Council adopts special project policy to require council reapproval for reappropriations

The Cupertino City Council adopted a new Special Project Policy on April 2 that requires council approval whenever staff seeks to reappropriate existing budget savings toward a new one-time "special project." The policy narrows the definition of a special project, clarifies reporting frequency and requires consent-level reappropriation when savings are used to fund a new project.

Christine Alfaro, director of administrative services, told the council the policy responds to recommendations from the budget format review and the city's financial auditors. "If even if sufficient appropriations or budget exist to create a new special project ... we will need to come back to council on a consent item for the authority to reappropriate those funds," Alfaro said.

The policy also excludes routine items such as annual pavement maintenance, minor repairs and development projects from the special project listing. It sets a formal reporting cadence for special projects and requires staff to document the project definition, objectives, funding source and expected deliverables.

Public commenters urged fiscal restraint and proposed a lower dollar threshold for discretionary projects. Several speakers asked staff to limit the amount of staff time spent developing project proposals before returning to council; others urged the council to retain flexibility for urgent items.

Councilmembers discussed how the policy would interact with the city manager's present authority to sign contracts below the state limit and said operational details about work-hour limits are best handled administratively. The council voted unanimously to adopt the policy.

Alfaro and staff said the policy will appear in the budget book and be part of future quarterly reporting; councilmembers asked that the audit committee be invited to review capital budget format and policy implications as staff prepares the 2025-26 budget.