REPORT TO HERITAGE PRESERVATION COMMISSION
SUBJECT
Title
Review Planning Program Budget and Fees for FY 2026/2027
Report
REPORT IN BRIEF
Boards and Commissions are asked to provide comments to the City Council on the recommended City budget where it could affect the Commission’s work. Staff recommends that the Commission review the following sections of the FY 2026/2027 Recommended Budget (see Attachments 1 and 2):
At a minimum, staff recommends the Heritage Preservation Commission (HPC) review the following sections:
• City Manager’s Budget Message: Volume 1, pp. 5-12
• Budget Summary Highlights: Volume 1, pp. 13-29
• Community Development Department (CDD) Budget Summary: Volume I, pp. 234-239
• Project 834790 - Addition to the Heritage Resource Inventory of Sites Associated with Tech Innovation: Volume 2, p. 496
• Project 836530 - Update Historical Context for Contributions by Asian Americans & other Minority Groups: Volume 2, p. 514
(Refer to Attachment 1 for Volume 1 and Attachment 2 for Volume 2)
Comments will be forwarded to the City Council for their consideration of the recommended budget adoption scheduled for June 16, 2025.
ENVIRONMENTAL REVIEW
The HPC’s recommendation on the budget is not subject to environmental review under the California Environmental Quality Act (CEQA) because it is a fiscal or administrative activity that will not result in direct or indirect changes to the physical environment [CEQA Guidelines Section 15378(b)(4), (5)].
DISCUSSION
Sunnyvale’s budget process alternates each year between the operating budget and the capital budget. This year is focused on the operating budget. While the previous operating budget in FY 2024/2025 was reflective of uncertainty availability of Federal funding sources, the current operating budget reflects a current and long-term stable outlook. The General Fund is projected to be balanced at both ten and twenty years.
City Budget Summary Highlights
The 2026/2027 operating budget for all funds totals $717.7 million, including $425.1 million for City operations, and $292.6 million in project and other expenditures. An additional $69.4 million of the reserves will used (see Figures 1 and 2, page 15, Volume 1). Budgeted expenditures are funded from multiple sources including general taxes and revenues (General Fund), fee supported Enterprise Funds (Water, Wastewater, Solid Waste, Development Enterprise, etc.), restricted Special Revenue Funds (Housing, Park Dedication, Gas Tax, various grants, etc.), and significant loans and debt proceeds related to major capital projects. Top revenues are anticipated to increase by a total of $5.3 million due to increased property values.
Community Development Department (CDD) Budget Summary
CDD is organized into four programs: Building/Safety; Planning; Housing/Community Development Block Grant (CDBG); and Department Management. The Planning Program mostly affects the Planning Commission’s work.
The Planning Program oversees policy planning and zoning reviews to improve the quality of life in the City through comprehensive and effective policy planning and implementation. Program activities include preparing, updating, and administering the City’s General Plan, specific plans, and other land use policy documents, reviewing and processing development applications for compliance with the zoning code and General Plan; conducting research on Council priority projects; reviewing proposed legislation affecting the City’s zoning authority; monitoring community conditions; and conducting
community outreach. Program staff support the Planning Commission and the Heritage Preservation Commission.
Permit activity continues to increase. Interest in redevelopment along El Camino Real has slowed slightly. Lawarence Station continues to see development of residential units and there is residential interest in Moffett Park. Processing of housing developments continues to be complicated due to changing State Laws.
Since this is the second year of a two-year operating cycle, the budget has undergone minimal changes. CDD was able to add a new Permit Technician position and provided closed promotional Senior Planner positions to two of our Associates. CDD recruited for Assistant and Associate Planner positions and promoted one of our Permit Technicians to an Assistant Planner and we hired a new Associate Planner. In addition, an Assistant of Director position was filled in April 2026. Backfilling of existing positions may be needed to accommodate internal promotions that have occurred. The recommended operating budget for CDD includes 59 staff positions and funds totaling $16,495,988, up $2,280,687, or 16% from FY 2025/2026.
Study Issue Funding
The recommended budget includes $90,510 in previous project funding for an HPC-related priority project (formerly called “study issue”) (Project 834790) to update the Heritage Resource Inventory to include potential resources associated with technological innovation. The funds are used to contract with an historical consultant to assist staff in completing the study issue. Planning staff hours are covered within the normal operating budget. The project is anticipated to be completed by 4th quarter 2026.
The recommended budget also includes $50,000 in previous project funding for an HPC-related priority project (Project 836530) to update the City’s Historical Context Statement for contributions by Asian Americans and other minority groups. The funds are used to contract with an historical consultant to assist staff in completing the study issue. Planning staff hours are covered within the normal operating budget. The project is anticipated to be completed by early 2027.
Public Hearing
The HPC has the option to make comments on the budget or to make a motion on the budget, which will be provided to the City Council for the public hearing on the recommended budget adoption scheduled for June 16, 2026.
Public Contact
Public contact was made by posting the Heritage Preservation Commission meeting agenda on the City's official-notice bulletin board at City Hall. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Provide comments to the City Council or make a formal recommendation to the City Council on the FY 2026/2027 Recommended Budget.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Momo Ishijima, Senior Planner
Approved by: Shaunn Mendrin, Planning Officer
ATTACHMENTS
1. Link to FY 2026/2027 Recommended Budget Volume 1 - Summary and Operating Budget
2. Link to FY 2026/2027 Recommended Budget Volume 2 - Projects Budget