Matter 26-177

Revisions to City Council Policy 1-18, Operating Budget and Capital Improvement Program Policy.

Budget & Finance City Council Agenda Ready Introduced 13 Feb 2026

2 Documents on file 825 KB · 2 extracted · 2 AI summaries

File: 26-177
Type: Consent Agenda
Status: Agenda Ready
Requester: Unknown
Introduced: 13 Feb 2026
Last synced: 28 May 2026 · 08:19

The papers

2 documents · 825 KB

01 242 KB

Memorandum

242 KB Extracted AI Summary

file ae004158-1162-404c-bc03-72bc5aaf48ea.pdf sha e35662a9dc62 source unavailable

Official source link unavailable. The file was imported, but the current source metadata does not include a public document URL.

Generated summary AI-assisted

This memorandum discusses revisions to City Council Policy 1-18 regarding the Operating Budget and Capital Improvement Program Policy, specifically Section 17 on Fees. The revisions aim to enhance cost recovery, revenue sufficiency, and transparency while considering ratepayer impacts and ensuring budget stability. The changes address recommendations from multiple audit reports and outline guidelines for setting fees, rates, and charges. Key aspects include annual reviews of fees, maintaining reserves for emergencies, and ensuring that rates are proportional to service costs.

Key points

Revisions to City Council Policy 1-18 aim to improve cost recovery and revenue sufficiency.
The guidelines will promote transparency and regulatory compliance.
The revisions address four audit recommendations related to sewer rates and development reserves.
Annual reviews of fees, rates, and charges will ensure alignment with service costs and reserves.
No revenue or cost implications are associated with the recommended policy changes.

Limitations

The document includes unresolved placeholders and lacks specific details on certain sections.
The attachment contains a mix of revised and existing policy text without clear delineation.

Generated for convenience from extracted text using AI. Review the official source document before relying on this summary.

Extracted text preview · 9,959 chars

COUNCIL AGENDA: FILE: ITEM: TO: HONORABLE MAYOR AND CITY COUNCIL SUBJECT: See Below Approved 3/3/26 26-177 2.7 FROM: Jim Shannon DATE: February 9, 2026 Date: 2/19/26 COUNCIL DISTRICT: Citywide SUBJECT: Revisions to City Council Policy 1-18, Operating Budget and Capital Improvement Program Policy RECOMMENDATION Adopt a resolution revising City Council Policy 1-18, Operating Budget and Capital Improvement Program Policy, Section 17, Fees, to provide guidelines for cost recovery and revenue sufficiency; considerations of ratepayer impacts; reserves and fund balance; and annual review. SUMMARY AND OUTCOME Revisions to City Council Policy 1-18 will address four audit recommendations. The guidelines on Fees, Rates, and Charges will promote transparency, ensure regulatory compliance, accountability, and budget stability, while aligning fee-setting with City policy goals and considering community cost impacts. BACKGROUND The 2026 audit report, Sewer Rates: Reviewing Rate Model Assumptions and Developing Reserve Policies Would Improve the Rate-Setting Process, included Recommendation #4 “To better manage risk and plan for future needs in the Sewer Service and Use Charge Fund, the...

02 583 KB

Resolution

583 KB Extracted AI Summary

file fc4ce734-5547-49fc-a1cc-bd53285e87d3.pdf sha ef7512f5efa6 source unavailable

Official source link unavailable. The file was imported, but the current source metadata does not include a public document URL.

Generated summary AI-assisted

The source text indicates this attachment appears to be a draft document.

This document is a draft resolution from the City Council of San José, proposing revisions to Council Policy 1-18, which pertains to the Operating Budget and Capital Improvement Program Policy. The revisions aim to enhance guidelines for cost recovery, revenue sufficiency, ratepayer impacts, reserves, and fund balance, while ensuring transparency and compliance with audit recommendations. The resolution will replace the previous policy approved on September 30, 2025.

Key points

The resolution proposes revisions to Council Policy 1-18 regarding the Operating Budget and Capital Improvement Program.
The revisions focus on cost recovery, revenue sufficiency, ratepayer impacts, reserves, and fund balance.
The changes are in response to multiple audit recommendations aimed at improving financial management.
The new policy will supersede the previous version approved on September 30, 2025.

Limitations

The document contains unresolved placeholders, such as the resolution number and adoption date.
The text is truncated, which may limit the completeness of the summary.

Generated for convenience from extracted text using AI. Review the official source document before relying on this summary.

Extracted text preview · 47,504 chars

SAW:KMM:KMF 02/18/2026 RESOLUTION NO. ________ A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN JOSE APPROVING REVISIONS TO COUNCIL POLICY 118 TO REVISE SECTION 17 (FEES) TO PROVIDE GUIDELINES FOR COST RECOVERY AND REVENUE SUFFICIENCY; CONSIDERATIONS OF RATEPAYER IMPACTS; RESERVES AND FUND BALANCE; AND ANNUAL REVIEW WHEREAS, the City Council of the City of San José (“City”) initially adopted City Council Policy 1-18, “Operating Budget and Capital Improvement Program Policy” by City Council action on October 24, 2004, which policy has since been amended by the City Council on March 20, 2007, October 21, 2008, October 20, 2009, December 15, 2009, June 17, 2010, June 11, 2013, June 10, 2014, December 16, 2014, June 9, 2015, June 11, 2019, September 10, 2019, June 16, 2020, June 15, 2021, April 19, 2022, June 18, 2024, June 10, 2025, and September 30, 2025 (“Policy”); and WHEREAS, 2026 audit report, Sewer Rates: Reviewing Rate Model Assumptions and Developing Reserve Policies Would Improve the Rate-Setting Process, included Recommendation #4 “To better manage risk and plan for future needs in the Sewer Service and Use Charge Fund, the Environmental Services Department should develop...