Campbell council adopts $74M operating budget and $75.2M CIP, approves $2.7M reserve draw

The Campbell City Council adopted the fiscal year 2026–27 operating budget and a five‑year Capital Improvement Plan at its June 16 meeting, approving staff’s recommendation to balance the general fund with a roughly $2.7 million reserve draw.

City Manager Brian Leventhal told the council the proposed budget presents about $74 million in general‑fund revenues that include the planned reserve use to balance expenditures. He highlighted changes since the council’s June 2 review: adding the Climate Action Plan to council strategic objectives, removing a $100,000 general‑fund transfer to the supplemental law enforcement fund, and increasing projected receipts to the housing assistance fund. Leventhal identified several cost pressures driving the larger reserve draw, including a $630,000 increase in annual CalPERS unfunded‑liability payments, about $115,000 in higher property and liability insurance premiums, and a roughly $377,000 increase in fire protection costs from Santa Clara County Fire District.

The budget packet also includes a $75,220,000 inventory of ongoing and new CIP projects; staff said $4.2 million in new capital projects were added this year and projected CIP expenditures for the coming fiscal year total about $7.1 million.

During discussion, a council member asked staff to review an existing CFD1 payment for Campbell Village that currently routes funds to San Jose; the council member said the payment has amounted to roughly $150,000 per year and suggested staff examine whether the city could eliminate that payment and reallocate funds to local public‑works needs. Other council members noted the payment appears to be a contractual obligation to San Jose; the motion to direct staff to pursue elimination failed for lack of a second.

After questions and brief comments, the council voted to adopt the operating budget, approve the five‑year CIP, and adopt related procedural resolutions, including the statutory GANN limit. Roll call confirmed the motion carried.

The adopted budget now moves to final document assembly; staff said minor ministerial corrections will be incorporated into the final adopted budget document and that the council will revisit midyear adjustments as warranted by court outcomes or changes in revenues.

For more detail, staff reported the primary drivers of the budget outlook were retirement‑related liabilities, insurance and contract costs for public safety services, and the city’s ongoing capital program.