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Cupertino accepts midyear financial report and approves 2026-27 CIP, adding pickleball sound attenuation
Summary
Council accepted the city manager's midyear financial report and its updated 10-year forecast and approved the FY 2026-27 capital improvement program, including facility condition work, City Hall annex funding and a new pickleball sound attenuation line; council discussed sheriff contract costs and longer-term fiscal pressures.
The Cupertino City Council unanimously accepted the city manager's midyear financial report for FY 2025-26, which updated the city's 10-year forecast and noted risks if a proposed 36% increase in the county's sheriff contract moves forward.
Staff warned the council that, under a baseline scenario, the city remains structurally balanced through about 2030 but could see structural deficits later in the forecast if the sheriff contract increase and other ongoing costs are not addressed. "This baseline scenario does not include several factors including the proposed 36% share of contract increase," staff said.
During the same meeting the council considered the proposed FY 2026-27 capital improvement program (CIP) and an expanded prioritization process. Staff proposed six additions or funding adjustments for the coming year: a $1.25 million top-up for the facility condition-assessment implementation, $5 million toward a City Hall annex, upgrades at the Blackberry Farm golf-course pro shop, resurfacing of sports-center courts, Stevens Creek/85 northbound ramp intersection work funded by a developer in-lieu fee, and initial scoping for Memorial Park pickleball sound attenuation.
The CIP package passed with one dissenting vote. Vice Mayor Chao moved the staff-recommended CIP and Council member Mohan seconded; Council member Wong cast the lone no vote, expressing concern about the pickleball sound-attenuation item and the adequacy of some supporting materials.
Budget details and next steps: Staff said total requests for new appropriations across all funds amount to roughly $653,155 with a net use of approximately $504,000 in fund balance; general-fund transfers and capital reserves are projected to fund the CIP additions for 2026-27. Staff flagged an anticipated $6 million increase in the sheriff contract for 2026-27 that could produce ongoing deficits if uncontained; the council requested additional detail and follow-up from staff on contract terms and long-range options.
Public comment and process improvements: Residents urged prioritizing critical infrastructure (stormwater, ADA upgrades) and questioned whether some projects could be grant-funded. The public works team noted a newly formalized eight-factor prioritization matrix intended to make project scoring and funding decisions more transparent and repeatable.
The council directed staff to proceed with scoping and procurement tasks for approved CIP projects and to return with any required funding adjustments and updates on potential grant opportunities.
