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Sunnyvale




*Press Release: June 4, 2025*






*Release #06 01 25*

*Contact:
*Rachel Davis, Deputy PIO
408-598-5072
rdavis@sunnyvale.ca.gov

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SUNNYVALE CITY COUNCIL HOLDS FIRST HEARING ON
2025-26 BUDGET

"Balanced budget shows stability despite economic uncertainty; invests in public safety,
City infrastructure and other key services "

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SUNNYVALE, CA— Sunnyvale City Council considered the City Manager’s recommended City Budget [ https://www.sunnyvale.ca.gov/your-government/governance/city-budget ] for the fiscal year (FY) 2025/26 at Tuesday’s council meeting. While the current economic climate remains uncertain, the proposed balanced budget shows a continued stable fiscal outlook and investments in City infrastructure, public safety, and City staffing to help deliver critical core services.  

Although the City faces shaky federal support, sluggish revenue, and rising costs, Sunnyvale will remain economically resilient through careful financial planning and wise use of City reserves. 

“I have experienced the City’s financial journey through the bursting of the dot.com bubble, the Great Recession, COVID-19 pandemic, and today’s economic uncertainty—and Sunnyvale has proven time and again that our community and economy are incredibly resilient,” said *City Manager Tim Kirby.* “We certainly remain clear-eyed about the potential challenges we face in times of economic uncertainty; however, the strength of our long-term planning will allow us to continue investing in the services and infrastructure needed to ensure a resilient future for our community.” 

Despite these broader challenges, Sunnyvale maintains a stable fiscal outlook, with forecasts indicating overall positive trends in the General Fund. The City is investing in enhanced service delivery, updating city infrastructure, and delivering exceptional services to its residents. 

Overall, the total FY 2025/26 expenditure budget is $779.8 million across all funding sources.  This includes a $392.2 million operating budget, $234.3 million for projects, $78.1 million in other expenditures, and $75.1 million in contributions to reserves. General Fund revenue is projected to increase by 1.1% over the prior year. While slow revenue growth reflects moderating property tax and sales tax growth, the City’s hotel tax (TOT) continues to recover since the COVID-19 pandemic, and is estimated to exceed the amount collected in fiscal year 2018/19. The City is projecting $275.5 million in total General Fund revenues, with Property Tax, Sales Tax, and TOT accounting for nearly 71% of the total. 

The FY 2025/26 Recommended Budget strives to balance the distribution of resources and use of reserves to sustain core operations and essential projects. There are several key project investments outlined in the twenty-year financial plans beginning in FY 2025/26, including:   


* *Investments in Sunnyvale’s public safety*: $14 million over two years to recruit and train up to 30 public safety officers to keep pace with retirements. Also, $14 million to replace and modernize the Computer-Aided Dispatch (CAD) and Records Management systems that help deliver critical services to Sunnyvale. 

* *Investments in public spaces and infrastructure*: $152.3 million over twenty years to renovate and enhance existing parks;. $40.6 million to rebuild Fire Station 2, which is underway; an additional $15.4 million to renovate Fire Stations 1, 3, 4, and 6; and $22 million to fund the first phase of the Corporation Yard Master Plan. 

* *Increase in City staffing:* Funding approximately 18 new City staff positions for the Departments of Library and Recreation Services (to open the Lakewood Branch Library in the spring), Public Works, Information Technology, and other departments to help deliver critical city services and advance Council policy goals.  

* *Investments in Sunnyvale’s water infrastructure*: $81.1 million for future-proofing Sunnyvale’s wastewater treatment facility through the Cleanwater Program. [ https://www.sunnyvalecleanwater.com/ ] $24 million to modernize the City’s water meters over the next decade with newer, more accurate technology that will  automate the water meter reading process. $3.8 million for the use of recycled water for irrigation and other activities that do not require potable water, and $1.9 million for new green stormwater infrastructure.

Other investments in the twenty-year plan and highlights in FY25/26 budget message highlighted in the budget message that focus on delivering the Sunnyvale City Council’s strategic priorities [ https://www.sunnyvale.ca.gov/your-government/governance ] include: 


* *Housing and Homelessness Investments: *Continued funding for the pilot program of street outreach, case management, mobile hygiene services, and an inclement weather hotel program for unhoused residents. $126.5 million in housing funds over the twenty-years for future affordable housing projects. 

* *Advancing accessibility and equity:* $2.8 million to comply with digital accessibility requirements; $65,000 annually for Equity, Access, and Inclusion training for City staff and funding to replace Access Sunnyvale to improve customer service for residents.  

* *Building a Sustainable Sunnyvale*: $2.6 million for implementing the Climate Action Plan projects, and $1.5 million for bicycle improvement studies.  

* *Transportation Investments: **$*233.7 million over the next twenty years for pavement rehabilitation and slurry seal, $1.1 million for a citywide shuttle program, $4.5 million for ADA projects and emergency concrete replacement, and $68.8 million for sidewalk, curbs, and gutters.  

While the proposed budget does project long-term fiscal stability, the current uncertain economic climate and shifts in state and federal funding urges caution as Sunnyvale uses federal dollars for several key programs, including for the Cleanwater Program, transportation projects [ https://www.sunnyvale.ca.gov/homes-streets-and-property/transportation-and-traffic-safety/transportation-projects ], NOVAworks [ https://www.sunnyvale.ca.gov/your-government/departments/nova-workforce-services ], and Sunnyvale’s Community Development Block Grant/HOME.  

Council will vote whether to adopt the final budget on June 17. Meeting details [ https://www.sunnyvale.ca.gov/your-government/governance/city-council/meetings-and-agendas ] are available on the City’s website.  

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"*About the City of Sunnyvale*" "Sunnyvale is the heart of Silicon Valley. With a population of 157,566, Sunnyvale is the seventh largest city in the Bay Area. We’re a center of technology and innovation, but also a town of quiet family neighborhoods, strong schools and a diverse community of people. The city has 23 parks; facilities for golf, tennis and swimming; a library; and an arts complex. Sunnyvale’s historic downtown is home to a variety of local eateries and merchants, hosts frequent art festivals, concerts and a year-round farmers’ market. Sunnyvale has almost 8,000 local businesses that provide a rich mixture of goods and services, including many icons in tech, manufacturing, retail and R&D." 






*Contact Us*

Communications
Email Communications <communications@sunnyvale.ca.gov>
408-730-7535
Sunnyvale.ca.gov [ https://Sunnyvale.ca.gov ]








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