Sunnyvale City Council on Dec. 9 received the city’s FY2024–25 year‑end financial report and approved staff’s recommendation for one‑time allocations from an approximately $16.8 million surplus.

Finance Director Matt Paulin told the council revenues finished about 3% above projections, led by property and sales taxes, and that the city’s investments produced “over $7,000,000 to the general fund.” Auditors from Mason Associates delivered an unmodified (clean) opinion on the comprehensive annual financial report.

The staff recommendation — approved on a 6‑0 voice vote with Council Member Srinivasan absent — directs $8 million to an irrevocable pension trust, $5 million to library facility funding, $2 million to the infrastructure reserve and places the remainder in the budget stabilization fund (BSF). Paulin and staff said the allocations follow existing council policy to use one‑time savings for one‑time purposes and to shore up long‑term liabilities.

The vote followed a contentious exchange over whether to divert more of the surplus to near‑term needs. Council Member Mellinger moved to reduce the pension trust contribution by $2 million and instead add $1 million to the BSF and $1 million to the infrastructure fund so more money might be available for homelessness services and active transportation; Council Member Cisneros seconded. That motion failed on a 2‑4 voice vote (Mellinger and Cisneros yes). City Manager (on the record during the hearing) recommended caution about reallocating one‑time funds outside the regular budget process so the city can consider the full set of competing needs.

Members of the public urged the council to advance homelessness prevention programs and to fund shelf‑ready active‑transportation projects with some of the one‑time money. Staff responded that some homelessness programs are funded from multiple sources and that the most flexible route to allow operational increases next year is to add to the BSF so funds are available in the regular budget process.

What’s next: The allocations are for one‑time uses; staff said they will return with budgetary implementation details and that council will consider programmatic funding requests through the normal budget cycle.

Quotes: “Our investments … generated over $7,000,000 to the general fund,” Finance Director Matt Paulin said. City Manager cautioned the council to “hold off until we have that discussion so that we can look at those services funding altogether.”

The council also unanimously received and filed the Sunnyvale Financing Authority financial report and approved budget modification No. 10 as part of the same action.