REPORT TO PLANNING COMMISSION
SUBJECT
Title
Review Planning Program Budget and Fees for FY 2025/2026.
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 2025/2026 Recommended Budget (see link in Attachment 1):
• City Manager’s Memorandum, pages 5-10
• Budget Summary Highlights, pages 11-33
• Community Development Department (CDD) Budget Summary, pages 159-176
ENVIRONMENTAL REVIEW
The recommendation of the Planning Commission on the budget is not subject to environmental review 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 projects budget. This year is focused on the projects budget. While the last two budget cycles were reflective of uncertainty around the COVID-19 pandemic, the current projects budget reflects a balanced budget in the short and long term, despite the current environment marked by economic uncertainty, inflationary pressures, and shifts in state and federal funding. As described in the City Manager’s Memorandum, the strength of the City’s long-term planning and disciplined practice of maintaining strong reserve balances will allow it to continue delivering core services while retaining the flexibility to adjust as needed.
City Budget Summary Highlights
The 2025/26 operating budget for all funds totals $779.8 million, up $49.8 million from FY 2024/25. Top revenues include Taxes, Service Fees, Utility Rates and Impact Fees. These top revenues are anticipated to increase by a total of $8 million due to increased property values. Expenditures for the City include various capital projects, strategic initiatives, and multi-year projects with scheduled funding over 20 years. Total expenditures over the next 20 years would be approximately $2.0 billion. Project highlights included in this year’s budget include the following:
• Sunnyvale Clean Water Program: Renovations of the Wastewater Pollution Control Plant, total cost of $1.3 billion over the twenty-year planning period. Approximately $ 695.3 million has been secured from other funding sources such as the Environmental Protection Agency and California State Water Resources Control Board with more favorable repayment terms.
• Water Distribution and Sewer Collection Infrastructure: In addition to the Sunnyvale Clean Water Program, the City also has projects to maintain and rehabilitate our aging water distribution and sewer collection infrastructure. The Recommended Budget includes $152.6 million over twenty years in water system projects and $103.2 million in wastewater system projects not related to the Sunnyvale Clean Water Program. Additionally, $22 million has been allocated in this budget to procure and install new water meters that utilize Advanced Metering Infrastructure (AMI) technology.
• Public Facilities: Main components of Phase I have been completed including completion of the new City Hall and the Emergency Operations Center in March 2023. Phase 2 includes a new Main Library, although the ballot measure didn’t pass the City budget maintains a $15 million investment in the project. The City will explore options to enhance the library infrastructure and service delivery. The budget also maintains $21.5 million over the next six years for the first phase of the Corporation Yard Master Plan, which is scheduled to begin design and construction in FY2026/27.
• Parks and Recreation Projects: Park Dedication Fees are used to develop new or rehabilitate existing neighborhood or community parks or recreational facilities. The FY 2025/26 Projects Budget reflects a continuation of park projects with updated labor and construction costs. $152.3 million has been budgeted for renovating and enhancing existing parks throughout the City, and $129.6 million for golf infrastructure renovations over the twenty-year Resource Allocation Plan.
• Traffic and Transportation Projects: The Budget includes $52.8 million in projects over twenty years relating to intersection improvements, trails, bicycle and pedestrian accessibility and safety, traffic calming and timing, and public transportation projects.
• Public Safety: The budget includes funding for recruiting and training 30 new public safety officers over the two-year budget cycle in the General Fund. The total allocation over that period is $14 million, with additional funds planned over the whole twenty-year plan.
Additionally, the FY 2025/26 Recommended Budget includes several Budget Supplements. Budget Supplements are proposals to supplement services or add new initiatives or propose budget cost savings that require specific Council approval. This year’s budget includes six Budget Supplements that would come from the General Fund for a total of $1.66 million and are noted below:
• Budget Supplement 1 - Funding for four study issues including Evaluation of Paramedic Services, Signalization on Fair Oaks, Cell Coverage Mapping and Explore a Japanese American Memorial for a total of $510,000. Staff is recommending approval.
• Budget Supplement 2 - Potential Additional Services or Reductions to be Considered for the FY 2025/26 Recommended Budget for a cost savings of $21.7 million. Staff is not recommending approval.
• Budget Supplement 3 - Implement Homestead Road Full-Time Bike Lanes for a total of $415,000. Staff is recommending approval.
• Budget Supplement 4 - Safe Parking Program Community Capital Grant for a total of $100,000. Staff is recommending approval.
• Budget Supplement 5 - Funding for Sweeping and Maintenance of Class IV Bike Lanes for a total of $975,000. Staff is not recommending approval for the full amount, instead only $50,000 for staff overtime to monitor current Class IV Bike lanes until we have critical mass to warrant purchase of equipment and staffing adjustments.
• Budget Supplement 6 - Redesign of the Sunnyvale Website for overall usability and ease of finding information for a total of $585,000. Staff is not recommending approval since the City has three main projects in the works that will facilitate some website changes.
Staffing for the City includes 975.52 Full Time Equivalent employees. Thirteen new positions are proposed in various departments. This includes the new Lakewood Library, Recreation Services, Geographic Information System, Transportation Planner, Analyst for grant compliance, and Parks Maintenance. Five limited-term positions will be converted to permanent positions in our Enterprise Resource Planning program. We will also have one new term-limited Senior Library Assistant Position and one part-time Traffic Engineer for our traffic calming program.
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 current planning, with the aim of improving the quality of life in the City through comprehensive and effective policy planning. Program activities include preparing and administering the City’s General Plan, specific plans and other land use policy documents, reviewing and processing development applications for planning permits, conducting research on Council-adopted study issues, reviewing proposed legislation affecting the City’s zoning authority, monitoring community conditions and conducting community outreach. In addition to the Planning Commission, staff provides support to the Heritage Preservation Commission.
The last fiscal year has been a very busy and productive time, with many large and complex projects moving forward. The proposed budget includes a list of accomplishments. The following are highlights:
• Specific Plans:
o Central Arques Specific Plan: The Central Arques Specific Plan would replace the 1999 Arques Specific Plan and accommodate Applied Materials’ master plan for their future campus expansion to nearby industrial parcels. The environmental review is underway. City Council consideration is expected in Spring 2026.
o Perry Park Specific Plan: The Perry Park Specific Plan update would evaluate the allowance of an additional 1,027 units located on the south side of the plan area and the addition of 1.2 million square feet of floor area. A consultant has been selected to work on the environmental review and update to the Specific Plan. Public outreach is expected during Winter 2025, with City Council consideration in Summer 2026.
o Downtown Specific Plan: Allow an additional office in Sub-Block 6 (near Murphy Ave and Washington) of the Cityline site. The application was filed in 2024, and public hearings are expected in early 2026.
• Continued work on three General Plan sections (Noise, Air Quality and Environment Justice).
• Study Issues and Other Long-Range/Policy Items:
o Village Center Master Plan: The administrative draft of the plan is under review with outreach and public hearings to begin in late Spring 2025.
o Low-Density Objective Design Standards: Draft document near completion with outreach and public hearings to start in Spring 2025.
o Evaluate the Commercial Square Footage Requirement in the El Camino Real Specific Plan: Study possible reduction in the commercial square footage requirement to help facilitate affordable housing. Completed and approved by the City Council on October 15, 2024.
• The Safe Parking Ordinance was approved by the Planning Commission on October 14, 2024, and the City Council on November 12, 2024.
• General Plan (Housing Element and Land Use and Transportation Element LU and Zoning Code Updates:
o Accessory Dwelling Unit Ordinance: Planning Commission review and approval occurred on February 10, 2025. City Council review occurred on March 25, 2025, including additional measures to promote ADUs and develop a “Toolkit”.
o Housing Plan Review Permit: Initial work on this new permit type began in 2023 outreach and public hearings to start in late Spring 2025 with public hearings in mid-2025.
o Rezoning of Industrial to Residential (ITR) Sites: This included Rezoning of ITR parcels that have a General Plan Land Use Designation of Residential but are still Zoned Industrial (or Industrial to Residential) and General Plan amendments and Rezoning for 26 Legal Non-Conforming Single-and Two-Family Dwellings: approved by the Planning Commission on January 13, 2025, and City Council on January 28, 2025.
• Other General Plan and Housing Element Programs to be Completed:
o Review Park Dedication Requirements: Revaluate the land dedication and land valuation requirements for the Park Dedication and in-lieu Fee. Data collection and analysis are complete, and the nexus study is nearing completion. Projected for public hearings in July 2025.
o Residential Parking Standards: Study options for revised residential parking standards were brought for initial consideration in early 2024. Phase 2 of the Study is anticipated for completion in late 2025.
• Significant Approved Planning Entitlements:
o Relocation of the Intuitive Surgical parking garage at 945-955 Kifer Road with a Development Agreement and Special Development Permit approved by the Planning Commission on July 8, 2024, and City Council on August 27, 2024.
o 116 units and 31,361 square feet of commercial space and Vesting Tentative Map at 1104-1124 West El Camino Real approved by Planning Commission on August 12, 2024.
o Mixed-use building with 113 independent living units, 36 assisted living units, 12,232 square feet of commercial space, and a 72,000 square foot 52-bed convalescent hospital/rehab facility at 1027-1035 West El Camino Real. Approved by the Planning Commission on September 9, 2024.
o 46 townhouse units and Tentative Map at 1040-1060 East El Camino Real Approved by the Planning Commission on November 11, 2024.
o Moffett Park Specific Plan implementation work is underway, and three applications (one office and two residential) have been submitted.
o Use Permit and Tentative Map to allow five office condominiums at 516 West Remington Drive, approved by the Zoning Administrator on December 11, 2024.
• A dozen Significant Planning Entitlements are underway throughout the City, including a few sites in the El Camino Real Specific Plan area.
Permit activity continues to increase. Interest in redevelopment along El Camino Real has been increasing and additional interest in redevelopment in Moffett Park has been picking up. Processing of housing developments continues to become more complicated due to ever 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 convert one limited-term Associate Planner to a permanent Planning Technician and an additional Permit Technician position was added. The two additional staff have been providing relief from counter shifts and back up calls, allowing more time for more senior staff to work on complicated projects.
PUBLIC HEARING
The Planning Commission has the option to make comments on the budget or to make a motion on the budget. The Planning Commission discussion (and motion, if there is one) will be provided to the City Council for the public hearing on the recommended budget on June 3, 2025, with adoption scheduled for June 17, 2025.
PUBLIC CONTACT
Public contact was made through posting of the Planning Commission agenda on the City’s official notice bulletin board and the agenda and staff report on the City’s website.
RECOMMENDATION
Recommendation
Provide comments to the City Council or make a formal recommendation to the City Council on the Recommended FY 2025/2026 budget for the Planning Program.
Staff
Prepared by: Shaunn Mendrin, Planning Officer
ATTACHMENTS
1. FY 2025/2026 Recommended Budget Volume 1 - Summary and Operating Budget
2. FY 2025/2026 Recommended Budget Volume 2 - Projects Budget