By Khalida Sarwari
Campbell’s future appears bright, according to Mayor Mike Kotowski.
Kotowski delivered the annual “State of the City” address on June 20 at the Orchard City Banquet Hall. The Campbell Chamber of Commerce hosted the luncheon event.
The mayor touched on the city’s booming business sector, two-tier retirement system, capital improvement projects and a balanced 2012-13 budget that will come with a $700,000 surplus.
“This year’s budget is 4.2 percent more than last year,” Kotowski said. “Given that our budget has grown, we can safely assume that the state of the city is positive.”
The surplus will help replenish the city’s economic fluctuations reserve, or “rainy day” fund, which is currently at $5 million, $1 million short of the city’s goal because it was utilized during the economic downturn.
“Those reserves were keeping us alive,” the mayor said.
He attributed the spike in revenue to sales and property taxes and license and permit fees.
Kotowski noted that the city has benefited from a pair of voter-approved taxes in 2010, which increased business license and hotel tax revenues.
Calling Campbell an award-winning city, the mayor rattled off achievements such as national awards for budgeting and financial reporting, a certificate of honorable mention from the National Center for Missing and Exploited Children for police work, a LEED Gold Award for the Orchard City Banquet Hall and a “Tree City USA” proclamation for the 30th consecutive year by the National Arbor Day Foundation and the Department of Forestry.
Kotowski noted that the city’s capital projects are on track and that by the end of the year, there will be 500 housing units either built or under construction.
“That’s a big thing for a growing community,” said the mayor.
But Campbell also continues to face challenges as a result of the state’s dissolution of its redevelopment agency, he said. The loss of redevelopment funding has directly impacted the general fund, even though this year those funds were absorbed by an increase in revenue.
“Losing redevelopment agency funding will cost our city more than $700,000 a year going forward,” said Kotowski.
He joked that the dissolution of redevelopment agencies was “retribution for Proposition 22.” The initiative, passed by voters in 2010, prohibits the state from taking funds that are allocated to local government, public safety and transportation.
Turning back to the positive, Kotowski indicated that Campbell is a city that does the best with the resources it has available. Last year, he said, volunteers in the city worked a total of 22,000 hours, “equivalent to 11 full-time employees we don’t have.”
The state of the city, the mayor said, is getting stronger each day.
