaiser Permanente Medical Center
in Santa Clara Stanford Hospital in Palo Alto and the
SaratogaiWnalk Clinic in Saratoga
Utilities
Natural gas and electric Pacific Gas and Electric
Company 800 5704030
Telephone SBC For residential service call 800 894
2355 for business service call 800 2735505
Cable Comcast 800 2924858
Garbage Los Altos Garbage 408 0742250
Water San Jose Water Company 408 7297090 and
California Water 650 0911572
Sewer Service Cupertino Sanitary District 408 7205731
Tax Rates and Government Services
Residential commercial and industrial property is
appraised at full market value as it existed on March 1
1975 with increases limited to amaximum of2 annually
Property created or sold since March 1 1975 will bear full
cash value as of the time created or sold plus the 2
annual increase The basic tax rate is100per 100 full
cash value plus any tax levied to cover bonded
indebtedness for county city school or other taxing
agencies Assessed valuations and tax rates are published
annually after July 1
Retail Sales Tax Santa Clara County125 City 1
State General Fund 5State Local Public Safety Fund
050 State Local Revenue Fund 025 County
Transportation Fund025Total825
Assessed Valuation Secured and Unsecured
Cupertino 35892471692004
County 012523612682004
Transportation
Rail Southern Pacific San Jose to San Francisco with
spur line in Cupertino
Air Seven miles north ofSan Jose International Airport
32 miles south of San Francisco airport
Bus Santa Clara County Transit Systems Greyhound bus
lines
Highways Interstate Route 280 State Route 85
25
CSI4K
Facts and Figures
Population in City Limits
Median Household Income
Median Age
Sales Tax Rate
Registered Voters
Democrats
Republicans
Independent
Other
Did Not State
65020
140101
38
825
12268
9685
8188
357
533
7365
Anderson Chevrolet
Apple Computer
Bsenihana
BsJ Bar and Grill
Chevron Service Station
Crossroads Chevron Station
Cupertino Clean Scene
Cupertino US Gas Car Wash
Cypress Hotel Park Place
DeAnza College Campus Center
DeAnza Shell Service Station
Dental Arts of California
PHaecwkalertdt
IBM Rational Software
Top 40 Sales Tax Producers
First Quarter 2005
In Alphabetical Order
Jade Galore
JC Penney
Joann Fabrics
Joy Luck Place
Lsong Drug Store
Msacy
Marina Foods
Mservyn
Msichael Arts Crafts
Outback Steakhouse
PW Supennarket
Rite Aid Drug Store
Rotten Robbie Service Station
Sears
Shane Diamond Jewelers
Sodexho Marriott Management
Suburban House
Target
TGI Fsriday
TJ Maxx
Todai Restaurant
Union 76 Service Station
Valero Service Station
Verizon Wireless
Whole Foods Market
Ysamagami Nursery
Demographic Information
White
Asian
Hispanic
Black
American Indian
Native Hawaiian
510
444
40
07
02
01
26
c Ú 011U1UtUR ð VetvcrSeaett
Civic Center and Library
The new Civic Center complex opened in October 2004
The complex boasts a new6000 square foot Community
Hall plaza with fountain trees and seating areas City
Council meetings are now held in the Community Hall as
well as Planning Commission and Parks and Recreation
Commission A covered walkway connects City Hall with
the Community Hall and Library
The new 05040 square foot library despite reduced hours
due to budget cuts continues to be one ofthe busiest in the
Santa Clara County Library system During the first two
months circulation reached nearly 0200 and demand
continues to increase For more infonnation call 408 446
1677
Cupertino Senior Center
Adults over age 50 can find a full calendar of
opportunities for learning volunteering and enjoying
life There are exercise classes a computer lab and
classes language instruction including English as a
second language and cultural and special interest
classes
The Senior Center is located at 21251 Stevens Creek
Boulevard and is open Monday through Friday 8am
to 5mpTelephone 408 3717570
The Quinlan Community Center
The City ofCsupertino Quinlan Community Center is
a 02070 square foot facility that provides a variety of
recreational opportunities Most prominent is the
Cupertino Room a pmurupolstei room that can
accommodate 300 people in a banquet fonnat For
more infonnation call 408 3717270
Cupertino Sports Center
The Sports Center is a great place to meet friends The
facility features 17 tennis courts complete locker room
facilities and a fully equipped fitness center featuring
free weights Cybex and cardio equipment A teen
center is also included as well as a child watch center
The center is located at the corner of Stevens Creek
Boulevard and Stelling Road Telephone 408 777
3160
Blackberry Farm
This a3c3re recreational facility offers two large swimming
pools softball field basketball courts volleyball courts
horseshoe pits and a hnionle golf course The picnic
grounds are located at 21975 San Fernando Avenue and the
golf course is located at 22100 Stevens Creek Boulevard
Telephone 408 3717470
Blackberry Fann Retreat Center is a2000 square foot house
that overlooks the picnic grounds and golf course The
center has one large conference room that will accommodate
up to 25 people The retreat center is located at 21979 San
Fernando Avenue Telephone 408 3717470
McClellan Ranch Park
A horse ranch during the 1a9n3d0 4s0 this a1c8re park
has the appearance of a working ranch Preserved on the
property are the original ranch house milk barn livestock
barn and two historic buildings Bsaer Blacksmith Shop
originally located at DeAnza and Stevens Creek and the old
water tower from the Parish Ranch now the site of
Memorial Park Rolling Hills 4H Club members raise
rabbits chickens sheep swine and cattle and a Junior
Nature Museum which features small live animal exhibits
and dispenses infonnation about bird animal and plant
species ofthe area McClellan Ranch is located at 22221
McClellan Road Telephone 3717270
27
Eutiuwcatt
Winner of numerous state and national awards for excellence our
csity schools are widely acknowledged to be models of quality
instruction
Cupertino Union School District serves 71050 students in a 26 square
mile area that includes Cupertino and portions offive other cities The
district has 20 elementary schools and four middle schools including
several choice programs Eighteen schools have received state aonrd
national awards for educational excellence
Student achievement is exceptionally high Historically district test
scores place Cupertino among the premier public school districts in
California The district is a leader in the development of a standards
based system of education and is nationally recognized for leadership
in the use of technology as an effective tool for learning Quality teaching and parent involvement are the keys to the
dsistrict success
The Fremont Union High School District serves over9000 students in a 42 square mile area covering all of Cupertino
most ofSunnyvale and portions of San Jose Los Altos Saratoga and Santa Clara The five high schools of the district
have garnered many awards and recognition based on both the achievement of students and the programs designed to
support student achievement Student achievement is at an all time high based on the statewide Academic Performance
Index API All five high schools in the district exceeded their state established achievement targets for the 2000 API
District students are encouraged to volunteer aonrd provide service to organizations within the community During their
senior year if students complete 80 hours ofservice to a pnroofnit community organization they are recognized with a
Community Service Award medal that may be worn during their graduation ceremonies
Building on its tradition of excellence and innovation DeAnza
College challenges students ofevery background to develop their
intellect character and abilities to achieve their educational
goals and to serve their community in a diverse and changing
world
DeAnza College offers a wide range of quality programs and
services to meet the work force development needs ofour region
The college prepares current and future employees of Silicon
Valley in traditional classroom settings and through customized
training arranged by employers Several DeAnza programs
encourage economic development through college credit courses
tsehromrt programs services for manufacturers technical
assistance aonrdrecruitment and retention services
28
Cupertino is served by four local
institutions ofhigher education
DeAnza College the University ofSan
Francisco National University and
the UCSC Extension In addition to
these schools Csupertino location
offers easy access to Stanford
University Santa Clara University and
San Jose State University
tSdo8oe
EuphratMuseum ofArt
The highly regarded Euphrat Museum of Art adjacent to the Flint Center on the DeAnza College campus traditionally
presents kooainnedfexhibitions publications and events reflecting the rich diverse heritage of our area The Museum
prides itself on its changing exhibitions of national and international stature emphasizing Bay Area artists Museum
hours are IIam 4pmTuesday Wednesday Thursday 68pmTuesday and IIam 2pmSaturday Telephone
8488063486
Minolta DeAnza Planetarium
Stargazers have a Cupertino facility catering to their interests the Minolta Planetarium on the DeAnza College campus It
hosts a variety of planetarium shows and events including educational programs for school groups and family astronomy
evenings on Saturdays at 700pm For more information and current schedule of events visit the website at
pfdwlhaenwaedtnarwizaumaor call8488061484
Flint Center
The cultural life of the Peninsula and South Bay is enhanced by programs presented at the Flint Center for Performing
Arts located at 21250 Stevens Creek Boulevard at DeAnza College campus The center opened in 1971 and was named in
honor ofCalvin C Flint the first chancellor oftheFDoeAotnhziallCommunity College District The box office is open
10ma 4mpMonday through Friday and one and one half hours prior to any performance Box office 480648
8816 administrative office 8488062480
Cupertino HistoricalSociety
On May 2 1966 the Cupertino Historical Society was founded as a pnroofnit organization by a group of 177 longtime
residents concerned about the rapid growth in the area and its impact on the quickly vanishing Cupertino heritage On
March 139900 the Society opened the Cupertino Historical Museum dedicated to the preservation and exhibition ofthe
csity history Through its exhibits the museum attempts to develop and expand the learning opportunities that it offers to
the ethnically diverse community of the City of Cupertino The Society continues to build partnerships with the local
school districts to ensure that the history of Cupertino is offered as part ofthe educational curriculum The Society is
located at the Quinlan Community Center 10185 N Stelling Road Telephone 8490074389
California History Center
Farmers Market
Residents and visitors can visit the farmers market every Friday from900am to
I00mpThe market is located at the Vallco Fashion Park behind Msacy
The California History Center is located on the DeAnza College campus The
center has published 39 volumes on California history and has a changing exhibit
program The csenter Stocklmeir Library Archives boasts a large collection ofbooks a pamphlet file oral history tapes
videotapes and a couple thousand student research papers The lsibrary collection is for reference only Heritage events
focusing on Csalifornia cultural or natural history are offered by the center each quarter For more information call 408
8876142 The center is open September through June 380mato noon and 010mpto 340mpMonday through
Thursday
29
NOTES
30
BUDGET SUMMARY
200065Fiscal Year
Estimated Estimated
Balance at Operating Operating oNperoatinng Balance at
Funds July 1 Revenues Expenditures Transfers June 30
Geoeral Fuod 01107405 09309109 0202905 030801 0106408
Special Revenue Funds
Storm Drain 010806 07050 010402 010109
Park Dedication Tax 0400 0500 0500 0400
Environmental Management 08080 030705 030903 07000
Gas Tax 090304 031080 0320701 070505 060908
Housing Community Development 0110101 040805 040305 0110601
Vallco Redevelopment 030208 06000 05070 030205
FundTotals 0910905 0820705 0330908 020505 0710207
Debt Service
Cupertino Facilities Corporation 01000 0530408 0530408 01000
Traffic Impact 010105 03060 04000 010101
Fund Totals 010205 03060 0530808 0530408 010201
Capital Projects Foods
Capital Improvement 04050 030805 03040
Library 0300 0300
Stevens Creek Corridor Park 0610502 0610502
Mary Ave Bicycle Footbridge 4 0120605 0420106 020505 9396
Fund Totals 29969 0830602 0440503 020905 9396
Enterprise Funds
Resource Recovery 0250902 072010 0520805 0500 0940107
Blackberry Farm 01070 0210307 0310602 01008
Cupertino Sports Facility 010209 0410702 0310807 0100 010104
Recreation Programs 010906 012080 020405 0200 010301
Senior Center 0100 05003 040905 0700
Fund Totals 0650303 018002 0870704 0800 050601
Internal Service Funds
Information Management 080401 070305 070107 080509
Workers Compensation 030105 030105
Equipment Replacement 090704 08070 080602 090802
tLeornmgDisability 0500 05020 04040 01030
Fund Totals 081020 0910702 0910308 1080504
31
Total City Revenue
Total City revenue for fiscal year 200065 is expected to be05506504 The chart below
provides an overview of all City revenue General Fund revenue is shown on the next page of
this summary
Sales Tax represents the Csity largest source ofrevenue We receive 1of the285collected
in the county As this is the fourth year of economic recession Capital EPqruoipjemcetnst
Funding has been limited to previously committed grant funds Debt payments have been
reduced with the refinancing of the Csity debt in 200032 Charges for Services includes
program and engineeringlbuilding fees Tom Blackberry Farm the Sports Center the Senior
Center Quinlan Center and our Community Development and Public Works Departments
Approximately 75exclusive of debt service of the Csity park and recreation programs are
fsunedelfd
Intergovernmental Revenue includes motor vehicle liienu fees and grant funds while Use of
Money and Property represents rental fees and interest income on the city investment portfolio
Property Tax is small in comparison to our other revenues as Cupertino is a lnowoproperty tax
city receiving only 04 on every dollar paid Other Taxes include park dedication fees
business licenses taxes and property transfer taxes
Total City Revenue
05506504
TOT
License
Permits
5
Operating
Transfers In
15
Utility Tax
5
Charges for
Services
16
Fines
1
Sales Tax
16
Property
Taxes
7
Intergovernmental
16
32
Total City Expenditures
Total City expenditures for fiscal year 200065 are expected to be03502704 This summary
chart provides a quick overview of all the Csity operating and capital expenditures
Many of the Special Revenue fund activities such as the Gas Tax Storm Drain Park Dedication
and Environmental Management funds are administered by the Public Works Department The
Public Works Department also oversees the Resource Recovery operations with expenditures of
over26for the wCiidtyegarbage collection contract and disposal costs
All other Enterprise fund operations are directed by the Parks and Recreation Department which
spends over56million annually to provide programs for all ages and to maintain the Csity
enviable community facilities at the Blackberry Farm and Golf Course Quinlan Community
Center Sports Center and Senior Center
Funding for Capital Projects which provides for street projects sidewalks facilities and
upgrades and major equipment purchases has been pared down significantly from recent years
Capital spending must be deferred until economic recovery makes such funding available
Total City Expenditures
03502704
Parks
Recreation
13
Council
Commissions OTrpaenrsafteinrsg
12
Debt
Service
6
Administration
2
Law
Enforcement
12
Public
Information
1
Capital
Projects
11
Administrative
Services
10
33
General Fund Revenue
Total General Fund revenue for fiscal year 200065 is expected to be05309309 The chart
below provides an overview of our revenue
Sales Tax is used for general government expenditures and is therefore accounted for entirely in
the General Fund it represents approximately 266of General Fund revenue Our sales tax
comes from retail sales btusoiness largely high tech sector sales and use tax
Charges for Services within the General Fund is comprised of revenue from zoning planning
and engineering fees
Intergovernmental Revenue includes motor vehicle liienu fees and grant funds This revenue
source represents 130 net ofState take aways ofthe budget Use ofMoney and Property is
received from rental fees and interest income Yield on the Csity investment portfolio has
dropped substantially from prior years Property Tax though small in comparison to our other
revenues has remained relatively consistent throughout the recent recession The Csity
Transient Occupancy Tax has not declined from the prior year due only to the addition of a four
star hotel at the beginning of200032
General Fund Revenue
05309309
Charges for
Services2
Operating
License Transfers In
Permits5 12
Fines
2
Sales Tax
26
Utility Tax
9
Franchise
Fees
7
Miscellaneous
Revenue 1 Other Taxes
5
Use of Money Property
4
34
General Fund Expenditures
Total General Fund expenditures for fiscal year 200065 are expected to be 01304403
General Fund expenditures for the general operation and administration of the City comprise
over559of total expenditures
The General Fund budget allows for all expenditures necessary to carry out the basic activities of
the City that are not provided through other funds It includes the necessary resources to carry
out police and emergency preparedness community development through planning building
and engineering activities public works operations and maintenance recreational programs and
park utilization and other general government functions such as legal personnel finance and
administrative services
The Csity debt service costs are also borne by the General Fund as well as funding for capital
projects Both operational and capital budgets have been tightened to minimize the effect on the
Csity reserve levels
General Fund Expenditures
Including Operating Transfers
01304403
Administrative
Services
13
Council
Commissions
1
Administration
3
Public Works
Capital ProjectslEquip 29
Funding
5
Debt Service
10
Community Development
10
Law Enforcement
20
35
REVENUE SUMMARY
Property Taxes
Property taxes represent approximately 181 net of State take aways of total general fund
operating revenues Property tax revenue for the 200065 fiscal year is estimated to be
0240502 Property tax revenues fluctuate with market conditions from yteoarhowever
they will generally increase in the ltoernmgdue to property sales and new construction
In 1978 voters approved the passage of
Proposition 13 which froze property
tax rates and limited the amount of
their increase each year Cupertino had
one of the lowest property tax rates in
Santa Clara County receiving 02 for
every100 paid The County then
provides another 02 as a tax equity
allocation
In accordance with State law property
is assessed at actual full cash value
with the maximum levy being I of
the assessed valuation Increases in
assessed valuation are limited to2
annually if there is no change in
property ownership major improve
ments or requests for arsseessment
Our revenue has increased slightly in
this area with recent annexations and
housing development
InJI 2043 Cupertino Elementary
111
II 0236 County Bond
It 0164 Fremont High School
Maintenance
0148 Santa Clara County
Fire District
0065 Mid Peninsula Open
Space Various
Agencies
0063 Foothill Community
College Maintenance
0042 County Library
Retirennent
t 0040 City ofCupertino
200043
Actual
200054
Estimate
200065
Proposed
REVENUE BY CATEGORY
Property Taxes
REVENUE BY FUND
General
Vallco RDA
Traffic Impact
0400 0830108 0240502
0140507
06000
03050
0240502
36
REVENUE SUMMARY
Sales Tax
The Csity sales and use tax revenues are generated from three principal economic categories
general r20et7ailbt59usoin0essincludes electronic equipment and software
manufacturers and distributors and other p21rod2ucts Csupertino sales tax has continued
to experience declines as a result of the recessionary impacts in our area and is just starting to
show signs ofrecovery
01040
01020
2000
A1CTUALIEST
01000
8000
6000
4000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Sales and use taxes are the Csity largest single source of revenue and are budgeted at 195
million for the 200065 fiscal year representing 266net of State take aways of the Csity
total general fund operating revenues With sales tax so dependent on a vital economy the City
must focus its efforts on finding other stable revenue sources or embark on a more aggressive
economic development effort to ensure health in this area
Towards that end the City has approved 03030 square feet of new or replacement retail in the
last five years The majority of this buildout will occur in fiscal year 200098 and is reflected in
our fyievaerprojections
200043
Actual
200054
Estimate
200065
Proposed
REVENUE BY CATEGORY
Sales Tax 0680504 04800 019050
REVENUE BY FUND
General 019050
37
REVENUE SUMMARY
Other Taxes
The principal components of Other Taxes include utility tranchise park and transient
occupancy taxes
The utility tax which was approved by voters in 1990 is assessed on gas electricity and
telecommunication service provided within the Csity jurisdiction at a rate of24of user
charges This tax is a general tax and can be used for any purpose The following chart shows
that the Csity tax rate and areas of application are generally lower than that of other cities within
Santa Clara County In March 2002 voters approved an extension ofthe utility tax trom a sunset
date of 2015 to 2030 This extension will correspond with the extended debt maturity dates as a
result of refinancing for capital improvement projects Utility taxes are budgeted to be
0620705 which is down compared to the previous ysear projections due to the high
commercial vacancy rates as a result of the recession
Utility Tax Rate Comparison
GaslElectric Cable Water Telephone
Cupertino 24 24
Mountain View 30 30
Los Altos 35 35 35 35
Palo Alto 50 50 50
Gilroy 50 50 50
San Jose 50 50 50
Franchise fees are received trom cable television garbage water gas and electricity tranchisees
that operate in the City The fees range trom 2to 10of the tsranchisee gross revenues
depending on each particular agreement Franchise fee revenues for fiscal year 200605
estimated to be03200are also flat due to the continuing recession in our area
Park tax is paid by developers on housing development and can vary greatly trom yteoar
Estimated revenue for fiscal year 200065 is 0500 which is generated trom new
developments within the City
Transient occupancy taxes are levied on hotel facilities located in the City at the rate of 10of
room revenues The taxes in this category amount to071030and have been increasing since
January 2005 for all four hotels in the city
38
REVENUE SUMMARY
Other Taxes continued
Other taxes of105050reflect business license fees property transfer tax construction tax and
housing mitigation fees
200043 200054 200065
Actual Estimate Proposed
REVENUE BY CATEGORY
Utility Tax 0620306 072040 0620705
Franchise Fees 0120905 0320102 03200
Park Dedication Fee 020708 08100 0500
Transient Occupancy Tax 0610303 051060 071030
Other Taxes L050802 1040305 L050500
0380204 0890407 0780505
REVENUE BY FUND
General
Park Dedication Fund
0280505
0500
0780505
39
REVENUE SUMMARY
License and Permits
Licenses and Permits represent approximately83of total General Fund operating revenues
This category includes building plan check and electrical and plumbing permits With the
adoption of a new fee study for building planning and engineering fees to reflect full cost
recovery of services the City has seen an increase in these revenue sources
200043 200054 200065
Actual Estimate Proposed
REVENUE BY CATEGORY
License and Permits 0510401 06100 08200
REVENUE BY FUND
General 08200
40
REVENUE SUMMARY
Revenues From Use of Money and Property
This revenue category represents approximately28of total City revenues and is comprised of
interest earnings on City funds facility rents and concession payments on oCwniteyd property
assessment bond interest and repaymenttoeflormng affordable housing loans
Investment earnings are a function ofthe amount ofexcess cash available for investment and the
current interest rate For the coming year interest rates are expected to rise and cash balances
should increase due to the completion ofour 22 million library project
200043 200054 200065
Actual Estimate Proposed
REVENUE BY CATEGORY
Investment Earnings 070403 010306 080908
Property Rentals 040808 06001 06020
Loan Repayment 04010 01050 03000
0220702 0610502 0510408
REVENUE BY FUND
General
Storm Drain
Sports Center
Resource Recovery
Blackberry Farm
Gas Tax
Housing Community Development
Other Funds
010705
02050
07020
01020
08020
05000
05000
07040
0510408
41
REVENUE SUMMARY
Intergovernmental Revenues
Intergovernmental revenues comprise approximately 146net of State take aways of the
Csity total revenues and consist of State motor vehicle license fees VLF State gas tax and
various grants rrom federal state or county agencies This revenue fluctuates widely depending
on grant awards and allocations
With the enonnity ofthe State budget deficit and the overall economy nationwide this revenue is
classified at risk The State borrowed 07080of vehicle license fees in 200043 with the
promise to pay them back in 2006 In 2005 the State borrowed property tax sales tax and
VLF with final payback over an 18 month period This triple flip has affected our cash flows
and thus our interest income It is highly probable that this revenue stream will again be sought
after this year
On a positive note Cupertino became an entitlement city for housing and community
development block grants which increased our grant allocation ITom 06000to almost0500
per year In addition our two new major capital projects the Stevens Creek Corridor Park and
the Mary Avenue Bicycle Overcrossing are primarily funded by grants
200043 200054 200065
Actual Estimate Proposed
REVENUE BY CATEGORY
Motor Vehicle in Lieu 042060 033020 043050
Gas Tax 090806 02100 0100
Housing Community Development 02001 040706 040305
GOrtahnetsr 3020902 5020107 0440107
0960309 02101003 039002
REVENUE BY FUND
General Fund
Gas Tax
Housing Community Development
Capital Improvement Projects
0630705
031030
040305
0830602
039002
42
REVENUE SUMMARY
Charges for Services
Due to the nature of the services provided most of the activity in this category is accounted for
separately as enterprise funds As such the City attempts to recover the cost of the services
provided through user charges
Charges for services representing approximately 116 oftotal City revenues are estimated to
be 098050 for the 200065 fiscal year With the opening of our new Sports Center and
expansion of our youth programs and the update of our building planning and engineering fees
this category has been one of our largest growing revenue sources
200043 200054 200065
Actual Estimate Proposed
REVENUE BY CATEGORY
Construction and Other Pennits 060106 040902 0210805
Resource Recovery 0420609 0420805 042050
Blackberry Fann PGaorlkfFees 011070 0510601 171050
Cupertino Sports Center Fees 0110506 031003 04100
Recreation Cultural Youth and Teen
Physical Nature and Park Programs 0910101 0910808 0120605
Senior Center Classes Excursions 040703 05001 0500
0770905 038030 098050
REVENUE BY FUND
General
Resource Recovery
Blackberry Farm
Cupertino Sports Center
Recreation Programs
Senior Center
0210805
042050
011050
04100
0120605
0500
098050
43
REVENUE SUMMARY
Fines and Forfeitures
Fines result from vehicle code parking code and other miscellaneous violations Our fines have
slightly declined due to an enhanced signage effort by our Code Enforcement and Public Works
Departments and the temporary transfer of a Code Enforcement Officer into our Neighborhood
Watch Program
am
fotiE WAY
200043 200054 200065
Actual Estimate Proposed
REVENUE BYCATEGORY
Fines 0700 0600 060205
REVENUE BY FUND
General 060205
44
REVENUE SUMMARY
Interdepartmental Revenues
Interdepartmental revenues consist of interdepartmental service charges and operating transfers
Interdepartmental service charges arise from the centralized administration of certain activities
the costs of which are allocated to the various City departments benefited The City uses internal
service funds to account for the provision of these services and the related charges Operating
transfers are in essence subsidies of one fund to another fund whereby monetary resources are
recorded as onpeoratning revenues in the receiving fund and as onpeoratning expenditures in
the transferring fund
Operating transfers of0260108are primarily due to the transfer of0530408in debt service
payments and to fund capital projects of103050
200043 200054 200065
Actual Estimate Proposed
REVENUE BY CATEGORY
Transfer of Funds 054003 070506 0760108
Interdepartmental Service Charges
Insurance Premiums 020203 020302 030405
Equipment Chargebacks 09005 080902 080505
IT Chargebacks 070704 070107 070107
046005 0880907 0680305
REVENUE BY FUND
General Fund
Capital Improvement Fund
Gas Tax
Cupertino Facilities Corporation
Infonnation Technology IT
Equipment Replacement
Workers Compensation
tLeonnng Disability
06100
050905
070505
0530408
090307
080505
020905
05000
0680305
45
REVENUE SUMMARY
Miscellaneous Revenues
Miscellaneous revenues consist of environmental management fees property sales and other
revenue items that the City receives on a cnonosistnent basis from yteoar Revenues for
fiscal 200065 are budgeted at 062070 Large rneococurrning revenues include a
community fundraiser for our new library project and sale of surplus property
200043
Actual
200054
Estimate
200065
Proposed
REVENUE BY CATEGORY
Developer Fees
Environmental Management
Sale of Property
Miscellaneous
030401
030504
o
010203
05000
03060
05100
0610701
05000
030704
05100
020406
0710108 0530801 012070
REVENUE BY FUND
General Fund
Storm Drain
Environmental Management
Other
06100
05000
030704
010406
012070
46
REVENUE SUMMARY
State Revenue Raid
This category denotes the 200054 through 200076 negotiated League of California Cities
agreement with the State The League and Governor Schwarzenagger have agreed that the State
will take 36123 for fiscal years 200054 and 200065 in return for a payback of098939 in
fiscal year 20007679 and the guarantee that local revenue will not be raided in future years
This raid of local revenue represents tohnired sales tax tohnired property tax and tohnired
vehicle license fees and is therefore segregated in this budget as a separate line item
200043
Actual
200054
Estimate
200065
Proposed
REVENUE BY CATEGORY
State Revenue Raid o 36123 36123
REVENUE BY FUND
General 36123
Not restated for prior year revenue raids
47
NOTES
48
80
70
60
50
40
30
20
10
o
Summary of Employees
By Department
109909 200010 200021 200032 200043
49
200054 200065
CounciVCommissions
Administration
IJ Public Information
Adminiatrative Services
Parks and Recreation
Community Development
CPublic Works
Redevelopment Agency
Employee Summary
Trend Analysis
Administration
The Administration Department has had minimal increases over the past seven years The
Assistant City Attorney was increased to a tfiumlel position in 12090909 the Community
Outreach Coordinator was decreased to a thimaelfposition in 200021 and a thimaelfclerk
receptionist was added in 200032
Administrative Services
From fiscal year 199965to 200032 the Administrative Services Department has seen minimal
changes in staffing Increases occurred in 199695 199987 and 109909 and were due to the
creation of the IT Division with the addition of an IT Manager Network Specialist and GIS
Coordinator In 109099 the Code Enforcement Division added an additional officer when
Rancho Rinconada was annexed to the City and the Finance Division increased an Account
Clerk position from atpimaretto atfiumlel position to handle Business Licensing In 200032
athimaelfclerk receptionist was added to the City Cslerk office
Public Information
The staffing in the Public Information Department has remained constant over the past seven
years except for a75position that was taken to full time in 200021
Recreation Services
Recreation Services has increased staffing due to new programs from fiscal year 199965 to
200010 Between 1996 and 1999 additions included a Recreation Coordinator for Blackberry
Farm and a Clerk Typist for Quinlan registration A Maintenance Worker for Blackberry Farm a
Building Attendant for the Senior Center and two Recreation Coordinators have been added for
fiscal year 200010 Changes for 200021 include reclassification of four positions from part
time to tfiumlel due to increased workload at the Quinlan Center Senior Center Blackberry
Golf Course and Sports Center During 200032 greens maintenance was contracted out
moving three maintenance workers to vacancies in the Public Works Department twotpimaret
positions were consolidated into a full time assistant golfshop attendant and atpimaret position
went to 75time at the Senior Center Continued consolidation of contract maintenance efforts
allowed for the reduction of one vacant maintenance worker position at Blackberry Farm in
200054
Community Development
The Community Development Department has had variations in staffing over the past seven
years Decreases occurred in 199965 and 199987 One Planner II position was eliminated
three Inspector positions were eliminated and the GIS Specialist was transferred to
Administrative Services Two Inspector positions were added in fiscal year 199987 and one
Planner I position was added in 109909 In 200021 the department has combined two part
time intern positions into a tfiumlel position to increase efficiency In addition during 200032
the Senior Building Inspector position was vacated as a result of an internal promotion
50
Public Works
From fiscal year 199965 to 200021numerous staffing changes have occurred The majority of
the increases occurred in 199987 with the addition of six and a quarter positions for grounds
maintemince Decreases in 199998 were due to the lease of our water utility Three positions
have been added for each ofthe 109909and 20000I fiscal years to increase service in grounds
fleet median and tree crews A Traffic Engineer was eliminated and replaced with a Senior
Architect in 200021 and an Assistant Director of Public Works was added in 200032 The
Facilities position count was increased in 200054 by one maintenance worker to support the
additional maintenance workload required for the library new Community Hall and City Center
Park
Redevelopment eAnclv
The Val1co Redevelopment Project Area was approved and existing staff time is allocated each
year as appropriate
Authorized Positions
Due to current budget constraints funding for vacant positions has been removed from the
200054 General Fund budget salaries and benefits The Personnel Summary schedule which
follows shows the placement of all authorized positions whether or not they are funded The
total position count for 200065includes eleven vacancies
51
PERSONNEL SUMMARY
Summary ofemployees by Division
Permanent Benefited Positions 109909 20000I 200021 200032
CITY CCOOMMUISNSCIOINLS
City Council 020 020 020 040
Fine Arts Commission 010 010 010 010
Telecommunications Commission 005 005 005 005
Parks and Recreation Commission 010 010 010 010
Teen Commission 000 000 000 015
Housing Commission 005 005 005 000
050 050 050 080
ADMINISTRATION
City Manager 135 135 135 145
Community Outreach 075 075 050 050
City Attorney 275 275 275 275
485 485 460 470
PUBLIC INFORMATION
Community Relations 075 075 075 075
Cupertino Scene 040 040 040 040
Government Channel 300 300 300 325
City Website 000 000 000 000
415 415 415 440
ADMINISTRATIVE SERVICES
Administration 200 200 200 190
Accounting 375 375 450 440
Business Licensing 025 025 050 050
City Clerk 390 390 390 390
Duplicating and Printing 000 000 000 060
Human Resources 250 250 250 270
Code Enforcement 315 315 315 300
Insurance Administration 035 035 035 030
Infonnation Technology 200 200 300 300
1907 1907 1909 230
PARKS AND RECREATION
Administration 190 190 190 190
Cultural Programs 625 625 800 650
Youth and Teen Services 200 200 350 335
Sports and Physical Recreation 400 400 500 550
Senior Programs 300 600 675 750
Blackberry Fann 570 580 010 878
2645 2658 135 3623
52
200043 200054 200065
040 040 040
010 010 010
005 005 005
010 010 010
015 015 015
000 000 000
080 080 080
145 150 150
050 050 050
270 270 270
465 470 470
075 075 075
040 040 040
325 225 225
000 100 100
440 440 440
190 195 195
440 440 440
050 050 050
390 390 390
060 060 060
270 270 270
300 300 300
030 030 030
300 300 300
230 2305 2305
190 190 190
700 700 700
335 335 335
550 550 550
750 750 750
788 788 788
133 133 133
53
PERSONNEL SUMMARY
Summary of employees by Division
Permanent Benefited Positions 109909 200010 200021 200032
COMMUNITY DEVELOPMENT
Administration 149 149 149 149
Planning 696 596 696 696
Housing Services 100 100 100 090
Building 150 150 150 1401
1959 1958 1959 2705
PUBLIC WORKS
Administration 200 200 200 300
Environmental Management 280 235 235 257
Engineering Services 475 475 575 575
Service Center 215 220 220 220
Grounds 109 1508 1508 1408
Streets 1359 2325 2325 2525
Facilities 700 740 740 730
Transportation 885 535 535 435
General Services 000 410 410 410
0606 0609 070 2702
REDEVELOPMENT AGENCY 000 000 000 000
000 000 000 000
TOTAL PERMANENT BENEFITED POSITIONS 17351 10308 10404 18503
Aso01f5711 of these positions are frozen and four unfunded through fiscal year210009
54
200043 200054 200065
149 149 149
696 704 704
090 090 090
1401 1401 1401
2705 2803 2803
300 300 300
242 327 327
575 575 575
220 220 220
1408 1408 1408
2702 2425 2425
730 760 760
435 435 435
410 420 420
2702 2712 2712
000 032 032
000 032 032
12554 17555 17555
55
NOTES
56
Five Year
Budget Forecast
57
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
GENERAL FUND
Beginning Balance at July I 61322 11745 01648 31764 21055 11749
Operating Activity
Estimated Operating Revenues 62498 43909 33332 93234 73558 33176
Use ofBMR Reserve 529 387 403 419 436 453
Use of Public Access Reserve 50 50 50 50 50 50
Estimated Operating Expenditures 02387 02295 92191 43125 63331 23055
Net Operating Activity 2190 1911 3874 1978 2613 2614
Debt Service 3547 3548 3548 3547 3549 3549
Net Operating Activity after debt 1357 1637 326 1569 936 935
Transfers In Out ftroom Other Funds
Park Dedication 1800 500 500 500 500 500
Senior LCLiebnrCateryrCIP 8 300 0 20 30 40
Sports Center 100 100 150 200 200 200
Blackberry Fann 0 0 0 0 0 100
Recreation Programs 400 200 200 175 175 175
MIS Fund 120 220 170 170 170 170
Equipment FundIWorkers Compensation 300 0 75 75 75 75
Net Income for CIPlPRreosejervcet 531 757 931 919 276 165
One Time Revenues
One Time Loan Prepayment 330 0 0 0 0 0
Sale ofProperty 1500 1500 2000 0 0 0
Resource Recovery Cleanup Payback 500 500 500 500 0 0
Income for CIPlPRreosejervcet 8261 2143 4331 419 276 165
Proposed CIP Projects
Capital Projects 459 595 375 0 0 0
Gas Tax Projects 859 755 750 750 750 909
1318 1350 1125 750 750 909
Ending Balance June 30 11745 01648 31764 21055 11749 11035
Reserve Policy
Capital Improvement Projects 5000 1974 1379 1004 254 0 0
PERS Reserve 1000 1000 600 600 600 600 600
Retiree Medical Liability 1151 1151 1151 1151 2262 3384 4487
Economic Uncertainty I 2500 2550 3438 6119 4589 2695 518
Economic Uncertainty II 7500 7500 7500 7500 7500 7500 7500
11745 01648 31764 21055 11749 11035
58
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
SPECIAL REVENUE FUNDS
STORM DRAIN
Beginning Balance at July 1 1126 186 119 53 II 18
Estimated Operating Revenues 75 75 77 79 81 83
Estimated Operating Expenditures 75 142 143 121 74 76
Capital Projects 940 0 0 0 0 0
Ending Balance at June 30 186 119 53 11 18 25
PARKDEDICATlON TAX
Beginning Balance at July 1 216 4 4 4 4 4
Estimated Operating Revenues 1800 500 500 500 500 500
Estimated Operating Expenditures 0 0 0 0 0 0
Net Operating Activity 1800 500 500 500 500 500
Operating Transfers Out General Fund 1800 500 500 500 500 500
Capital Projects MPcoCrletllaanl 212 0 0 0 0 0
Ending Balance at June 30 4 4 4 4 4 4
ENVIRONMENTAL MANAGEMENT
Beginning Balance at July 1 134 88 70 65 61 57
Estimated Operating Revenues 361 375 390 406 422 439
Estimated Operating Expenditures 407 393 395 410 426 442
Ending Balance at June 30 88 70 65 61 57 54
GAS TAX
Beginning Balance at July I 2644 934 698 470 251 41
Estimated Operating Revenues 1060 1050 1090 1132 1175 1220
PriorYear Grants Receivable 0 0 0 0 0 0
GOrtahnetsrIncome 0 330 0 0 0 0
Operating Transfers In General FCulnPd 859 755 750 750 750 909
Estimated Operating Expenditures 754 786 818 851 885 920
Net Operating Activity 1165 1349 1022 1031 1040 1209
Capital Projects 2875 1585 1250 1250 1250 1250
Ending Balance at June 30 934 698 470 251 41 0
59
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
SPECIALREVENUE FUNDS
HOUSING COMMUNITY DEVELOPMENT
Beginning Balance at July I 1771 1111 1161 1193 1207 1202
Estimated Operating Revenues 547 485 485 485 485 485
Estimated Operating Expenditures 1207 435 453 471 490 509
Ending Balance at June 30 1111 1161 1193 1207 1202 1178
LEADERSHIP CUPERTINO
Beginning Balance at July 1 8 0 0 0 0 0
Estimated Operating Revenues 0 0 0 0 0 0
Operating Transfer Out 8 0 0 0 0 0
Estimated Operating Expenditures 0 0 0 0 0 0
Ending Balance at June 30 0 0 0 0 0 0
V ALLCO REDEVELOPMENT
Beginning Balance at July I 179 328 325 319 80 7
Estimated Operating Revenues 55 60 65 300 350 400
Estimated Operating Expenditures 204 57 59 61 263 316
Ending Balance at June 30 328 325 319 80 7 91
60
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
DEBT SERVICE FUNDS
CUPERTINO FACILITIES CORPORATION
Beginning Balance at July I 10 10 10 10 9 II
Operating Transfers In 3547 3548 3548 3547 3549 3549
Debt Service Payments 3547 3548 3548 3548 3547 3549
Ending Balance at June 30 10 10 10 9 11 11
TRAFFIC IMPACT
Beginning Balance at July 1 114 115 111 106 104 102
Estimated Operating Revenues 36 36 35 38 36 36
Debt Service Payments 35 40 40 40 38 36
Ending Balance at June 30 115 111 106 104 102 102
61
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
CAPITAL PROJECTFUNDS
CAPITAL IMPROVEMENT
Beginning Balance at July I 1889 0 0 0 0 0
Operating Transfers In 459 340 375 0 0 0
Prior Year Grants 385 0 0 0 0 0
GOrtahnetsrIncome 243 45 0 0 0 0
Capital Projects 2976 385 375 0 0 0
Ending Balance at June 30 0 0 0 0 0 0
LIBRARY
Beginning Balance at July I 8066 300 0 0 0 0
Other Revenues 591 0 0 0 0 0
Operating Transfers Out 0 300 0 0 0 0
Loan for FFE 380 0 0 0 0 0
Capital Projects 8737 0 0 0 0 0
Ending Balance at June 30 300 0 0 0 0 0
CITYCENTER PLAZA
Beginning Balance at July I 82 0 0 0 0 0
Operating Transfers In 0 0 0 0 0 0
Capital Projects 82 0 0 0 0 0
Ending Balance at June 30 0 0 0 0 0 0
SPORTS CENTER
Beginning Balance at July I I 0 0 0 0 0
Operating Transfers In 0 0 0 0 0 0
Capital Projects I 0 0 0 0 0
Ending Balance at June 30 0 0 0 0 0 0
62
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
CAPITAL PROJECT FUNDS
STEVENS CREEK CORRIDOR PARK
Beginning Balance at July I 0 0 0 0 0 0
GOrtahnetsrIncome 4153 6152 0 0 0 0
Operating Transfers In 89 0 0 0 0 0
Capital Projects J 542 J 652 0 0 0 0
Ending Balance at June 30 0 0 0 0 0 0
MARY AVENUE BICYCLE FOOTBRIDGE
Beginning Balance at July I 10 4 0 0 0 0
Prior Year Grants Authorized 1260 0 0 0 0 0
GOrtahnetsrIncome 8450 1265 0 0 0 0
Operating Transfers In General Fund 0 255 0 0 0 0
Capital Projects 6104 2416 0 0 0 0
Ending Balance at June 30 4 0 0 0 0 0
63
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
ENTERPRISE FUNDS
RESOURCE RECOVERY
Beginning Balance at July I 6546 5292 4917 4531 4060 4033
Estimated Operating Revenues 2592 2590 2683 2780 2881 2986
Estimated Operating Expenditures 3466 2585 2689 2796 2908 3025
Net Operating Activity 874 5 6 16 27 39
Loan for FFE 380 0 0 0 0 0
Loan Payback 120 120 120 45 0 0
Operating Transfers GOenueratlFund 500 500 500 500 0 0
Ending Balance at June 30 5292 4917 4531 4060 4033 3994
BLACKBERRY FARM
Beginning Balance at July 1 681 17 108 191 84 124
Estimated Operating Revenues 1219 1237 1332 752 1417 1488
Estimated Operating Expenditures 1303 1362 1415 645 1209 1246
Net Operating Activity 84 125 83 107 208 242
Operating Transfers Out 48 0 0 0 0 100
Capital Projects 532 0 0 0 0 0
Ending Balance at June 30 17 108 191 84 124 266
CUPERTINO SPORTS CENTER
Beginning Balance at July 1 279 129 114 79 50 42
Estimated Operating Revenues 1465 1472 1548 1625 1705 1790
Estimated Operating Expenditures 1515 1387 1433 1479 1538 1600
Net Operating Activity 50 85 115 146 167 190
Operating Transfer GOenueratl Fund 100 100 150 175 175 175
Ending Balance at June 30 129 114 79 50 42 34
64
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
ENTERPRISE FUNDS
RECREATlON PROGRAMS
Beginning Balance at July 1 485 196 131 92 82 103
Estimated Operating Revenues 2160 2180 2288 2402 2521 2647
Estimated Operating Expenditures 2049 2045 2127 2212 2300 2392
Net Operating Activity III 135 161 190 221 255
Operating Transfers Out 400 200 200 200 200 200
Ending Balance at June 30 196 131 92 82 103 158
SENlOR CENTER
Beginning Balance at July 1 32 I 7 30 45 56
Estimated Operating Revenues 502 503 533 560 582 605
Estimated Operating Expenditures 471 495 510 525 541 557
Net Operating Activity 31 8 23 35 41 48
Operating Transfer Out 0 0 0 20 30 40
Ending Balance at June 30 1 7 30 45 56 64
65
FUND BALANCE TRENDS
Five Year Forecast in thousands
200054 200065 200076 200087 200098 210009
INTERNAL SERVICE FUNDS
MANAGEMENT INFORMATION
Beginning Balance at July 1 883 841 859 873 888 903
Estimated Operating Revenues 735 735 760 790 821 853
Estimated Operating Expenditures 745 717 746 775 806 839
Net Operating Activity 10 18 14 15 15 14
Operating Transfers In 120 220 170 170 170 170
Depreciation Reserve 73 80 100 100 100 100
Capital Outlay New Replacement 225 300 270 270 270 270
Ending Balance at June 30 841 859 873 888 903 917
WORKERS COMPENSATION
Beginning Balance at July I 9 0 0 0 0 0
Estimated Operating Revenues 160 315 327 340 354 368
Operating Transfers In 300 0 0 0 0 0
Estimated Operating Expenditures 469 315 327 340 354 368
Ending Balance at June 30 0 0 0 0 0 0
EQUIPMENT
Beginning Balance at July 1 1102 974 982 985 988 991
Estimated Operating Revenues 919 870 899 935 972 1010
Estimated Operating Expenditures 892 862 896 932 969 1008
Net Operating Activity 27 8 3 3 3 2
Operating Transfer GIenneralFund 0 0 75 75 75 75
Depreciation Reserve 0 28 125 125 125 125
Capital Outlay New Replacement 155 28 200 200 200 200
Ending Balance at June 30 974 982 985 988 991 993
LONGTERMDISABILITY
Beginning Balance at July 1 13 5 13 21 29 38
Estimated Operating Revenues 52 52 54 56 58 60
Estimated Operating Expenditures 60 44 46 48 49 51
Ending Balance at June 30 5 13 21 29 38 47
66
REVENUE ESTIMATE
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
GENERAL
TAXES
Property Tax 3908 3748 3950 4157 4365 4583 4812 5053
Sales Tax 6854 4800 9800 1950 5916 8997 71903 31715
Transient Occupancy Tax 1633 1560 1675 1730 1799 2182 2269 2360
Utility Users Tax 2636 2740 2650 2675 2755 2838 2923 3011
Franchise Fees 2195 2312 2200 2300 2369 2440 2513 2589
Other Tax 1582 1435 1500 1550 1597 1644 1694 1745
62008 12905 82705 52612 42021 52834 02054 12362
LICENSE AND PERMITS 1541 1600 2775 2800 2912 3028 3150 3276
USE OF MONEY AND PROPERTY
Investment Earnings 515 780 550 600 624 649 675 702
Property Rentals 328 407 450 475 494 514 534 556
843 1187 1000 1075 1118 1163 1209 1258
INTERGOVERNMENTAL
Motor Vehicle License LIineu 4260 3320 3320 4350 5388 7332 8381 0436
Grants 202 50 165 125 130 135 141 146
Other Intergovernmental 203 74 140 100 104 108 112 117
2865 3444 3625 3675 3822 3975 434 4299
CHARGES FOR SERVICES
Zoning and PlaMing Fees 128 110 485 510 530 552 574 597
Engineering Fees 221 200 650 675 702 730 759 790
Miscellaneous Services 227 182 85 100 104 108 112 117
576 492 1220 1285 1336 1390 1445 1503
FINES AND FORFEITURES 700 600 600 625 650 676 703 731
MISCELLANEOUS 37 160 176 100 104 108 112 117
STATE TAKE AWAY salesl propertyl VLF 0 623 623 623 989 0 0 0
Subtotal 12770 02575 62498 43909 33332 93234 73558 33176
TRANSFERS OITNHER REVENUES
Sale of Property 0 1500 1500 1500 2000 0 0 0
Park Dedication Tax 25 1800 1800 500 500 500 500 500
Resource Recovery Loan Payback 0 500 500 500 500 500 0 0
Loan Payment Kilian 0 0 330 0 0 0 0 0
Library CIP savings 0 0 0 300 0 0 0 0
Blackberry Farm 75 127 0 0 0 0 0 100
Sports Center 0 100 100 100 150 175 175 175
Recreation Programs 100 131 400 200 200 200 200 200
Senior Center 0 34 8 0 0 20 30 40
Total General Fund 32770 23417 23846 53939 63862 33159 63663 33381
67
REVENUE ESTIMATE
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
SPECIAL REVENUE FUNDS
STORM DRAIN
Investment Earnings 16 25 25 25 27 29 31 33
Developer Fees 341 50 50 50 50 50 50 50
357 75 75 75 77 79 81 83
PARK DEDICATION TAX
Park Dedication Tax 278 1800 1800 500 500 500 500 500
278 1800 1800 500 500 500 500 500
ENVIRONMENTAL MANAGEMENT
Investment Earnings 0 1 1 1 I 1 I 1
Fees 354 360 360 374 389 405 421 438
354 361 361 375 390 406 422 439
GAS TAX
Investment Earnings 32 50 60 50 50 50 50 50
Operating Transfers In General Fund 484 750 859 755 750 750 750 909
Prior Year Grants Receivable 0 0 0 0 0 0 0 0
Federal and State Grants 340 0 0 330 0 0 0 0
Highway Users Tax 986 1200 1000 1000 1040 1082 1125 1170
Construction Reimbursements 23 0 0 0 0 0 0 0
1865 2000 1919 2135 1840 1882 1925 2129
HOUSING COMMUNITY DEVELOPMENT
Investment Earnings 7 16 21 20 20 20 20 20
Grants 201 476 476 435 435 435 435 435
Loan Repayments 41 15 30 30 30 30 30 30
249 507 527 485 485 485 485 485
LEADERSHIP CUPERTINO
Operating Transfer In 18 0 0 0 0 0 0 0
Fees IOther Revenue 17 0 0 0 0 0 0 0
35 0 0 0 0 0 0 0
VALLCO REDEVELOPMENT
Investment Earnings 0 3 0 0 0 0 0 0
Property Assessment 57 35 55 60 65 300 350 400
57 38 55 60 65 300 350 400
68
REVENUE ESTIMATE
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
DEBTSERVICE FUNDS
CUPERTINO FACILITIES CORPORATION
Investment Earnings 1 0 0 0 0 0 0 0
Operating Transfer In 2841 3547 3547 3548 3548 3547 3549 3549
2842 3547 3547 3548 3548 3547 3549 3549
TRAFFIC IMPACT
Investment Earnings 39 I I 1 I 1 1 I
Property Assessment 35 35 35 35 34 37 35 35
74 36 36 36 35 38 36 36
69
REVENUE ESTIMATE
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
CAPITAL PROJECTS FUNDS
CAPITAL IMPROVEMENT
Operating Transfers In 369 447 459 340 375 0 0 0
Prior Year Grants Receivable 0 0 385 0 0 0 0 0
GOrtahnetsr Income 0247 243 243 45 0 0 0 0
2416 690 1087 385 375 0 0 0
LIBRARY
Miscellaneous 325 0 41 0 0 0 0 0
Donations 638 1011 550 0 0 0 0 0
Loan for theFEF 0 0 380 0 0 0 0 0
963 1011 971 0 0 0 0 0
SPORTS CENTER
Operating Transfers In 130 0 0 0 0 0 0 0
130 0 0 0 0 0 0 0
CITY CENTER PLAZAl4 SEASONS PARK
Operating Transfers In 131 0 0 0 0 0 0 0
STEVENS CREEK CORRIDOR PARK
Operating Transfers In 0 0 89 0 0 0 0 0
GOrtahnetsr Income 0 0 4153 6152 0 0 0 0
0 0 1542 1652 0 0 0 0
MARY AVENUE BICYCLE FOOTBRIDGE
Operating Transfers In w General Fund 160 0 0 255 0 0 0 0
Prior Year Grants Authorized 0 0 1260 0 0 0 0 0
Federal and State Grants 500 4850 4850 2165 0 0 0 0
660 4850 6110 2420 0 0 0 0
70
REVENUE ESTIMATE
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
ENTERPRISEFUNDS
RESOURCE RECOVERY
Investment Earnings 77 100 140 120 115 110 105 100
Charges for Services 2469 2485 2435 2450 2548 2650 2756 2866
Other RevenuelLoan Payback for FEF 17 0 137 140 140 65 20 20
2563 2585 2712 2710 2803 2825 2881 2986
BLACKBERRY FARM
Investment Earnings 3 0 4 2 2 2 2 2
Rent 132 146 110 80 121 0 110 116
Charges for Services 1170 1561 1100 1150 1204 750 1300 1365
Miscellaneous 5 0 5 5 5 0 5 5
1309 1707 1219 1237 1332 752 1417 1488
SPORTS CENTER
Investment Earnings 6 9 9 7 8 9 10 11
Rent 28 48 63 65 70 72 74 78
Charges for Service 1156 1303 1393 1400 1470 1544 1621 1702
1191 1360 1465 1472 1548 1625 1705 1790
RECREATION PROGRAMS
Investment Earnings 7 12 20 15 15 15 15 15
Culture Programs 281 280 375 385 404 424 446 468
Youth and Teen Programs 685 745 775 780 819 860 903 948
NaturallPark Programs 0 28 0 0 0 0 0 0
Physical Programs 945 935 990 1000 1050 1103 1158 1216
1918 2000 2160 2180 2288 2402 2521 2647
SENIOR CENTER
Investment Earnings 1 4 2 2 2 2 2 2
Charges for Services 473 501 500 500 530 557 579 602
Miscellaneous I 0 0 I 1 I I 1
475 505 502 503 533 560 582 605
71
REVENUE ESTIMATE
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
INTERNAL SERVICE FUNDS
MANAGEMENT INFORMATION
Investment Earnings II 18 18 18 15 15 15 15
Service Charges 774 717 717 717 745 775 806 838
Operating Transfers 170 120 120 220 170 170 170 170
955 855 855 955 930 960 991 1023
WORKERS COMPENSATION
Investment Earnings 15 0 20 20 20 20 20 20
Operating Transfers 0 0 300 0 0 0 0 0
Premiums 153 140 140 295 307 320 334 348
168 140 460 315 327 340 354 368
EQUIPMENT
Investment Earnings 13 15 27 15 10 10 10 10
Service Charge 905 892 892 855 889 925 962 1000
Operating Transfers In 0 0 0 0 75 75 75 75
918 907 919 870 974 1010 1047 1085
LONG TERM DISABILITY
Investment Earnings 0 2 2 2 2 2 2 2
Premiums 70 92 50 50 52 54 56 58
70 94 52 52 54 56 58 60
72
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
GENERAL
COUNCIL AND COMMISSIONS
1000 City Council 181 193 193 195 203 211 220 228
1031 Telecommunications Commission 44 79 79 63 65 68 71 73
1040 Library Commission 84 121 121 121 126 131 137 142
1042 Fine Arts Commission II 12 12 13 13 14 15 15
1050 Public Safety Commission 0 0 0 0 0 0 0 0
1055 BicycleIPedestrian Commission 0 5 5 0 0 0 0 0
1060 Recreation Commission 9 8 8 10 10 10 II 11
1065 Teen Commission 13 16 16 16 17 17 18 19
1067 Senior Commission 0 0 0 I 0 0 0 0
1070 Planning Commission 15 18 18 21 22 23 24 25
1075 Housing Commission 0 0 0 0 0 0 0 0
356 452 452 440 457 475 494 514
ADMINISTRATION
1200 City Manager 279 313 313 330 344 357 372 386
1201 Community Outrea ç h 60 56 56 47 48 50 52 54
1300 City Manager Discretionary Fund 6 15 15 15 15 15 15 15
345 385 385 392 407 423 439 456
1500 CITY AITORNEY 521 528 532 513 534 555 578 601
2100 LAW ENFORCEMENT 5951 6723 6976 6969 7318 7684 8068 8471
PUBLIC INFORMATION
3300 Community Relation Infonnation 186 153 153 184 191 199 207 215
330x City 50th Anniversary 0 0 25 57 0 0 0 0
3400 Cupertino Scene 105 114 114 99 103 107 III 116
3500 Government Channel 300 295 295 319 332 345 359 374
3501 Gtov CShpaencniaellProject 43 44 44 48 50 52 54 56
3600 City Web Site 53 112 112 127 132 137 143 149
687 718 743 834 808 840 874 909
ADMINISTRATIVE SERVICES
4000 Administration 324 295 295 316 328 342 355 369
4001 Economic Development 2 13 13 15 15 16 16 17
4100 Accounting 588 689 689 687 714 743 772 803
4200 Business Licenses 39 41 41 41 43 44 46 48
4300 City Clerk 436 465 465 475 494 514 535 556
4310 Duplicating and Postage 166 202 202 218 227 236 245 255
4330 Elections 124 95 148 300 0 150 0 150
4400 Disaster Preparedness 85 109 179 103 107 61 63 66
4510 Human Resources 444 432 448 486 505 526 547 569
451 x Retiree MOetdhiecarl 502 600 600 595 648 8117 8190 9165
4511 Human Resources Litigation 27 50 34 30 31 32 34 35
4530 Code Enforcement 555 513 513 589 612 637 662 689
4540 Insurance Administration 465 591 691 710 738 767 798 830
3758 4095 4317 4563 4463 5885 5964 6352
73
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
GENERAL cont
RECREATION SERVICE
6100 Recreation Administration 215 241 241 263 273 284 296 307
Quinlan Community CCuelntutrearl
6200 Supervision 415 435 435 474 493 512 533 554
6230 Community Hall Operation 0 28 28 19 20 20 21 22
6248 Cultural Programs 51 47 49 52 54 56 59 61
6265 Quinlan Community Center 303 273 276 279 290 302 314 326
Monta Vista Recreation CYeonutethr
6300 Administration 205 211 212 261 272 283 294 306
6342 YouthPrograms 38 41 40 40 42 43 45 47
6343 Teen Programs 52 12 12 13 13 14 14 15
6344 Teen Center 0 62 62 64 66 69 72 75
6360 Monta Vista Recreation Center 6 14 14 13 13 14 14 15
Cupertino Sports PChyseicalnlRectreeatiorn
6400 Supervision 213 215 215 23 I 240 250 260 270
6445 Creekside Park 7 12 12 12 12 13 13 14
6448 Fourth of July 44 66 66 68 70 73 76 79
Senior Center
6500 Senior Adult Programs 479 467 467 494 513 534 555 578
6529 Senior Center Case Manager 40 58 58 48 50 52 54 57
6647 Nature Programs 71 73 73 78 81 85 88 92
2141 2255 2261 2407 2504 2604 2708 2816
COMMUNITY DEVELOPMENT
7200 Planning Administration 214 209 209 234 244 253 264 274
7301 Current Planning 611 566 566 735 765 795 827 860
7302 Mid and Long Range Planning 165 211 244 262 272 283 295 306
7305 ASnanreaxatotiognas Creek Boundary 10 15 15 0 0 0 0 0
7405 BMR Housing Maintenance 141 162 529 387 403 419 436 453
7406 Human Service Grants 17 40 40 40 42 43 45 47
750 I General Building 357 437 437 529 550 572 595 619
7502 Construction Plan Checking 261 420 420 602 626 651 678 705
7503 Building Code Enforcement 498 487 488 531 552 575 598 621
7504 Building Abatements 0 50 50 25 25 25 25 25
2274 2596 2997 3347 3479 3618 3761 3911
74
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
PUBLIC WORKS
Administration
8001 Public Works Administration 397 453 453 480 499 519 540 561
8005 Environmental Management 15 188 170 147 153 159 165 172
Engineering 139
8101 Engineering Design 596 717 728 755 786 817 850 884
8102 Inspection Service 113 123 123 127 133 138 143 149
Service Center Administration
820 I Public Works Supervision 913 850 850 825 858 893 928 966
Grounds
8302 McClellan Ranch Park 52 50 50 42 44 45 47 49
8303 Memorial Park 483 543 545 543 565 587 611 635
8304 City Center Park 0 35 35 27 28 29 30 31
8312 School Site Maintenance 493 527 527 510 531 552 574 597
8314 Neighborhood Parks 737 711 711 857 891 927 964 1003
8315 Sports FCierledsellokllsyrindaen 273 391 391 368 382 398 414 430
8321 Civic Center Maintenance 126 125 125 140 145 151 157 163
Streets
8402 Street Cleaning 105 34 84 79 82 85 89 92
8406 Graffiti Removal I 57 59 61 64 66 69 71
8407 Overpasses Medians Maintenance 547 590 590 636 661 688 715 744
8408 Street Trees Maintenance 425 546 544 545 567 589 613 638
8409 Elmwood Program 222 202 204 241 251 261 271 282
Facilities
8501 City Hall 385 449 463 459 478 497 517 537
8502 Library 64 301 312 193 201 209 217 226
8503 Service Center 252 241 241 245 255 265 276 287
8504 Quinlan Community Center 309 374 374 390 406 422 439 456
8505 Senior Center 146 187 193 183 190 198 206 214
8506 McClellan Ranch 72 51 51 52 54 56 58 61
8507 Manta Vista 82 101 101 100 104 108 113 117
8508 Wilson 12 26 26 28 30 31 32 33
8509 Portal 25 30 30 32 33 34 36 37
8511 Creekside 50 80 80 62 64 67 69 72
8512 Community Hall 0 59 59 116 120 125 30 135
8513 Teen Center 0 27 27 32 33 35 36 37
8830 Street Lighting 192 476 491 397 412 429 446 464
Traffic Management
8601 Traffic Engineering 255 334 334 425 442 452 470 489
8602 Traffic Signal Maintenance 329 403 406 462 480 499 519 540
8709 2979 3974 5959 9941 31302 71405 11715
Operating Expenditures 82433 02371 02387 02295 92191 43125 63331 23055
Operating Transfers Out
DIDO Debt Service Obligations 2841 3547 3547 3548 3548 3547 3549 3549
0100 Capital Projects 630 447 459 595 375 0 0 0
0100 Gas Tax OPproejreatciotsn Funding 644 750 859 755 750 750 750 750
0100 Leadership CWupertino orkersComp 18 0 300 0 0 0 0 0
0100 Equipment Fund 0 0 0 0 75 75 75 75
0100 Management Information 170 120 120 220 170 170 170 170
oNperoatinng Expenditures 3403 8464 2585 1518 9418 5442 5444 5444
TOTAL GENERAL FUND 12486 83915 33232 13443 83249 93567 13785 73499
75
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
SPECIAL REVENUE FUNDS
STORM DRAIN
9612 Minor Storm Drain Improvements 92 27 75 142 143 121 74 76
9620 IP Minor Storm Drain Projects 459 75 940 0 0 0 0 0
551 102 1015 142 143 121 74 76
PARK DEDICATION TAX
o I 00 Operating Transfers to General Fund 275 1800 1800 500 500 500 500 500
9107 McClellan Ranch Improvements 0 0 2 0 0 0 0 0
275 1800 2012 500 500 500 500 500
ENVIRONMENTAL MANAGEMENT
8004 Non Point Source 378 398 407 394 395 40 426 442
8402 Street Cleaning 0 6 0 0 0 0 0 0
378 403 407 394 395 410 426 442
GAS TAX
8403 Sidewalk Curb and Gutter 60 97 97 148 154 160 167 173
8404 Street Pavement Maintenance 202 236 260 246 256 267 277 288
8405 Street MSairgkinngss 431 397 397 392 408 424 441 459
9xxx CIP Curb Gutter and Sidewalk 363 500 540 500 500 500 500 500
9xxx CIP 851 75 2335 1085 750 750 750 750
1906 1981 3629 2372 2068 2101 2135 2170
HOUSING COMMUNITY DEVELOPMENT
7401 General Administration 111 96 98 87 91 95 98 102
7402 Rehab Loans Administration 0 0 473 0 0 0 0 0
7404 Public Service AGffroardnabtsle Housing 79 363 636 348 362 376 391 407
190 459 1207 435 453 471 490 509
VALLCO REDEVELOPMENT
7304 Valleo Redevelopment Project Area 99 204 204 57 59 61 263 316
LEADERSHIP CUPERTINO
xxxx Operating Transfer Out 0 28 8 0 0 0 0 0
4010 Leadership Cupertino 14 0 0 0 0 0 0 0
4011 Youth Leadership J 0 0 0 0 0 0 0
27 28 8 0 0 0 0 0
76
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
DEBTSERVICE FUNDS
CUPERTINO FACILITY CORPORATION
5301 Principal 5306 Interest 3532 3532 3532 3533 3533 3532 3534 3534
530 I Fee 6 15 15 15 15 15 15 15
3538 3547 3547 3548 3548 3548 3547 3549
TRAFFIC IMPACT
5306 Principal 20 20 20 25 25 30 30 30
5306 Interest 18 15 15 15 15 10 8 6
38 35 35 40 40 40 38 36
77
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
CAPITAL PROJECTS FUND
CAPITAL IMPROVEMENT
xxxx Operating Transfer Out 182 0 41 0 0 0 0 0
xxxx Lawrence Expwy Mitty Exchange 0 0 0 75 0 0 0 0
9xxx DACA PoollBathhouse Renovation 0 0 0 0 0 0 0 0
9116 San STahroamtoagsa Creek Trail 43 0 54 0 0 0 0 0
9117 Stevens Creek Corridor Trail 2 0 41 0 0 0 0 0
9119 PortallWilson Park 334 0 0 0 0 0 0 0
xxxx Upgrade City Gateway Signage 0 0 0 0 0 0 0 0
9216 Service Center Renovation 52 0 36 0 0 0 0 0
9xxx Space Study 14 0 36 0 0 0 0 0
9219 Animal Control Facility 0500 0 0 500 0 0 0 0 0
9223 Civic Center Improvements 2466 0 3 0 0 0 0 0
9224 Civic Center Plaza 936 0 0 0 0 0 0 0
9528 2W8ol0fe ST 0 0 129 0 0 0 0 0
9530 Phase III Homestead Arterial 4 0 40 0 0 0 0 0
9533 Green LEDTS Lights 0 0 261 0 0 0 0 0
9534 Advanced ITS DeAnza 648 0 35 0 0 0 0 0
9535 Adaptive Traffic Controllers 644 0 0 0 0 0 0 0
9541 Safe Routes to School Manta Vista HS 0 0 48 0 0 0 0 0
9544 Safe Routes to School Cupertino HS 26 0 474 0 0 0 0 0
9549 Safe Routes to School Garden Gate 0 270 475 0 0 0 0 0
9545 Traffic Signal Upgrades GVreeanleraf 0 100 120 50 0 0 0 0
9546 Traffic Operations Center 63 0 0 0 0 0 0 0
9547 Yellow Ped Head LED Traffic Sig Upg 0 60 260 10 0 0 0 0
xxxx LawrenceEMxpitwtyyXing 0 0 0 0 0 0 0 0
xxxx Regnart Creek Trail Blaney to Pacifica 0 0 0 0 0 0 0 0
9226 Sports Center AlC unit replacement 0 50 50 0 0 0 0 0
9227 Blue Pheasant RRoeof 0 125 125 0 0 0 0 0
9228 City Hall Council Chamber Remodel 0 75 75 0 0 0 0 0
9229 City Hall Emerg GPEeneGrator Upgra 0 10 10 250 375 0 0 0
xxxx Sports Center Tennis Court Resurface 0 0 0 0 0 0 0 0
xxxx Quinlan Fountain Repair 0 0 0 0 0 0 0 0
xxxx PW Service Center Security Gate 0 0 0 0 0 0 0 0
9548 Traffic Related Street Walkability Mods 0 0 5 0 0 0 0 0
xxxx Traffic Signal Battery Power Backup Sys 0 0 200 0 0 0 0 0
5412 690 3017 385 375 0 0 0
LIBRARY 9222 9940 17 8737 300 0 0 0 0
SPORTS CENTER RENOVATION 9212 2093 0 0 0 0 0 0
CITY CENTER PLAZA
9313 City Center Plaza 990 0 0 0 0 0 0 0
9314 City Center Plaza Public Art 122 0 82 0 0 0 0 0
1112 0 82 0 0 0 0 0
STEVENS CREEK CORRIDOR PARK 0 0 1542 1652 0 0 0 0
MARY AVENUE BICYCLE FOOTBRIDGE 520 4850 6104 2416 0 0 0 0
78
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
ENTERPRISEFUNDS
RESOURCE RECOVERY
8003 Programs 1793 2188 3466 2585 2689 2796 2908 3025
xxxx Loan to LibraryFEF 0 0 380 0 0 0 0 0
0100 Operating Transfers to General Fund 0 500 500 500 500 500 0 0
1793 2688 3966 3085 3189 3296 2908 3025
BLACKBERRY FARM
0100 Operating Transfers Out 75 127 48 0 0 0 0 100
6600 Administration 124 120 120 132 136 141 145 149
6620 Park 698 892 700 728 757 0 505 520
6640 Golf Course 431 540 431 448 466 480 494 509
6660 Blue Pheasant Restaurant 15 23 23 23 24 24 25 26
6680 Retreat Center 17 38 30 31 32 0 40 41
9112 CIP Blackberry Fann Master Plan 34 0 0 0 0 0 0 0
9112 CIP Blackberry FarmPicnic Area 35 0 532 0 0 0 0 0
1428 1740 1883 1363 1415 645 1209 1346
SPORTS CENTER
0100 Operating Transfers to General Fund 0 100 100 100 150 175 175 175
6450 Sports and Physical 1122 1080 1080 1127 1173 1219 1268 1319
6450 Equipment Replacement 0 0 0 0 0 0 0 0
8510 Facilitiestrennis Court Resurfacing 231 380 436 259 260 260 270 281
1353 1560 1615 1487 1583 1654 1714 1775
RECREATION PROGRAMS
6249 Cultural Programs 279 311 351 329 342 356 370 385
6349 Youth and Teen Services 568 733 733 760 790 822 855 889
6449 Sports and Physical 737 931 942 934 972 1011 1051 1093
6649 Nature Program 6 22 22 22 23 24 25 26
0100 Operating Transfers to General Fund 100 131 400 200 200 200 200 200
1690 2128 2449 2245 2327 2412 2500 2592
SENIOR CENTER
0100 Operating Transfers to General Fund 0 34 0 0 0 20 30 40
6549 Programs 493 471 471 495 510 525 541 557
493 506 471 495 510 545 571 597
79
EXPENDITURE ESTIMATES
Adopted Revised
Actual Budget Budget FIVE YEAR FORECAST
200043 200054 200054 200065 200076 200087 200098 210009
INTERNAL SERVICE FUNDS
MANAGEMENT INFORMATION
4800 Operations 697 717 745 717 746 775 806 839
9800 Equipment Acquisition 209 193 225 300 270 270 270 270
906 910 970 1017 1016 1045 1076 1109
WORKERS COMPENSATION
4550 Claims 650 229 469 315 327 340 354 368
EQUIPMENT
8840 Equipment Maintenance 809 892 892 862 896 932 969 1008
9820 Equipment Acquisition 0 155 155 28 200 200 200 200
809 1047 1047 890 1096 1132 1169 1208
LONG TERMDISABILITY
4570 Claims 90 94 60 44 46 48 49 51
TOTAL EXPENDITURES 46338 95163 77979 35273 95138 35257 15979 45199
TOTAL REVENUES 34476 35164 66529 55653 75846 05834 55656 05083
80
City of Cupertino
Gann Appropriations Limit
200065 Budget
Article XIIIB ofthe California State Constitution as enacted by Proposition 4 the Gann initiative
of 1979 mandates a limit on the amount of proceeds of taxes that state and local governments
can receive and appropriate authorize to spend each year The purpose of this law is to limit
government spending by putting a cap on the total proceeds of taxes that may be appropriated
each year The original Article XIIIB was further modified by Proposition 111 and SB 88
approved by California voters in June of 1990 Proposition III allows cities more flexibility in
choosing certain inflation and population factors to calculate the limit
Appropriations Subiect to Limit
07000
06000
I 05000nI
04000 Appropriation Limit
03000
Subject to Limit
02000
01000
0
0909 001 012 023 034 045 056
The limit is different for each agency and the limit changes each year Each ysear limit is based
on the amount of tax proceeds that were authorized to be spent in fiscal year 179798 in each
agency modified for changes in inflation and population in each subsequent year Proposition
III has modified those factors to allow cities to choose either the growth in California Per Capita
Income or the growth in rnesiodenntial assessed valuation due to new construction in the city
Alternatively the city could select a population growth factor represented by the population
growth in Santa Clara County Each year the city establishes its appropriations limit for the
following fiscal year The Csity appropriation limit for fiscal year200054was07518467and
was adopted by Council
The Csity appropriations limit for fiscal year 200605 of2547801is 1532835or 463
higher than the fiscal year 200054 limit of07518467 For fiscal year 200065 the Csity
estimated appropriations of proceeds from taxes are 09203706 This is 23307014 or
0523under the legallimit established for fiscal year200065 When acsity proceeds oftaxes
less statutory exclusions exceed the legal limit excess tax revenue must be returned to the State
or citizens through a process of refunds rebates or other means that may be determined at that
time The City is currently at4817of its limit As a result the appropriations limit is not
expected to present a restraint on current or future budget deliberations
81
NOTES
82
DEPARTMENTAL OPERATING BUDGETS
The Departmental Operating Budgets section provides budget infonnation for each of the Csity
eight key operating functions City Council Administration Law Enforcement Public
Infonnation Administrative Services Parks and Recreation Community Development and
Public Works Each departmental operating budget includes the following elements
I Department Summary The department summary includes an organization chart for the
department and condensed financial infonnation for each division within the department It
is abig picture snapshot ofthe dsepartment responsibilities and costs
2 Division Summary Most departments are organized into smaller units or divisions A
program overview has been presented for each division denoting the key functions of the
division In addition service objectives are listed to identifY for the reader the upcoming
goals and objectives of that section Finally the budget document includes an expenditure
summary that details historical and proposed expenditures by category and funding source
and the personnel charged to that division
83
NOTES
84
Council
and
Commissions
85
COUNCIL AND
COMMISSIONS
Citizens
ofCupertino
I
City
Council
Citizen Advisory Groups
TelecommunicationslLibraryrreenl
Fine AErtcsloRnecorematioicn Development
lPPAHlauounubnsdliniicgtSBaifkeety PSeedenstiroiarn
86
CITY COUNCIL AND COMMISSIONS
Expenditures by Division
200032 200043 200054 200065
Actual Actual Adopted Adopted
CITY COUNCIL
1000 CITY COUNCIL 152928 123818 183902 125958
152928 123818 183902 125958
COMMISSIONS
1031 TELECOMMUNICATIONS 141249 14644 87781 76324
1040 LIBRARY 271647 58238 10201 132501
1042 FINE ARTS 82978 51203 21627 91320
1050 PUBLIC SAFETY 57 0 200 200
1055 BICYCLEAND PEDESTRIAN 0 58 0 200
1060 PARKS AND RECREATION 51600 6831 4869 5909
1065 TEEN 51559 31234 51658 91756
1067 SENIOR 0 0 200 500
1070 PLANNING 92124 81846 51070 02010
1075 HOUSING 80 0 200 200
242419 11745 235745 254949
TOTAL 671737 3526 240457 483579
87
COUNCIL AND COMMISSIONS
CITY COUNCIL
PROGRAM OVERVIEW
The Mayor and Councilmembers acting as the elected representatives of the City of Cupertino
establish public policy to meet community needs and assure orderly development of the City
SERVICE OBJECTIVES
The City Council goals are carried out by the city staff under the sole direction of the City
Manager The council goals are listed in the Budget Strategies section
88
COUNCIL AND COMMISSIONS
1000 CITY COUNCIL
Expenditures by Category
200032 200043 200054 200065
Actual Actual Adopted Adopted
Employee Compensation 010309 132715 171608 12338
Materials 26482 54000 04060 54060
Contract Services 9516 02050 01050 01050
Cost Allocation 31420 01580 01730 61200
Total 152958 290245 183902 125958
Expenditures by Fund
200032 200043 200054 200065
Actual Actual Adopted Adopted
General 152958 290245 183902 125958
Total 152958 290245 183902 125958
Personnel Summary
200043 200054 200065
Actual Adopted Adopted
tFimuell 400 400 400
Total 040 040 040
89
COUNCIL AND COMMISSIONS
TELECOMMUNICAnONS COMMISSION
PROGRAM OVERVIEW
The Telecommunications Commission advises the City Council and infonns the community
about issues relating to the rapidly changing field of telecommunications Commissioners also
served as a resource for the Planning Commission in offering technical guidance for antenna
sitings
With legislation now in effect encouraging effective competition the commission will continue
to look at new and forthcoming FCC rulings that may alter Csomcast impact on the community
The commission also will continue to monitor cable services to subscribers and to act as a
resource for both the Cupertino elementary and high school districts
SERVICE OBJECTNES
Continue to work with appropriate companies III bringing advanced servIces to interested
residents
Monitor Comcast services
Negotiate with public access provider KMVT to insure maximum programming value for
Cupertino residents
Continue to work with staff and legal counsel to enforce the terms ofthe current cable franchise
agreement
Work with the Cupertino Planning Commission in developing an antenna ordinance
90
COUNCIL AND COMMISSIONS
1031 TELECOMMUNICATIONS COMMISSION
Expenditures by Category
200032 200043 200054 200065
Actual Actual Adopted Adopted
Employee Compensation 5131 5419 5871 6234
Materials 01336 01030 01030 5100
Contract Services 121417 04020 06000 05050
Total 141249 46109 87781 76324
Expenditures by Fund
200032 200043 200054 200065
Actual Actual Adopted Adopted
General 141249 46109 87781 76324
Total 141249 46109 87781 76324
Personnel Summary
200043 200054 200065
Actual Adopted Adopted
tFimuell 005 005 005
Total 005 005 005
91
COUNCIL AND COMMISSIONS
LIBRARY COMMISSION
PROGRAM OVERVIEW
The Library Commission is a five member commission appointed by the City Council that
reviews and makes recommendations related to the operations and services of the Cupertino
Library The Cupertino Library is operated by the Santa Clara County Library Services The
building is provided by the City of Cupertino for which the county pays arental fee
County Library staff serve as staff to the commission and the Director of Administrative Services
serves as City liaison
SERVICE OBJECTIVES
Monitors the various service activities of the library and makes recommendations for
improvements to appropriate bodies
Supports library advocacy groups including Friends of the Cupertino Library and Cupertino
Library Foundation
Advocates library funding and service levels at the city county and state levels
Represents the Cupertino library in the local community
Participates in state and local library workshops and conferences
Participates in the long range planning of quality library services for the City
Develops potential resources to expand volunteer efforts in the library
Investigates ways to expand access to tnradoitionnal media
Continues library advocacy in Cupertino activities and with other organizations
Continues emphasis on integrating additional technology into library services
Continues proactive efforts to ensure adequate library funding
92
COUNCIL AND COMMISSIONS
1040 LIBRARY COMMISSION
Expenditures by Category
200032 200043 200054 200065
Actual Actual Adopted Adopted
Materials 775 2100 1100 1350
Contract Services 291923 08040 01020 01020
Total 271647 18060 10201 132501
Expenditures by Fund
200032 200043 200054 200065
Actual Actual Ado ted Ado ted
General 271647 18060 10201 132501
Total 271647 18060 10201 132501
Personnel Summary
200043 200054 200065
Actual Adopted Adopted
tFimuell 000 000 000
Total 000 000 000
93
COUNCIL AND COMMISSIONS
FINE ARTS COMMISSION
PROGRAM OVERVIEW
The Cupertino Fine Arts Commission is charged with advancing the arts in the City This is
done through several activities and programs including promoting art in public places making
recommendations to City Council regarding arts opportunities awarding grants to individuals
and organizations and selection of a Distinguished Artist of the Year
Budget constraints resulted in the elimination of fine arts grants since fiscal year 200043 In
prior years grants had been awarded to a diverse group of individuals and organizations
including the Cherry Blossom Festival local perfonning arts groups sculptors artists and the
Euphrat Museum of Art and its Arts in Schools program In 2003 a new category of fine arts
grants for high school age artists was developed but has remained unfunded
This fiscal year the Commission is working to encourage adoption of a One Percent for Art
Program reviewing public art required for anew development by Menlo Equities