CC Resolution 13174 - Adopting the City's Operating and Capital Budget for FY 2025 RESOLUTION NO. 13174
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
ADOPTING THE CITY'S OPERATING AND CAPITAL BUDGET
FOR FISCAL YEAR 2025
WHEREAS, there has been submitted to the City Council a proposed budget for the
operation of all departments and facilities of the City of Campbell for FY 2025, and there
has been submitted to the City Council a proposed budget for the capital expenditures
related to City projects, and
WHEREAS, the City Council held meetings to review the proposed operating and capital
budget; and the City Council took action to adopt the proposed budget;
NOW, THEREFORE, BE IT RESOLVED, by the City Council that as of July 1, 2024 the
amount of$88,440,459 be fixed as the amount necessary to meet all municipal operating
requirements (excluding any further changes resulting from this public hearing and/or any
miscellaneous corrections), and that the amount of $12,688,490 be fixed as the amount
necessary to meet the capital requirements of the City and that the same is hereby
approved, confirmed and adopted at the combined total of$101,128,949; and
BE IT FURTHER RESOLVED that the Finance Director is hereby authorized to make any
changes resulting from the public hearing to adopt the FY 2025 operating and capital
budget or any miscellaneous corrections due to more refined estimates and incorporate
these changes into the final published FY 2025 operating and capital budget document.
PASSED AND ADOPTED this day 18th of June, 2024, by the following roll call vote:
AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
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Susan M. Lan , Mayor
ATTEST: �J
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Andrea Sa,, ers, City Clerk
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June 18, 2024
Honorable Mayor, Vice-Mayor, and City Councilmembers:
I am pleased to present to you for formal consideration and adoption the Proposed Fiscal
Year (FY) 2025 Operating Budget and 2025 - 2029 Five-Year Capital Improvement Plan
(CIP). The Operating Budget and CIP serve as a policy document, a financial plan, a
communication's device, and an operation's guide; reflecting the policies, goals, programs,
and service priorities and values of the City Council and the Campbell community.
Specifically, the current budget and CIP process again emphasizes a Priority-based
Budgeting approach to link City resources with the strategic priorities of the City Council and
community, while also seeking to maintain fiscal prudence. To accomplish this, several
meetings with the City Council and the community were held on the following dates:
• February 28 Special Meeting— Strategic Priorities Setting
• May 7 Budget Study Session — Preliminary Workplans, Operating Budget, and CIP
• June 4 Regular Meeting — Introduction of Budget and CIP
The budget development process though continues to be an iterative process and there will
be additional opportunities for Council feedback as well as community input on June 18
(Budget Adoption). Any further Council feedback that reaches majority consensus at the
June 18 Budget Adoption will be incorporated into the final Adopted Budget and CIP if it is
fiscally feasible. In preparation for those meetings and so as to provide a high-level overview
of the proposed budget and CIP, this transmittal letter will address the following items:
• A — Significant Changes since June 4 Introduction
• B — Financial Summary
• C — Economic Update and Outlook
• D — Long-Range Forecast
• E — Federal, State, and Other Aid
• F — Budget Awards
• G — Conclusions and Acknowledgements
• Exhibit A - FY 2025 Adopted City Council Priorities
• Exhibit B— FY 2025 Proposed Workplans
A — SIGNIFICANT CHANGES SINCE JUNE 6th INTRODUCTION
The following section details significant changes to the Proposed FY 2025 Operating Budget
and 2025 — 2029 CIP since the June 4 Budget Introduction. All changes shown below are
built into the proposed budget numbers and schedules before Council:
Per Council direction received at June 4 Budget Introduction and majority consensus
City Council agreed with the FY 2025 Proposed Budget and the 2025 — 2029 CIP presented
by staff at the June 4 Introduction and requested no changes. Council though may direct
staff to make changes at the June 18 Adoption. Once again, any further Council feedback
that reaches majority consensus at the June 18 Adoption will be incorporated into the final
Adopted Budget and CIP if it is fiscally feasible.
Other staff recommended changes needing Council direction and approval
• Upgrade of Recreation Supervisor at Museum from 0.88 FTEs to 1.00 FTEs —
Added to the Proposed FY 2025 Operating Budget at an estimated cost of $9,779;
with funding coming from the General Fund. This request is based on workload and
increasing demand for services at the Historical Museum and follows approved
request from FY 2024 to increase position from 0.75 FTEs to 0.88 FTEs. The
proposed change though would not be effective until January 1, 2025 and may be
deferred should further corrective measures be necessary at the midpoint of FY 2025.
• Reclass of One (1) Building Inspector to a Sr. Building Inspector — Added to the
Proposed FY 2025 Operating Budget at an estimated cost of $7,424; with funding
coming from the General Fund. This request would result in two (2) Sr. Inspectors in
Building (similar to the organizational structure in Planning that has two Sr. Planners)
and allow for professional growth, succession planning, and acknowledgement of the
skills and capacity of existing building inspection staff. The proposed change though
would not be effective until January 1, 2025 and may be deferred should further
corrective measures be necessary at the midpoint of FY 2025.
• Downgrade of Assistant Engineer in Traffic Engineering from 1.00 FTEs to 0.50
FTEs — Added to the Proposed FY 2025 Operating Budget at an estimated savings
of($88,056); with funding coming from the General Fund. This position has historically
been budgeted and funded at a level of 0.50 FTEs. For the FY 2024 budget, staff
requested that it be increased to 1 .00 FTEs based on anticipated workload in FY 2024
and beyond. That increase in workload never materialized and the incumbent in the
position remains in a part-time role. Thus, staff proposes reverting back to the 0.50
FTE level for FY 2025 given the City's fiscal constraints as well as expected workload
in Traffic Engineering.
• Upgrade of Sr. Civil Engineer in Engineering 0.75 FTEs to 1.00 FTEs — Added to
the Proposed FY 2025 Operating Budget at an estimated cost of $37,544; with
funding coming from the General Fund. This position was added as limited-term in
FY 2024 and has not been not filled yet. Since its initial approval, the position has
been re-evaluated and staff proposes increasing it to a full 1.00 FTE for FY 2025, but
still remaining limited term. The position would be used primarily to manage the grant-
funded Hamilton Avenue off ramp widening project and other transportation related
improvements.
In total, the staff proposed changes above have a net savings of$33,309 in FY 2025; which
will result in a like reduction in ARPA support for General Fund operations in FY 2025.
B - FINANCIAL SUMMARY
General Fund— Financial Summary
Table 1 — General Fund Summary
FUND BALANCE REPORT
101 GENERAL FUND
FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg"
Beginning Fund Balance July 1(") $ 15,527,036 $ 16,537,379 $ 16,753,858 $ 16,753,858
(A)-Econ Fluctuations+Emergency+Unassigned+PERS
Revenues
Total Revenues $ 57,298,806 $ 63,029,077 $ 69,507,088 $ 68,719,281 -1.1%
Expenditures FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg*
Total Expenditures by Type $ 56,288,463 $ 62,812,598 P'$ 69,507,088 $ 68,719,281 -1.1%
Revenues vs Expenditures $ 1,010,342 $ 216,479 $ - $ -
Ending Fund Balance June 30 $ 16,537,379 $ 16,753,858 $ 16,753,858 $ 16,753,858
*% Change from FY 2024 Estimated to FY 2025 Proposed Budget
For a more detailed Fund Balance Report. please see the Fund Summaries section of the Budget book
Currently Proposed FY 2025 Operating and Capital expenditures for the General Fund equal
$68.7 million and include:
• $2.2 million in interfund operating transfers out to support operations in other funds;
including $722,000 to support the Lighting and Landscaping District Fund, $686,000
to support the IT Fund, and $766,000 to pay for 2016 Lease Revenue Bond (LRB)
debt service,
• $1.7 million in interfund capital transfers out to support Capital Improvement Plan
Reserve (CIPR) projects; with $750,000 set aside as the General Funds annual CIPR
contribution towards new projects and $952,000 for carryover CIPR projects
previously approved,
• $75,000 in interfund capital transfers out to support Construction Tax projects; with
the entire amount proposed to be offset by a drawdown of Construction Tax reserves,
• 3% assumed salary growth for employees due to approved bargaining agreements,
• Other compensation special adjustments to bring certain positions to median,
• 8% assumed healthcare premium growth based on historical trends,
• Assumption that certain vacancies will be frozen until at least January 1, 2025; with
approximate savings of $917,000 and more detail to be provided in subsequent
sections,
Related General Fund revenue sources also total $68.7 million and include:
• $1.4 million in interfund operating transfers in to support General Fund operations;
including an approximately $1 .2 million one-time proposed transfer from the ARPA
fund to support various General Fund operations and previously approved ARPA
uses to be detailed in subsequent sections, a normal $144,000 transfer from the
Community Facilities District (CFD) #1 fund to support Police and Fire services,
$6,000 from the CFD #2 fund to support Land Development, and $50,000 from the
Motor Vehicle Pool fund to support Administrative and Fiscal Oversight of the division,
• $1.252 million one-time draw from the Pension Reserve to fully offset the large
increase in the City's required contribution towards its unfunded actuarial liability
(UAL) for pensions as discussed with Council at the May 7 Budget Study Session and
June 4 Introduction,
• $952,000 draw from the accumulated CIPR funds to support $952,000 in carryover
CIPR projects previously approved, and
• $75,000 draw from Construction Tax reserve to support capital projects as previously
discussed
This results in estimated General Fund expenditures remaining fully balanced against
estimated General Fund revenues in FY 2025; when short-term corrective budget
strategies are implemented. In summary, in the General Fund, expenditures for FY 2025
show a 1.1% decrease when compared to FY 2024 Year-End Estimates of $69.5 million.
Conversely, General Fund revenues for FY 2025 also show a 1.1% decrease when
compared to FY 2023 Year-End Estimates of $69.5 million.
At the May 7 Budget Study Session, staff presented Council with an estimated $3.87 million
structural operating deficit within the Preliminary FY 2025 General Fund Budget. Given
Council feedback at the May 7 Study Session, staff incorporated several short-term budget
corrections strategies to close this gap as well reduced expenditures in any areas
operationally feasible for the June 4 Budget Introduction. Based on Council feedback
received at the June 4 Budget Introduction, these measures have not changed and are
summarized in Table 2 below and immediately following the table:
Table 2— FY 2025 General Fund Budget Correction Strategies Incorporated
Correction Strategy FY 2025 Estimated Savings
Temporary Hiring Freeze $917,000
Utilization of the City's CaIPERS Pension Reserve $1,252,000
Utilization of Remaining ARPA Funds $956,688
Other Expenditure Reductions $744,309
TOTAL $3,869,997
• Temporary Hiring Freeze (Estimated Savings $917,000) — At the June 4 Budget
Introduction, staff identified 17 vacant positions equaling $3.16 million in FY 2025 and
proposed that they be filled in a strategic and targeted manner and take into account
operational, Workplan, and service needs; resulting in potential savings of $917,000
in FY 2025. For some positions, staff continues to recommend that they be frozen
through at least December 31, 2024 or longer. And for other positions, staff is
recommending that they be filled sooner due to where they are currently in the
recruitment process as well as operational, Workplan, and service needs.
Adjustments to any dates shown in Table 3 below could have additional savings or
costs depending on if hired later or sooner:
Table 3- Strategic Filling of Vacant Positions
Total Comp($) Total Comp($) Estimated
Department Job Title Full Year Hire by Date Adjusted Savings
City Manager ECON DEV MANAGER(1) $ 272,048 10/1/2024 $ 203,477 $ (68,571)
City Manager HR ANALYST $ 187,715 11/1/2024 $ 124,458 $ (63,257)
City Manager HR MANAGER $ 285,444 8/1/2024 $ 261,201 $ (24,243)
City Manager HR REP $ 157,919 10/1/2024 $ 118,115 $ (39,804)
City Manager IT MANAGER $ 258,429 1/1/2025 $ 128,152 $ (130,277)
Comm Dev PERMIT TECH $ 149,470 8/1/2024 $ 136,775 $ (12,695)
Comm Dev UN HOUSED SPECIALIST $ 148,230 7/1/2024 $ 148,230 $ -
Police COMM SERV OFFICER $ 161,616 7/1/2024 $ 161,616 $ -
Police EMERGSVCSCOORD $ 117,310 1/1/2025 $ 58,173 $ (59,137)
Police IT ADMINISTRATOR(PD) $ 216,137 7/1/2024 $ 216,137 $ -
Police POLICE OFFICER $ 219,564 1/1/2025 $ 108,880 $ (110,684)
Public Works BLDG MNT WKR $ 162,561 7/1/2024 $ 162,561 $ -
Public Works EQUIP MNT SPVSR $ 186,023 1/1/2025 $ 92,247 $ (93,776)
Public Works LGT/TRF SIG SPVSR $ 210,999 1/1/2025 $ 104,632 $ (106,367)
Public Works PARK MNT LEAD WKR $ 152,965 1/1/2025 $ 75,854 $ (77,111)
Public Works SR CIVIL ENG(PPT) $ 194,400 10/1/2024 $ 145,401 $ (48,999)
Rec & Comm REC SPECIALIST (PPT) $ 81,729 7/1/2025 $ - $ (81,729)
TOTALS $ 3,162,559 $ 2,245,909 $ (916,651)
(1) - So as to more effectively implement the Economic Development Strategic Plan, staff is
recommending that the currently vacant Economic Development Specialist be reclassified to an
Economic Development Manager. A complete job specification and proposed salary range will be
brought to Council for consideration in the near future. Estimated costs shown could change, but
reflect the current job market for such a position.
• Utilization of the City's CaIPERS Pension Reserve ($1,252,000) - The City wisely
established a CaIPERS Pension Reserve several years which has a current balance
of $2.252 million. Several public agencies have established these types of pension
reserves and one common and appropriate use is to offset large spikes in annual
CaIPERS payments; thereby smoothing costs. Thus, staff continues to recommend
utilizing $1.252 million of the City's CaIPERS Pension Reserve in FY 2025 to fully
offset the large increase in the City's required contribution towards its UAL; leaving a
balance in this reserve of$1.0 million for future pension needs. While the draw down
of any reserve is never ideal, staff recommends building up this reserve in the future
should the City's financial condition allow it. One of staffs proposed FY 2025
Workplan items is to develop a plan to pay down the City's UAL and reduce overall
pension costs over time. Part of that plan will include the development of a Council
policy clarifying the ongoing acceptable use of the City's CaIPERS Pension Reserve
and how to build it up to an adequate level over time. In regard to the latter, additional
funding is needed to support a future buildup; either through enhanced revenue
sources or a reallocation of current resources within the General Fund.
• Utilization of Remaining ARPA Funds ($956,688) — Since the June 4 Introduction,
staff has again proposed several staffing changes which would save the City $33,309;
thereby resulting in a like reduction in ARPA support for General Fund operations in
FY 2025. As such, this would leave a balance of $1.49 million as shown in Table 4
below. FY 2025 ARPA usage totaling $1.45 million includes the proposed $956,688
for General Fund operational support in FY 2025 as well as the previously approved
Parklet Grant Program ($40,000), Contracted Mental Health Clinician ($100,000),
Housing Manager ($220,352), and Limited-Term Environmental Programs Specialist
($136,246). And while Council expressed vary degrees of interest in these items at
the June 4 Introduction, they were not added pending a separate and more robust
ARPA discussion as requested by Council for either the July 2 or July 16 Regular
Meeting:
o Expansion of the Parklet Grant Program - Beyond $200,000 Total
o City Facilities Roof Replacement (Project 24TT) - $375,000
o Campbell PDA Enhancements - Civic Center Dr at 2nd and 3rd Street (New
Project) - $625,000
o Universal Basic Income (UBI) Program — Cost TBD
o Hotel Voucher Program for Unhoused — Cost TBD
o Hotel Stays for Unhoused during Inclement Weather— Cost TBD
o Buy Down of At Risk Below Market Rate Units — Cost TBD
Table 4- ARPA Fund Status
Prior Year FY 2024 FY 2025
Actuals Budget Proposed
Beginning Balance $ - $7,651,277 $2,946,093
REVENUES
ARPA Payment from US Treasury 9,997,774 - -
Interest Income 43,173 - -
Sub-Total: Revenues 10,040,947 - -
EXPENDITURES
General Fund -Operational Support 2,214,670 837,087 956,688
Campbell Community Center(CCC)Wi-Fi Project 125,000 - -
PPE & Misc. COVID Supplies 14,000 - -
Downtown Barrier Monthly Rental 36,000 - -
Parklet Grant Program - 160,000 40,000
HRIS Implementation and Payroll Operational Support - 60,000 -
Employee Health Screenings - 56,000 -
Boiler& HVAC Replacement - 31,000 -
Replacement Storage Area Network System - 132,000 -
2300 Campbell Water Tower Light Replacement - 50,000 -
24HH ADA Transition Plan - FY24 - 50,000 -
24NN Citywide ITS Enhancement Phase 2 - 100,000 -
2400 CCC- Heritage Theatre Boiler - 90,000 -
CCC- Building A HVAC Controls - 85,000 -
CCC- Building A Sewer Line Replacement - 45,000 -
CCC- Building M Roof Replacement - 400,000 -
City Facilities Roof Replacement - 475,000 -
City Hall - HVAC Chiller Replacement - 150,000 -
Contracted Mental Health Clinician - 100,000 100,000
Contracted PERT Clinician - - -
Housing Manager - 210,585 220,352
Limited-Term Environmental Programs Specialist - 134,512 136,246
Parks and Recreation Master Plan - 200,000 -
Climate Action Plan - 300,000 -
Public Safety Building CIP Support - 939,000 -
Ballot Measure Polling, Legal, and Related Consulting - 100,000 -
Sub-Total: Expenditures 2,389,670 4,705,184 1,453,286
Ending Balance $7,651,277 $2,946,093 $1,492,807
(1)-Staff proposes using$990,000 for General Fund operational support in FY 2025.
(2)-Staff proposes reducing from$240,000 to$200,000 total in FY2025.
(3)-Staff proposes deferring program and freeing up$360,000 in APRA funds for other purposes in FY
(4)-Employee did not start in position until January 8,2024 and thus,position could be funded until
January 8,2026 given ARPA rules and Council's previous approval of ARPA funding.
(5)-Employee did not start in position until October 16,2023 and thus,position could be funded until
October 16,2025 given ARPA rules and Council's previous approval of ARPA funding.
•
• Other Expenditure Reductions ($744,309)—Since the May 7 Budget Study Session,
staff also re-examined their FY 2025 Budget Requests and reduced costs in these
areas as presented at the June 4 Budget Introduction:
o Updated Salary and Benefit Costs to reflect recent hiring of employees at a
lower step and benefit level than previously assumed as well as $33,309 in
proposed staffing related reductions since the June 4 Introduction - $275,309
o Reduced Discretionary Overtime, including the following service areas, with
a shift towards flexing schedules and/or accruing compensatory leave time -
$45,000:
• Human Resources (101.515) - $15,000 decrease
• Community Development Admin. (101.550) - $30,000 decrease
o Reduced Outside Contractual Services, including the following, and utilizing
existing staff to pick up some of the requested work or deferring until fiscal
circumstances allow for the added outside work - $301,000:
• CDD Contract Grant Support (101.550) - $10,000 decrease
• Contract Staff Planning Services (101.551) - $35,000 decrease
• Deferral of Geologic Study of Cascade (101.552) Fault to FY 2026 -
$30,000 decrease
• Zoning Code Updates (101 .5512) - $35,000 decrease
• Contract Plan Checking - Structural Engineer Fees (101.554) -
$150,000 decrease
• Some Economic Development Implementation Efforts that can be done
later or done cheaper (101.556) - $41,000 decrease
o Reduced Training Expenses to reflect less anticipated staff training needed
in FY 2025 - $6,000
o Reduced Operating Transfers Out to Other Funds based on budgetary
reductions in those funds - $117,000
While the preceding are again short-term budget correction strategies that can bridge the
General Fund budget gap in FY 2025, staff continues to recommend that Council consider
the following long-term budget correction strategies:
• Placement of One or More Revenue Measures on November 2024 Ballot — As
discussed during the March 19, 2024 Study Session, Council may wish to place a
variety of revenue measures on the November 2024 ballot to achieve a number of
priorities. To assist in these efforts, staff is currently working with consultants to survey
residents on several options and develop potential ballot measure language. Staff will
return to Council at a later date in the near future to provide an update on their progress
and receive further Council direction.
Given the structural imbalance of the City's budget by $3.87 million in FY 2025 as
well as projected General Fund deficits ranging from $1.94 million to $3.87 million
from FY 2026 to FY 2031 (Please see Second Update to Lonq-Ranqe Financial
Forecast), staff is again currently assessing community interest in generating
additional, locally controlled revenue sources. Community engagement surveys the
City has conducted over the past decades all consistently show that Campbell
residents value local control over local funds, the City's tradition of fiscal prudence,
and the high quality of services that local residents, businesses, and visitors have
come to expect. Maintaining safe neighborhoods and commercial corridors, fire
protection services, streets and parks, addressing homelessness and expanding
housing options have all been identified by residents as priorities. Unless additional
reliable sources of locally controlled revenue are identified, the City may have no
choice but to reduce core services our public relies on. That's why the City is taking
decisive steps to survey our community about its current priorities and interest, if any,
in expanding our locally controlled revenue. Any voter-approved funding sources
require that the funds be spent locally, and those revenues cannot be taken by
Sacramento. Staff will return to Council in the near future to present the results of its
community engagement surveys and gauge Council's interest in placing revenue
measures on the November 2024 ballot given community feedback.
• Service Level and Expenditure Reductions — Should the City not be able to secure
additional revenue sources, service level and expenditure reductions may be
necessary to correct the structural imbalances in the General Fund detailed
previously. As such, the Executive Team will engage in collaborative meetings over
the next several months to discuss potential 5-10% service level reductions and their
associated impacts on City operations and the community. If necessary, the corrective
budget actions would be implemented at the mid-point of FY 2025; subject to further
Council discussion and approval.
• Restructuring and Repurposing of Current City Reserves—The City has a number
of current reserves which provide it with fiscal stability. Some reserves are highly
duplicative in purpose or have no policy on when they may be used. Staff
recommends restructuring and repurposing the City reserve funds. Based on Council
feedback received at the May 7 Budget Study Session, staff will again return to the full
Council at a later date in FY 2025 with a recommendation on draft policy language for
City Council's consideration. Any such recommended changes will not reduce the
overall level of City reserves, but instead clarify their use and means of replenishment
and direct them towards the highest priority City purposes.
All City Funds— Financial Summary
Table 6— All Funds Summary
FUND BALANCE REPORT
ALL FUNDS SUMMARY
FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg*
Beginning Fund Balance July 1 $ 56,890,257 $ 96,824,524 $ 100,688,119 $ 42,311,317
Revenues
Total Revenues $ 163,265,521 $ 94,060,104 $ 105,058,551 $ 96,073,636 -8.6%
Expenditures FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg*
Total Expenditures by Type $ 123,331,254 $ 90,196,509 $ 163,435,353 $ 101,128,949 -38.1%
Revenues vs Expenditures $ 39,934,267 $ 3,863,595 $ (58,376,802) $ (5,055,313)
Ending Fund Balance June 30 $ 96,824,524 $ 100,688,119 $ 42,311,317 $ 37,256,004
*% Change from FY 2024 Estimated to FY 2025 Proposed Budget
For a more detailed Fund Balance Report, please see the Fund Summaries section of the Budget book
Currently Proposed FY 2025 Operating and Capital expenditures across all City funds equal
$100.1 million and include:
• $3.8 million in interfund operating transfers out to support operations,
• $6.6 million in interfund capital transfers out to support capital projects,
• $3.1 million in scheduled Measure 0 debt service payments,
• 3% assumed salary growth for employees due to approved bargaining agreements,
• Other compensation special adjustments to bring certain positions to median,
• 8% assumed healthcare premium growth based on historical trends,
• Assumption that certain vacancies will be frozen until at least January 1 , 2025; with
approximate savings of $917,000 and more detailed to be provided in subsequent
sections,
Related revenue sources total $96.1 million and include:
• $3.8 million in interfund operating transfers in to support operations,
• $6.6 million in interfund capital transfers in to support capital projects,
• $1.252 million draw from the Pension Reserve to fully offset the large increase in the
City's required contribution towards its unfunded actuarial liability (UAL) for pensions,
• $952,000 draw from the accumulated CIPR funds to support $952,000 in carryover
CIPR projects previously approved, and
• $75,000 draw from Construction Tax reserve to support capital projects
This results in an annual deficit of approximately $5.1 million across all City funds. However,
this deficit is largely due to proposed spending down of some of the City's one-time remaining
ARPA funds by $1.45 million and the draw down of $540,000 in accumulated Measure 0
bond premiums to partially pay for the aforementioned $3.1 million in scheduled Measure 0
debt service payments; with the remaining $2.6 million in debt service expected to be
supported by estimated Measure 0 special property tax assessments in FY 2025. Please
note that similar to prior years, staff will return to Council by early August 2024 to seek
approval of Measure 0 tax rates for FY 2025 that are sufficient to support the remaining
annual debt service payments.
In summary, across all City funds, expenditures for FY 2025 show a 38.1% decrease when
compared to FY 2024 Year-End Estimates of $163.4 million. This decrease is largely due to
most Measure 0 bond proceeds being appropriated in FY 2024 so that construction contracts
could be entered into to complete the associated Library and Police building projects.
Operating Expenses though only shown a 1.2% decrease when compared to FY 2024 Year-
End Estimates of$89.5 million. Conversely, across all City funds, revenues for FY 2025 show
an 8.6% decrease when compared to FY 2024 Year-End Estimates of $105.6 million. This
decrease is largely due to the full recognizing of grant and other misc. one-time revenue
related to Measure 0 projects in FY 2024.
General Fund and Citywide revenue estimates and proposed expenditures by type and
department are shown in the Fund Summaries and Departments sections of the Budget Book.
And for more information on the assumptions used to estimate key revenues and other
significant items of note, please see the Funding Sources sections of the Budget Book.
C - ECONOMIC UPDATE AND OUTLOOK
In April 2024, the US labor market showed signs of moderation. The report released on
Friday, May 3rd by the Bureau of Labor Statistics (BLS) showed employers scaled back hiring,
resulting in a modest increase of 175,000 jobs in nonfarm payrolls, the smallest gain in six
months. The Bureau's report also highlighted an unexpected rise in the unemployment rate
to 3.9% from 3.8%, providing further support of a potential cooling in the job market after a
strong start to the year. Wage gains slowed, with average hourly earnings climbing 0.2% from
March and 3.9% from a year ago, the slowest pace since June 2021. Sectors such as leisure
and hospitality, construction, and government experienced slowdowns in job growth, while
healthcare, transportation, and retail trade saw more substantial gains.
Initial US Jobless Claims increased 22,000 to a higher-than-expected 231 ,000 level, and
Continuing Claims rose 17,000 to 1.785 million. Recent trends continue to indicate a tight
labor market, but the job's report for the week of May 10th may flash early warning signs of a
slowdown. The University of Michigan Consumer Sentiment Index took a dive as inflation
expectations increased. The preliminary index for May 2024 fell to 69.1 from 77.2 in April
2024. Consumers are seeing a stall in disinflation, and moderation in hiring and wage growth
is also dampening consumers' confidence. Both current conditions and expectations dropped
to the lowest levels since November 2023. The 1-year inflation expectations measure rose
three-tenths to 3.5%, and the 5-year inflation expectations measure rose one-tenth to 3.1%
in May, reaching their highest levels since November 2023. Relative stability in the 5-year
measure indicates that inflation expectations remain anchored. The report underscores staff's
view that consumer spending will slow in the face of growing headwinds such as depleted
savings and increasing borrowing costs.
All eyes were on the Federal Reserve (Fed) in May as it maintained its current range for the
federal funds rate between 5.25% and 5.50%, while acknowledging a lack of significant
progress in curbing inflation to its 2% target. The Fed announced a slower reduction in bond
holdings on its balance sheet, with the monthly cap on Treasurys reduced to $25 billion from
$60 billion but maintaining the mortgage roll-off at $35 billion. Thus, the total balance sheet
reduction cap decreased to $60 billion from $95 billion per month. This decision suggests a
cautious approach to monetary policy adjustments, as Fed Chair Jerome Powell emphasized
that inflation remains a concern. Powell also indicated that the next move in interest rates is
unlikely to be an increase, providing relief to some investors who had speculated about such
a move. The policy updates reflect the Fed's ongoing efforts to balance economic growth
while returning the economy to its 2% inflation target.
Meanwhile, US housing remains strong, with home prices rising 7.3% year-over-year in
February 2024, as reported by the S&P CoreLogic Case-Shiller national home price index.
San Diego saw the biggest rise in prices in the 20-city index, up 11.4% from February of 2023.
Chicago and Detroit reported 8.9% annual increases. The strong housing data was
contrasted by the decline in consumer confidence, as reported by the Conference Board, to
its lowest level since mid-2022, reflecting concerns about job availability, income prospects,
and overall economic conditions. The Institute for Supply Management reported US factory
activity contracted in April 2024, while input prices rose at the fastest pace since 2022, posing
challenges for producers amidst sluggish global markets. These factors, coupled with
inflationary pressures and high borrowing costs, underscore the challenges facing
households, businesses, and policymakers.
US Housing data also fell short of expectations in some areas reflecting elevated mortgage
rates which continue to constrain buyer demand. Housing starts rose 5.7% year-on-year to
1.36 million units on an annualized basis, but are still hovering near their post-pandemic lows
and down from over 1.8 million units at the peak. Building permits which lead housing starts
fell to their lowest level since December 2022. Existing US Home Sales fell-1.9% on a month-
over-month basis in April 2024; the data marked the second consecutive month of declines
from -3.7% in March 2024. New Home Sales declined as well, falling -4.7% month-over-
month. Consumers seem to share the sentiment as the University of Michigan Buying
Conditions for Houses Index is also at a 46-year low. The average US 30-Year fixed rate
mortgage had been steadily rising through the month of April peaking at over 7.4% before
reverting to near 7% in May. Perhaps the higher mortgage rates contributed to the soft data,
however seasonal adjustments to the indexes were likely a large factor.
Financial markets reacted positively to the economic releases and the Fed's stance on
monetary policy. The S&P 500 rose by 0.20% to 5110, fueled by strong corporate earnings,
while Treasury yields declined. The two-year yield dropped to 4.77%, and the 10-year yield
decreased to 4.48%, following Fed Chair Powell's remarks and subdued labor market data.
Looking ahead, the moderation in labor market growth and the Fed's cautious stance on
monetary policy underscore the delicate balance between economic expansion and
management of inflation. Despite ongoing concerns, the market's response suggests
cautious optimism about the economy's resilience amidst global uncertainties.
Inflation data was the market's focus the week of May 17th after a string of hotter than
expected data points so far this year. The Producer Price Index (PPI) came in above
expectations for April 2024, with the core measure excluding food and energy rising 0.5%
month-on-month and 2.4% year-on-year. However, several PPI components that feed into
the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditure
(PCE) Deflator, decelerated. In addition, the prior month's PPI was revised lower from 0.2%
month-on-month to -0.1% which also helped market sentiment.
Consumer Price Index (CPI) data for April 2024 came in line with expectations at the headline
level. CPI rose 0.3% month-on-month and 3.4% year-on-year, while the core measure came
in at 0.3% and 3.6% respectively. Encouragingly, the shelter component which makes up a
large proportion of the CPI (and to a lesser extent, PCE) but lags real time rents continues to
disinflate. The services component excluding shelter, which has remained stubbornly high,
also decelerated from the prior months' levels.
Elsewhere, US retail sales data came in below expectations this week supporting a growing
narrative that consumption is finally moderating. April 2024 retail sales in the US were
unchanged month-on-month but excluding more volatile components like gas, building
materials and autos fell by 0.3%. Anecdotal reports from large retailers as they report
earnings results also suggest consumers pulling back on spending and trading down.
In California, total nonfarm employment in the state increased by 5,200 jobs over the month
of April 2024. Additionally, statewide unemployment equaled 5.3% in April 2024; unchanged
from March 2024 and up from a rate of 4.5% in April 2023. In Santa Clara County, the rate
decreased to 3.5% in April 2024; down from 4.1% in March 2024, but up from 2.9% in April
2023. And in Campbell, the rate decreased to 3.5% in April 2024; down from 3.8% in March
2024, but up from 2.5% in April 2023. Thus, the County and City have seen some impacts
due to recent layoffs in the technology sector, but it has not had a significant impact to
unemployment numbers. At its pandemic high point in April 2020, the Campbell
unemployment rate had reached 11.7%.
Staff continues to forecast slowed and relatively flat growth over the course of calendar year
2024 and through FY 2025. Financial conditions have clearly tightened and are having the
desired Treasury impact of slowing down the velocity of the economy, but likely not at the
rate yet that the Fed was hoping. The Fed continues to believe that monetary policy is
sufficiently restrictive, yet they will need to see more progress in the slowing of inflation data
to initiate interest rate reductions. Staff believes inflation will continue to move lower, but that
it still may take some time to come within normal levels.
D - LONG-RANGE FORECAST
The Second Update of the Seven-Year Financial Forecast is shown and discussed in more
detail in a separate section of this Budget book called "Long-Range Financial Forecast".
The forecast is meant to assist Council and staff in determining whether current expenditure
decisions made in FY 2025 can be supported long-term over through FY 2031. While all
budgetary requests can be supported by the General Fund and short-term corrective actions
in FY 2025, based on staffs initial analysis and reasonable growth projections in expenditure
and revenues, the out years could again be a challenge given the City's structural deficit
issues absent significant ongoing expenditure and service reductions and/or new revenue
sources. In regard to the latter, staff is again currently assessing community interest in
generating additional, locally controlled revenue sources for potential placement on the
November 2024 ballot.
E — FEDERAL, STATE, AND OTHER AID
As previously noted, the City is received $9.997 million total in one-time American Rescue
Plan Act (ARPA) funding; with the first payment of $4.999 million received in FY 2021 and
the second payment of$4.999 million received in FY 2022. These are one-time monies and
must again be obligated (appropriated and/or encumbered through contractual agreements
or approved and filled City staffing) by December 31, 2024 and spent down fully by
December 31, 2026.
In addition to ARPA, staff has submitted a $1.5 million federal budget request to
Representative Eshoo's office for Campbell Priority Development Area (PDA) Enhancements
Projects in the downtown area. Staff is cautiously optimistic about being awarded these funds
given support from Representative Eshoo, but has not been awarded funds yet and has not
incorporated them into the City's CIP.
F - BUDGET AND FINANCIAL AWARDS
For the 31 St consecutive year, the City's FY 2024 budget received national recognition by earning
the Government Finance Officers Association (GFOA) "Distinguished Budget Award." To receive
the Distinguished Budget Presentation Award, a city must publish a budget document that serves
as a policy document, a financial plan, a communications device, and an operations guide. We
believe the FY 2025 budget conforms to GFOA program requirements. Additionally, FY 2024 is
the 26th year an award of"Excellence in Budgeting" has been received from the California Society
of Municipal Finance Officers(CSMFO). Copies of both awards appear in the "Budget Reference
Materials"section of this document. It also should be noted that the City's Annual Financial Report
has also been an award-winning document for excellence in financial reporting at both the State
and national levels for many years.
G - CONCLUSION AND ACKNOWLEDGEMENTS
The development of the Proposed Fiscal Year(FY)2025 Operating Budget and 2025-2029 Five-
Year Capital Improvement Plan (CIP)was made possible through the knowledge and contribution
of the City's employees, input and support from our community, and direction of the City Council.
Despite the economic pressures of the past few years, the City has done well to preserve core
services, but as the budget and CIP before you demonstrate, the City continues to face significant
fiscal challenges in the short- and long-term and remains cautious, conservative, and strategic in
our operational growth to ensure long-term fiscal resilience.
I wish to thank everyone who participated in the budget process this year including the City Council
and members of the Executive Team. Finally, I would like to recognize the staff within the Finance
Department for their dedication and hard work that went into coordinating, developing, and
publishing this budget document.
Respectfully submitted,
Brian Loventhal
City Manager
Exhibit A
FY 2025 Adopted City Council Priorities
Strategic Council Priorities Staff Takeaways
Objectives
Long-Term Land Use • Continue implementation of the General
Planning and Plan, including the Housing Element
Housing • Continue developing a comprehensive
Bike/Ped Safety Plan
• Continue developing Hamilton Avenue
Precise Plan
• Continue developing objective
standards for residential single-family
neighborhoods
• Utilize outside funding and other
Land Use resources to address the unhoused
• Consider rental policies
• Support traffic signal prioritization if
funding becomes available
• Maximize Park Development Fees and
other resources to meet resident's
needs
Measure 0 • Continue construction on Police
and Library buildings and provide
updates to Council and public
• Continue to support Oversight
Committee; providing information
as requested and required
Financial Stability • Develop strategic funding
recommendations to support the
implementation of Housing Element and
Housing program
• Support software and technology for
organizational, community, and fiscal
resiliency
• Support implementation of Economic
Financial Health Development Plan
• Discuss and allocate remaining ARPA
funds
• Develop plans to address unfunded
pension liabilities
• Use facilities conditions assessment
study to develop plan to address
infrastructure needs
• Develop potential revenue measures for
placement on November 2024 ballot
Strategic
Objectives Council Priorities Staff Takeaways
• Continue to pursue grant funding
opportunities and funding by other
public agencies
• Support personnel recruiting efforts as
budgeted
Sustainability • Continue to support development of
Climate Action Plan
• Continue to implement SB 1383, equity
for all housing types
Environment • Continue to support resiliency of City
facilities
• Support public outreach on City
sustainability practices (single use
plastics, food waste)
Community Health • Support traffic calming program
and Safety • Support small businesses
• Promote mental health through first
responders and partnerships
• Promote 988 program (mental health
crisis lifeline)
Community • Inclusivity: consider ways to be more
inclusive, for example: ADA access,
sign language translation, etc.
• Promote Council and City initiatives:
• Continue to support crossing guard
program in partnership with the school
districts:
• Support emergency management
development and training
Exhibit B
FY 2025 Proposed Workplans
City Manager
CM Administration
• Provide staff support to the Civic Improvement Commission [Operational Need]
• Coordinate, plan, and provide staff support for the State of the City event and All
Hands Meeting [Operational Need] (Resources — Internal Staff Time)
• Coordinate tracking of state legislation (that may impact City) with Legislative
Subcommittee [Operational Need] (Resources — Internal Staff Time)
• Continue to provide guidance and support for labor related issues [Operational Need]
(Resources — Internal Staff Time)
• Promote City Council initiatives through various forms of media [Operational Need]
(Resources — Internal Staff Time)
• In coordination with Legal Services, City Clerk's Office, Finance, and outside
consultants (as needed), provide overall guidance in the evaluation and development
of potential ballot measures for November 2024 ballot [Council Priority — Financial
Stability] (Resources — Internal Staff Time and Outside Consultants at approx.
$100,000)
Measure 0
• Provide overall coordination of Measure 0 Police, Library, and related projects
[Council Priority — Measure 0] (Resources — Internal Staff Time)
• Provide support to the Measure 0 Citizens' Oversight Committee [Council Priority —
Measure 0] (Resources — Internal Staff Time)
Human Resources
• In collaboration with the Finance Department and Information Technology (IT) Division
as well as other key stakeholders, complete the implementation, testing, and training
for a new Human Resources Information and Payroll System LEAD DEPARTMENTS
— HR and Finance [Council Priority — Financial Stability] (Resources — Internal
Staff Time and Contractual Services with Software Vendor)
• Coordinate and plan Benefits Fair and Volunteer Program for City staff [Operational
Need] (Resources — Internal Staff Time)
• Work with Liebert Cassidy Whitmore on meet and confer items with CMEA, CPCEA,
CPOA, and CARP [Operational Need] (Resources — Internal Staff Time and Outside
Legal Services)
• Open negotiations with CMEA, CPCEA, CPOA, and CARP for bargaining agreements
expiring at the end of FY 2025 or the middle of FY 2026 [Operational Need]
(Resources — Internal Staff Time)
• Launch citywide mandatory training to cover essential topics such as Harassment
Prevention, Ethics, Anti-bias, Front Counter Security Training, and Active Shooter
Training [Operational Need] (Resources — Internal Staff Time)
Information Technology
• In collaboration with the Finance Department and Human Resources (HR) Division
as well as other key stakeholders, complete the implementation, testing, and training
for a new Human Resources Information and Payroll System LEAD
DEPARTMENTS — HR and Finance [Council Priority — Financial Stability]
(Resources — Internal Staff Time and Contractual Services with Software Vendor)
• Provide IT consultation regarding Measure 0 projects [Council Priority — Measure
0] (Resources — Internal Staff Time)
• Adapt Zero-Trust security stance for all enterprise technology platforms [Financial
Stability] (Resources — Internal Staff Time and Outside Software Licensing)
• Purchase and deploy replacement Network Firewall system [Financial Stability]
(Resources — Internal Staff Time in coordination with Outside Vendors)
• Replace 25% of antiquated desktop computers [Operational Need] (Resources —
Internal Staff Time in Coordination with Outside Vendors)
• Continue public meeting recording and management [Operational Need]
(Resources — Internal Staff Time)
• Replace public meeting video and recording systems [Operational Need]
(Resources — Internal Staff Time)
• PD - Upgrades related to DOJ mandates (NIBRS) [Operational Need] (Resources
— Internal Staff Time)
Economic Development
• Begin Implementation of the City's 2024 Economic Development Plan, including
website improvements, creating a business guide, conducting outreach with brokers,
and collaborating with the business stakeholders on upcoming events. [Council
Priority-Financial Stability] (Resources — Contractual Staff followed by Hiring of
Internal Staff)
• Begin work on potential branding and promotion of Dell / McGlincy area, including
outreach and survey of existing businesses [Council Priority-Financial Stability]
(Resources — Contractual Staff followed by Hiring of Internal Staff)
City Clerk's Office
• Carry-forward from FY 2023 - Comprehensive review of citywide records; coordinating
and implementing a revised records retention schedule and procedures [Operational
Need] (Resources — Internal Staff Time and Outside Consultants at approx. $20,000)
• Conduct the November 5, 2024, Municipal Election for Districts 1 and 2 [Operational
Need] (Resources — Internal Staff Time and County Costs at approx. $18,000)
• Support and assist internal and external teams with potential placement of revenue
ballot measure [Financial Stability] (Resources — Internal Staff Time and County
Costs at approx. $198,000)
• Review and evaluate new agenda management software [Operational Need]
(Resources — Internal Staff Time and Setup Costs at approx. $13,000)
Community Development
Administration
• In coordination with the Finance Department, City Council, key stakeholders, and
outside consultants (as needed), develop funding strategies and options to support
Housing Element programs. LEAD DEPARTMENTS - Community Development
and Finance [Council Priorities —Long-Term and Land Use Planning and
Housing and Financial Stability] (Resources — Internal Staff Time)
• Upgrade permit tracking system to create greater efficiencies and increase
performance in permit processing including establishing and tracking metrics for
permit processing and inspections. [Operational Need] (Resources — Contractual
Project Manager at approx. $60,000)
• Complete ordinance and policy updates to implement procedures for pass through
funded technical studies [Operational Need] (Resources — Internal Staff Time)
Policy Development
• Continue preparation of a Citywide Climate Action Plan [Council Priority —
Sustainability] (Resources — Internal Staff Time and Outside Consultants at approx.
$300,000 total for plan)
• In coordination with the Public Works Department, start preparation of Hamilton
Avenue Precise Plan [Council Priority — Long - Term Land Use Planning and
Housing] (Resources — Internal Staff Time and Outside Consultants at approx.
$400,000 total for plan)
• Support the Recreation and Community Services and Public Works Departments to
prepare a Citywide Parks and Recreation Facilities Master Plan [Council Priority —
Long - Term Land Use Planning and Housing] (Resources — Internal Staff Time)
• In coordination with the Public Works Department and contingent on grant funding,
start preparation of a Citywide Multimodal plan with bicycle and pedestrian
improvements [Council Priority — Long - Term Land Use Planning and Housing]
(Resources — Internal Staff Time and possible TBD Consultant Services at approx.
$650,000 total)
• Complete updates to the City's Multifamily Residential Development and Design
Standards (MFDDS) — [Council Priority — Long Term Land Use Planning and
Housing] (Resources — Internal Staff Time and Consultant Services at approx.
$412,000 total through previously approved contract with Opticos Design Inc.)
• Complete updates to the City's Historic Preservation Ordinance and Mills Act Program
[Council Priority — Long Term Land Use Planning and Housing] (Resources —
Internal Staff Time)
Current Planning
• Create checklists and ordinance code updates for streamlining CEQA review of
development projects consistent with the 2040 General Plan [Operational Need]
(Resources — Internal Staff Time and Outside Consultant at approx. $17,000)
• Implement annual code updates to comply with new state laws and implement
streamlining to meet the city's economic development goals. [Operational Need]
(Resources — Internal Staff Time and Outside Legal Support at approx. $10,000)
• Coordinate with the Planning Commission on evaluating and implementing
modifications to Site and Architectural Review Committee. [Operational Need]
(Resources — Internal Staff Time)
Building
• Complete necessary ordinance code updates and begin implementation of state laws
requiring streamlined permitting for Photovoltaic and EV Charging projects.
[Operational Need] (Resources — Internal Staff Time)
• Establish a staff training, leadership, and continuing education program for Building
staff. [Operational Need] (Resources — Internal Staff Time)
• Complete integration of Code Enforcement with the Building Division processes to
address violations. [Operational Need] (Resources — Internal Staff Time)
Housing Assistance
• Implement BMR Housing program improvements as identified in Housing Program
audit in association with Housing Element implementation [Council Priority — Long -
Term Land Use Planning and Housing] (Resources — Internal Staff Time and BMR
Consultant at approx. $175,000)
• Complete ordinance code updates to implement modifications to the City's
Inclusionary Housing Ordinance and a Commercial Linkage Housing Fee to support
Affordable Housing production [[Council Priority— Long -Term Land Use Planning
and Housing] (Resources — Internal Staff Time and Outside Consultant)
• Begin work on homelessness programs including hiring of an unhoused specialist
[Council Priority — Long - Term Land Use Planning and Housing] (Resources —
Internal Staff Time)
• Prepare Ordinances to implement State Laws (SB 10 & 684) addressing missing
middle housing [Council Priority — Long - Term Land Use Planning and Housing]
(Resources — Internal Staff Time)
• Conduct outreach to increase community awareness of housing assistance programs
available in Campbell, including resources to support development of ADU's [Council
Priority — Long - Term Land Use Planning and Housing] (Resources — Internal
Staff Time and Outside Contract Support)
• Pursue Pro-Housing Designation from State Housing and Community Development
[Council Priority — Long - Term Land Use Planning and Housing] (Resources —
Internal Staff Time)
• Pursue programs and actions that preserve existing affordable housing units that will
convert to market rate housing by 2026 [Council Priority — Long - Term Land Use
Planning and Housing] Resources — Internal Staff Time)
• Complete ordinance updates addressing rent modifications for Below Market Rate
(BMR) Housing [Council Priority — Long - Term Land Use Planning and Housing]
Resources — Internal Staff Time)
• In Coordination with the Recreation and Community Services (RCS) Department as
well as community groups and potential outside service providers, pursue the
establishment of cold weather shelter in Campbell. Additionally, collaborate with the
County and other West Valley cities in establishing a regional homeless shelter.
[Council Priority — Long - Term Land Use Planning and Housing] Resources —
Internal Staff Time and TBD Outside Consulting)
• Begin initial work on establishing a potential Housing Commission [Council Priority
— Long - Term Land Use Planning and Housing] Resources — Internal Staff Time)
Finance
• In coordination with an outside consultant, the City Manager's Office, all members of
the Executive Team, and other key stakeholders, explore potential new revenue
sources to place on the 2024 General Election ballot LEAD DEPARTMENTS — City
Manager's Office and Finance Department [Council Priority—Financial Stability]
(Resources — Internal Staff Time and Outside Consultants at approx. $100,000)
• Develop strategies to systematically address Unfunded Pension Liabilities in the short-
and long-term [Council Priority — Financial Stability] (Resources — Internal Staff
Time and Outside Consultants at approx. $17,000 annually)
• Using results of completed facilities condition assessment, collaborate with the Public
Works and Recreation and Community Services Departments to prepare capital
projects to address Citywide deferred maintenance issues in future Capital
Improvement Plans (CIP) LEAD DEPARTMENT - Public Works [Council Priority —
Financial Stability] (Resources — Internal Staff Time and Outside Consultants in
Public Works)
• In coordination with the Community Development Department, City Council, key
stakeholders, and outside consultants (as needed), develop funding strategies and
options to support Housing Element programs. LEAD DEPARTMENTS - Community
Development and Finance [Council Priorities —Long-Term and Land Use
Planning and Housing and Financial Stability] (Resources — Internal Staff Time
and Outside Consultants in Community Development)
Legal Services
• Assist with development of potential ballot measures for November 2024 ballot; and
prepare impartial analysis for ballot [Council Priority — Financial Stability]
(Resources — Internal Staff Time and Outside Consultants at approx. $100,000)
• Review Community Development Department's updates to the City's Multifamily
Residential Development and Design Standards (MFDDS)—[Council Priority—Long
Term Land Use Planning and Housing] (Resources — Internal City Attorney Time)
• Review Community Development Department's ordinance and policy updates to
implement procedures for pass through funded technical studies [Operational Need]
(Resources — Internal City Attorney Time)
• Review Community Development Department's updates to the City's Historic
Preservation Ordinance and Mills Act Program [Council Priority — Long Term Land
Use Planning and Housing] (Resources — Internal City Attorney Time)
• Work with Community Development and Public Works to finish update of Subdivision
Ordinance [Council Priority - Long-Term Land Use Planning and Housing]
(Resources — Internal City Attorney Time)
• Provide support on implementation of Measure 0 [Council Priority — Measure 0]
(Resources — Internal City Attorney Time)
• Assist City Clerk with revised records retention schedule and procedures
[Operational Need] (Resources — Internal City Attorney Time)
• Assist Community Development with/review Citywide Climate Action Plan [Council
Priority — Sustainability] (Resources — Internal City Attorney Time)
• Review Hamilton Avenue Precise Plan [Council Priority — Long - Term Land Use
Planning and Housing] (Resources — Internal City Attorney Time)
• Review Community Development Department's annual code updates to comply with
new state laws and implement streamlining to meet the city's economic development
goals [Operational Need] (Resources — Internal City Attorney Time)
• Review Community Development Department ordinances to implement State Laws
(SB 10 & 684) addressing missing middle housing [Council Priority — Long - Term
Land Use Planning and Housing] (Resources — Internal City Attorney Time)
• Review Community Development Department's ordinance updates addressing rent
modifications for Below Market Rate Housing [Council Priority — Long - Term Land
Use Planning and Housing] (Resources — Internal City Attorney Time)
Police
• Implement new technologies including Axon Computer Aided Dispatch (CAD) system,
Real Time Information Center (RTIC), and Next Generation 911 [Council Priority —
Community Health and Safety] (Resources — Internal Staff Time and Grant Funded
Expenditures)
• Recruit and hire qualified candidates for vacancies and upcoming retirements
[Council Priority — Community Health and Safety] (Resources — Internal Staff
Time and Outside Contractors at approx. $200,000 annually)
Public Works
Administration
• Manage Measure 0 capital projects; overseeing construction contracts and
associated project budgets [Council Priority - Measure 0 Implementation]
(Resources — Internal Staff Time funded with Measure 0 Resources)
• Represent Campbell in long range regional transportation planning efforts - Envision
Silicon Valley and Plan Bay Area 2050 process [Council Priority - Long-Term Land
Use Planning and Housing] (Resources — Internal Staff Time)
Transportation Engineering
• Review and consider revisions to the City's Traffic Calming Policy [Council Priority —
Community Health and Safety] (Resources — Internal Staff Time)
• Manage, design, and implement traffic calming improvements [Council Priority —
Community Health and Safety] (Resources — Internal Staff Time)
• Manage, design, and implement bicycle and pedestrian enhancements and safety
improvements [Council Priority - Long-Term Land Use Planning and Housing]
(Resources — Internal Staff Time and Outside Grant Funded Expenditures)
• Manage Safe Routes to School Maps Project [Council Priority—Community Health
and Safety] (Resources — Internal Staff Time and Outside Grant Funded
Expenditures)
• Manage Hamilton Avenue/State Route 17 Bicycle Overcrossing Planning Study
(tentative, pending VTA scoring committee results) and revisit priority and resource
allocation [Council Priority - Long-Term Land Use Planning and Housing]
(Resources — Internal Staff Time and Outside Grant Funded Expenditures)
• Apply for and manage grant funds as provided through VTA and other granting
agencies [Council Priority — Financial Stability] (Resources — Internal Staff Time)
Engineering
• Implement the Annual Street Maintenance Program [Council Priority — Financial
Stability] (Resources — Internal Staff Time and Outside Contractors Funded by CIPR
and External Agencies)
• Manage and implement all other approved Capital Improvement Projects
[Operational Need] (Resources — Internal Staff Time)
• Continue update of City Standard Details and Technical Specifications for Public
Works Construction [Operational Need] (Resources — Internal Staff Time)
• Review applications and issue permits for wireless facilities/small-cell wireless
projects in the public right-of-way [Operational Need] (Resources — Internal Staff
Time)
• Review encroachment permit applications and issue permits for construction within
the public right-of-way [Operational Need] (Resources — Internal Staff Time)
• Perform field inspections of construction operations within the public right-of-way
[Operational Need] (Resources — Internal Staff Time)
• Maintain streetlight inventory and assist with street lighting needs for projects [CIP
Support] (Resources — Internal Staff Time)
• In coordination with the Recreation and Community Services Departments, prepare a
Citywide Parks and Recreation Facilities Master Plan [Council Priority — Long -
Term Land Use Planning and Housing] (Resources — Internal Staff Time)
Land Development
• Review development proposals for compliance with the reissued Storm Water
Municipal Regional Permit (MRP 3.0), including necessary updates to the Green
Infrastructure Plan [Council Priority — Long-Term Land Use Planning and
Housing] (Resources — Internal Staff Time)
• Review and approve land development projects for compliance with City policies
adopted plans, and City standard plans and details, and identify associated
improvements on public rights-of-way [Operational Need] (Resources — Internal
Staff Time)
• In coordination with the Community Development Department, facilitate construction
of any remaining Semi-permanent Parklets in Downtown Campbell [Operational
Need] (Resources — Internal Staff Time)
Maintenance
• Complete a comprehensive Inventory and Condition Assessment of all City Facilities
[Council Priority - Financial Stability] (Resources— Internal Staff Time and Outside
Contractors Funded by CIPR)
• Complete all approved Capital Improvement Projects, including Campbell Community
Center and the Sunnyoaks Fire Station Roofing projects [Council Priority —
Sustainability] (Resources — Internal Staff Time)
• Complete preventative maintenance work in Maintenance Zones 10 & 11, including
the removal and replacement of displaced sidewalks, curb and gutter and structural
tree trimming [Council Priority — Community Health and Safety]
• Complete installation of new Tesco Battery Backup Systems in all 43 signalized
intersections [Council Priority — Community Health and Safety]
• Implement water conservation strategies including turf and irrigation controller
upgrades for the Community Center and sports fields [Council Priority —
Sustainability] (Resources — Internal Staff Time)
• Support volunteer events such as Keep America Beautiful and Campbell Garage Sale
[Operational Need] (Resources — Internal Staff Time)
• Complete the acquisition and installation of a new Traffic Signal and Lighting Modular
Building at the Service Center [CIP Support] (Resources — Internal Staff Time)
• Complete all approved vehicle and equipment purchases and lease acquisitions as
budgeted [Operational Need] (Resources — Internal Staff Time)
• Complete replacement of three diesel-powered heavy-duty trucks with gasoline
powered vehicles to meet EPA Tier 4 motor requirements [Operational Need]
(Resources — Internal Staff Time)
• Complete asphalt repairs, seal coating, and striping for the Campbell Community
Center Parking Lot [Operational Need] (Resources — Internal Staff Time)
• Complete Annual Crack Seal Project [Operational Need] (Resources — Internal Staff
Time)
• Complete installation of Calsense Irrigation Controllers for John D Morgan Park and
Jack Fischer Park [Operational Need] (Resources — Internal Staff Time)
• Create a proposed schedule of repairs and replacements for City-owned assets as
outlined in the City's Asset Inventory Report [Council Priority — Financial Stability]
(Resources — Internal Staff Time)
• Complete the renovation of the Campbell Park pedestrian bridge [Council Priority —
Sustainability] (Resources — Internal Staff Time)
• Complete repair and replacement of a storm drain outfall in Los Gatos Creek at the
County Park [Council Priority—Community Health &Safety] (Resources— Internal
Staff Time)
Environmental
• Provide solid waste, stormwater, and water conservation expertise for the Campbell
Climate Action Adaptation Plan [Council Priority - Sustainability] (Resources —
Internal Staff Time)
• Coordinate and support efforts to implement the requirements of SB 1383 [Council
Priority - Sustainability] (Resources — Internal Staff Time)
• Coordinate and support the solid waste hauler rebranding effort [Council Priority -
Sustainability] (Resources — Internal Staff Time)
• Provide support to the Solid Waste Management Authority when implementing the
new solid waste hauler agreement and associated requirements [Council Priority -
Sustainability] (Resources — Internal Staff Time)
• Coordinate and support the Planning and Building Divisions with trash enclosure plan
reviews, project waste management plans, and the implementation of the newly
updated construction and demolition program [Council Priority - Sustainability]
(Resources — Internal Staff Time)
• Provide support to the West Valley Clean Water Authority when implementing the
regional stormwater MRP 3.0 [Council Priority - Sustainability] (Resources —
Internal Staff Time)
• Coordinate and support the West Valley Clean Water Authority and Campbell Street
Division with the installation of full trash capture devices for State Water Board
compliance [Council Priority - Sustainability] (Resources — Internal Staff Time)
Measure 0 — City Manager's Office
• Complete construction phase for both Police and Library buildings [Council Priority
- Measure 0] (Resources — Internal Staff Time funded with Measure 0 Resources)
• Manage the construction contracts for both the Library and Police Building projects,
including change order management and contract administration [Council Priority -
Measure 0] (Resources — Internal Staff Time)
• Implement Civic Center site staging plan to accommodate City Hall customers and
employee parking [Council Priority - Measure 0] (Resources — Internal Staff Time)
• Provide support to the Citizens' Oversight Committee [Council Priority - Measure 0]
(Resources — Internal Staff Time)
Recreation and Community Services
Administration
• In collaboration with Public Works complete Parks and Recreation Master Plan.
[Council Priority — Long-Term Land Use Planning and Housing] (Resources —
Internal Staff Time and Outside Consultant at approx. $210,000)
• Renew Age-Friendly Cities designation with World Health Organization (WHO)
[Operational Need] (Resources — Internal Staff Time)
• Explore programming opportunities to expand inclusivity through therapeutic and
adaptive recreation programming [Council Priority — Community Health and
Safety] (Resources — Internal Staff Time)
101.528 (Museum)
• Increase accessible searchable Museum collection records by 5% [Operational
Need] (Resources — Internal Staff Time)