Budget approved; city plans to use reserves
Officials say service level will remain the same
By Sheila Sanchez
In spite of a tough economy and a 2002-03 budget that anticipates borrowing against reserves, the Campbell City Council has no plans to cut services.
In fact, the $43.4 million budget, approved unanimously on May 21, includes new costs for homeland security preparedness and plans to complete the Heritage Theater renovation project. Street and sidewalk improvements are also planned.
The budget, which is $1.4 million less than the city's 2001-02 fiscal year budget of $44.8 million, represents a 3.2 percent decrease from last year. The decrease, according to Campbell's finance director, Gretchen E. Conner, is due to the country's recession and economic downturn.
Although the budget is balanced--operating revenue equals or exceeds operating expenditures in all funds--$1.2 million from the city's reserve fund has been included in the budget. The reserve was established for economic fluctuations during fiscal year 1994-95 after the last economic recession. The reserve has grown to nearly $4.8 million due to inflation and the city's ability to add additional funds to it. The funds are expected to offset possible shortfalls. "We have never drawn on it to date," Conner explained. "And we may not actually need to. We'll review this at the midyear point."
She said that major revenue sources from sales tax, transient occupancy tax, investment income tax and construction-related tax are down. The four revenues make up the $1.2 million being borrowed from the reserve.
"The council is coming along with me on this recommendation because of the recession and because some of the economic impacts of the recession are likely going to carry over into the early part of the next fiscal year," Conner said.
"But we have no new taxes built into this budget, and we're not reducing or eliminating any levels of service. We're able to do that because of the financial policies in place at the city that ensure that our ongoing level of revenue meets or exceeds our ongoing level of expenditures."
Conner added that city officials and department heads approached the budget process conservatively this year. "Departments may have held back on some requests because we have been in a recession. People have been prudent."
In a written report to the council, Conner noted that the budget maintains the quality and range of services that Campbell residents have come to enjoy and expect.
Al Bito, Campbell's administrative analyst, said that with the infusion of debt, financing will allow the city to free up capital improvement plan reserves to fund critical projects for the city. "I appreciate the time and effort the city council invests in holding a special study session each year to review the city's seven-year capital improvement plan to enhance the city's parks, streets, storm drains and city facilities," Bito said.
Bob Kass, director of Campbell's public works department, praised Conner and City Manager Berny Strojny for addressing difficult economic times by not reducing any services to the community.
"We have a very efficient process that works extremely well for the department heads, and it doesn't create a lot of anxiety during the budget period like some of my colleagues in neighboring cities face," Kass said.
Conner said that the budget process is one of the best ones the city has had. "The departments work together really well. In the four cities I've worked in, this is the only city where the budget is a living, breathing document. People use it the whole year. It doesn't get put on the shelf."
She said that the budget also continues to fund the city's annual street and sidewalk maintenance contracts with the budget's operating revenue, rather than with "onetime" monies. Improvements were estimated to exceed $700,000.
"We made a conscious decision to build that amount into the operating services, funded with ongoing operating revenue, and we've continued to do that since that point in time. Many cities don't do this. What we're doing is proactive to keep our streets in good condition."
Included in the $43.4 million budget is The Redevelopment Agency's operating budget of $4.8 million.
Approval of the budget came after a special budget study session May 8.
Some of the budget's funding items include implementing a homeland security preparedness program, conducting financial crimes investigations, completing the Heritage Theater renovation project and its fundraising efforts, and the Campbell Police Department (CPD) and city hall remodel project.
The CPD renovation project is expected to cost nearly $1 million and provide an additional 3,239 square feet to the department. The project will total 6,939 square feet and include additional space for the expansion of the men's locker room to 75 lockers. It will also upgrade the CPD's restrooms and shower facilities, making them accessible to people with disabilities. The project will expand and relocate the CPD's communications center, expand the private briefing and report writing rooms, create an emergency operating center/training room, expand the evidence storage room, build two new offices, expand the records area and remodel and expand the public lobby into the lower level of city hall.
Also included in the budget--$735,000 for the downtown sidewalk project, $987,033 for deferred street maintenance, $490,000 for Westmont Avenue improvements and $462,500 for the Vasona Corridor light rail station.
The city has also allocated $500,000 to participate in the multi-jurisdictional animal shelter project spearheaded by Silicon Valley Animal Control Authority, a government agency that has participation from seven cities, including Campbell. All cities are contributing to the construction of a new animal shelter that will serve the member cities.
Beginning in July, the authority will bill Campbell $231,345 for animal care and control services, said Deborah Biggs, general manager for the authority.
The Westmont Avenue work will include improvements to curbs, gutters, sidewalks and storm drainage; pavement resurfacing or reconstruction; signing; striping (including bike routes and/or bike lanes) on Westmont Avenue between San Tomas Aquino Road and the westerly city limits; and the construction of a new traffic signal at the intersection of Westmont Avenue and Harriet Avenue.
Campbell, California
