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Council accepts third‑quarter financial report; staff recommends third‑quarter budget adjustments
Summary
Cupertino staff presented the third‑quarter financial report for fiscal year 2024–25, proposing modest budget adjustments including higher sales‑tax estimates, several defunds of completed capital or special projects, and carryover changes; the council accepted the report and approved the amendments.
The Cupertino City Council accepted the city manager’s third‑quarter financial report for fiscal year 2024–25 on May 20 and adopted a resolution approving budget modification 24‑25‑390, which adjusts estimated revenues and appropriations across funds.
Administrative Services Director Christine Alfaro and staff presented the report, which reflects the city’s finances as of March 31, 2025. Staff recommended a net increase in estimated revenues of about $5.4 million and a net decrease in appropriations of about $157,425 for the general fund, driven in part by a revision to the city’s sales‑tax projection and routine carryover adjustments for projects. The agenda materials show an overall projected increase in fund balance across the city’s funds when the proposed adjustments and carryovers are included.
Key staff recommendations and notes: - Sales tax: staff proposed raising the general fund sales‑tax estimate to reflect receipts to date and a settlement with the California Department of Tax and Fee Administration (CDTFA). The supplemental materials explain this increases projected general‑fund revenue. - Project defunds and carryovers: staff recommended defunding several projects that have completed under budget or that are no longer active, including internal studies and pilot projects; a detailed list of defunded or reduced projects was provided as an attachment and staff said they would produce a shorter list aligned with the council’s recently adopted special‑projects policy. - Capital and enterprise funds: staff proposed technical corrections to capital fund tables and some defunding adjustments, including completed storm‑drain work and pilot programs not proceeding. - Staffing: no recommended changes to full‑time staffing counts in the third quarter report; the packet included a list of vacant positions and recruitment status.
Council members asked for clarification on several supplemental attachments that were added after the agenda was published. Vice Mayor Moore and others asked for an itemized comparison showing which special projects had been removed from the city’s “special projects” list as part of a policy change; staff agreed to provide a short list and noted the item would be revisited during final budget adoption. Council also discussed the timing and notice for defunding projects and asked staff to bring any proposed deletions back for the June 3 final adoption if further public review is warranted.
The council adopted the staff‑recommended budget modification by roll call; the motion carried (Councilmember Wong was absent for the vote). Staff said the city will return on June 3 for the final budget adoption and that departments will provide any requested clarifications or supplemental detail on special projects and carryovers at that time.
Votes at a glance: Council adopted Resolution 25‑035 approving the third‑quarter budget amendments; the motion carried with Councilmember Wong absent.
