Santa Clara’s financial situation is steadily improving.
At its meeting Tuesday night, the Santa Clara City Council passed its two-year budget. That budget shows the city is continuing to recover from the crippling effects the pandemic saddled on the city.
The item was the culmination of two prior study sessions that aimed to give the council greater clarity and the ability to tinker with the budget.
Kenn Lee, the city’s finance director, said the budget allows for “targeted investments” that align with the council’s priority focus areas.
Discussing the matter, Council Member Kevin Park noted that Santa Clara faces issues that cities, even ones of similar size, do not face.
“The size of the population doesn’t tell the story of what we need to deal with in Santa Clara at all,” he said.
Most notably, the budget — $1.97 billion next year and $1.4 billion the following year — restores the city’s budget stabilization reserve to its pre-pandemic 25%.
Additionally, the budget earmarks contributions to capital maintenance programs. It also restores library resources and unfreezes several police and firefighter positions, returning them to pre-pandemic levels.
The budget also funds an arts master plan and the hiring of a management analyst who would deal with issues surrounding homelessness.
Another Utility Rate Increase
The council also increased the water rates.
Gary Welling, director of water and sewer utilities, told the council that increases put on the city by Valley Water and contributions to the regional wastewater facility (RWF) have been the primary drivers of rate increases.
“Affordability is starting to become a theme at many of the commission meetings,” Welling said.
Contributions to the RWF alone have made up more than 70% of operating capital costs.
Water rates will increase 11.2% while sewer rates for single-family residences will increase 9.9%; multi-family residences will see a 7.8% increase while commercial rates will average a 6.6% increase. Meanwhile, recycled water will increase 7.3%.
This means that the average increase to the water bill for a single-family residence will total an additional $17.07 per month, while a multi-family residence will see an average increase of $15.72 per month.
Capital improvements to the city’s water infrastructure will cost $534.2 million over the next five years, with $89.4 million of that going toward the RWF.
Further, water conservation measures have decreased consumption despite Santa Clara’s population continuing to grow.
Revenues from water utility payments put $5.97 million into the city’s general fund in 2024-25.
The city received 13 protests for the water rate increases and 14 protests for the sewer rate increases.
The council approved the rate increases 6-1, with Council Member Kevin Park dissenting. The rates go into effect July 1.
City Looks to Amplify Recruitment
Despite 142 new hires, rehires or promotions within the city — a number Ashley Lancaster, deputy director of human resources, called “significant” — job vacancies throughout the city have reached roughly 16%.
The council heard a report detailing how the city aims to address filling positions in bargaining units that exceed 20%. Two such departments — engineers and non-sworn public safety employees — have such vacancies.
Council Members Suds Jain and Park said the city should strive to streamline the recruitment process.
City Manager Jovan Grogan said initiatives such as the city’s internship program aim to achieve such goals.
Park asked Grogan how the city decides each department’s size, inquiring whether it scales with population growth. While he acknowledged the question is seemingly simple, Grogan said the answer is “very complicated,” adding that he is unaware of any city that has a set metric for determining its workforce.
Mayor Lisa Gillmor said the city is at a “crossroads” with its “exploding economic growth.” She said the city “hasn’t kept up with the times” in regards to hiring practices, adding that Santa Clarans have high expectations for their quality of services.
The council noted and filed the report.
Consent Calendar Spending
The council approved the following spending in one motion via the consent calendar:
- A four-year, $1 million purchase order with Eagle Security Service to provide as-needed physical access control systems services or other services for Silicon Valley Power.
- A $900,000 agreement with CMMS Data Group, Inc. for plant computerized maintenance management software and services. Contract goes through the end of 2031.
- A three-year, $1.28 million contract extension with Sedgwick Claims Management Services, Inc. for third-party administration services supporting the city’s self-insured workers’ compensation program.
The next regularly scheduled meeting is 7 p.m. Tuesday, June 17 in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.
Members of the public can participate in the City Council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov.
Contact David Alexander at d.todd.alexander@gmail.com
Previous City Council Meetings:
City Amends General Plan to Nix Areas Designated for Future Residential Development
Merchandise Vendor Secures Contract At Levi’s Stadium
Related Proposes Displacing Retail And Office Space In Favor Of Data Centers
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