[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6555232,"mediaKeyId","3846308-ab69c4dfe7a7889ee910f1141241ad56","parentId",3846308,"title","Palo Alto council approves phase‑1 nonprofit awards; uses council contingency to cover shortfall","audioSeconds",7200,"startMs",14400000,"endMs",21600000,"viewUrl","/Search/View?dp=1&key=3846308-ab69c4dfe7a7889ee910f1141241ad56&start=14400&end=21600","thumbnailUrl","https://assets.pipeline.soar.com/3846308-ab69c4dfe7a7889ee910f1141241ad56/thumbnail_14400000.jpg","articleUrl","/articles/6555232/Palo-Alto/Santa-Clara-County/California/Palo-Alto-council-approves-phase1-nonprofit-awards-uses-council-contingency-to-cover-shortfall","mediaUrl","https://secure.pipeline.soar.com/6555232-75882d9778bb9a52bfe5dd89424e3228/orig.mp4?Expires=1771178410&Signature=JYhI~ae601Yjvek9CIoihA1B8nsql2dWcFbz5EErCDtqoo-O0BfPRufCODfH0nosdlekcIcTv2Nd5oe7MdDvzi5-TFwmtqJNCXElvpcQ8c-Og0u~DajvK0czbVg4NT4TwnV~J7-F-BkRYUujkEucack~HW0m4I~fLw8bhHwWIj~QNkpNQZO5KKOA-OgIrnvKbd8TodSLa84g7HiQe89sB7vPcKUMTm0PzTeHr3GfAvTgYCjWrDCbgwtds9dw6yvQ5S5emPS9m27vqIGnxKMSl49eiTCzvYWRD3QEQZr2o5KqMiJd7GkoS0ZyaHhcVmblri06Y-ezvPIoai2bcYz71w__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Palo Alto","date","2025-06-17T06:44:47Z","article","The Palo Alto City Council on June 16 approved Policy & Services Committee (P&S) recommendations for the first-year pilot of a nonprofit partnership awards process (phase 1), and made targeted adjustments to restore or clarify funding for several long-standing local organizations.

Why it matters: The city is piloting a more transparent, competitive approach to awarding limited municipal funds to local nonprofits that deliver services aligned with council priorities. The P&S committee analyzed 22 applications and recommended awards totaling $426,646 — about $30,646 more than the finance committee’s initial budget target. Council used available contingency funds to bridge the gap and made procedural clarifications about how some service contracts are funded going forward.

What the council approved and why
- P&S recommendations: Council accepted the P&S committee’s recommended list (22 organizations reviewed). The full recommended package totals $426,646.
- Funding adjustments: Council members and staff agreed to reallocate existing line items and use council contingency to preserve funding for several organizations that P&S supported but that would not have been fully funded under an unchanged target. Specific adjustments recorded in the meeting included:
- Magical Bridge Foundation: funding increased to $150,000 (the motion directed $50,000 of that amount to come from FY2025 council contingency as a one-time fill; total award reflected in FY26 actions).
- UNAF (United Nations Association Film Festival): funding restored to $45,000 with $25,000 coming from FY2025 council contingency to cover the difference.
- Neighbors Abroad reimbursements: council agreed to retain a $30,000 administrative allocation previously recorded in the City Manager’s office budget and to provide an additional reimbursement line up to the amount cited in their application; council moved the reimbursement line to the city manager’s budget for clarity.
- Environmental Volunteers: staff and council moved a $10,007.80 item into Community Services department budget as a service contract (rather than the competitive pool) to reflect its city-service function at Foothills and to preserve program delivery.
- Shortfall handling: The P&S recommended package exceeded the FY26 allocation by $30,646. The council approved using a portion of the FY2025 council contingency ($~52,000 total across the items above) to address that shortfall and the adjustments approved during adoption.

Process notes and council direction
Council members and P&S members noted the pilot nature of the program and recommended further policy choices before phase 2: clarifying which organizations or project types are considered ongoing contract/service partners versus those that should apply into a competitive nonprofit pool, and whether certain eligible projects should be routed to HSRAP or other specialized funding instead of the general pool. Council asked staff to incorporate these procedural clarifications into next year’s process.

Public comments
Representatives from multiple nonprofits addressed council during the public comment period describing program impact and funding needs, including DreamCatchers, Vista Center for the Blind and Visually Impaired, Peninsula Healthcare Connection, LifeMoves (Opportunity Services Center), Special Education PTA, United Nations Association Film Festival (UNAF), Musical Memories Foundation and others. Speakers underlined the importance of predictable funding for services to vulnerable residents, children, seniors and other priority groups.

Ending note
Council and staff agreed the pilot produced useful information about eligibility, scoring and award sizes; members asked staff to return with refinements so phase 2 can better distinguish ongoing service contracts from competitive grants and to build multi-year predictability into awards for organizations providing core city services.","mediaType","Video","parentTitle","City Council Meeting - June 16, 2025","oneSentenceSummary","Following a P&S review of 22 applications, the City Council approved the phase‑1 nonprofit awards package and made targeted adjustments — including restoring earlier reimbursements and moving some service agreements to departmental contracts — using council contingency to close a small shortfall.","taxTitle","Palo Alto, Santa Clara County, California","taxId",3867,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6555242,"Palo Alto council adopts water, wastewater, electric and gas rate increases; delays permanent gas rebate",2322,4518000,6840000,"/Search/View?dp=1&key=3846308-ab69c4dfe7a7889ee910f1141241ad56&start=4518&end=6840","https://assets.pipeline.soar.com/3846308-ab69c4dfe7a7889ee910f1141241ad56/thumbnail_4518000.jpg","/articles/6555242/Palo-Alto/Santa-Clara-County/California/Palo-Alto-council-adopts-water-wastewater-electric-and-gas-rate-increases-delays-permanent-gas-rebate","https://secure.pipeline.soar.com/6555242-09771eecf392c0571cd5ff327c95d476/orig.mp4?Expires=1771178410&Signature=H3uZ7U32bXTkatqvrrSACmhLRFwrPT1ViPrJ9JmPzCFwnMWXTv70To2wZ1lUOR3aeluW5twBhrV874NFC-mlumBlr1xwcVfqfW2N9~3ZG~qQA0lAFctSMPW2sSWzGQUDnlH8WWyNhC7rkoDlhHbOvdGQNUyhWDFAR1ijIYQE7zAAAzlb3K-oelT84OuEVTVShyKQlqW1iS0p93wK7AnzfXTv6zWXTyijuyoW7XQl0-10Eh3ryS~GZeCUvb7VZdkqD1pIL9rKi~XrRpZLsNUoF7H0Q3Jc5aOL89CWgM5d9DoTjfKh1qGPjOLcUiJOIk6XXAjkJQCvN~dAkb4UOuprzg__&Key-Pair-Id=KUT5TJCACFTXG","The Palo Alto City Council on June 16 adopted a package of utility rate and financial-plan resolutions that will raise residential utility bills overall and set a timetable for follow-up work on rate design and an internally proposed gas rebate.

The council approved a 10% increase in water rates and a 20% increase in wastewater collection rates after public hearings required under Proposition 218. The council also approved rate adjustments for the city’s electric, gas, fiber and stormwater programs (electric +5.1%, gas +5%, fiber pricing range approved for pilot offers, and a CPI-tied stormwater increase). Council voted separately to remove a staff-recommended $1.1 million one-time gas “climate credit” drawn from cap-and-trade funds and to remand that question back to the Utilities Advisory Commission for further study and policy review.

Why it matters: The increases come after multi-year revenue shortfalls and reserve drawdowns, and follow intense public comment focused on regional water planning and the San Francisco Public Utilities Commission (SFPUC) planning assumptions. The decisions raise customer bills this year while directing staff and advisory bodies to return with more detailed cost-of-service analyses, equity alternatives and policy options for cap-and-trade funds.

Most important facts
- Water: Council adopted a 10% rate increase (listed by staff as roughly $11.40/month for the median residential customer). Written protests: 8. Customers subject: 19,441 (majority protest threshold 9,721). Outcome: Council adopted the water collection rate by majority vote (motion carried; recorded 6–0–1; one councilmember absent). Staff noted revenues have been below costs in recent years and reserves were used to cover shortfalls.
- Wastewater collection: Council adopted a 20% rate increase (about $11.20/month for the median residential customer). Written protests: 8. Customers subject: 22,246 (majority protest threshold 11,124). Outcome: Adopted by council (motion carried; recorded 6–0–1; one councilmember absent).
- Other utilities: Council adopted proposed gas (5%) and electric (5.1%) financial plans and the city’s fiber pilot pricing framework and stormwater CPI increase (votes recorded: electric/fiber/stormwater package carried after committee changes; recorded 6–0–1).
- Gas rebate remand: The council removed a staff/finance-committee proposal to provide up to $1,100,000 in one-time credits funded by interest income and cap-and-trade proceeds (staff estimated ~$200k of interest income and the balance from the city’s cap-and-trade reserve), and instead remanded the question of any onetime credit to the Utilities Advisory Commission and asked staff to return with a full cost-of-service study and equity review. The motion to remove that credit passed (recorded 5–1–1; one no vote noted and one absence).

Public hearing and comments
The hearing drew a dozen speakers on water supply and SFPUC planning. Speakers pressed the council to seek additional drought-risk data from SFPUC and to avoid overbuilding alternative supplies that would drive up wholesale costs. Several speakers — including members of the city’s Utilities Advisory Commission and regional advocates — argued SFPUC’s “design drought” assumptions are more severe than other Bay Area planning documents and that transparent risk data is needed before locking in expensive supply projects. Staff and multiple UAC members said there are no large alternative-supply projects included in the city’s current rate proposals; a limited amount of study funding is included.

Council discussion and directions
Council asked staff to return with a fuller cost-of-service and rate-design study (including evaluation of additional tiers or progressive rate structures), and to bring the city’s 1‑Water plan to the SCAP committee (tentatively scheduled for September). On the gas rebate, council required the UAC to review the use of cap-and-trade funds and policy criteria before any onetime credit proceeds.

Clarifying numbers and details included in the record
- Water customers subject to the Proposition 218 proceeding: 19,441; written protests received: 8 (far short of a majority protest threshold of 9,721).
- Wastewater customers subject to the proceeding: 22,246; written protests received: 8 (majority threshold 11,124).
- Staff-presented median-bill impacts: water ~+$11.40/month; wastewater ~+$11.20/month; electric ~+$5/month.
- Cap-and-trade reserve (staff estimate): about $11.2 million projected end-of-year balance; staff proposed using up to ~$1.1M to provide one-time credits (staff estimated interest income roughly $200k and remainder from cap-and-trade funds).
- Staff estimated the proposed one-time credit would cover roughly 40% of an annual small commercial gas account’s bill (staff example) and roughly 2% for medium commercial metered accounts; council remanded further study to UAC.

What the council decided (formal actions)
- Adopted water collection financial plan and rates (Prop 218 hearing concluded; no majority protest; motion carried; recorded 6–0–1).
- Adopted wastewater collection financial plan and rates (no majority protest; motion carried; recorded 6–0–1).
- Adopted gas, electric, fiber pilot framework and stormwater rate action, with direction to return to UAC for further COSA review; council removed the proposed one-time $1.1M gas cap‑and‑trade credit and remanded the policy question to UAC (motion to remove carried 5–1–1).

Where to look next
Staff will return with a detailed cost-of-service/rate-design study (to implement by January 2026 under staff’s timeline) and a follow-up UAC review of cap-and-trade use and any targeted credits. The city also plans to present Palo Alto’s 1‑Water plan to the SCAP committee in September for more policy review.

Ending note
Council members and several commissioners emphasized the need for better wholesale-provider transparency (SFPUC) and clearer modeling of drought risk before committing to major alternative supply investments that would raise long-term bills.","The Palo Alto City Council on June 16 adopted new utility rates — water up 10%, wastewater collection up 20%, and modest increases for gas and electric — after Prop 218 hearings, public comments about regional drought planning and a council decision to delay a proposed onetime $1.1 million gas \"climate credit\" pending further advisory review.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6555227,"Council limits Palo Alto Link subsidy to six months while seeking grants, cites sustainability concerns",5280,16200000,21480000,"/Search/View?dp=1&key=3846308-ab69c4dfe7a7889ee910f1141241ad56&start=16200&end=21480","https://assets.pipeline.soar.com/3846308-ab69c4dfe7a7889ee910f1141241ad56/thumbnail_16200000.jpg","/articles/6555227/Palo-Alto/Santa-Clara-County/California/Council-limits-Palo-Alto-Link-subsidy-to-six-months-while-seeking-grants-cites-sustainability-concerns","https://secure.pipeline.soar.com/6555227-9da3bd80b90a14b9b026ff35146b6261/orig.mp4?Expires=1771178410&Signature=lpfHB9PmWH5vHWqaX4vB0WuCoYTtzjOJNOuKwH8uKecyPCW5Fzq9PksjgRDDyeSz6bHRvBul1i9lOa9qp3oLfm75PR0Wv--KYiTxnsQNj2Tud44GgpBaKrLNjkYdwP5s1kudcJG22DJF2RUXt1FdW1Fzs3NCJi8y6dWZoBUbmrBuTOTcYKkA4omS1PEeIoHyLnbUDmCsduZe~KnXI2nEylh0ytZ10vFeOLf2NgiKrq7CjOvCrtsJmHAD-b8334dZiSHhvi83iw8MoBbldO78IhyTCCTjRBEY1vdQYGJtOR9RsdqhDb7jgr1IaGJysU74lkUzXQi0NJHkhXRFpDpEmQ__&Key-Pair-Id=KUT5TJCACFTXG","The Palo Alto City Council on June 16 approved items tied to Stanford-related funding but limited the city’s ongoing subsidy of the Palo Alto Link shuttle program to six months of FY2026 funding while awaiting the outcome of regional grant applications.

Why it matters: Palo Alto Link — a city-run shuttle program that serves major employment and research centers and receives Stanford and other reimbursements — has been expensive to operate on city budgets. Council members said they want a shorter funding commitment while staff pursues grants and evaluates program sustainability.

Key points
- Action taken: Council accepted the group of Stanford-related budget items (Attachment C) but amended the authorization so the city’s direct funding for the Palo Alto Link segment would be limited to six months of FY2026 pending grant decisions. The motion to accept Attachment C as amended passed on the record (motion recorded as carried; roll-call recorded as 5–1–1 with one dissent and one absence).
- Rationale: Council members cited the program’s ongoing cost, the need for grant support (staff noted pending TFCA and other transit grants that will be decided in the fall), and sustainability concerns for city-funded transit substitutes. Staff reported the FY2026 Link cost estimate and that Stanford reimbursements cover part of the program’s expense; the city’s net share in the FY2026 plan was discussed in committee and on the dais.
- Contract and procurement: Staff noted the existing contract terms and said Caltrans authorization and reimbursement processes require confirmations. Council asked staff to confirm whether the contractor can be terminated with short notice (most city service contracts include termination-for-convenience clauses), and asked that any long-term decisions be handled in August with the broader budget balancing work if needed.

Vote and next steps
- The amended package (Attachment C with six-month funding limitation for Palo Alto Link) passed (recorded council vote documented in the minutes, with one dissenter; one councilmember absent).
- Staff will pursue TFCA and other grant opportunities (VTA/Measure B innovative transit funding), and return with grant results and contract/financial recommendations; council asked staff to seek termination-for-convenience language or to confirm contract flexibility so the program can be adjusted if grants do not materialize.

Ending note
Council members asked for clear follow-up on grant outcomes and a report on the city’s net cost exposure before the council commits to a longer-term funding plan for Palo Alto Link.","Council approved the Stanford-related budget items with an amendment that restricts city funding for the Palo Alto Link shuttle to a six-month authorization while staff pursues outside grants and confirms contract termination provisions; the action passed after a recorded roll call and a dissenting vote.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6555237,"Palo Alto council adopts FY2026 budget, restores uncertainty reserve and funds single-role ambulance pilot",9494,11866000,21360000,"/Search/View?dp=1&key=3846308-ab69c4dfe7a7889ee910f1141241ad56&start=11866&end=21360","https://assets.pipeline.soar.com/3846308-ab69c4dfe7a7889ee910f1141241ad56/thumbnail_11866000.jpg","/articles/6555237/Palo-Alto/Santa-Clara-County/California/Palo-Alto-council-adopts-FY2026-budget-restores-uncertainty-reserve-and-funds-single-role-ambulance-pilot","https://secure.pipeline.soar.com/6555237-0ab7abc87faa88ad4d1c9e842e40f673/orig.mp4?Expires=1771178410&Signature=JCZHoSZmEAiP4LdRRabKEu~-zgtCIBHvWH~cCIecAoVycx7De5P8f0gEsiFqg~3Y0LFN08dzUGSMNgaVQm6ZJ6t9wPo7EN69iIid15llr7jShEfhpKMWpnTUP9bZpjuuxYhxO3QIP1bowE5xvXbPww4jZ-Ht8kCE6epgnOaWqTWl3tsgYddP-Sngwrp5zlKsOG-wxvmLZpw7agzM4CZ6D1lEOcpIhINDVfqwEgnCCAYLEl3E1Kdrs1EXcUCMDTqfmBeOkP74FaCGPszdE04HWuoXBfR2TdrKXD05rzbaZ8y5CGcOJUnvRGVy8z584M5EFFOAOue~MHuEq1wiZEpYzQ__&Key-Pair-Id=KUT5TJCACFTXG","The Palo Alto City Council on June 16 adopted the fiscal year 2026 budget ordinance after a lengthy review that included the new AB 2561 workforce vacancy hearing and a separate review of nonprofit funding. The adopted budget restores a short-term uncertainty reserve, continues the city’s multi-year capital investment plan, and authorizes new staff positions tied to public-safety improvements.

Why it matters: The budget sets operating and capital priorities for the coming year, adds staff for a single-role ambulance pilot in Fire, and includes placeholders and a timeline for staff to identify $6 million in savings as the council requested. It also reaffirmed the city’s table of organization and municipal fee schedule.

Key actions and numbers
- Budget adoption: Council adopted the FY2026 operating and capital budgets, the table of organization and updated municipal fees, and accepted the FY2026–2030 Capital Improvement Plan (CIP). The full citywide operating budget totals roughly $1.0 billion; the capital program is about $313 million for FY2026 and a five-year CIP totaling about $1.1 billion.
- Reserves and fund balance: Staff restored the uncertainty reserve to $6 million and projected a budget stabilization reserve (BSR) of about $54 million (≈17.6% of FY2026 expenses). The BSR target referenced in staff materials is 18.5%.
- Balancing work: Finance committee directed staff to implement $6 million in one-time balancing actions and identify at least $2 million in ongoing savings; a return to finance committee and council on detailed options is scheduled for August and September.
- Staffing and programs: The adopted budget adds 18 FTE citywide (11 in the general fund). Notably, the budget includes funding to implement a single-role ambulance pilot in Fire (six new positions and five hourly paramedics for backfill) with a target activation in April 2026. The council also authorized staff to pursue filling a vacant Safe Routes to School planner FTE and to seek measure funding to support that position.
- Municipal fees: The council adopted annual fee updates and authorized a rental registry fee program with limited exemptions and use of Measure K to support those exemptions.

Workforce and AB 2561 hearing
City Human Resources and the unions presented required information under AB 2561 about vacancy rates and recruitment. The city reported a citywide vacancy rate of about 11%, improved from a pandemic-era peak, with concentrated vacancy challenges in utilities, public works, planning and inspections. SEIU — which represents frontline workers citywide — urged faster hiring for positions that have been open long and flagged burnout in key public works and utilities roles. Council directed staff to continue recruitment while budget follow-ups are completed in August.

Nonprofit funding (see separate coverage)
As part of the FY2026 adoption, the council approved Policy & Services Committee recommendations for a nonprofit awards pilot (phase 1) and made on-the-fly adjustments to restore several organizations (Magical Bridge, UNAF, Neighbors Abroad and Environmental Volunteers) using the council contingency to cover a shortfall. The awards, their adjustments and related directions are captured in the budget motion and are summarized in the nonprofit article.

Next steps and reporting
Staff will return in August with specific proposals to realize the $6 million of FY26 balancing savings and continue work on FY27 planning. The city will also bring the Palo Alto 1‑Water plan to the SCAP committee in September for detailed policy review and expects to complete a comprehensive cost-of-service study for utilities by late 2025.

Ending note
Council members emphasized the uncertain federal/state fiscal outlook, the importance of protecting reserve levels, and the need for continued community engagement as staff returns with detailed, implementable savings recommendations.","Council adopted the fiscal year 2026 operating and capital budgets, restored a $6 million uncertainty reserve, set the budget stabilization reserve near its target level, authorized a single-role ambulance pilot with new positions, and scheduled placeholders for $6M in savings to be identified in August.","actionData","errors"]

Article not found

Palo Alto council approves phase‑1 nonprofit awards; uses council contingency to cover shortfall

Palo Alto council adopts water, wastewater, electric and gas rate increases; delays permanent gas rebate

Council limits Palo Alto Link subsidy to six months while seeking grants, cites sustainability concerns

Palo Alto council adopts FY2026 budget, restores uncertainty reserve and funds single-role ambulance pilot