Budget constraints have forced the city to downsize the event, which will save the city $34,000. This includes the elimination of the snow, sleigh and train rides and closure of the streets, which means there is no need for police and public works department staff to work overtime.

Council members voiced their regrets about the decision and Mayor Jane Kennedy wanted to assure the community that the council had no choice in the matter.

"I think we all feel the same way, that we hate to see this downsized," Councilwoman Jeannette Watson said, "but we've had to give up a lot of other things in our city this year, as well as the lack of staffing that we have. It is a crisis, really."

Councilman Don Burr said, "I think our city takes a lot of pride in this event and hopefully we can do it again once things turn around."

Those aspects of the festival that have limited fiscal impact will remain intact, including the lighting of the street trees on Campbell Avenue between Fourth Street and the railroad tracks. The lights at Ainsley Park will continue to shine during the holiday season. The redwood tree next to the library and the Roosevelt redwood tree will continue to be lighted as well.

Campbell Recreation and Community Services Director Claudia Cauthorn said the city will encourage community groups to carol downtown and hoped the Downtown Campbell Business Association and other organizations would step forward and assume some of the responsibility for continuing to make the Carol of Lights as successful as it has been in the past.

On a positive note, the council approved the acceptance of a large holiday donation from Campbell businessman Alan Aerts.

Aerts, who had an elaborate holiday display outside his Monte Sereno home, can no longer decorate his home the usual way. The city of Monte Sereno passed an ordinance that limited how long he could keep up his display.

He decided to donate all his decorations to Campbell, where his business is located. This includes two tall lighted marching soldiers, which Cauthorn said could be placed at the downtown entrance by the railroad tracks. Two 12-foot candy canes could be placed at the Winchester Boulevard entrance to the downtown and a 25-foot- long train could be placed on the Orchard City Green. There is also one 12-foot giant wreath with bells, a giant book, A Christmas Carol, and three giant blocks that could all be placed strategically on the Orchard City Green between city hall and the library.

There were numerous other items that Burr suggested be stored for later use.

"I am certainly in favor of the donation and would like to accept all the items, which if the economy changes can be used later," he said. "This is a great offer, one we could never replace."

Cauthorn said after the meeting that service organizations often volunteer, such as Campbell Kiwanis Club, which holds Santa visits during the holidays. She plans to ask if it will continue providing this event.

"I was hoping to also somehow involve the Downtown Campbell Business Association. They are the businesses that are on that street," she said. "Our intent is to work with them to see if there are any opportunities for them to become involved."

Association president Dana Smith said the businesses should be able to step up but needed some time to consider the options.

"It's going to take us a week or so to put our act together, but we'll pick up the baton and we'll tell you and everyone in a couple of weeks when we've got our ducks in a row," he said.