By Khalida Sarwari
Finance director Jesse Takahashi had good news for Campbell at the June 5 city council meeting: City officials have produced a balanced operating budget for the 2012-13 fiscal year with a small surplus.
The council received a 2012-13 fiscal year budget overview from Takahashi who described how a rebounding Bay Area economy has resulted in a balanced budget for Campbell that will result in a $700,000 surplus.
“The city’s budget is in pretty good shape, mainly due to an improved economy despite the significant impact of the state’s dissolution of redevelopment agencies,” Takahashi said. “Had the economy not improved, we would have been in a pretty different situation.”
The 2012-13 fiscal year, which begins July 1, includes $46.7 million in projected revenues and $45.9 million in expenditures.
The surplus will be used to 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. City officials plan to replenish the fund fully by 2015. Some of the surplus will also be allocated to capital improvement projects.
The budget for the current fiscal year is $48.2 million. Financial estimates show that FY 2011-12 will also end with a surplus, said Takahashi.
The dissolution of its redevelopment agency has had a major impact on the city, placing a burden of $700,000 to $800,000 on the general fund, according to Takahashi. But those funds have been absorbed by an increase in revenue, he said.
Increased tax revenue, including sales and property taxes, helped generate additional revenue for the city compared with previous years. License fees and permits revenue also increased.
Takahashi said other revenue generators, like the proposed 168-unit mixed-use development on Bascom Avenue, are also essential. The project is anticipated to bring in more than $800,000 in one-time funds, he said.
There are no layoffs or significant changes to services anticipated, although furloughs are expected to continue, Takahashi said. Police officers will have three furlough days while other city employees will have seven. In previous years, budget cuts have had an impact on the traffic enforcement unit of the police department and numerous ongoing maintenance projects in the city.
As Vice Mayor Evan Low pointed out at the council meeting, “Part of the reason we have a balanced budget is that our employees are furloughed and we’re doing more with less.”
The final operating and capital budget will go before the council for approval on June 19.
Campbell’s ‘doing more with less,’ says Low, helping city produce a balanced budget
