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Santa Clara adopts two-year, nearly $2 billion budget and restores reserve to 25%
Summary
The City Council adopted the biannual operating budget for FY 2025–26 and FY 2026–27, approved an appropriations limit and directed staff to pursue a fiscal sustainability plan and capital reserve policy updates.
The Santa Clara City Council on June 10 adopted a two‑year operating budget that includes targeted staffing additions, restored service funding and changes intended to strengthen fiscal reserves.
Finance Director Ken Lee and City Manager Jevon Grogan led the presentation. Staff described a $1.9 billion (approximate) budget for fiscal year 2025–26 that incorporates carryover capital funds, utility and enterprise program spending, and personnel changes. The council also separately adopted the constitutional appropriations limit for 2025–26 at $697,292,626.
Key budget actions and additions: the adopted package restores the library materials budget (an additional $145,000 per year, $290,000 total across the two years); funds 21 new ongoing positions and 7.35 ongoing positions identified in the proposal; restores 12 SAFER firefighter positions previously frozen; adds three sworn police positions (two officers and one sergeant) to support recruitment and projected vacancies; and funds a management analyst to lead homelessness-response efforts and a recreational manager for parks implementation work. The budget also includes funding for a fiscal sustainability study and technical changes to capital accounting and project tracking.
Reserves and fiscal policy: staff said the budget restores the Budget Stabilization Reserve to 25% (about $80.9 million) and maintains a pension-stabilization trust (roughly $35 million). The package includes a direction to staff to revisit the capital-projects reserve policy in light of the city’s capital backlog and the bond projects that will follow.
Special events, stadium and utilities: staff noted the budget reflects planning and reimbursement assumptions related to major events at Levi’s Stadium and aligns the city’s forecasts with the stadium authority’s budget. Utility fund changes and RWF (Regional Wastewater Facility) and Valley Water impacts were also discussed in connection with the separately adopted rates for water and sewer. The budget document includes $400 million in bond-related capital carried forward in the two-year capital program and funds for bond-implementation staffing (additional project manager and engineers) consistent with earlier council direction.
Public and council process: The council held two prior study sessions on May 13 and May 27. After a public hearing at the June 10 meeting and responses to council questions, Council Member Anshul Chahal moved approval. The motion passed unanimously. The council also approved an appropriations limit resolution as required by the California Constitution.
Next steps: Staff will proceed with budget execution and return to council with additional analysis and the fiscal‑sustainability study’s recommendations. The council asked for future dashboard reporting on priorities and special-event costs.
