Palo Alto's Non-Personnel Costs: A 10-Year Overview

Between FY2016 and FY2025, Palo Alto's non-personnel expenditures — contracts, services, and supplies — grew by 17.7%, from $502.7M to $591.7M. That's a much slower rate than the 59.1% growth in payroll over the same period, but the absolute dollar amounts involved are substantial.

Which departments drive the spend?

Police and Fire together account for the largest share of non-personnel costs, with Police at $1.36B cumulative over 10 years and Fire at $1.19B. Much of this reflects contracts for equipment maintenance, emergency communications infrastructure, and specialized services that sworn personnel cannot perform in-house.

The COVID dip

Non-personnel spending dipped noticeably in FY2020–2021. Community Services — which funds recreation programs, aquatics, and arts facilities — saw sharp reductions as facilities closed. Unlike payroll (which remained relatively stable due to union contracts and essential services), non-personnel budgets are more discretionary and absorbed the brunt of the pandemic-era cuts.

What the data doesn't show

This dataset captures the city's operating budget expenditures by department. Capital projects, debt service, and enterprise fund spending (utilities) are accounted for separately. The figures here represent the cost of running city programs — not the full picture of what Palo Alto spends.