Cupertino is projected to see a $4.5 million budget surplus in 2026 after experiencing a $30 million loss in sales tax revenue, largely driven by Apple. This turnaround is attributed to cost-cutting measures, including reducing city services and managing employee benefits. The city's budget for the current fiscal year stands at $217.4 million, with forecasts indicating ongoing surpluses through 2034. However, there remains an emphasis on caution as expenses are expected to eventually outpace revenues and the impact of housing developments adds uncertainty to future projections.
Councilmember J.R. Fruen said the projections are likely modest because they don't account for the city's growth with projects such as The Rise at the former Vallco Mall site. He said new housing in the pipeline will create a larger tax base later, but added the city needs this cushion.
The unexpected turnaround in the city's mid-year financial report projects a $4.5 million budget surplus in 2026, a significant reversal following a $30 million loss.
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