REPORT TO COUNCIL
SUBJECT
Title
City Council Public Hearing on FY 2026/27 Budget and Resource Allocation Plan and Establishment of Appropriations Limit, Sunnyvale Financing Authority Public Hearing on FY 2026/27 Budget, and City Council Review of FY 2026/27 Proposed Fees and Charges
Report
BACKGROUND
Recommended Budget and Resource Allocation Plan
The City Charter requires a public hearing to be held prior to the adoption of the City’s budget and resource allocation plan.
Additionally, Article XIIIB of the California Constitution established appropriations limits on government agencies within California. Originally enacted by Proposition 4 in 1979, the appropriations limit sets a ceiling on the use of tax proceeds for appropriation by the state, school districts, and local governments in California. The limit uses 1978-1979 as the “base” year and is adjusted annually for population growth and cost-of-living factors. The purpose of the appropriations limit is to preclude state and local governments from retaining excess revenues, which must be redistributed to taxpayers and schools. To date, the City has never exceeded its appropriations limit. Section 7910 of the Government Code requires that the City annually adopt an appropriations limit for the coming year. The supporting documentation for establishing the limit must be available for public review at least 15 days prior to the adoption of the appropriations limit resolution. The required material that provides detailed information on the City’s appropriations limit has been available for public review since May 7, 2026, and is included in Volume I of the FY 2026/27 Recommended Budget. It is also provided as Attachment 1 to this report.
The FY 2026/27 Recommended Budget also includes the annual budget for the Sunnyvale Financing Authority. The only appropriation for the Financing Authority is the annual debt service payment for the new Civic Center. The governing board of the Joint Powers Agency, the Sunnyvale Financing Authority, must also hold a public hearing for the Authority’s FY 2026/27 Budget.
Proposed Fees and Charges
The City's fees and charges are reviewed and adjusted annually in accordance with Council Policy 7.1.1 (Fiscal-Long Range Goals and Financial Policies). This annual evaluation ensures that all City fees and charges align with the costs of providing fee-related services, except for fees that are legally mandated, market-based, or subsidized at the Council's direction.
Each year, the City Council reviews recommended changes to the City's fees and charges. The June 2, 2026, public hearing provides an opportunity for public input and comment on proposed fees and charges. This hearing will be followed by Council consideration to adopt updated and new fees on June 16, 2026.
The attached Fee Schedule (Attachment 3) lists all City fees, except utility rates, SMaRT Station Public Haul Gate rates, and recreation service fees. Fees related to utility services (i.e., water, garbage, and sewer) are scheduled to be adopted on June 16, 2026, by separate Council action when the utility rates are set. SMaRT Station Public Haul Gate Rates are established administratively by the Director of Environmental Services based on disposition costs for recyclables and residues, allowing for the flexibility to adjust rates as market conditions change, which is the standard practice for transfer stations and disposal facilities. Fees for recreation services are established administratively by the Director of Library and Recreation Services. Those fees are established based on market conditions and Council-adopted policies to ensure fairness and accessibility.
EXISTING POLICY
In accordance with the City Charter, the California Constitution, and the California Government Code, a public hearing is held annually to receive public comment on the budget and resource allocation plan, and appropriations limit for the upcoming fiscal year.
Section 4.2 of the Joint Exercise of Powers Agreement Creating the Sunnyvale Finance Authority requires a public hearing of the Authority’s budget.
Council Policy 7.1.1 Fiscal -Long Range Goals and Financial Policies:
A.1.7: At least one public hearing shall be held after the City Manager’s recommended budget is presented to the Council in order to solicit public input before adoption.
A.1.8: Boards and Commissions should review the annual budget as appropriate to their area of interest and make recommendations to the City Council.
A.1.14: Final actions on study items with significant financial impacts should be withheld until they can be made in the full context of the annual budget process.
B.5.2 - User charges and fees should be adjusted at least annually to avoid sharp changes.
B.5.4 - User fees should be established at levels which reflect the full cost of providing those services.
B.5.5 - Council may determine for any service whether a subsidy from the General Fund is in the public interest.
E.1.4: The Budget Stabilization Fund will be a minimum of 15% of projected revenues for the first two years of the 20-year planning period. Beyond year two, the Budget Stabilization Fund will always have a balance of at least zero.
California Government Code Section 66016(a): Prior to levying a new fee or service charge, or prior to approving an increase in an existing fee or service charge, a local agency shall hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Pursuant to Government Code Section 66018, a published notice for this public hearing has been printed in the Sunnyvale Sun.
ENVIRONMENTAL REVIEW
The action being considered does not require environmental review under the California Environmental Quality Act (CEQA) because it is a fiscal activity that does not commit the City to a specific project that will have a significant effect on the environment. (CEQA Guidelines, Section 15378(b)(4).)
DISCUSSION
Recommended Budget and Resource Allocation Plan
The purpose of the public hearing is to provide an opportunity for the public to voice their opinions on the City’s proposed budget and the appropriations limit. Legal ads for both the FY 2026/27 Recommended Budget and the Sunnyvale Financing Authority were published in the Sunnyvale Sun on May 15, 22 and 29, 2026. The FY 2026/27 Recommended Budget and Resource Allocation Plan is scheduled for adoption on June 16, 2026.
Appropriations Limit
The appropriations limit is set annually and depends on changes in population within the jurisdiction and in the cost of living, as determined by the State. As shown in Attachment 1, the appropriations limit for FY 2026/27 is $359,652,373. Expenditures subject to the appropriations limit exclude the Redevelopment Agency’s Successor Agency activity, enterprise and internal service activity, debt service payments, and capital outlay projects purchased with tax proceeds that have a useful life of ten years or more and a value that exceeds $100,000. Non-tax revenues, such as federal and state grants, fees for service, or revenues restricted for specific purposes, are also excluded from the calculation. The City will be under the allowable appropriations limit by approximately $62.5 million for FY 2026/27, which means the City has an additional $62.5 million in appropriations capacity allowed by law before the limit is reached.
FY 2026/27 Recommended Budget
The FY 2026/27 Recommended Budget provides for a balanced budget of approximately $717.7 million and includes $425.1 million for City operations; $213.3 million in capital projects, equipment, and project administration; and $79.3 million for other expenditures, including employee benefit transfers, debt service, lease payments, and equipment. Revenues total $648.3 million, with $69.4 million to be drawn from reserves.
The FY 2026/27 Recommended Budget is focused on the City’s operations budget, including:
• Updating operating assumptions for salaries, benefits, internal service charges, and utility rates.
• Updating the budget baseline to align with actual operational needs.
• Applying inflation factors to goods and services.
In addition to these reviews, strategic Service Level Adjustments (SLA) were considered in response to current community demands and Council priorities. These SLAs are outlined in each department’s operating section. Brief descriptions of some of these enhancements are as follows:
• Public Safety - Adding 5.0 FTE to establish a Community Crime Reduction Team and reorganize the Office of Emergency Services; reclassifying 1.75 FTE to align with actual operational needs; and providing funding to establish a Public Safety Wellness Program.
• Human Resources - Adding 2.0 FTE to support Risk Management and Employee Development and address workload demands; providing additional funding for software and citywide staff training.
• Finance - Adding 1.0 FTE to support budget development, management and analysis as the City continues to grow.
• Information Technology - Adding 1.0 FTE to support network infrastructure, data center, and cybersecurity; providing additional funding for security consultants, cybersecurity enhancements, AI-enabled dispatch interpretation service and overtime in support of state law.
• Library and Recreation Services - Adding 1.0 FTE for the Adult Literacy Program.
• Office of the City Manager - Adding 1.0 FTE Community Engagement Coordinator and reclassifying a part-time Deputy City Clerk to a full-time position, providing additional funding for EAI program design and training, as well as community engagement events.
• Public Works - Adding a net of 4.0 FTE for fleet services, pavement and concrete maintenance, and parks maintenance; providing additional funding for Downtown power washing and security services at City Hall.
• Environment Services - Adding 1.0 FTE to oversee the Water Pollution Control Plant control system, and 1.0 FTE to assist managers in budget preparation, analysis, guide administrative staff and enhance department-wide initiatives; reclassifying 2.0 FTE to address specific increased workload and higher requirements.
The FY 2026/27 Recommended Budget forecasts positive General Fund highlights, including:
• Invests in enhancing service delivery and continues investments in City infrastructure.
• Moderates development activity in the short term.
• Applies strategic use of reserves to maintain service levels; preserves sufficient reserves to weather a downturn or unexpected event.
• Maintains a diverse portfolio of projects as adopted in FY 2025/26; substantive project updates will happen in FY 2027/28, as the City alternates focus between operating and project budgets.
• Focuses on long-term planning:
• Public Safety Recruitment: added $12.2 million over the first ten years.
• Balanced for ten and twenty-year periods.
• Reflects favorable, albeit more moderate, revenue trends for most major sources.
• The remaining General Fund Service Level Set Aside was used for continuing the microtransit service project funding starting FY 2030/31 and through the remainder of the 20-year plan and funding for Future Unhoused Services.
Reserves
One of the key tools the City uses in its budget is its reserves. Reserves are intended for various purposes, including emergencies, holding restricted funds, or balancing cash flow and economic volatility. Some of the major funds in which the budget assumes a planned drawdown of reserves include the General Fund, Water Fund, and Infrastructure Fund. Additions to reserves in other funds, including Housing, Park Dedication, Wastewater, and Solid Waste offset the use of reserves in those funds.
The General Fund Budget Stabilization Fund Reserve (BSF) serves as the General Fund’s economic volatility and cash flow reserve. The BSF is projected to gradually decline until it reaches its low point of $21.5 million, or 5% of projected revenues, in FY 2035/36. It then gradually increases once the City’s pension liabilities are satisfied.
The FY 2026/27 BSF achieves the City Council policy requirements of being at a level of at least 15% of total revenues for the first two years, and a balance of at least zero for the remainder of the 20-year planning period.
The General Fund also maintains the Contingency Reserve, which is 15% of operations expenditures.
May 19, 2026 - Budget Workshop
Staff provided a detailed presentation on the City’s FY 2026/27 Recommended Budget at the Budget Workshop. At the workshop, the Council requested information and/or clarification regarding the Recommended Budget. Any pending follow-up information will be provided as part of the June 16th budget adoption meeting.
Council reviewed and took action on Budget Supplements.
Budget Supplements
For the FY 2026/27 Recommended Budget, two budget supplements were presented for Council consideration. A complete description of each budget supplement is included in Volume I of the FY 2026/27 Recommended Budget.
There are nine items included in Budget Supplement No.1 - Council Priority Projects. This Budget Supplement requests funding for seven of the nine Council Priority Projects that Council ranked at its workshop on February 26, 2026. Council provided further direction at the May 19, 2026, budget workshop regarding the two items not recommended for inclusion in the budget, requesting staff follow-up. On 2026-18 regarding food co-ops, staff will not prepare a white paper, as resources for forming and managing food co-ops are readily available online. The City would welcome a discussion with any interested party, and a grant program could be part of a future Council priority project or budget. Staff will also monitor state legislation around this topic. On 2026-14 regarding public sector workforce housing, staff plans to meet with other local agencies on opportunities to partner on employee housing and will return to Council if any viable options emerge.
Council also requested scope changes on 2026-1 regarding neighborhood retail and 2026-16 regarding nonresidential sign code standards. Staff is modifying those papers to reflect requested scope changes and they will be included in the updated version of the budget for adoption.
|
Council Priority Project Number and Title |
FY 2026/27 Cost |
20-Year Cost |
Funding Source |
Recommended by Staff? |
|
OCM 2026-1 - Support Neighborhood-Serving Retail in Sunnyvale |
$25,000 |
$25,000 |
General Fund |
Yes |
|
DPW 2026-4 - Clearing the Sidewalk Maintenance Backlog |
$744,938 |
$10,413,103 |
Measure B |
Yes |
|
LRS 2026-6 - Establish a Community Funding Program for Sunnyvale Nonprofits |
$50,000 |
$100,000 |
General Fund |
Yes |
|
LRS 2026-11 - Expand the Roles of Age-Friendly, Accessibility, and Teen Staff Advisory Committees |
$30,000 |
$806,111 |
General Fund |
Yes |
|
DPS 2026-13 - Reinventing and Revitalizing Sunnyvale’s Safe Routes to School Program |
$100,000 |
$100,000 |
Measure B |
Yes |
|
CDD 2026-14 - Public Sector Workforce Housing Study |
$200,000 |
$200,000 |
General Fund |
No |
|
CDD 2026-16 - Re-evaluate Nonresidential Sign Code Standards for Improvements and Compliance with the First Amendment |
$200,000 |
$200,000 |
General Fund |
Yes |
|
OCM 2026-18 - Formal Analysis for Creation of a Food Co-Op, State-Sponsored Market or Commissary |
$0 |
$0 |
General Fund and State Grants |
No |
|
CDD 2026-22 - Streamlining the Permitting Process |
$200,000 |
$300,000 |
Development Enterprise Fund |
Yes |
|
Total Funding |
$1,549,938 |
$12,144,214 |
|
|
Budget Supplement No. 2 outlines potential additions or savings above what is included in the FY 2026/27 Recommended Budget. No action was required of Council, and none was taken on this supplement at the Budget Workshop on May 19, 2026.
Boards and Commissions Budget Review
The City’s boards and commissions have had the opportunity to review the FY 2026/27 Recommended Budget, which was made available on May 7, 2026, with six of the nine holding meetings thus far. Boards and commissions wishing to make comments, suggestions, or recommendations have the opportunity to testify at the public hearing. Due to the limited timeframe for review, meeting minutes are still being finalized. Staff will include any available board and commission meeting minutes, including recommendations to the Council regarding the budget, in the Budget Adoption Report to the City Council.
Sunnyvale Financing Authority Budget
The Sunnyvale Financing Authority must hold a public hearing and adopt by resolution the FY 2026/27 budget for debt service related to the Civic Center bond issuance. This amount totals $7,512,275.
Proposed Fees and Charges
Council Fiscal Policy guides staff in setting service fees to recover costs where possible and legally permitted. Staff continues to ensure that all fees not legally limited, market-based, or subsidized cover full cost recovery. The results of these efforts have been incorporated into the Recommended FY 2026/27 Fee Schedule (Attachment 3), which details all recommended fees. For ease of administration, many fees have been rounded to the nearest logical unit of measurement.
After a detailed staff review of fees, necessary adjustments have been made to the proposed Fee Schedule. Legally limited fees remain unchanged. Periodically, staff reviews various fees in detail and adjusts them according to the cost of service, typically every three to five years. In the intervening periods, fees are adjusted by a general inflation factor. The City’s proposed annual inflation rate of 4% is an average derived from the City’s year-over-year changes in citywide personnel costs. Fees related to construction price changes are proposed to increase by 4% following the Construction Cost Index (CCI) year-over-year change for the period of December 2024 to December 2025, as reported by Engineering News-Record.
According to the United States Bureau of Labor Statistics, the Consumer Price Index for Urban Services in the San Francisco Area (CPI-U SF) increased by an average of 3% from 2024 to 2025. New fees, or fees proposed for adjustment by amounts greater than the factors discussed above, are detailed below. Administrative updates and descriptive language updates are highlighted in red.
The Recommended FY 2026/27 Fee Schedule (Attachment 3) details all proposed fees. Most fees take effect at the start of the new fiscal year, except for development impact fees, which are required to take effect 60 days after adoption, as specified in Government Code Section 66017. These fees will become effective on August 15, 2026 assuming adoption on June 16.
New Fees
Community Development Department
4.01 Development Related Fees, A2. Initial Planning Application
Introduces a new development fee for Planning Applications with the purpose of streamlining the application process. The new fee of $223.00 will cover the initial staff time required to review and assess the proposed submittal. The new fee will allow staff to commence work on the application without waiting for full payment of the application fees. Full fees would be assessed as part of the review process.
Library and Recreation Services
6.03 Online Transaction Fee, A. Online Transaction Fee
Library and Recreation Services recently implemented new Recreation software. A 3% online transaction fee applies to all transactions, regardless of the payment method used. This fee also includes credit card service fees. For in-person credit card transactions, customers will be charged a 3% credit card transaction fee.
Non-Standard Fee and Charge Adjustments
The following fees are adjusted by an amount other than the City’s labor rate increase, CCI inflation increase, or CPI-U SF inflation increase:
General
1.06 Public Charging Station Use Fee, A. Public Charging Station Use Fee
Operational updates have enabled staff to begin tracking staff time and electricity costs associated with maintaining the City's electric vehicle (EV) charging stations that are available for public use. Based on initial analysis of related expenses, staff recommends increasing the Public Charging Station Use Fee from $.25 per kWh to $.35 per kWh, which is a 40% increase. Staff will continue to track costs to ensure cost recovery.
1.07 Credit Card Service Fee
The City spends approximately $950,000 annually on credit card fees across all funds. In FY 2025/26, a 2.7% credit card service fee was added to recover those fees. Due to the varying software needs across departments, the City utilizes multiple processors, each applying different service fees and requirements. As a result, staff worked with each processor and the program software to implement service fees. Golf, One-Stop (online payments), and recreation credit card service fees will be implemented on July 1, 2026. The revised service fee range is recommended at 0% - 3.75%, which will cover the fees charged at different locations.
Community Development Department
4.02 Planning Permit Fees, K9. Park Dedication In-Lieu Fee - Average Fair Market
The Park Dedication In-Lieu Fee is proposed to increase from $130.00 to $135.00, a 4% increase. Staff proposes to increase it by 4% annually until the fee reaches parity with the annual valuation report, which sets the price at $152.00.
Department of Public Safety
7.03 Other Permits and Services, J. Daily Parking Permit - City Owned
As outlined in RTC 16-0871, the Mathilda off-ramp - Southbound, South Mathilda Overpass and Evelyn Avenue Lot City parking lot fees will be 73% of the Caltrain parking fee, and the North Mathilda will be 55% of the Caltrain parking fee. The current Caltrain parking fee is $5.50/day. Daily Parking Permit at City-owned lots is recommended to remain $4 at Mathilda off-ramp - Southbound, South Mathilda Overpass, and Evelyn Avenue Lot, and $3 at North Mathilda Overpass.
7.04 Response Fees, B. Alarm
Fees for alarm permitting are based on a survey of countywide similar services and are aligned with the market range for those services. A review of similar fees at other local agencies indicates that the current Alarm Permit fees are comparable and do not require inflation adjustments.
7.08 Fire prevention Permits and Fees, MM2. Fire Protection System Maintenance Commercial, industrial, and multifamily residential fire protection systems must be maintained regularly. The California State Fire Marshal sets maintenance requirements, and Sunnyvale Fire Prevention reviews all records for compliance. The City uses a third-party vendor to maintain fire protection system records. Their online portal is used to manage the record reporting process, and fees are paid directly to the vendor. In FY 2025/26, the vendor fee increased from $15.00 to $18.00 (13% increase). Staff recommend updating the fee to “actual cost” to reflect the vendor's fee.
7.10 Animal Control Services Fees and Charges
Fees for animal control services are based on a countywide survey of similar services and are typically aligned with the market range for those services. No change is recommended until a permanent shelter is secured through an invitation for bid slated for FY 2026/27.
Department of Public Works
8.03 Transportation/Traffic Fees, C. Residential Parking Permit Fee
Staff proposes increasing the Residential Parking Permit Parking Fee from $28.00 to $30.00, a 7% increase, with higher printing costs for parking stickers driving the proposed increase.
8.06 Municipal Golf Course Green Fees
Golf customers choose to play at Sunnyvale’s courses based on cost, location, and course quality. Most Golf fees are proposed to increase by $1.00 (ranging from 2% to 5% increases) to cover increased expenditures and reduce the golf funds' dependence on subsidies. Staff also completed the annual Golf Market Survey (Attachment 4) as a reference to neighboring course fees. Recommended fees for FY 2026/27 are on par with fees at neighboring courses.
There are some exceptions to the standard $1.00 increase. At Sunnyvale Municipal Course, rates for Juniors (ages 17 and below) - 18 holes for weekday and weekday twilight is proposed to increase from $19.00 to $24.00 (26% increase), and rates for Juniors - 18 holes for weekend/holiday and weekend/holiday twilight is proposed to decrease from $28.00 to $24.00 (14% decrease). The PGA sponsors a “Youth on Course” program to get youth on golf courses. The program will reimburse $18.00 per junior golfer regardless of the course. For the Junior rates, the individual pays $6.00, and Youth on Course pays the remainder of the cost if they are a member. Most junior golfers are members.
No changes are proposed for School Team Play ($850.00 for Sunnyvale schools and $900.00 for non-Sunnyvale Schools) and the Infrastructure fee ($1.00). In addition, staff recommends eliminating the $5.00 Sunken Gardens Tournament Fee, as it has not been charged. All green fees are inclusive of costs at Sunken Gardens, and the difference from the Sunnyvale Municipal Course is that the tournament fee of $21.00 covers the golf cart rental.
During the May 19, 2026 Budget Workshop, members of the Council and the public discussed senior rates for the City golf courses. Currently, the Sunnyvale Municipal golf course provides a weekday senior discounted rate while the Sunken Gardens golf course does not. Seniors are also eligible to purchase resident golf discount cards for both courses. While the feedback was not received in time to make further fee recommendations, staff will evaluate the financial feasibility of expanding the discount to both golf courses or additional time slots.
8.07 Shopping Cart Containment Ordinance Fees, A. Shopping Cart Retrieval Fee
The Shopping Cart Retrieval Fee was reduced from $170.00 to $100.00 in compliance with SB 753, which set the rate at $100.00.
Restructured/Replaced/Relocated Fees
8.04 Traffic Control Fees
To reflect the actual cost of traffic control, staff propose updating the fees to a per-hour rate that reflects the number of staff and the time required to provide service. Traffic control utilizes Senior Maintenance Worker staff to provide service. Since these events are not part of routine work, they will be performed after hours on overtime. The FY 2026/27 Senior Maintenance Worker overtime rate is $77.90/hr. Below is a summary of proposed changes.
|
Type of Event |
FY 2025/26 Fee |
FY 2026/27 Proposed Fee |
Notes |
|
Refundable deposit for use of traffic control devices |
$37.50 |
$39.00 each event |
|
|
City pick-up or delivery of traffic control devices |
$37.50 |
$77.90/hr. |
One staff is required to complete the work. |
|
Type 1 - One day events, minimal material delivered, no set up of traffic control by City staff. |
$163.00 |
$155.80 for first two hours. $77.90 each additional hour. |
One staff is required to complete the work, minimum two hours. |
|
Type 2 - City Staff closing less than two minor low traffic volume streets.$436.00$311.60 for first two hours. $155.80 each additional hour.Two staff are required to complete the work, minimum two hours. |
|
|
|
|
Type 3 - City staff closing less than two minor low traffic volume streets, minor sign work involved, set ups requiring staff overtime. |
$875.00 |
$701.10 for first three hours. $233.70 each additional hour. |
Three staff are required to complete the work, minimum three hours. |
|
Type 4 - Requires staff to close major arterial or collector streets, staff overtime necessary, sign work and equipment needed, multiple days. |
$865-$8,666 |
$1,246.40 for first four hours. $311.60 each additional hour. |
Four staff are required to complete the work, minimum four hours. |
Deletions
Library and Recreation Services
6.03 Community Special Event Fees, A. Applications Fee Minor
Staff recommends deleting the “Application Fee Minor” due to its lack of use and the lack of defined application criteria. Although separate fees for minor and major events were established to enable scaled processes, this system was never implemented.
Department of Public Works
8.02 Development Projects, Street Trees, L1. If installed/planted by City
City staff reports that they have not installed trees for developers and property owners. Typically, street trees have been installed by the developer or property owner as part of their active project. As a result, staff proposes eliminating the $402.00 per tree fee for staff to install and plant trees.
Fees Not Expected to Cost Recover
Department of Community Development
4.06 Housing Division Fees, Below Market Rate (BMR) Program Fees
To align with Housing Goals, Policy H-2 Affordable Housing and Home Buyer Assistance, all Below Market Rate Program Fees are proposed to be flat with no inflation applied.
FISCAL IMPACT
There is no fiscal impact to this public hearing. Budget and Fee Schedule adoption is scheduled for June 16, 2026.
Most new fees will become effective at the start of the new fiscal year on July 1, 2026. Exceptions include changes to Development Processing fees (i.e., filing, accepting, reviewing, approving, or issuing an application or permit) and mitigation fees, which take effect 60 days after adoption (in accordance with California Government Code Section 66017). The impact of proposed adjustments to these fees has been incorporated in the FY 2026/27 Recommended Budget. Attachment 3 presents the Recommended FY 2026/27 fee schedule, including proposed fees and charges.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. 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.
Legal ads for both the FY 2026/27 Recommended Budget and the Sunnyvale Financing Authority were published in the Sunnyvale Sun on May 22 and 29. The City’s website has included the entire FY 2026/27 Recommended Budget and Resource Allocation Plan since May 7, 2026.
Notice of the public hearing on the proposed fees and charges was published in the Sunnyvale Sun on May 15, 22, and May 29. Notice was sent to the Building Industry Association and the Tri-County Division of the California Apartment Association, which requested notice pursuant to the Government Code. Boards and commissions wishing to make comments, suggestions, or recommendations may testify at the public hearing.
STAFF RECOMMENDATION
Recommendation
City Council:
1. Conduct a public hearing to obtain input from the public on the FY 2026/27 Recommended Budget as required by City Charter Section 1303, the California Constitution, and the California Government Code. Council can also provide direction to staff on any issue requiring further review before the adoption of the budget on June 16, 2026.
2. Conduct a public hearing to solicit public input in the proposed Fee Schedule and provide direction to staff on any fees requiring further review before the June 16, 2026, Council meeting, when the schedule will be considered for adoption.
Sunnyvale Financing Authority:
1. Conduct a Public Hearing on the FY 2026/27 Recommended Budget. The Board can also provide direction to staff on any issue requiring further review before the adoption of the FY 2026/27 Budget on June 16, 2026.
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 <http://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: Nancy Grove, Finance Manager
Prepared by: Kurtis Mock, Budget Manager
Reviewed by: Dennis Jaw, Assistant Director of Finance
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. FY 2026/27 Appropriations Limit
2. Draft Board and Commission Meeting Minutes for the FY 2026/27 Recommended Budget
3. FY 2026/27 Proposed Master Fee Schedule
4. 2026 Golf Fee Market Survey