Sunnyvale holds all‑day budget workshop; council approves staff’s budget supplements

Sunnyvale City Council met for an all‑day budget workshop on May 22 to review the City Manager’s recommended fiscal year 2025‑26 budget, hear public comments on transportation and parks priorities, and consider staff‑recommended budget supplements. Finance staff told the council the city’s financial plan covers almost $780,000,000 in total revenues against roughly $705,000,000 in planned expenditures, and outlined a multi‑year approach that uses reserves to smooth costs while funding major capital projects.

The council voted 7‑0 to approve staff’s recommended budget supplements after a motion by Council Member Mellinger and a second from Vice Mayor Sell. The supplements the council approved are largely one‑time items and study issues that add capacity for planned projects and studies, and include a study of Project Labor Agreements (PLAs) at the council’s request. Council set a public hearing on the full budget and fee schedule for June 3, with adoption slated for June 17.

Why it matters: The workshop put council and the public on notice about the city’s near‑term fiscal approach — a mix of continuing capital investment and targeted service additions while drawing reserves in the near term to address long‑running liabilities and fund a large list of projects. Finance staff framed the plan as deliberate: the city will continue to invest in infrastructure (parks, libraries, streets, clean water) while moderating growth assumptions in property and sales tax forecasts. The supplements the council approved will let staff proceed on several planning and small capital activities that staff said are prerequisites to larger project work.

What council and staff said: Mayor Klein opened the session calling it the city’s third all‑day workshop of the year. City Manager Tim (first name used on the record) and Finance Director Matt Pollan led a detailed walk‑through of revenues, reserves, and the 20‑year financial plan. Pollan summarized the top‑line figures: “You can see we take in almost $780,000,000 of revenue and spend nearly $705,000,000.” He and other staff emphasized the plan relies on disciplined use of reserves while the city pays down legacy liabilities and completes a number of capital projects already in progress.

Public comments and priorities: Dozens of residents spoke during the allotted public comment period. Several commenters urged action on bike and pedestrian safety: Steven M. asked the council to fund lane sweeping for class‑4 bike lanes and to finish the long‑pending Homestead Road bike lane project, and Jonathan Blum also urged the council to complete Homestead design to avoid hazardous cyclist interactions with motor traffic. Charlene Loo pressed the council to fund traffic signal improvements on Fair Oaks Avenue at three locations, saying, “Fair Oaks is dangerous to cross.”

Parks, golf and community priorities: Public commenters and commission representatives pressed the council on the long‑term use of park dedication fees and the scale of planned golf investments. A public commenter who reviewed the capital plan warned residents to consider whether the city should prioritize golf‑course projects that staff project over the next 20 years. Parks and Recreation Commission and other speakers pushed for restriping tennis courts for dual tennis/pickleball use but urged against converting basketball courts. Chuck F. (public comment) asked the council to reconsider how park dedication fees are allocated and whether transportation or other needs should be reprioritized.

Labor and construction input: Speakers from United Association Local 393 — including Frank Austin and Erica Valentine — asked the council to “pull up” study issue 2407 to explore Project Labor Agreements, arguing PLAs produce trained workforces and better project outcomes. Council ultimately approved adding the PLA study (see actions below).

Major capital projects highlighted: Staff updates included progress and plans on several large programs: - Clean Water Program: Public works described ongoing construction of secondary treatment works and multiple rehabilitation projects at the wastewater treatment plant, including replacement of aging power generation engines and pond levee work. - Library and parks: Staff briefed the council on the Lakewood branch library project (under construction) and multiple park renovations funded from the park dedication fund and other sources. - Streets and active transportation: Public works reviewed pavement, sidewalk and active‑transportation projects (including Avalon multiuse trail, East Channel Trail study, and work on Poplar Avenue sidewalks); staff noted opportunities to combine resurfacing and bike‑lane work to save costs. - Utilities and technology: Environmental Services described a proposed advanced metering infrastructure project to replace mechanical water meters with digital units and a recycled‑water package plant pilot to address algae issues in the existing ponds.

What passed at the workshop (vote at a glance) - Motion (bulk): Approve staff‑recommended study issues and budget supplements (see supplement list below) with amendment to include a study of Project Labor Agreements as part of supplement 2. Mover: Council Member Mellinger. Second: Vice Mayor Sell. Vote: Mayor Klein — yes; Vice Mayor Sell — yes; Council Member Cisneros — yes; Council Member Mellinger — yes; Council Member Srinivasan — yes; Council Member Chang — yes; Council Member Lay — yes. Outcome: approved (7‑0).

Next steps and timeline: Staff said the council’s direction will be used to finalize the recommended budget and bring the proposed budget and fee schedule to the June 3 public hearing; adoption is scheduled for June 17. For some items (for example, grant‑funded capital projects), staff said they will return with finer cost and scope details as they complete feasibility or design work.

Votes at a glance (text of the formal motion approved) - Motion text (summary): Adopt staff‑recommended study issues and budget supplements 1, 3, 4, 5 and 6; accept supplement 2 with the addition of the Project Labor Agreement study to be pulled above the line for study as staffing/capacity allows. Mover: Council Member Mellinger. Second: Vice Mayor Sell. Vote: 7 yes, 0 no. Legal threshold: simple majority; threshold met.

Ending note: Council and staff framed the workshop as a day for information and deliberation rather than final adoption of the budget. The vote to include the listed supplements gives staff authority to proceed with the studies and one‑time projects approved today; the council will revisit the complete budget and fee schedule at the public hearing and adoption dates this summer.

Lede (source snippets) “Good morning. Let’s call toward the budget workshop … the day reviewing the city manager’s fiscal year 2025‑26 recommended budget,” Mayor Klein said at the meeting’s start.

“We take in almost $780,000,000 of revenue and spend nearly $705,000,000,” Finance Director Matt Pollan told the council during the staff presentation.

Nut graf The workshop outlined a multi‑year financial plan that uses targeted reserve draws to support capital investments while staff continue to refine revenue projections and project scopes. The council approved a package of one‑time study issues and budget supplements to allow staff to move forward on planning, grant matches, and small capital needs, and set a public hearing on the budget for June 3 with adoption planned for June 17.