\u201cCupertino generates substantial property tax revenue, but the city keeps only a small share of it \u2014 which is one of the lowest among cities within the county \u2014 due to an antiquated and inequitable allocation formula,\u201d Cupertino City Manager Tina Kapoor told San Jos\u00e9 Spotlight.<\/p>\n
Kapoor said the city has limited alternatives because Cupertino contracts with the sheriff\u2019s office rather than operating its own police department.<\/p>\n
\u201cUnlike Saratoga, Cupertino has no short-term ability to change police service providers,\u201d Kapoor said. \u201cThe county has been inflexible in their approach and has threatened to withhold police services to the city unless we capitulate to their terms.\u201d<\/p>\n
County Executive James Williams said the county remains committed to partnering with the three cities \u201cin a fair and fiscally sustainable way that reflects the true cost of services.\u201d<\/p>\n
\u201cLaw enforcement is a core city responsibility,\u201d Williams told San Jos\u00e9 Spotlight. \u201cThese contracts represent a voluntary service, with excellent service provided by the sheriff\u2019s office, but it would be unlawful for the county to continue subsidizing the cost of law enforcement for the cities.\u201d<\/p>\n
Cupertino has contracted with the sheriff\u2019s office for law enforcement services for decades. Earlier this year, city officials warned the county\u2019s proposal would increase annual contract costs from roughly $19 million to more than $25 million \u2014 a jump far larger than the 5% to 20% increase city leaders had anticipated.<\/p>\n
The proposed increase prompted discussions about future service reductions and possible new revenue sources. In March the council directed city workers to poll residents about a potential increase to Cupertino\u2019s utility users tax<\/a> as officials grapple with long-term budget pressures.<\/p>\n According to city staff, Cupertino, Saratoga and Los Altos Hills began requesting information from the county in July 2025 as they prepared to negotiate new contracts.<\/p>\n The county\u2019s initial proposal would have increased Cupertino\u2019s annual law enforcement costs from approximately $19 million to $26.5 million. After months of negotiations, the county revised the proposal twice, lowering the projected cost to about $25.4 million.<\/p>\n City officials said the reduction reflects progress in negotiations, but significant disagreements remain over administrative and support costs.<\/p>\n \u201cThe concern is not whether costs should increase,\u201d Acting Administrative Services Director Jonathan Orozco said during the meeting. \u201cThe cities have consistently focused on one primary issue, ensuring that the costs allocated to the contract cities are appropriate, transparent and consistent with state law.\u201d<\/p>\n Orozco said Cupertino, Saratoga and Los Altos Hills selected accounting firm Vasquez & Company to conduct an independent review of the county\u2019s cost-allocation methodology. The assessment is expected to begin this month and conclude in late July or early August.<\/p>\n The review will evaluate whether costs comply with California Government Code Section 51350<\/a>, which limits the types of overhead costs counties can pass on when providing contracted services.<\/p>\n The contract discussion also prompted concerns about school resource officers as one potential area where future service reductions could lower costs. Councilmember J.R. Fruen said the discussion should focus on how the program is funded rather than whether it should exist.<\/p>\n \u201cIf (school resource officers) are that important, it\u2019s this question of where it fits within our mandate,\u201d Couincilmember Ray Wang said at the meeting.<\/p>\n
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