Sunnyvale council adopts FY2025–26 budget and fee schedule, approves utility rate increases and funds Evelyn multiuse path

The Sunnyvale City Council on June 17 adopted the city and Sunnyvale Finance Authority budgets for fiscal year 2025–26, approved a number of fee adjustments, authorized utility rate increases and approved a package of actions that included a Transportation Development Act request to help fund the Evelyn Avenue multiuse path.

Key votes and outcomes

- Budget and fees: The council adopted the FY2025–26 budget and fee schedule and approved budget modification No. 26 in the amount of $215,659. The Sunnyvale Finance Authority separately adopted its FY2025–26 budget (including debt‑service appropriations related to the Civic Center bond). The council and authority votes were unanimous, 7–0.

- Utility rates: Council adopted proposed increases for utilities for FY2025–26: water rates up 6 percent, wastewater rates up 7 percent and solid waste/recycling rates up 4 percent. The city manager and finance staff said the increases reflect wholesale water cost increases (San Francisco PUC and Valley Water), long‑term capital needs (notably the Sunnyvale Clean Water Program) and higher solid‑waste operating costs. Notices required under Proposition 218 were mailed; staff reported 99 written protests so far and said approximately 15,000 valid protests would be required to block the increase.

- Contract award: Council approved a three‑year contract to Bear Electrical Solutions for electrical services, authorizing the city manager to execute the contract and subsequent renewals up to the available budget. The initial three‑year authorised amount reported in the staff presentation was $4,000,214.75; council approved the contract unanimously.

- Evelyn Avenue multiuse path (TDA funding): Council approved staff’s recommendation to apply for Transportation Development Act (Article 3) funds and to submit an application for $811,845 to help close the construction funding gap for the Evelyn Avenue multiuse path. Staff said the project already has roughly $3.8 million in state parks funding for design and construction; the TDA request would allow additional safety features and better crossings. BPAC recommended a smaller TDA allocation earlier; after refined cost estimates staff requested the full available $811,845 and council approved that application.

- Downtown parking maintenance district: Council adopted the final engineer’s report and confirmed assessments for the Downtown Parking Maintenance District for FY2025–26. The assessments were increased by the CPI and the measure passed 7–0.

- Inclusionary/BMR alternative compliance (777 Sunnyvale‑Saratoga Road): Council approved a developer proposal to satisfy the project’s below‑market‑rate (BMR) requirements by dedicating approximately 1.456 acres (a parcel the applicant had entitled for a 162‑unit rental building) to the city. Staff said the dedication, if accepted, would provide land the city could convey to an affordable‑housing developer; the parcel was valued in staff materials at roughly $14 million (entitled land valuation). Council…