Santa Clara’s budget reserves are back to normal, but officials are still working to address hundreds of millions of dollars in needed infrastructure maintenance.
The Santa Clara City Council on Tuesday unanimously approved a $1.9 billion operating budget for fiscal year 2025-26 and $1.4 billion for fiscal year 2026-27. The city anticipates ending it’s current year with a surplus, restoring its reserves to $80 million after becoming dangerous low during the COVID -19 pandemic. In order to maintain the city’s financial stability, councilmembers also approved putting aside $500,000 to hire a consultant to review its finances including revenue sources, infrastructure needs and various reserve funds.
City Finance Director Ken Lee said the consultant would then propose an action plan to tighten the budget going forward, which would enable the city to fund more services.
“The goal is to create additional capacity to fund services, infrastructure and other needs that aren’t included in this budget,” Lee said at the meeting.
Councilmembers supported plans to analyze the budget, as the city’s inability to fund public infrastructure maintenance has been a paint point during the past year. The city has a estimated backlog of $624 million in public infrastructure repairs. Voters passed a $400 million general obligation bond in November 2024 to begin fixing crumbling infrastructure, including the George F. Haines International Swim Center, which has been closed since January 2023 due to unsafe conditions.
Councilmember Karen Hardy said the swim center is an example of what happens without funding for proper maintenance. But there are other public services that could be impacted, such as the city’s aging sewer system and old fire stations.
She wants the analysis to show whether the city’s spending serves residents well.
“In all cases with the budget, (we’re asking) why are we charging ourselves for this, is this a good choice,” Hardy told San José Spotlight. “You don’t have a lot of room in a city budget for fluff.”
The budget sets aside money to make headway on specific priority projects, including funding for an analyst to manage the city’s homelessness response plan and another analyst to support the city’s sustainability goals.
Councilmembers questioned if the city is setting aside enough money for public safety and other costs associated with hosting Super Bowl 60 and the FIFA World Cup next year. While the city isn’t spending on the stadium, the Santa Clara Police Department is expected to spearhead public safety.
Santa Clara University’s graduation is scheduled for the same day as the first World Cup game at Levi’s Stadium. Councilmember Kelly Cox and Mayor Lisa Gillmor raised concerns about a possible lack of police at graduation in light of the World Cup. City Manager Jovan Grogan said the city has already talked about the conflict with the university.
“There’s a lot on the work plan for the next year, we certainly recognize that,” Grogan said at the meeting. “Having the premier outdoor stadium venue in Northern California, where entities bid for events and we have a role in helping to execute them, certainly has an impact on Santa Clara.”
Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X.
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