Santa Clara Out Of Red, Adopts FY Budget

SANTA CLARA, CA — The City of Santa Clara Biennial Operating Budget was adopted as a sound budget that's "fiscally responsible, enhances services and addresses rising operating costs, while establishing a new policy to regularly set aside reserves to pay down liabilities," local government officials announced.

“The budget is balanced and reflects the council’s focus on financial reforms,” Mayor Lisa M. Gillmor said after the June 25 adoption from the City Council meeting. “I would like to acknowledge City Manager Deanna Santana and the Finance Department staff for (the) hard work and diligence in bringing forth a transparent budget that invests in community needs, while improving the City’s overall financial standing.”

As it faced this fiscal-year framework for the city, Santa Clara initially faced a General Fund deficit of about $13.8 million and $24 million, respectively, for the last two years. Plus, ongoing deficits were forecasted in every year of the Ten-Year Financial Forecast. Now, local officials claim these immediate deficits have been eliminated by taking a closer look at financial assumptions and projected expenses. Still, the financial outlook requires focused discipline and strategy.

The total operating budget for FY 2019/20 is $844.7 million. The budget includes further refinements in calculating CalPERS costs and revenue sources, along with netting out fund transfers. The FY 2020/21 operating budget came out as $846.5 million, an increase of 0.2 percent above the FY 2019/20 budget, which now incorporates a few council-recommended additions from the proposed budget.

The adopted budget features key investments, along with providing investments in the Reed & Grant Streets Sports Park, improvements at the Raymond G. Gamma Dog Park, installation of a bathroom at Fairway Glen Park and an increase in library hours at the Northside Branch Library.

Other highlights of the operating budget are:

• Launching a pilot for an Accessory Dwelling Unit Incentive Program for teachers and public service workers
• Investing in Information Technology Services to enhance cybersecurity, audio/visual services and Office 365 workforce transformation
• Replacing one reserve fire engine
• Funding of up to $100,000 for Census 2020 outreach to ensure an accurate population count
• Funding for Measure N Outreach and Engagement for public outreach and community engagement for district elections
• Funding for city clerk initiatives and voter outreach to encourage voter participation
• Adding resources for risk management program and public records act administration
• Supporting all City Council priorities with the strategic net addition of 15.5 positions (8.9 General Fund positions) including the addition of a sustainability officer, two positions to expand parks programming and a stadium oversight manager to provide more public safety coordination

Based on council input, the budget now includes funding for a “Love Santa Clara” program, additional monies for the Sister Cities program, $70,000 in funding to the Santa Clara Parade of Champions and one-time funding of $100,000 to provide internship opportunities for high school students over the next two budget years.

Prior to the budget’s adoption, a joint study session on May 7 went over the proposed operating budget. A June 4 public hearing allowed the council and public to review the budget and provide input as well as include follow-up from the May 7 meeting.