City Council Agenda
City of Campbell, 70 N. First St., Campbell, California NOTE: To protect our constituents, City officials, and City staff, the City requests all members of the public follow the guidance of the California Department of Health Services', and the County of Santa Clara Health Officer Order, to help control the spread of COVID-19.
Additional information regarding COVID- 19 is available on the City's website at www.campbellca.gov.
This City Council Regular meeting will be conducted in person as well as telecommunication and is compliant with provisions of the Brown Act. Councilwoman Landry will attend virtually from 696 Sandberg Street, Surfside Beach, South Carolina, 29575. A quorum of the City Council will be in attendance at the City of Campbell City Hall.
The City Council meeting will be live-streamed on Channel 26, the City's website and on YouTube https://www.youtube.com/user/CityofCampbell for those who only wish to view the meeting.
Those members of the public wishing to provide public comment virtually are asked to register in advance at: https://www.campbellca.gov/signup. After registering, you will receive a confirmation email containing information about joining the meeting. Members of the public may attend the meeting in person at Campbell City Hall - Council Chambers. If attending in person, face coverings and physical distancing will be required until further notice.
Public comment will also be accepted via email at [email protected] prior to the start of the meeting. Written comments will be posted on the website and distributed to the Council. If you choose to email your comments, please indicate in the subject line “FOR PUBLIC COMMENT” and indicate the item number.
REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, February 1, 2022 7:30 p.m.
City Hall Council Chamber – 70 N. First Street
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
SPECIAL PRESENTATIONS AND PROCLAMATIONS
COMMUNICATIONS AND PETITIONS
ORAL REQUESTS
NOTE: This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda. Persons wishing to address the Council are requested, but not required to complete a Speaker’s Card. Speakers are limited to two (2) minutes. The law generally prohibits the Council from discussion or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Requests.
COUNCIL ANNOUNCEMENTS
CONSENT CALENDAR
NOTE: All matters listed under consent calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of City Council, City staff, or a member of the public.
Any person wishing to speak on any item on the consent calendar should ask to have the item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears.
1. Minutes of City Council Executive Session Meeting of January 18, 2022 Recommended Action : Approve the Executive Session Meeting minutes of January 18, 2022.
2. Minutes of City Council Regular Meeting of January 18, 2022 Recommended Action : Approve the Regular Meeting minutes of January 18, 2022.
3. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $93,074.04.
4. Investment Report - Quarter Ending December 2021
Recommended Action: That the City Council approve the Investment Report for the quarter ending December 2021 and the report be noted and filed.
5. Approve the Acceptance of the Revised Community Development Block Grant, Authorize Advertisement of Bids, Award of Contract, and Other Associated Actions for the Community Center Tr ack Resurfacing, Project 21-PP (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution to approve the acceptance of Community Development Block Grant (CDBG) funds in the amount of $365,000 from the Santa Clara County Off ice of Supportive Housing (SCCOSH) for the Campbell Community Center Track Resurfacing Project (21 - PP) by authorizing the City Manager to execute the Grant Agreement with the County to accept the CDBG funds; approve the Project Specifications; and, authorize the Public Works Director t o advertise for bids and award the project; authorize the Public Works Director to reject bids and rebid the project should bids received have unamenable irregularities; authorize the City Manager to enter into a construction contract with the lowest respo nsive and responsible bidder and encumber a 10% construction contingency for a total construction amount of up to $365,000; authorize the City Engineer to negotiate and execute contract change orders up to and within the alloc ated construction contingency; and authorize the Finance Director to perform the associated budget adjustment.
6. Accept Improvements for the Fiscal Year 20/21 Annual Street Maintenance - Collector and Residential Street Resurfacing, Project 21-BB, and File Notice of Completion (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution accepting the improvements for the Fiscal Year 20/21 Annual Street Maintenance - Collector and Residential Street Resurfacing, Project 21 -BB ( Project); direct the City Engineer to file the Notice of Completion; and authorize the Finance Director to perform a budget adjustment.
7. Approval of Plans and Specifications, Authorize Advertisement of Bids, Award of Contracts, and Other Associated Actions for the Fiscal Year 21/22 Annual Street Maintenance - Collector and Residential Street Resurfacing, Project 22-BB (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution approving the plans and specifications; authoriz ing the Public Works Director to advertise for bids and award the project; authorizing the City Manager to enter into a construction contract with the lowest responsive and responsible bidder in an amount not to exceed $3,201,000 and encumber a 10% construction contingency for a total construction contract amount of $3,521,000; authorizing the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency; authorizing the Public Works Director to reject bids and rebid the project, s hould bids received have unamenable irregularities; authorizing the City Manager to enter into a Cost Share Agreement with the Town of Los Gatos in the amount of $335,000; and authorizing the Finance Director to perform associated budget adjustments.
PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
NOTE: Members of the public may be allotted up to two (2) minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.
8. Receive Input from the Community on the Draft D istrict Maps Submitted for the Redistricting of City Council District Boundaries (Time Certain 7:45 PM) Recommended Action: Receive input from the Community on the draft district maps submitted for the Redistricting of City Council district boundaries an d provide any necessary feedback and direction to Staff.
9. Public Hearing to Consider an Ordinance Extending Interim Ordinance No. 2277 that Adopted Urgency Measures to Implement Senate Bill No. 9 (SB - 9), Concerning Two -Unit Developments and Lot Splits in Single Family Residential Z ones; and Adoption of New Application Fees for SB -9 Applications to be Included in the Schedule of Fees and Charges (Ordinance/Resolution - 4/5 Roll Call Vote)
Recommended Action: That the City Council adopt an Ordinance to extend Interim Ordinance No. 2 277 that adopted urgency measures to implement Senate Bill No. 9, concerning two-unit developments and lot splits in single family residential zones; and to adopt a Resolution approving new application fees for SB-9 applications.
NEW BUSINESS
10. Acceptance of Fiscal Year 20/21 Annual Comprehensive Financial Report and Auditor’s Written Communication on Internal Controls Recommended Action: That the City Council accept the Fiscal Year 20/21 Annual Comprehensive Financial Report and Auditor’s written commu nication on internal control structure and the audit process as submitted with this report.
11. Fiscal Year 21/22 Mid -Year Financial Update and Budget Adjustments (Resolution/Roll Call Vote)
Recommended Action: Staff recommends that the City Council acce pt the Fiscal Year 21/22 Mid -Year Financial Update Report and adopt a Resolution authorizing the Fiscal Year 21/22 Mid-Year Budget Adjustments.
UNFINISHED BUSINESS
COUNCIL COMMITTEE REPORTS
12. Council Committee Reports
Recommended Action: That the City Council report on activities from their committee assignments.
ADJOURN
IMPORTANT NOTICE: Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for publi c inspection with the agenda p acket in the lobby of City Clerk’s Office, 70 N. First Street, Campbell, CA 95008, during normal business hours. These materials will also be available on the City website at https://www.ci.campbell.ca.us/agendacenter with the agenda packet following the last item of the agenda, subject to staff’s ability to post the documents prior to the meeting. All documents not posted prior to the meeting will be posted the next business day.
In compliance with the Americans with Disabilities Act, listening assistive devices are available for all meetings held in the City Council Chambers. If you require accommodation, please contact the City Clerk’s Office, (408) 866-2117, at least one week in advance of the meeting.
CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California
CITY COUNCIL EXECUTIVE SESSION
Tuesday, January 18, 2022 – 6:30 p.m.
Ralph Doetsch Conference Room
70 N. First Street, Campbell, California
This City Council meeting was conducted pursuant to provisions of the Brown Act.
CALL TO ORDER
The City Council of the City of Campbell convened on the special day of January 18, 2022.
Attendee Name Title Status
Paul Resnikoff Mayor Present
Anne Bybee Vice Mayor Present
Elizabeth 'Liz' Gibbons Councilmember Present
Susan M. Landry Councilmember Absent
Sergio Lopez Councilmember Present
PUBLIC COMMENTS
There were no public comments.
MOVE INTO CLOSED EXECUTIVE SESSION
A. Personnel
B. Litigation - Conference with Legal Counsel – Existing Litigation Paragraph (1) of Subdivision (d) of California Government Code Section 54956.9 Name of Case: Patricia Balinsky v. County of Santa Clara; City of Campbell, CA; Superior Court of California, County of Santa Clara
Case No.: 20CV367229
C. Real Property - Conference with Real Property Negotiators Campbell Community Center, 1 West Campbell Avenue, Campbell CA 95008 City Negotiator: City Manager Brian Loventhal
Negotiating Parties: DaVinci Academy
D. Labor Negotiations
The City Council met in Execu tive Session to discuss Item B. City Manager Brian Loventhal, City Attorney Bill Seligmann, Finance Director Will Fuentes, Public Works Director Todd Capurso, and Robert Gundert of Howard Rome Martin & Ridley LLP were in attendance.
1 Packet Pg. 5
Minutes Acceptance: Minutes of Jan 18, 2022 6:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 2
The City Council met i n Executive Session to discuss Item C. City Manager Brian Loventhal, City Attorney Bill Seligmann, Finance Director Will Fuentes and Recreation & Community Services Director Natasha Bissell was in attendance.
Mayor Resnikoff stated that any reportable ac tions will be reported at the next regularly scheduled City Council Meeting.
ADJOURNMENT
Council adjourned at 7:15 p.m.
APPROVED:
ATTEST:
Paul Resnikoff, Mayor
Dusty Christopherson, City Clerk
1 Packet Pg. 6
Minutes Acceptance: Minutes of Jan 18, 2022 6:30 PM (CONSENT CALENDAR)
CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California
REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, January 18, 2022 – 7:30 p.m.
City Hall Council Chamber – 70 N. First Street
This City Council meeting was conducted purs uant to provisions of the Brown Act.
This meeting was recorded and can be viewed in its entirety at:
https://campbellca.gov/agendacenter and https://www.youtube.com/user/CityofCampbell.
CALL TO ORDER
The City Council of the City of Campbell convened on the regularly scheduled day of January 18, 2022.
ROLL CALL
Attendee Name Title Status
Paul Resnikoff Mayor Present
Anne Bybee Vice Mayor Present
Elizabeth 'Liz' Gibbons Councilmember Present
Susan M. Landry Councilmember Absent
Sergio Lopez Councilmember Present
PLEDGE OF ALLEGIANCE
Mayor Resnikoff led the Pledge of Allegiance.
SPECIAL PRESENTATIONS AND PROCLAMATIONS
There were no special presentations and proclamations.
COMMUNICATIONS AND PETITIONS
City Attorney Bill Seligmann stated there were no reportable actions from the January 18, 2022 City Council Executive Session.
ORAL REQUESTS
2 Packet Pg. 7
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 2 Sean Mendelson and Stephanie Morris, Campbell residents spoke of their concerns relating to climate change and urged the City to adopt a Climate Action Plan.
Dashiell Leeds, Sierra Club representative spoke in support of Campbell adopting a Climate Action Plan and noted the effort undertaken by Morgan Hill.
Raja Pallela, Campbell re sident spoke of his concerns relating to the General Plan and Housing Element, the need for school space with increased housing and support for placing new development in the Dell Avenue area.
COUNCIL ANNOUNCEMENTS
Due to the continuing effects of COVID, C ity Hall remains closed to the public with the exception of City Council, Commission meetings and certain special meetings as noticed. Many services are available online and people may call City departments directly to sc hedule appointments as needed. At this time there is no firm date for reopening daily access to all City services.
Santa Clara Valley Transportation Authority is holding a virtual community meeting on January 19, 2022 at 6:00 p.m. to discuss an affordabl e housing project at the Winchester light rail station in partnership with the County's Office of Supportive Housing. Visit vta.org/winchesterdevelopment for additional project information.
There is an upcomi ng Special Planning Commission mee ting on January 20, 2022 at 5:30 p.m. to conduct the final housing site selections for consideration by the City Council to be included in the City’s Housing Element.
There will be a Special Council meeting on January 25 , 2022 at 6:30 p.m. to conduct a public hearing to consider several potential housing sites for the Housing Element. The Housing Element is the City’s long-range plan for producing the City’s share of housing.
Join us on February 1, 2022 at 7:45 p.m. This will be the third in a series of four public hearings to obtain public input on the future of redrawing the City Council election district boundaries. The community’s input is extremely important, and we encourage all residents to participate in the redistricting process.
These meetings will be held in person at Campbell City Hall and are also accessible via ZOOM webinar. For additional information about these meetings, please visit the City’s website at www.campbellca.gov.
CONSENT CALENDAR
Mayor Resnikoff asked if anyone wished to remove an item from the Consent Calendar.
Items 12, 13, and 14 were removed from the Consent Calendar.
The Consent Calendar was considered as follows:
1. Minutes of City Council Special Meeting of November 17, 2021 2 Packet Pg. 8
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 3 Recommended Action : Approve the Special Meeting minutes of November 17, 2021.
This action approves the City Council Special Meeting minutes of November 17, 2021.
2. Minutes of City Council Special Meeting of December 16, 2021 Recommended Action : Approve the Special Meeting minutes of December 16, 2021.
This action approves the Special Meeting minutes of December 16, 2021, including the Desk Item.
3. Minutes of City Council Executive Session Meeting of December 20, 2021 Recommended Action : Approve the Executive Session Meeting minutes of December 20, 2021.
This action approves the Executive Session Meeting minutes of December 20, 2021.
4. Minutes of City Council Special Meeting of December 21, 2021 Recommended Ac tion: Approve the Special Meeting Minutes of December 21, 2021.
This action approves the Special Meeting minutes of December 21, 2021.
5. Minutes of City Council Regular Meeting of December 21, 2021 Recommended Action: Approve the Regular Meeting Minut es of December 21, 2021.
This action approves the Regular Meeting minutes of December 21, 2021.
6. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $3,304,943.46.
This action approves the bills and claims in the amount of $3,304,943.46 as follows: bills and claims checks dated December 6, 2021, in the amount of $866,937.18; payroll checks dated December 9, 2021, in the amount of $39,323.15; bills and claims checks dated December 13, 2021, in the amount of $879,531.01; bills and claims checks dated December 20, 2021, in the amount of $523,019.88; payroll checks dated December 23, 2021, in the amount of $66,796.73; and bills and claims checks dated December 27, 2021, in the amount of $929,335.51.
7. Monthly Investment Transactions Report
Recommended Action: That the City Council review and accept the Monthly Investment Transactions Report for November 2021.
This action accepts the Monthly Transactions Report for November 2021.
8. Community Facilities District No. 1 Report Fiscal Year (FY) 2020-21 Recommended Action: That the C ity Council note and file the Annual Bond Accountability Report for the City’s Community Facilities District No. 1 (“CFD”) for 2 Packet Pg. 9
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 4 Fiscal Year ending June 30, 2021, as mandated by the Calif ornia Government Code Sections 53411 and 50075.3.
This action authorizes the filing of the Annual Bond Accountability Report for the City’s Community Facilities District No. 1 (“CFD”) for Fiscal Year ending June 30, 2021, as mandated by the California Gov ernment Code Sections 53411 and 50075.3.
9. Community Facilities District No. 2 Report Fiscal Year (FY) 2020-21 Recommended Action: That the City Council note and file the Annual Bond Accountability Report for the City’s Community Facilities District No. 2 (“CFD”) for Fiscal Year ending June 30, 2021, as mandated by the Cal ifornia Government Code sections 53411 and 50075.3.
This action authorizes the filing of the Annual Bond Accountability Report for the City’s Community Facilities District No. 2 (“CFD”) for Fiscal Year ending June 30, 2021, as mandated by the California G overnment Code Sections 53411 and 50075.3.
10. Approval of the Vacation of the Light and Air / Building (Setback) Lines Created by Tract Map No. 294 (Portions of Erin Way, Shamrock Dri ve, and Curtner Avenue, Formerly Casey Street) and Directing the City C lerk to Record the Resolution (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution summarily vacating the Light and Air/Building (Setback) Lines cr eated by Tract Map No. 294; and directing the City Clerk to record the resolution.
This action adopts Resolution No. 12790 summarily vacating the Light and Air/Building (Setback) Lines created by Tract Map No. 294; and directs the City Clerk to record the resolution.
11. Approval of the Vacation of a Public Easement Designated and Delineated as a 5-Foot Walkway Easement Within Lot 6 of Tract Map No. 7229, Known as 1409 Harriet Avenue, and Direct the City Clerk to Record the Resolution (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution Vacating the Public Easement designated and delineated as a 5 -foot walkway easement within Lot 6 of Tract Map No. 7229 recorded on August 24, 1981, in Book 494 Pages 12 and 13 of Official Records, Santa Clara County against a portion of the property known as 1409 Harriet Avenue; and Directing the City Clerk to record the resolution.
This action adopts Resolution No. 12791 Vacating the Public Easement designated and delineated as a 5 -foot walkway easement within Lot 6 of Tract Map No. 7229 recorded on August 24, 1981, in Book 494 Pages 12 and 13 of Official Records, Santa Clara County against a portion of the property known as 1409 Harriet Avenue; and Directing the City Clerk to record the resolution. 2 Packet Pg. 10
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 5
M/S: Bybee/Gibbons – That the City Council approve the Consent Calendar, including the Desk Item for Item 2. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Bybee
SECONDER: Gibbons
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
ITEMS CONSIDERED SEPARATE FROM CONSENT
12. Approval of Consultant Agreement with Management Partners for Procurement Services, Dispensing of Bidding Requirements as Specified in Campbell Municipal Code Section 3.20. 030(4), and Associ ated Budget Adjustment (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution authorizing the City Manager to enter into a Consultant Agreement with Management Partners for procurement services, dispens e with bidding requirements as specified in Campbell Municipal Code Section 3.20.030(4), and authorize the Finance Director to implement an associated budget adjustment.
Finance Director Will Fuentes reviewed the Staff Report dated January 18, 2022, noting that he has been performing as the City’s Purchasing Officer since October 2021 and that due to the complexity of public purchasing processes is recommending Coun cil approve a Consultant Agreement with Management Partners to review, analyze and advise th e City on updated purchasing policies, procedures, and most appropriate staffing levels for this task throughout the City.
After Council discussion, Council expressed concern relating to the use of a sole- source contract for this consultant work and confi rmed consensus for not approving the recommended action and instead including this request in the upcoming Fiscal Year 22/23 budget process.
M/S: Bybee/Gibbons – That the City Council not enter into a Consultant Agreement with Management Partners for proc urement services and direct staff to include the item in the Fiscal Year 22/23 budget process. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Bybee
SECONDER: Gibbons
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
2 Packet Pg. 11
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 6
13. Resolution Commending Officer Darwin Okamoto Upon His Retirement After 25 Years of Service to the City of Campbell (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a Resolution commending Officer Darwin Okamoto upon his retirement after 25 years of service to the City of Campbell.
Council expressed appreciation to Officer Darwin Okamoto for his 25 years of excellent service to the City of Campbell including his work on the SWAT team and for being a mentor to others in the Department.
Police Chief Gary Berg expressed his congratulations to Officer Da rwin Okamoto on his retirement after 25 years of dedicated service to the Department and the Campbell Community and noted that he will be missed.
Officer Darwin Okam oto thanked the City Council and Chief Berg for the opportunity to serve the City and its residents of the Campbell community who are very supportive of their Police Department.
M/S: Bybee/Lopez – That the City Council adopt Resolution No. 12792 commending Officer Darwin Okamoto upon his retirement after 25 years of service to the City of Camp bell. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Bybee
SECONDER: Lopez
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
14. Resolution Commending Corinne Shinn Upon Her Retirement After 28 Years of Service with the City of Campbell (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a Resolution commending Corinne Shinn for 28 years of outstanding service to the City of Campbell.
Council expressed appreciation to Corinne Shinn for her 28 years of dedicated service to the City of Campbell noting her excemplary customer service skills and support to a department that is largely community fac ing and interacts with a large number of Campbell residents and business owners.
Community Development Director Rob Eastwood expressed appreciation to Corinne Shinn for her hard work and dedicated service and noted her exemplary skills in supporting the Planning Department and noted that she is sought after by other Cities to help them in a time of need.
Corinne Shinn expressed appreciation to Council and Community Development Director Eastwood for his kind words as she departs for retirement.
M/S: Gibbo ns/Bybee – That the City Council a dopt Resolution No. 12793 commending Corinne Shinn for 28 years of outstanding service to the City of Campbell. The motion was adopted by the following roll call vote:
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Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 7 RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Bybee
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
15. Public Hearing to Consider Adoption of a Resolution Directing the Community Development Director to Proceed with Abatement of Hazardous Vegetation (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution directing the Community Development Director to proceed with the abatement of hazardous vegetation by the Santa Clara County Consumer and Environmental Protectio n Agency.
Community Development Director Eastwood introduced the Staff Report dated January 18, 2022 noting that the City of Campbell contracts with Santa Clara County to abate hazardous vegetation (weeds) within the City. At its meeting of December 7, 2021 the City Council declared hazardous vegetation to be a public nuisance pursuant to Campbell Municipal Code (CMC) Section 17.54.020. The attached resolution will allow the County to proceed with abatement action on 45 properties identified as having hazardous vegetation within the City of Campbell.
Mayor Resnikoff opened the public hearing, there being no speakers, the public hearing was closed.
M/S: Gibbons/Lopez – That the City Council adopt Resolution No. 12794 directing the Community Development Dire ctor to proceed with the abatement of hazardous vegetation by the Santa Clara County Consumer and Environmental Protection Agency. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Lopez
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
NEW BUSINESS
16. Resolution Amending Agreement for City Manager Services (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution amending the Agreement for City Manager services.
Acting Human Resources Manager Salina Flores reviewed the Staff Report dated January 18, 2022 noting that the presented Resolution authorizes an 2 Packet Pg. 13
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 8 amendment to the salary provisions and pe rformance review period of the Agreement for City Manager Service s, consistent with City Council direction and in accordance with changes made during the 2021 labor negotiation process.
Mayor Resnikoff requested an amendment to the review period language to reflect a review period in line with the Fiscal Year rather than a specific month.
M/S: Gibbons/Lopez – that the City Council adopt Resolution No. 12795 amending the Agreement for City Manager services reflecting a performance review period matching the Fiscal Year. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Lopez
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
17. Consider Economic Development Strategy from the Economic Development Subcommittee
Recommended Action: That the City Council consider the recommendation of the Economic Development Subcommittee to obtain specialized consultant services to assist in implementing the short-term economic development strategy.
City Manager Brian Loventhal presented the Staff Report dated January 18, 2022 noting that the Economic Development Subcommittee discussed short -term approaches to addressing existing commercial vacancies while also exploring bridging the gap until a new long t erm Economic Development Plan can be developed and in line with the update d General Plan. The Economic Development Subcommittee is recommending obtaining an outside consultant to perform or assist the City in identifying ways in which to fill commercial va cancies based on sales tax leakage and other economic analyses. The Subcom mittee is recommending issuing an Request for Qualification/Request for Proposals and will return to Council for formal approval if proposals received are above the $50,000 City Manager approval limit.
Councilmember Lopez requested the City investigate me thods of utilizing local universities or think tank organizations in addition to paid consultants for this effort.
Councilmember Gibbons expressed concern that this report did not a ccurately reflect the intent of the Economic Development Subcommittee requ est and noted a need to think broadly and look at the big picture when evaluating economic development including what new industries Campbell can attract, how Campbell can be a desti nation area in the Valley for new and developing industries and in turn wh at would the branding needs of the City be. Councilmember Gibbons stated that for these reasons she is not supportive of the recommendation. 2 Packet Pg. 14
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 9 In response to inquiries, City Manager Lo venthal noted that the Subcommittee will be involved in the development of the Request for Qualifications/Requst for Proposals and that further refinement of the vision and request will be conducted prior to its issuance, and the results of that process wi ll return to Council for formal approval.
After discussion, M/S: Lopez/B ybee – That the City Council consider the recommendation of the Economic Development Subcommittee to obtain specialized consultant services to assist in implementing the short -term economic development strategy. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [3 TO 1]
MOVER: Lopez
SECONDER: Bybee
AYES: Lopez, Bybee, Resnikoff
NOES: Gibbons
ABSENT: Landry
UNFINISHED BUSINESS
18. Extension of Declaration of Local Emergency (Resolution/Roll Call Vote) Recommended Action: It is rec ommended that the City Council adopt a resolution extending the November 16, 2021 City Council proclamation declaring the existence of a local emergency resulting from community spread of COVID -
19. City Manager Loventhal presented Staff Report dated Janua ry 18, 2022 noting that the Declaration of Local Emergency must be renewed every 60 days. The current Declaration of Local Emergency is set to expire on January 29, 2022.
Should the Council decide to invoke the authority given to it under Assembly Bill 361 to allow for conducting virtual public meetings, alternative language will need to be included in the motion.
M/S: Gibbons/Bybee – that the City Council adopt Resolution No. 12796 extending the November 16, 2021 City Council proclamation declaring the existence of a local emergency resulting from community spread of COVID- 19, including the Desk Item. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Bybee
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
The City Council took a recess at 8:53 P.M. and reconvened at 9:09 P.M. with four members present and one absent.
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Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 10
19. Consideration of a Permanent Parklet Program in Downtown Campbell Recommended Action: That the City Council provide policy d irection regarding a Permanent Parklet Program in Downtown Campbell.
Community Development Director Eastwood and Economic Development Specialist Michael Thomas presented Staff Report dated January 18, 2022 noting that currently 17 restaurants and bars in t he Downtown area operate parklets in 40 public parking spaces, representing 3.3% of all available parking in the Dowtown area. Economic Development Specialist Thomas reviewed the permanent parklet programs in neighboring jurisdictions reviewing their allow ed activities, permitting costs, and funding mechanisms.
Community Development Director Eastwood reviewed the Staff recommendations to implement a permanent parklet program, adopt a permanent parklet program permitting process restricting the maximum num ber of parking stalls in use , development pre -approved parklet design options, require an annual parklet use fee, and use American Rescue Plan Act (ARPA) funds for developing parklet designs with reduced permit costs and grants for construction materials.
In response to an inquiry, City Attorney Seligmann noted that the City can regulate the hours of operation for a parklet since it is located in the City right -of- way.
Mayor Resnikoff opened the floor for public comments.
Adam Buchbinder, Campbell Resident spoke in support of a Downtown permanent parklet program and for possibly extending them into other areas of the City.
Ken Johnson, Campbell Chamber of Commerce representative, spoke in support of the Staff recommendations and for a desire to beautify the look of the parklets, and for a requirement to require a certain amount of participation to create some uniformity and consistency.
Councilmember Gibbons expressed support for a permanent parklet program but has concerns relating to on street pa rking for Downtown businesses, parking overflows into Downtown neighborhoods, how to balance the competing needs of businesses adjacent and next to one another, and how this can extend into other areas of the City. Councilmember Gibbons expressed support f or having an identified design and look to the parklets, is supportive of the use of ARPA funds and requested more details on logistics of a program of this type.
Councilmember Lopez expressed support for a permanent parklet program stating that he sees this as an improvement to the walkability of Downtown and is supportive of the staff recommendations, useage of ARPA funds for this program and the potential for some type of grant or subsidized program fees.
Councilmember Lopez expressed support for review ing parklets in other parts of 2 Packet Pg. 16
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR) Minutes of January 18, 2022 City Council Meeting Page 11 the City potentially as a second phase to the program, and for engaging with the Downtown businesses to develop some standards with an emphasis on accessibility of the permanent parklets.
Vice Mayor Bybee expressed support for a permanent parklet program noting that the benefits to Downtown and the community as a whole may outweigh the parking challenges. Vice Mayor Bybee stated she would like a better visual appearance to the parklets with consistent design standards, a limit on the number of parking spaces used, and is supportive of an annual fee with some sort of grant program. Councilmember Bybee stated it didn’t make sense to allow the use of temporary parklets to expire before a permanent option was in place.
Mayor Resnikoff expressed support for a permanent parklet program and for the Staff recommendations, and expressed support for some sort of subsidy program but with business buy-in as well. Mayor Resnikoff is supportive of the City developing designs for businesses to choose from for consistency purposes and for spacing the parklets out so that those areas in front of retail spaces are left open.
Council confirmed consensus for bringing the Downtown Campbell Temporary Parklet Program back to extend the end date to possibly June 30, 2022 as it will take some time to get a permanent program in place.
COUNCIL COMMITTEE REPORTS
20. Accept Resignation of Carmen Lynaugh from the Bicycle and Pedestrian Advisory Committee (BPAC)
Recommended Action: That the City Council a ccept the resignation of Carmen Lynaugh from the Bicycle and Pedestrian Advisory Committee and direct the City Clerk to advertise the Notice of Unscheduled Vacancy.
City Clerk Christopherson introduced Staff Report dated January 18, 2022.
Councilmembers expressed appreciation to Carmen Lynaugh for her dedication to the Bicycle and Pedestrian Advisory Committee and wished her well on her next adventure.
M/S: Bybee/Lopez – that the City Council accept the resignation of Carmen Lynaugh from th e Bicycle and Pe destrian Advisory Committee and direct the City Clerk to advertise the Notice of Unscheduled Vacancy. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Bybee
SECONDER: Lopez
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
21. Approve Appointments to the Parks & Recreation Commission 2 Packet Pg. 17
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 12 Recommended Action: That the City Council approve the recommendation of the Advisory Commissioner Appointment Interview Subcommittee regarding appointments to the Parks & Recreat ion Commission for two four -year terms expiring December 2025.
Vice Mayor Bybee introduced the Staff Report dated January 18, 2022 and noted that the Subcommittee met on January 12, 2022 and interviewed five very qualified and enthusiastic candidates to s erve on the Parks & Recreation Commission. The Subcommittee is recommending that the current encumbants Mr. Frank Beitz and Ms. Sherri Doherty be reappointed to each serve one full term expiring in December 2025. The Subcommittee expressed appreciation to the applicants for applying and hoped that they continue to stay engaged with the City.
M/S: Bybee/Lopez – that the City Council approve the recommendation of the Advisory Commissioner Appointment Interview Subcommittee regarding appointmen ts to the Parks & Recreation Commission for two four-year terms expiring December 2025. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Bybee
SECONDER: Lopez
AYES: Gibbons, Lopez, Bybee, Resnikoff
ABSENT: Landry
22. Council Committee Reports
Recommended Action: That the City Council report on activities from their committee assignments.
Mayor Resnikoff stated that the Council Committee Assignments for 2022 have been completed. Most outside agency assignments d id not change, th ere were however some internal Committee changes.
Councilmember Gibbons attended the Association of Bay Area Governments January meeting, the Campbell Historical Museum annual priorities meeting, the Cities Association meeting, and the Le gislative Subcomm ittee noting that this committee will meet bi -monthly. Councilmember Gibbons announced that she was elected Chair of the Silicon Valley Clean Energy Authority for 2022.
Councilmember Lopez attended the Valley Transportation Authority Poli cy Advisory Commi ttee meeting and was elected to serve as Vice Chair of the Committee.
Vice Mayor Bybee attended the Cities Association meeting and the Planning Collaborative meeting.
Mayor Resnikoff attended the West Valley Sanitation District meeting. 2 Packet Pg. 18
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
Minutes of January 18, 2022 City Council Meeting Page 13
ADJOURN
Mayor Resnikoff adjourned the meeting at 10:23 p.m.
APPROVED:
ATTEST:
Paul Resnikoff, Mayor
Dusty Christopherson, City Clerk
2 Packet Pg. 19
Minutes Acceptance: Minutes of Jan 18, 2022 7:30 PM (CONSENT CALENDAR)
City
Council
Report
TITLE: Approving Bills and Claims
RECOMMENDED ACTION
Approve the bills and claims in the amount of $93,074.04.
DISCUSSION
The bills and claims that have been a udited and approved by staff for payments made as noted below:
Type Check Date Amount
Payroll January 6, 2022 $34,291.43
Bills & Claims January 10, 2022 $58,782.61
Total $93,074.04
FISCAL IMPACT
Requested action does not require a budget adjustmen t. Adequate funding was available to cover all expenses as listed.
Prepared by:
Roberto Garcia-Acosta, Accounting Clerk
II
Reviewed by:
Norite Vong, Finance Manager
Item: 3
Category: CONSENT CALENDAR
Meeting Date: February 1, 2022
3 Packet Pg. 20
Approving Bills and Claims Page 2 of 2
Approved by:
Brian Loventhal, City Manager
3 Packet Pg. 21
City
Council
Report
TITLE: Investment Report - Quarter Ending December 2021
RECOMMENDED ACTION
That the City Council approve the Investment Report for the quarter ending December 2021 and the report be noted and filed.
DISCUSSION
The City invests primarily in the State of California Local Agency Investment Fund (LAIF) and US Government Agency securities to preserve the safety of the City’s surplus funds while achieving a reasonable return on its portfolio. The City’s strategy is one of buy -and-hold in which a portion of the portfolio is invested in fixed income securities of varying maturities that provides sufficient cash flow to meet the City’s operational needs.
During the qua rter, the total amount of the City’s pooled cash investment portfolio decreased $2.0 million due to normal seasonal operating cash flows including $4.1 million in capital project spending offset by seasonal receipts. The city purchased two $1.0 million Fed eral Home Loan Bank (FHLB) notes, one with a 3.75 year maturity earning 0.81%. The second, a step -up with a 3.0 year maturity, earning 0.35% the first year, followed by 1.35% the 2nd & 3rd years. Please note that the City pools all cash for investment purp oses, but accounts, reports, and tracks investment income, other revenue, and expenditures separately for each fund so as to properly meet the purpose and restrictions of each funding source. This is common and appropriate practice used in public agencies to gain the benefit of economies of scale when investing.
All investments are made in accordance with the City's established Investment Policy (Approved by Resolution No. 12748 on August 17, 2021) or as authorized pursuant to bond covenants. Presented within this report are the following:
· Investment balance & earnings - Qtr. ending, December 2021 · Summary of investments by type - Qtr. ending December 2021 · List of investments by institution - Qtr. ending December 2021 · Reconciliation of pooled cash - Qtr. ending December 2021 · Summary of Total Cash Invested - Qtr. ending December 2021 · Monthly Schedule of Investments - Qtr. ending December 2021 · Cash flow projections for January 2022 thru June 2022 · Actual Receipts and Disbursements - Qtr. ending December 2021 Item: 4
Category: CONSENT CALENDAR
Meeting Date: February 1, 2022
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Investment Report - Quarter Ending Decemberr 2021 Page 2 of 4
Cash Flow
The cash flow projection reflects sufficient funds available to meet the City of Campbell’s anticipated expenditures for January 2022 through June 2022. (Attachment B). When highly liquid LAIF funds ($39.3 million) are combined with actual cash on deposit ($1.8 million), the City has $41.1 million in actual liquid cash balances as of the end of December 31, 2021. The City’s managed liquidity is estimated to increase to $54.8 million by the end of June 2022 due to the se asonal nature of secured property tax receipts, VLF revenue, special assessment and Successor Agency funding. The City also expects to receive $3.9 million in State Budget grant allocations for new Police Station FFE and a $2.4 million loan reimbursement f rom PG&E as a result of the completion of the ESCO (energy efficiency) project. These will be offset by normal operating expenditures, $1.3 million in debt service payments due and the anticipated reinvestment of $4.0 million in new government securities. As reported in the previous quarter, staff is returning to past investment priorities of safety, liquidity, and return, in that order, due to the pandemic being brought under better control. This is in contract to the period during the pandemic, where exce ss cash was kept in LAIF at higher levels to ensure maximum liquidity, safety, and flexibility due to the higher uncertainty surrounding the pandemic. Nevertheless, staff will continue to monitor the pandemic and make adjustments to the investment strategy as appropriate and fiscally prudent to meet City’s operational needs.
4 Packet Pg. 23
Investment Report - Quarter Ending Decemberr 2021 Page 3 of 4
* The City intends to hold treasury/agency securities to maturity or until they are called, as a result this is a paper gain and/or loss that will not be realized. In a decreasing interest rate environment, as we are experiencing, unrealized gains are expected.
** Cash with fiscal agent held for debt service payments.
4 Packet Pg. 24
Investment Report - Quarter Ending Decemberr 2021 Page 4 of 4 Summary of Total Cash Invested
Current Prior Prior
Quarter Quarter Year
Description Qtr ending 12/31/2021 Qtr ending 9/30/2021 Qtr ending 12/31/2020 Cash on Deposit 1,792,723$ 1,740,959$ 690,438$ Investments 48,293,417 50,330,362 47,555,140 Total Cash and Investments 50,086,140$ 52,071,321$ 48,245,578$ % of Total Cash Invested 96.42% 96.66% 98.57%
Prepared by:
John Formale, Accountant
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Quarterly Schedule of Investments
b. Cashflow Projections
c. Actual Receipts and Disbursements
4 Packet Pg. 25
City of Campbell
Quarterly Schedule of Investments -
Dec-21 0.44
Maturities/ Remain Interest Interest # of Int.Recv. Interest Interest Int.Recv. Interest Interest Beginning Purchases/ Calls/ Ending % of % of Par * Market Maturity Days Rate Earned to Days in Beginning Earned Received Ending Received Bal. to Balance Deposits Withdrawals Balance Type Assets Value Value Date To Mat (Annual) Maturity Month Balance This Qtr. This Qtr. Balance To Date Maturity Local Agency Investment Fund (L.A.I.F.) 41,863,905 3,129,510 (5,700,000) 39,293,415 100.00% 81.36% 39,293,415 39,192,789 N/A N/A 0.212% N/A 31 23,071 20,327 29,510 13,888 1,442,889 N/A9,120 Gov't Securities (Custodian-BNY Bank) 2,062,599 .49 - - Fed. Home Loan Bank (FHLB)_Fixed 1,000,000 - 1,000,000 14.29% 2.07% 1,000,000 992,290 08/26/24 969 0.500% S 16,274 31 2,096 1,260 2,500 857 2,500 13,774 Fed. Home Loan Bank (FHLB)_Fixed 1,000,000 1,000,000 14.29% 2.07% 1,000,000 991,760 01/22/25 1,118 0.700% S 24,567 31 1,764 1,764 - 3,529 - 24,567 Fed. Home Loan Bank (FHLB)_Fixed 1,000,000 1,000,000 14.29% 2.07% 1,000,000 986,470 09/17/25 1,356 0.800% S 32,022 31 658 2,016 - 2,674 - 32,022 Fed. Home Loan Bank (FHLB)_Fixed - 1,000,000 1,000,000 14.29% 2.07% 1,000,000 997,540 11/18/24 1,053 0.350% S 30,528 31 - 412 - 412 - 30,528 Fed. Home Loan Bank (FHLB)_Fixed - 1,000,000 1,000,000 14.29% 2.07% 1,000,000 987,100 07/29/25 1,306 0.810% S 30,381 31 - 1,398 - 1,398 - 30,381 Fed. Home Loan Bank (FHLB)_Fixed 1,000,000 1,000,000 14.29% 2.07% 1,000,000 986,360 03/21/25 1,176 0.650% S 22,741 31 534 1,638 - 2,173 - 22,741 Fed. Home Loan Bank (FHLB)_Fixed 1,000,000 - 1,000,000 14.29% 2.07% 1,000,000 991,970 12/30/24 1,095 0.625% S 23,476 31 540 1,575 2,115 3,125 20,351 Subtotal-Gov't Securities 5,000,000 2,000,000 - 7,000,000 100.00% 14.49% 7,000,000 6,933,490 179,989 5,592 10,065 2,500 13,157 5,625 174,364 Corporate Notes
Ally Bank 250,000 250,000 12.50% 0.52% 250,000.00 252,770 08/08/22 220 2.150% S 16,140 31 899 1,355 - 2,254 10,765 5,375 Capital One Bank 250,000 250,000 12.50% 0.52% 250,000.00 252,770 08/08/22 220 2.150% S 16,140 31 899 1,355 - 2,254 10,765 5,375 Capital One National Association 250,000 250,000 12.50% 0.52% 250,000.00 252,770 08/08/22 220 2.150% S 16,140 31 899 1,355 - 2,254 10,765 5,375 Goldman Sachs Bank 250,000 250,000 12.50% 0.52% 250,000.00 252,770 08/08/22 220 2.150% S 16,140 31 899 1,355 - 2,254 10,765 5,375 Morgan Stanley Bank CD 250,000 250,000 12.50% 0.52% 250,000.00 253,345 01/17/23 382 1.850% S 13,900 31 963 1,166 - 2,129 6,931 6,969 Morgan Stanley Private Bank CD 250,000 250,000 12.50% 0.52% 250,000.00 253,345 01/17/23 382 1.850% S 13,900 31 963 1,166 390 1,738 6,931 6,969 Wells Fargo Bank CD 250,000 250,000 12.50% 0.52% 250,000.00 253,482 01/17/23 382 1.900% S 14,263 31 963 1,171 1,184 950 7,522 6,741 Wells Fargo Ntl Bk West CD 250,000 250,000 12.50% 0.52% 250,000.00 253,482 01/17/23 382 1.900% S 14,263 31 963 1,171 794 1,341 7,522 7,132 - - - Subtotal-Corporate Notes 2,000,000 - - 2,000,000 100.00% 4.14% 2,000,000 2,024,736 2.013% * 120,886 7,450 10,093 2,368 15,175 71,965 49,311 Investments under the management of contracted parties:
Trustee: BNY Mellon
- -
2016 Lease Revenue Bond Payment 670,650 1 (670,650) 1 45.00% 0.00% 1 1 N/A N/A 0.025% N/A 31 - - - 78 N/A 2016 SA Refunding Debt Service/TARB 795,807 1 (795,807) 1 55.00% 0.00% 1 1 N/A N/A 0.018% N/A 31 - - - - 97 N/A Subtotal-Trust A/C 1,466,457 2 (1,466,457) 2 99.99% 0.00% 2 2 N/A 0.330% - (0) - - (0) 216 - Total Portfolio 50,330,362 5,129,512 (7,166,457) 48,293,417 100.00% 48,293,417 48,151,018 Wgt Avg 0.348% 300,875 36,114 40,486 34,379 42,220 1,520,695 223,675
Investment Portfolio Increased / (Decreased) by: (2,036,945)$ Weighted Average to Maturity = 155.6 Days % of Wgt Avg Actual Actual
Note: Total Cash Invested Rate/Annual Yield Interest Earned Interest Received S - Semi-Annual Month FY 21-22 FY 20-21 FY 21-22 FY 20-21 Month Wgt Avg FY 21-22 FY 20-21 FY 21-22 FY 20-21 FY 21-22 FY 20-21 Q - Quarterly July 54,363,905$ 36,069,560$ 96.93% 95.97% July Wgt Avg 0.308% 0.973% 14,234 29,811 45,850 135,846 M - Monthly August 52,463,905 55,671,375 97.06% 97.19% August Wgt Avg 0.312% 0.907% 13,877 42,861 11,468 11,527 September 48,863,905 49,423,760 96.56% 91.02% September Wgt Avg 0.326% 0.840% 13,088 32,525 3,932 807 October 48,193,417 46,055,140 98.37% 98.32% October Wgt Avg 0.328% 0.737% 13,148 30,203 30,291 102,100 November 48,693,417 46,205,140 97.47% 97.21% November Wgt Avg 0.330% 0.769% 13,404 26,444 3,307 807 December 48,293,417 47,555,140 96.42% 98.57% December Wgt Avg 0.348% 0.660% 13,934 26,655 781 781 January 54,321,533 96.62% January Wgt Avg 0.517% 25,201 91,062 February 53,519,718 96.70% February Wgt Avg 0.467% 19,173 10,838 March 53,017,582 96.98% March Wgt Avg 0.425% 18,998 729 April 52,873,424 92.15% April Wgt Avg 0.412% 17,883 54,514 May 54,623,423 98.35% May Wgt Avg 0.390% 18,109 781 31-Dec-21 June 56,923,424 96.96% June Wgt Avg 0.334% 15,619 2,157 31 Average 50,145,328$ 50,521,602$ Average 97.14% Average 96.34% Average 0.325% 0.619% 81,686 303,482 95,629 411,949 Per Governmental Code requirements, this schedule of Investments icomplies with the City of Campbell's Investment Policy, and there are adequate funds available to meet the budgeted expenditures for the next six months. * Market prices are obtained from the monthly investment statements of the various institutions or the City's third-party custodian, BNY Mellon Bank.
Portfolio Balance
invsch10- copy for PDF-2
1/20/2022
4.a
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Attachment: Quarterly Schedule of Investments (Investment Report - Quarter Ending Decemberr 2021)
4.b
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Attachment: Cashflow Projections (Investment Report - Quarter Ending Decemberr 2021)
4.b
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Attachment: Cashflow Projections (Investment Report - Quarter Ending Decemberr 2021)
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Attachment: Cashflow Projections (Investment Report - Quarter Ending Decemberr 2021)
4.b
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Attachment: Cashflow Projections (Investment Report - Quarter Ending Decemberr 2021)
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Attachment: Cashflow Projections (Investment Report - Quarter Ending Decemberr 2021)
4.b
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Attachment: Cashflow Projections (Investment Report - Quarter Ending Decemberr 2021)
4.c
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Attachment: Actual Receipts and Disbursements (Investment Report - Quarter Ending Decemberr 2021)
4.c
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Attachment: Actual Receipts and Disbursements (Investment Report - Quarter Ending Decemberr 2021)
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Attachment: Actual Receipts and Disbursements (Investment Report - Quarter Ending Decemberr 2021)
City
Council
Report
TITLE: Approve the Acceptance of the Revised Community Development Block Grant, Authorize Advertisement of Bids, Award of Contract, and Other Associated Actions fo r the Community Center Track Resurfacing, Project 21-PP (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a Resolution to approve the acceptance of Community Development Block Grant (CDBG) funds in the amount of $365,000 from th e Santa Clara County Office of Supportive Housing (SCCOSH) for the Campbell Community Center Track Resurfacing Project (21 -PP) by authorizing the City Manager to execute the Grant Agreement with the County to accept the CDBG funds; approve the Project Specifications; and, authorize the Public Works Director to advertise for bids and award the project; authorize the Public Works Director to reject bids and rebid the project should bids received have unamenable irregularities; authorize the City Manager to enter into a construction contract with the lowest responsive and responsible bidder and encumber a 10% construction contingency for a total construction amount of up to $365,000; authorize the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency; and authorize the Finance Director to perform the associated budget adjustment.
BACKGROUND
In Fiscal Year (FY) 2020, the Department of Public Works (DPW) applied for Community Development Block Grant (CDBG) funding to repair and resurface the track located at the Campbell Community Center. On October 6, 2020, the City Council approved t he acceptance of CDBG funds in the amount of $67,000 from the Santa Clara County Office of Supportive Housing ( SCCOSH) and t he allocation of $223,000 from the Parkland Dedication Fund to fund the total project cost of $290,000. After City Council approved the recommendations for the Campbell Community Center Track Resurfacing Project 21- PP, SCCOSH notified DPW that additional grant funds would be available for the Project in FY 2021. In January 2021, the City reapplied for the additional CDBG funds and was approved for fund ing in May 2021 in the revised amount of $365,000. The additional funds will allow the Project to add ress and repair sections of failed sub -base and the surrounding curb as well as account for the increased costs related to labor and supply chain impacts, while substantially reducing the City’s financial contribution to the Project.
DISCUSSION
Item: 5
Category: CONSENT CALENDAR
Meeting Date: February 1, 2022
5 Packet Pg. 36
Approve Acceptance of Grant, Authorize Bids, Award Contract-Proj 21-PP Page 2 of 3 The current CDBG grant award to the City of Campbell in the amount of $365,000 plus $40,000 of local funds from the Parkland Dedication Fund totals $405,000 . This amount will allow for the installation of a synthetic track surfacing system at the Campbell Community Center within the current fiscal year. The $405,000 includes construction costs, engineering, and construction management. Accepting the CDBG grant and implementing the project this fiscal year results in a substantial savings to the Park Dedication Fund. The original approved amount from the Parks Dedication Fund in FY 2020 for the project was $223,000. The current use of Parks Dedication Fund only requires $40,000, a savings of $183,000 for the City when compared to the original proposal.
To take a dvantage of the CDBG funds and complete this project in the current fiscal year, City Council approval is necessary to accept the grant funds; authorize the City Manager to execute the Grant Agreement with the County to accept the funds; and authorize the Public Works Director to advertise the Project specifications and award the Project to the lowest responsive and responsible bidder.
Project Timeline:
Guided by the grant requirements, the anticipated schedule for the Project is as follows:
Execute the Grant Agreement February 2022
Construction Documents Completed February 2022
Council Authorization to Bid February 2022
Award Contract March 2022
Start Construction March 2022
Completion End of April 2022
Under the projected schedule, the tra ck is projected to be closed for public use during the months of March and April 2022. Staff will make every effort to complete the project in a timely manner and re -open the newly resurfaced track for community use as soon as possible.
FISCAL IMPACT
With the acceptance of the CDBG grant funds, the Project’s funding source will be reallocated. As adopted in the FY 21/22 Capital Improvement Program, the Project amount is $290,000, funded $65,000 and $223,000 from CDBG and City (Parkland Dedication) funds, respectively. While the Project costs have increased to $405,000, the grant amount has increased to $365,000 which reduces the City’s portion to $40,000. The attached budget adjustment reflects the increase in the CDBG grant funds and a decrease in the City’s contribution.
The estimated source and use of funds for this Project is as follows:
Source of Funds
CDBG $365,000
Park Dedication $40,000
5 Packet Pg. 37
Approve Acceptance of Grant, Authorize Bids, Award Contract-Proj 21-PP Page 3 of 3 TOTAL $ 405,000
Anticipated Use of Funds
Engineering and Construction Management $ 40,000
Construction Contract $ 365,000
TOTAL $405,000
ALTERNATIVES
Do not accept CDBG funds for the Project and use all City funding sources to implement the project.
Prepared by:
Amy Olay, City Engineer
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Resolution
b. Budget Adjustment
5 Packet Pg. 38
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
APPROVING THE ACCEPTANCE OF THE REVISED COMMUNITY DEVELOPMENT
BLOCK GRANT, AUTHORIZING ADVERTISEMENT OF BIDS, AWARD OF
CONTRACT, AND OTHER ASSOCIATED ACTIONS FOR THE COMMUNITY CENTER TRACK RESURFACING, PROJECT 21-PP
WHEREAS, in October 2020, the City Council accepted Community Development Block Grant (CDBG) funds in the amount of $67,000 from the Santa Clara County Office of Supportive Housing ( SCCOSH) for the Campbell Community Track Resurfacing (Project) and to allocate $223,000 from the Parkland Dedication Fund to fund the estimated total project cost of $290,000; and
WHEREAS, subsequently, SCCOSH notified the City of additional grant funds available for the Project in Fiscal Year (FY) 2021; and
WHEREAS, in May 2021, the Project was approved for CDBG funds in the amount of $365,000; and
WHEREAS, the additional CDBG funds would reduce the current use of Parks Dedication Fund monies from $223,000 to $40,000, a reduction and savings of $183,000 to the City; and
WHEREAS, the additional funds will allow the Project to address the sections of failed sub-base and failed surrounding curb, account for increased contractual cost s related to labor and supply chain impacts, while substantially reducing the City’s financial contribution to the Project; and
WHEREAS, the Project specificat ions and Notice Inviting Bids for Project 21 -PP have been completed; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby approve the acceptance of Community Development Block Grant (CDBG) funds in the amount of $365,00 0 from the Santa Clara County Office of Supportive Housing (SCCOSH) for the Campbell Community Center Track Surfacing (Project 21 -PP) by authorizing the City Manager to execute the Grant Agreement with the County to accept the CDBG funds; approve the Project Specifications; and, authorize the Public Works Director to advertise for bids and award the project; authorize the Public Works Director to reject bids and rebid the project should bids received have unamenable irregularities; authorize the City Manager to enter into a construction contract with the lowest responsive and responsible bidder and encumber a 10% construction contingency for a total construction amount of $365,000; authorize the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency ; and
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Attachment: Resolution (Approve Acceptance of Grant, Authorize Bids, Award Contract-Proj 21-PP)
BE IT FURTHER RESOLVED , that the City Council of the City of Campbell hereby authorizes the Finance Director to perform the associated budget adjustment.
PASSED AND ADOPTED this ____ day of ________ 2022, by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
________________________
Paul Resnikoff, Mayor
ATTEST:
__________________________
Dusty Christopherson, City Clerk
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Attachment: Resolution (Approve Acceptance of Grant, Authorize Bids, Award Contract-Proj 21-PP) City of Campbell
Request for Budget Adjustments
Department/Program Division Date Request No.
February 1, 2022 BA-12
Budget to be Reduced
Fund/Program Account Number Description Amount
295.990 9999 (183,000)$
Budget to be Increased
Fund/Program Account Number Description
435.21PP 7883 115,000
435.990 6999 115,000
218.535 4520 298,000
218.990 9999 298,000
REASON FOR REQUEST - BE SPECIFIC:
Improvements Other Than Building
CDBG Grant
Capital Transfer In
Capital Transfer Out
Finance Director Public Works Director City Manager
Public Works
Will Fuentes Todd Capurso Brian Loventhal
To amend the overall budget of 21-PP:
1. To reflect a $115,000 increase in project costs
2. To reflect an increase in CDBG funding by $298,000 and a decrease in City contribution via Parkland Dedication Fees by $183,000.
Total cost of the project is now $405,000 and funded by CDBG ($365,000) and Park Fees ($40,000). 21-PP CCC Track Resurfacing
Capital Transfer Out
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Attachment: Budget Adjustment (Approve Acceptance of Grant, Authorize Bids, Award Contract-Proj 21-PP)
City
Council
Report
TITLE: Accept Improvements for the Fiscal Year 20/21 Annual Street Maintenance - Collector and Residential Street Resurfacing, Project 21-BB, and File Notice of Completion (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a Resolution accepting the improvements for the Fiscal Year 20/21 Annual Street Maintenance - Collector and Residential Street Resurfacing, Project 21-BB (Project); direc t the City Engineer to file the Notice of Completion; and authorize the Finance Director to perform a budget adjustment.
BACKGROUND
On March 16, 2021, City Council adopted Resolution No. 12683 authorizing the advertisement of bids, awarding the contract, and signing of a construction contract for Project 21-BB (Annual Street Maintenance - Collector and Residential Street Resurfacing). Additionally, the resolution authorized the City Manager to negotiate and enter into a Cost Share Agreement with the City of San Jose in the amount of $178,000 for resurfacing of two streets (Latimer Avenue and Charleston Drive) that the two cities have shared jurisdiction. The City Clerk’s Office received and opened two bids, one from O’Grady Paving, Inc of Mountain View, CA , and the other from Pavement Coating Co. of Sacramento, CA. Both bids were determined to be responsible and responsive.
The City awarded the construction contract in the amount of $2,318,817 on May 4, 2021 to the lowest bidder, O’Grady Paving, Inc. The c onstruction contract was fully executed on May 19, 2021.
DISCUSSION
The construction of the Project is now complete. All work was done in accordance with the plans and specifications.
With construction completion, the Project:
• constructed 79 new ADA compliant accessibility ramps; • applied a rubber cape seal treatment to 4.07 centerline miles of collector/residential streets;
• applied a slurry seal treatment to 2.30 centerline miles of collectors and residential streets;
• applied a hot mix asphalt concrete overlay to 0.18 centerline miles of residential streets;
Item: 6
Category: CONSENT CALENDAR
Meeting Date: February 1, 2022
6 Packet Pg. 42
Accept Improvements for Project 21-BB Page 2 of 4
• installed pedestrian improvements at the intersection of 2nd Street at Orchard City Drive as recommended by the Campbell Transportation Improvement Plan (TIPC) such as accessibility ramps, traffic s pot islands, and a new rectangular rapid flashing beacon (RRFB);
• removed a total of 3 trees and planted 6 new replacement trees; • added sharrows to West Latimer Avenue between San Tomas Aquino Road and Darryl Drive; and
• executed a Cost Share Agreement with the City of San Jose to apply a hot mix asphalt concrete overlay to 0.32 centerline mile of Latimer Avenue and 0.10 centerline mile of Charleston Avenue within Campbell jurisdiction through San Jose’s paving contract.
With the completion of this Proje ct, the useful life of the streets resurfaced with hot mix asphalt concrete, rubber cape sealed, and slurry sealed streets were extended by 20 plus,10 plus, and 5 to 7 plus years, respectively.
The attached resolution has been prepared to accept the imp rovements and to direct the City Engineer to file the Notice of Completion.
FISCAL IMPACT
The Project was completed under budget as outlined below:
SOURCE OF FUNDS
Budget Actual Difference
FY20/21 Project 21-BB $1,467,500 $1,467,500 $0
FY20/21 VRF $215,000 $271,345 $56,345
FY20/21 Measure B $797,000 $796,243 ($757)
FY20/21 SB1 $740,000 $789,141 $49,141
Utility Reimbursement $35,800 $59,800 $24,000
TOTAL $3,255,300 $3,384,029 $128,729
USE OF FUNDS
Budget Actual Difference
Design $115,000 $115,000 -
Construction Engineering $245,300 $203,145 ($42,155) Construction Contract $2,717,000 $2,447,280 ($269,720) Cost Share w/ San Jose $178,000 $153,890 ($24,110) TOTAL $3,255,300 $2,919,315 ($335,985)
The Source of F unds reflects actuals received from Vehicle Registration Fee s, Santa Clara County Measure B, Senate Bill 1 (Gas Tax), and utility reimbursements resulting in a total increased amount of $128,729.
6 Packet Pg. 43
Accept Improvements for Project 21-BB Page 3 of 4
Due to a favorable low bid for the construction contract an d cost savings from the Cost Sharing Agreement with the City of San Jose, the Use of Funds reflects a total savings of $335,985.
The overall balance remaining for the Project is $464, 714 ($128,729 + $335,985). Staff recommends the balance be transferred to the FY 21/22 Annual Street Maintenance – Collector and Residential Street Resurfacing, Project 22 -BB. Project 22 -BB is being presented under a separate report to the Council to approve plans and specifications during this February 1, 2022 City Council meeting.
The attached budget adjustment has been prepared to transfer the fund balance of $464,714 from Project 21-BB to Project 22-BB.
ALTERNATIVES
Do not accept improvements and budget adjustment and direct staff accordingly. As the Project involves significant external funding, it was completed in accordance with those funding requirements. Therefore, any changes made will have impacts on meeting the funding agreements.
Prepared by:
Amy Olay, City Engineer
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Resolution
b. Notice of Completion
6 Packet Pg. 44
Accept Improvements for Project 21-BB Page 4 of 4
c. PS&E Resolution 12683
d. Budget Adjustment
6 Packet Pg. 45
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL ACCEPTING IMPROVEMENTS FOR THE F ISCAL YEAR 20/21 ANNUAL STREET
MAINTENANCE - COLLECTOR AND RESIDENTIAL STREET RESURFACING, PROJECT 21-BB (PROJECT), AND FILE NOTICE OF COMPLETION
WHEREAS, On March 16, 2021 , City Council adopted Resolution No. 12683 authorizing the advertisement of bids, awarding the contract, and signing of a construction contract for the Project; and
WHEREAS, On May 4, 2021, a construction contract in the amount of $2,318,817 was awarded to O’Grady Paving, Inc., of Mountain View, California; and
WHEREAS, O’Grady Paving Inc., completed the installation of various improvements in accordance with the project plans and specifications for the Project; and
WHEREAS, approximately $464,714 of pavement maintenance funds remains unspent in the project budget; and
WHEREAS, a budget adjustment has been prepared to transfer the remaining project budget to the Fiscal Year 21/22 Annual Street Maintenance – Collector and Residential Street Resurfacing, Project 22-BB.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby accepts the improvements constructed by O’Grady Paving, Inc., for the Fiscal Year 20/21 Annual Street Maintenance – Collector and Residential Street Resurfacing, Project 21-BB, directs the City Engineer to file the Notice of Complet ion, and authorizes the Finance Director to perform a budget adjustment.
PASSED AND ADOPTED this ____day of _________ 2022, by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
_______________________________
Paul Resnikoff, Mayor
ATTEST:
_________________________
Dusty Christopherson, City Clerk
6.a
Packet Pg. 46
Attachment: Resolution (Accept Improvements for Project 21-BB) Revised 1/23/17
Recording Requested by
and when recorded, mail to:
City of Campbell
City Clerk’s Office
70 North First Street, City Hall – Upper Level
Campbell, CA 95008
(408) 866-2150
CITY OF CAMPBELL
NOTICE OF COMPLETION AND ACCEPTANCE
OF PUBLIC WORKS CONTRACT
(C.C.C. 3093)
This document is for the benefit of the City of Campbell. Request for the Recordation without fee is made in accordance with Section 6103 of the Government Code of the State of California.
Contractor’s Name: O’Grady Paving, Inc. Contract Date:5/4/2021 Surety: (Surety)
Final Contract
Amount: $2,447,280.79
Job Title: Annual Street Maintenance Project 21-BB: Collector & Residential Street Resurfacing Project Location: Various collector and residential streets in the City of Campbell, California.
Scope of Work: Included the following: tree trimming; tree root pruning; tree removal; weed abatement; concrete improvements such as accessibility ramp installation, sidewalk, curb & gutter and valley gutter removal and replacement; park strip remova l and topsoil placement; asphalt concrete dig out repairs; removal and replacement of traffic striping, markers and markings; installation of rubberized cape seal; installation of Type II Polymer Modified Slurry Seal; installation of 2” HMAC overlay; public notification including street posting; utility coordination; adjustment of utility and other appurtenances to finished grade; associated traffi c control including all construction signs and equipment, flaggers, temporary signing and striping; permanent signing and striping installation; and raising utility company appurtenances to grade.
Owner: City of Campbell, City Hall, 70 North Street, Upper Level, Campbell, CA 95008
This work was accepted by me on 2/1/2022, on behalf of the City of Campbell. I certify under penalty of perjury that the foregoing is true and correct. (C.C.P. 2015.5)
Executed on __________________,
at Campbell, California
Amy Olay, City Engineer
Department of Public Works
City of Campbell
6.b
Packet Pg. 47
Attachment: Notice of Completion (Accept Improvements for Project 21-BB) RESOLUTION NO. 12683
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING THE PLANS AND SPECIFICATIONS; AUTHORIZING THE PUBLIC WORKS DIRECTOR TO ADVERTISE FOR BIDS AND AWARD THE PROJECT;
AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSTRUCTION
CONTRACT WITH THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER IN AN AMOUNT NOT TO EXCEED $ 2, 470, 000 AND ENCUMBER A 10%
CONSTRUCTION CONTINGENCY WITH A TOTAL CONSTRUCTION CONTRACT AMOUNT OF $ 2, 717, 000; AUTHORIZING THE CITY ENGINEER TO NEGOTIATE
AND EXECUTE CONTRACT CHANGE ORDERS UP TO AND WITHIN THE ALLOCATED CONSTRUCTION CONTINGENCY; AUTHORIZING THE PUBLIC
WORKS DIRECTOR TO REJECT BIDS AND REBID THE PROJECT, SHOULD BIDS RECEIVED HAVE UNAMENABLE IRREGULARITIES; AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND ENTER INTO A COST SHARE AGREEMENT WITH THE CITY OF SAN JOSE IN THE AMOUNT OF $ 178, 000; AND AUTHORIZING THE FINANCE DIRECTOR TO PERFORM ASSOCIATED BUDGET ADJUSTMENTS.
WHEREAS, on April 7, 2020, Council adopted Resolution # 12574 authorizing the use of FY 20/ 21 Road Maintenance and Rehabilitation Account ( RMRA or SB- 1) Funds for a candidate list of streets in the FY 20/ 21 Annual Street Maintenance - Collector & Residential Street Resurfacing Project ( Project 21- BB), and WHEREAS, the final engineer' s cost estimate for the construction contract is $ 2, 717, 000 including a 10% contingency; and
WHEREAS, City of San Jose is planning to resurface two streets that shares jurisdiction with the City of Campbell and has offered to include these streets in its construction contract and the two cities would enter into a cost share agreement whereby Campbell will compensate San Jose the estimated amount of$ 178, 000; and WHEREAS, staff recommends combining the pedestrian improvement work at the intersection of Second Street and Orchard City Drive with Project 21-BB; and WHEREAS, sufficient funding sources have been identified for Project 21-BB; and WHEREAS, the plans and specifications for Project 21- BB have been completed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby approves the plans and specifications; authorizing the Public Works Director to advertise for bids and award the project; authorizes the City Manager to enter into a construction contract with the lowest responsive and responsible bidder in an amount not to exceed $ 2, 470, 000 and encumber a 10% construction contingency with a total construction contract amount of $ 2,717,000; authorizes the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency; authorizesthe PublicWorks Directorto reject bids and rebidthe project, should bids received have unamenable irregularities;
BE IT FURTHERRESOLVED, that the City Councilof the City of Campbellhereby authorizes the City Manager to negotiate and enter into a cost share agreement with the
6.c
Packet Pg. 48
Attachment: PS&E Resolution 12683 (Accept Improvements for Project 21-BB) City of San Jose in the amount of $ 178, 000; and, authorizes the Finance Director to perform associated budget adjustments.
PASSED AND ADOPTED this 16thday of March 2021, by the following roll call vote:
AYES: Councilmembers: Bybee, Landry, Lopez, Resnikoff, Gibbons NOES: Councilmembers: Landry
ABSENT: Councilmembers: Landry
APPROVED:
et
r
iz eth " Liz" Gi ons, Mayor
ATTEST:
C44
Andrea S ers, Deputy City Clerk
6.c
Packet Pg. 49
Attachment: PS&E Resolution 12683 (Accept Improvements for Project 21-BB) City of Campbell
Request for Budget Adjustments
Department/Program Division Date Request No.
February 1, 2022 BA-10
Budget to be Reduced
Fund/Program Account Number Description Amount
212.535 4571 (757)$
435.21BB 7883 (464,714)
Budget to be Increased
Fund/Program Account Number Description
204.760 4518 49,141$
212.535 4528 56,345
435.535 4921 24,000
435.21BB 7883 128,729
435.990 6999 104,729
204.990 9999 49,141
212.990 9999 55,588
REASON FOR REQUEST - BE SPECIFIC:
Finance Director Public Works Director City Manager
Public Works
Will Fuentes Todd Capurso Brian Loventhal
To amend overall budget of 21-BB:
1. To reflect an increase in total source of funds of $128,729.
2. To transfer 21-BB cost savings of $464,714 to 22-BB. 21-BB Annual Street Maintenance
Measure B Revenue
Transfer to 22-BB
VRF Revenue
SB1 Revenue
Capital Transfer Out
Capital Transfer Out
Utility Reimbursement
Annual Street Maintenance
Capital Transfer In
6.d
Packet Pg. 50
Attachment: Budget Adjustment (Accept Improvements for Project 21-BB)
City
Council
Report
TITLE: Approval of Plans and Specifications, Authorize Advertisement of Bids, Award of Contracts, and Other Associated Actions for the Fiscal Year 21/22 Annual Str eet Maintenance - Collector and Residential Street Resurfacing, Project 22 -BB (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a Resolution approving the plans and specifications; authorizing the Public Works Director to adverti se for bids and award the project; authorizing the City Manager to enter into a construction contract with the lowest responsive and responsible bidder in an amount not to exceed $3,201,000 and encumber a 10% construction contingency for a total constructi on contract amount of $3,521,000; authorizing the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency; authorizing the Public Works Director to reject bids and rebid the project, should bids received have unamenable irregularities; authorizing the City Manager to enter into a Cost Share Agreement with the Town of Los Gatos in the amount of $335,000; and authorizing the Finance Director to perform associated budget adjustments.
BACKGROUND
Each year, the adopted Capital Improvement Program provides allocations from various sources to fund annual street maintenance efforts per the City’s Pavement Management Program. These funding sources generally include the Capital Improvement Program Reserve, Vehicle Impact Fees, Vehicle Registration Fees, Santa Clara County Measure B, and Road Maintenance and Rehabilitation Account (from Senate Bill 1). For Fiscal Year (FY) 21/22, the focus is to provide pavement treatments on local and collector streets; provided through the FY 21/22 Annual Street Maintenance Project - Collector and Residential Street Resurfacing, Project 22-BB (Project).
On June 1, 2021, Council adopted Resolution No. 12714 authorizing the use of FY 21/22 SB1 Funds for a candidate list o f streets for the Project. The candidate streets for rehabilitation were generated by using the City’s Pavement Maintenance Program software called Streetsaver. Streetsaver uses a combination of factors to generate the list of candidate streets. These fac tors include available resources, current street pavement condition index (PCI), treatment history and the types of pavement treatments available for rehabilitating streets. The software program then recommends the best use of the City’s limited pavement m aintenance funds and recommends Item: 7
Category: CONSENT CALENDAR
Meeting Date: February 1, 2022
7 Packet Pg. 51
Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB Page 2 of 7 specific rehabilitation treatments for each street. Because the program uses best value for the money spent approach, streets with the lowest PCI’s do not necessarily get priority as those streets may require more extensive and more costly pavement treatments.
The goal of annual street maintenance projects is to extend the useful life of the existing pavement by using various preventive maintenance treatments. Depending on the type of treatments, the useful life of the pavement can be extended between 5 to 20 years.
On September 21, 2021, Council adopted Resolution No. 12764 authorizing staff to submit a grant application to CalRecycle for the Rubberized Pavement Grant Program in the amount of $68,000. Subsequently on Dec ember 16, 2021, CalRecycle notified staff of the grant program being oversubscribed, receiving more grant requests (approximately $6.5 million) than the initial funding allocation ($3.5 million). As a result, CalRecycle was not able to award the requested grant amount to the City. However, should additional funding become available, the City would be qualified to receive grant funding. Staff will continue to monitor the grant program for available funding.
DISCUSSION
With the Council approved list of c andidate streets, staff proceeded to refine the quantities and cost estimate for the Project. Through the final cost savings from the FY 20/21 Annual Street Maintenance, Project 21 -BB (presented in the project acceptance report under a separate item at th is February 1, 2022 Council Meeting), N. Central Avenue from Grant Street to Hamilton Avenue was added to the street resurfacing list since it is a street in need of a slurry seal treatment. In total, the Project will resurface
4.88 centerline miles of roa dway. The resurfacing treatments include slurry seal, rubber cape seal, and hot mix asphalt concrete overlay. See Attachment 1 - List of Project Streets and Attachment 2 - Location Map.
Slurry seals, rubber cape seals and hot mix asphalt concrete overl ays are forms of pavement preventive maintenance treatments:
▪ A slurry seal treatment is usually applied to a street that is in good condition. The process for a slurry seal treatment involves the placement of an emulsion consisting of oil, sand, and wate r to the surface of the roadway. A slurry seal treatment extends the service life of the street by 5 to 7 plus years.
▪ A rubber cape seal treatment is usually applied to a street that is in fair condition.
The process for a rubber cape seal involves t he placement of a sprayed rubber membrane which seals pavement cracks and waterproofs the road surface followed by an application of aggregate chips. A slurry seal application is applied 5 to 7 days following the placement of the aggregate chips. A rubber cape seal treatment extends the service life of the street by 10 plus years.
▪ Hot mix asphalt concrete is usually applied to a street that is in poor condition. The overlay adds a new layer of hot mix asphalt concrete to the existing pavement and 7 Packet Pg. 52
Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB Page 3 of 7 provides much needed structural strength to the pavement structure. A hot mix asphalt concrete overlay will extend the service life of the street by 20 plus years.
The Project will also install 26 new American Disability Act (ADA) compliant accessibility ramps and will repair various uplifted/sunken curb and gutter locations to re -establish proper flow of water. Both the hot mix asphalt concrete overlay and the application of a rubber cape seal treatments are considered by the Department of Justice to be an “alteration” to the existing roadway; thereby, triggering the requirement to install ADA compliant accessibility ramps along the streets scheduled to receive such treatments.
The cost savings of $464, 714 resulting from completing the FY 20/21 Annual Stre et Maintenance – Collector & Residential Street Resurfacing, Project 21 -BB will also allow for additional much needed pavement preventive maintenance work on South Bascom Avenue (from the northern City Limit Line at the railroad tracks just north of Hamilt on Avenue to approximately 530 feet south of Apricot Avenue), and on Hamilton Avenue (from Winchester Boulevard to San Tomas Expressway) that cannot be addressed by the City’s Maintenance Crew due to the sheer volume and speed of the traffic on these streets. Including this work in a larger contract will result in better bid prices. The preventive maintenance work includes repairing localized pavement failure areas (i.e., digouts) and crack sealing.
Cost Share Agreement with Town of Los Gatos
As part of the annual street maintenance efforts, coordination takes place with neighboring cities for partnering opportunities to resurface streets that border our cities or that have shared jurisdiction with those agencies where a portion of the street is owned by one and the remainder by the other jurisdiction. For this Project, staff has been coordinating with the Town of Los Gatos (Town) to resurface three streets with shared jurisdiction. The three streets and their limits are:
• W. Parr Avenue from Pollard Road to Capri Drive
• Capri Drive from W. Parr Avenue to Division Street
• Division Street from Cari Drive to Winchester Boulevard
These streets will be resurfaced with a rubber cape seal treatment along with the installation of seven (7) new ADA compliant accessibility ramps. Based on the final cost estimate, the Town’s share of the work is $304,500 (10% construction contingency included) plus 10% City’s administrative costs for a total not to exceed amount of $335,000. The Town Council approved the Cost Sha re Agreement at their meeting on December 21, 2021. Staff is recommending the City Council authorize the City Manager to enter into the Cost Share Agreement with the Town of Los Gatos.
Street Monuments
A licensed land surveyor has been selected and proc ured to re -establish street monuments that have been determined to be missing or damaged on streets included in the Project. Over time, street monuments can be come damaged or missing. The licensed land surveyor will conduct work in accordance with Califo rnia Streets and 7 Packet Pg. 53
Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB Page 4 of 7 Highways Code Section 1810.5 and with California Business and Profession al Code Section 8771. The scope of work involves researching necessary information, performing required calculations, and installing new street monuments in accordance with the City’s Standard Details. The re -establishment of these monuments will take place after the work associated with the construction contract is complete to minimize any conflict between the two contracts.
Tree Removals and Replacements
During the design of the Project, it was determined that the installation of ADA compliant curb ramps, and the repair to existing concrete improvements and roadway asphalt m ay adversely impact several street trees. These trees have outgrown the planter strip area a nd their root system s are uplifting the adjacent sidewalk, curb and gutter, and/or pavement, creating drainage issues. If left unattended, th ese roots w ill continue to cause more damage to the adjacent improvements. After careful evaluation of the current condition of the trees, survival potential post proposed construction activities, and public safety, it was determined by the City Arborist five (5) trees are to be removed and replace d with a more appropriate species with less intrusive root systems. The removed trees will be mitigated at a two to one ratio.
In compliance with the Federal Migratory Bird Treaty Act, the trees are scheduled to be removed prior to February 1, 2022, in advance of the start of construction , under a separate contract. The replacement trees will be planted during spring 2022 with spring being the recommended season for tree planting.
Utility Relocation
Over $143,000 of utility relocation/adjustment work is included in the Project. Utilities needing adjustments to grade afte r the streets are resurfaced include sanitary sewer manholes, sewer cleanout s, water valves, and gas valve boxes. These items are included as additive alternates in the bid documents. After the bids are opened, the utility owners can elect to have the wor k included with the Project. If the utility companies elect to include their work with the Project, the City will be fully reimbursed for the associated expenses, plus a 15% charge for the City administering the work.
The final engineer’s cost estimate f or the construction contract for the Project including a 10% construction contingency is $3,521,000.
Project Schedule
The following is the anticipated schedule:
Advertise for Bids February – March 2022
Opening of Bids & Award Contract March 2022
Construction Begins April 2022
Construction Completed September 2022
FISCAL IMPACT
7 Packet Pg. 54
Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB Page 5 of 7 The adopted FY 21/22 Capital Improvement Program (CIP) appropriated $2,784,000 to the FY 21/22 Annual Street Maintenance as the primary funding source for th e Project.
This amount is comprised of funds from the CIP Reserve (CIPR), Vehicle Impact Fees (VIF), Vehicle Registration Fees (VRF), Santa Clara County Measure B, and Road Maintenance and Rehabilitation Account (SB1). Since the Measure B, VRF, and SB1 amounts in the CIP are projected amounts, actuals received annually by the City may vary. For instance, the source of funds for the Project reflects the revised amounts from Measure B, VRF, and SB1. Staff continues to monitor the actuals with revenue reconciliations to take place as necessary with appropriate budget actions.
Other funding sources include a budget carryover, possible utility adjustment reimbursements, and Cost Sharing Agreement with the Town of Los Gatos. The anticipated Source and Use of Funds for the project is as follows:
SOURCE OF FUNDS
Adopted
Budget
Updated
Budget
Difference
FY21/22 Project 22-BB (City) $927,000 $927,000 $0
FY 21/22 VRF $215,000 $255,980 $40,980
FY 21/22 Measure B $797,000 $1,030,515 $233,515
FY 21/22 SB1 $845,000 $812,370 ($32,630)
Project Transfer from 21-BB - $464,714 $464,714
Utility Reimbursement - $143,476 $143,476
Los Gatos Cost Share Agreement - $335,000 $335,000
TOTAL $2,784,000 $3,969,055 $1,185,055
ANTICIPATED USE OF FUNDS
Amount
Design $203,000
Construction Engineering $245,055
Construction Contract $3,201,000
10% Construction Contingency $320,000
TOTAL $3,969,055
The final engineer’s estimate for the Project construction is estimated at $3,201,000.
Adding a 10% construction c ontingency of $320,000, the construction contract totals $3,521,000. The estimate is based on field measured quantities of the work and includes factors to account for recent market prices.
7 Packet Pg. 55
Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB Page 6 of 7 The attached resolution has been prepared to: approve the plans and specifications; authorize the Public Works Director to advertise for bids and award the project; authorize the City Manager to enter into a construction contract with the lowest responsive and responsible bidder in an amount not to exceed $3,201,000 an d encumber a 10% construction contingency for a total construction contract amount of $3,521,000; authorize the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency; authorize the Public Works Director to reject bids and rebid the project, should bids received have unamenable irregularities; and authorize the City Manager to enter into a Cost Share Agreement with the Town of Los Gatos in the amount of $335,000. Lastly, the resolution authorizes the Finance Director to perform the associated budget adjustment, transferring $464,714 from Project 21-BB to Project 22-BB.
ALTERNATIVES
1. Do not approve the project Plans and Specifications and direct staff to re -scope the project.
2. Do not authorize the City Manager to enter into a Cost Share Agreement with the Town of Los Gatos.
Prepared by:
Amy Olay, City Engineer
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Resolution
b. List of Project Streets
7 Packet Pg. 56
Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB Page 7 of 7 c. Location Map
d. Budget Adjustment
7 Packet Pg. 57
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
APPROVING OF PLANS AND SPECIFICATIONS, AUTHORIZING ADVERTISEMENT
OF BIDS, AWARD OF CONTRACTS, AND OTHER ASSOCIATED ACTIONS FOR THE F ISCAL YEAR 21/22 ANNUAL STREET MAINTENANCE - COLLECTOR AND RESIDENTIAL STREET RESURFACING, PROJECT 22-BB
WHEREAS, the Fiscal Year (FY) 21/22 Annual Street Maintenance line item supports the creation of the FY 21/22 Annual Street Maintenance – Collector & Residential Street Resurfacing, Project 22-BB; and
WHEREAS, on June 1, 2021 , Council adopted Resolution No. 12714 authorizing the use of FY 21/22 R oad Maintenance and Rehabilitation Account (SB1) Funds for the Project; and
WHEREAS, the Project will resurface approximately 4.88 centerline miles of collector and residential streets , repair isolated pavement failure areas , and install 26 new ADA compliant accessibility ramps; and
WHEREAS, any trees removed to facilitate the Project will be in accordance with the Federal Migratory Bird Act and for trees within the City of Campbell, the replacement mitigation ratio is two to one (2:1) such that for every tree removed two trees will be planted; and
WHEREAS, the City of Campbell and the Town of Los Gatos would enter into a Cost Sharing Agreement in the amount of $335,000 to resurface three streets with shared jurisdictional boundaries (W. Parr Avenue, a portion of Capri Drive, and a portion of Division Street); and
WHEREAS, $464,714 from the FY 20/21 Annual Street Maintenance - Collector and Residential Street Resurfacing, Project 2 1-BB fund balance is being transferred into the Project; and
WHEREAS, the plans and specifications for Project 22-BB have been completed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby approves the plans and specifications ; authorizes the Public Works Director to advertise for bids and award the project; a uthorizes the City Manager to enter into a construction contract with the lowest responsive and responsible bidder in an amount not to exceed $3,201,000 and encumber a 10% construction contingency for a total construction contract amount of $ 3,521,000; authorizes the City Engineer to negotiate and execut e contract change orders up to and within the allocated construction contingency; authorizes the Public Works Director to reject bids and rebid the project, should bids received have unamenable irregularities; and
BE IT FURTHER RESOLVED , that the City Council of the City of Campbell hereby authorizes the City Manager to enter into a Cost Share Agreement with the Town of Los Gatos in the amount of $335,000; and
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Packet Pg. 58
Attachment: Resolution (Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB)
BE IT FURTHER RESOLVED, that the City Council of the City of Campbell hereby and authorizes the Finance Director to perform a budget adjustment of $464, 714 from Project 21-BB to Project 22-BB.
PASSED AND ADOPTED this ____ day of ________ 2022, by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
________________________
Paul Resnikoff, Mayor
ATTEST:
_______________________
Dusty Christopherson, City Clerk
7.a
Packet Pg. 59
Attachment: Resolution (Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB)
CITY OF CAMPBELL
Annual Street Maintenance Project 22-BB:
Collector Residential Street Resurfacing Program
TREATMENT SCHEDULE
Street Name Begin Location End Location
Length
(FT)
Width
(FT)
Area
(SF)
Area
(SY)
CAPRI DR DIVISION ST WEST PARR AV 310 34 10540 1171
CAPRI DR WEST PARR AV CHAPMAN DR (SOUTH
INTERSEC)
900 27 24300 2700
CAPRI DR S/O CHAPMAN DR
(SOUTH XSEC)
S/O HACIENDA AV 925 27 24975 2775
CHAPMAN DR VIRGINIA AV 150 ft W/O THERESA
AVE
320 30 9600 1067
CHAPMAN DR 150 ft W/O THERESA
AVE
CAPRI DR 474 37 17538 1949
CHAPMAN DR CAPRI DR WINCHESTER BLVD 994 27 26838 2982
CROCKET AVE SAN TOMAS AQUINO
RD
END 567 36 20412 2268
CRONWELL DR N. LEIGH AVE PHANTOM AVE 645 33 21285 2365
DIVISION ST CAPRI DR WINCHESTER BLVD 500 36 18000 2000
EL PATIO CT COP @ N. CL EL PATIO DR 210 26 5460 607
GRACE AV MONTEMAR WY HAMILTON AV 1430 37 52910 5879
JUANITA WY BURROWS RD END 721 37 26677 2964
MAPLE ST PAGE ST POPLAR AV 532 33 17556 1951
PHANTOM AV HAMILTON AV SHEFFIELD AV 875 34 29750 3306
PHANTOM AV CRONWELL DR MONTEMAR WY 305 34 10370 1152
PHANTOM AV SHEFFIELD AV CRONWELL DR 270 34 9180 1020
WEST PARR AV WINCHESTER BLVD CAPRI DR 636 40 25440 2827 WEST PARR AV CAPRI DR DIST. BOUNDRY(157 ft
E/O VALE
976 36 35136 3904
WEST PARR AV DIST. BOUNDRY(157 ft
E/O VALE
HACK AV 1213 34 41242 4582
WEST PARR AV HACK AV POLLARD RD 487 34 16558 1840
13,290 443,767 49,307
RUBBER CAPE SEAL STREETS
Subtotal for Rubber Cape Seal Streets:
S:\22-BB Annual St Maintenance\14 Design\k. Specifications\22-BB Treatment Schedule Pg 1 of 2 Attachment 1: Street List
7.b
Packet Pg. 60
Attachment: List of Project Streets (Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB)
CITY OF CAMPBELL
Annual Street Maintenance Project 22-BB:
Collector Residential Street Resurfacing Program
TREATMENT SCHEDULE
Street Name Begin Location End Location
Length
(FT)
Width
(FT)
Area
(SF)
Area
(SY)
EL PATIO DR WEST END EAST END 660 36 23760 2640
GILMAN AV SAM CAVA LN CAMPBELL AV 958 36 34488 3832
HAWTHORNE AV PAGE ST POPLAR AV 585 31 18135 2015
HURST AVE HAMILTON AVE 235' S. OF
MONTEMAR WY
1630 18 29340 3260
N. CENTRAL AVE GRANT ST E HAMILTON AVE 1823 31 56513 6279 PAGE ST CAMPBELL AV HAWTHORNE AV 695 32 22240 2471
POPLAR AV CAMPBELL AV EL PATIO 1069 32 34208 3801
7,420 218,684 24,298
MONTEMAR WY N. LEIGH AVE PHANTOM AVE 650 37 24050 2672
MONTEMAR WY PHANTOM AVE GRACE AVE 320 37 11840 1316
MONTEMAR WY GRACE AVE HURST AVE 330 37 12210 1357
1,300 48,100 5,344
VIRGINIA AV BUDD AV WALDO RD 1174 37 46105 5123
VIRGINIA WALDO RD SUNNYOAKS AV 1482 36 56022 6225
VIRGINIA SUNNYOAKS AV HACIENDA AV 1110 36 39755 4417
3,766 141,882 15,765
TOTAL:
4.88 CL Miles
SLURRY SEAL STREETS
0.5" LEVELING COURSE; REINFORCING FABRIC; 1.75" HMAC OVERLAY Subtotals Slurry Seal Streets:
Subtotal for Virginia Avenue:
Subtotal:
2" MILL AND 2" FILL
S:\22-BB Annual St Maintenance\14 Design\k. Specifications\22-BB Treatment Schedule Pg 2 of 2 Attachment 1: Street List
7.b
Packet Pg. 61
Attachment: List of Project Streets (Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB) GEORGE
ARC
EL PATIO
ASH
BIRCH
CYPRESS
PASEO DE PALOMAS
LA PALOMAPALOMAR REAL
LA PAZ
CHALET
CHALET WO
ODS
RUE MONTAGNE
VEITENHIEMER
HO
FFMAN
SPRIERING
REDDING PARK
ST ANTHONYS
MONTE VILLA
BASCOM
LORETTA
BEETHOVEN
LOST LAKE
EILEEN FLORENCE
TIMBER
COVE
SUNKIST
ROBIN RIDGELOTTIE
HERITAGE
O
RCHARD
OAK
CANNERY
BELLE
TERRE
AINSLEY PARK
SOMERSET
HERI T
AGE
TAPESTRY
BISCAY
WATERFORD
PUFFIN
SANDPIPER
SANDERLING
ALBATROSS
HERITAGE VILLAGE
HERITAGE VILLAGE
MISSION
BRAXTON
MORRISON
HAZEL
PLUM BLOSSOM
APPLE BLOSSOM
C
HER
RY
BLOSSOM
GRAHAM
MARAVILLA
LATIMER
PENNY
ALLERTON
FIERRO
ENGLISH
ROSE
TURNER
DELLA
PAYMAN
RACHEL
SAFFLE
LAS PEIDRAS
LA CORONA
LOS ENCANTOSLAS ENCINAS
1ST
3RD
LEIGH
BUDD
UNION
CENTRAL
2ND
POLLARD
RINCON
WINCHESTER
SAN TOMAS AQUINO
LATIMER
CAPRI
BENT
DELL
BASCOM
MIDWAY
DARRYL
WALDO
CARLYN
GALE
HAZEL
RIDGELY
MCGLINCY
SMITHELAM
MILTON
SILACCI
AUDREY
LOVELL
W
HITE
OAKS
PATIO
MCCOY
CAMPBELL
HACIENDA
WALNUT
WESTMONT
SUNNYOAKS
EL SOLYO
ERIN
HARRIET
STEINWAY
HARRISON
LINDA
DILLON
4TH
ALICE
EMORY
RAILWAY
KENNETH
VICTOR
GRANT
APRIL
DOT
GAY
BUCKNAM
CALADO
REDDING
ABBOT
HARDY
SONUCA
CAMEO
SPRINGFIELD
CAMDEN
CONNIE
CHERRYBUCKNALL
ADRIAN CURTNER
PAYNE
SALERNO
VILLARITA
HUNT
THERESA
CAMBRIAN
MCBAIN
DALLAS
ENSENADA
MONICA
YORK
SALMAR
DAVID
SHELLEY
SU
PERIO
R
LENOR
LISA
CENTRAL PARK
ESTHER
ADLER
ROBIN
PALO SANTE
HOLLIS
BOISE
PHANTOM
VALE
GWEN
BURROWS
MARILYN
SOBRATO
POPLAR
MARATHON
RICHLEE
DUNSTER
HYDE
HAMILTON
CATALAPA
GILMAN
KUEHNIS
CRONWELL
COLLEEN
PAGE
INWOOD
CIVIC CENTER
HACK
ELWOOD
MORE
ECHO
FEWTRELL
APRICOT
ALMARIDA
NADINE
NIDO
CHRISTOPHER
ABBEY
FRIAR
SHEFFIELD
KENNEDY
SHAMROCK
HOLMES
ROSEMARY
MICHAEL
WHITWOOD
FULTON
CREE
K
SIDE
PEGGY
VIRGINIA
PETER
CRAIG
DEL
PRADO
SUNNYSIDE
SHADYDALE
EL MORO
BISMARK
OLYMPIA
WESTON
MANCHESTER
SUNBERRY
EL CAMINITO
PAULA
LAURA
OLD ORCHARD
EBBETS
RICKY
JEFFREY
BLAND
ORCHARD CITY
NORMANDY
SHADLE
NELLO
LONGFELLOW
CHARMAIN
LA VONNE
LOYALTON
WALTERS
JANE-ANN
MUNRO
DENVER
CAMPISI ROBWAY
DIVISION
INSKIP
REGINA
ARROYO-SECO
ROSE
REGAS
ARCHER
CALIFORNIA
PHOENIX
WREN
SHARP
PEACHTREE
ONTARIO
EDEN
JUANITA
SHARMON PALMS
LA PRADERA
MAPLE
SONDRA
WILTON
CLOVER
WATSON
EL PATIO
LLEWELLYN
WENDELL
WHITEHALL
HEDEGARD
EMERSON
WARWICK
KEITH
RADFORD
BED AL
CROCKETT
LUCOT
MARIANNA
GINDEN
FAWN
MORRENE
VAN D US EN
BEARDEN
NOTTINGHAM
PECAN
BRANBURY
BAYWOOD
COVENTRY
MONETA
E MOZART
MEMPHIS
RAVENCOURT
VANDERBILT
WEST VALLEY
KINGS
SCOTT
LOUISE
KIM
SALICE
OBURN
FOOTE
TOLWORTH
FLAMINGO
VIA RANCHERO
GOMES
FILBERT
WELKER
FORMAN
MARGARET
CHAPMAN
CENTURY
DRY CREEK
RO
B N ICK
PARKHURST
FAIRBANKS
HAWTHORNEAMATO
REX
VANDELL
ESTRELITA
DOVER
QUEENS
CHARLESTON
MICHELLE
HERBERT
WELLINGTON
STEVENS
MERRIMAC
MITCHELL
EVERETT
ECKER
PARSONS
DE
C ARLI
SUNNYBROOK
FREDA
VALLEY FORGE
LU ANNE
BARBANO
MARY
LAWNDALE
GLENN
PICADILLY
ASHLOCK
SHARON
DEL LOMA
CORA
MAGGIO
FAIRLANDS
HATCHER
BETA
MARSAN
WOODARD
ABBOT
WINCHESTER
LATIMER
WEST PARR
MCBAIN
RINCON
VIRGINIA
MILTON
CAMPBELL
HARRISON
CHAPMAN
HARRIET
PEGGY
BASCOM
CAMPBELL
CAMPBELL
LLEWELLYN
HACIENDA
KENNETH
WINCHESTER
SAN TOMAS AQUINO
HACIENDA
SUNNYOAKS
ALMARIDA
EMORY
BUCKNALL
PETER
DELL
CROCKETT
PAMLAR
RIO SERENA
SW
EETBRIAR
JONES
WEKIVA
KARA
KAMSON
SHEILA
WESTFIELD
MONTEMAR
KIM-LOUISE
SAM CAVA
ARNOTT
JIM ELDER
BETH
MILLER
ERIE
TUBBY
HAZELWOOD
LOIS
MANX
JEFFERS
SANFORD
SU MMERFIELD
DECORAH
KEN
CORLISS
MANTON
TORERO
BUDDLAWN
LA PLATA
LANA
ST. PAUL
SHEREEN
WESTCHESTER
PATRICIA
BRACEBRIDGE
LORELEI
BEVERLY
DEL ORO
CASTRO
CAMPBELL TECHNOLOGY
PW
Y
GLENBLAIR
INDUSTRIAL
POPE
NORIN
ALLEN
ALBERT
WINSLOW
DEL ROY
LUIKA
ST OKES
CULLEN
MILLBROOK
MILLICH
SMOKEY
SUNNYARBOR
CLIFTON
SONUCA
POLLARD
CENTRAL
DRY CREEK
VIRG
IN
IA
HEDEGARD
POLLARD
HAMILTON
LAURA
WEST PARR
SHEFFIELDCASTROCALADO
FAIRLANDS
SUNNYPARK
MCGLINCY
ELWOOD
SAN
TOMASEXPY
BROWNING
GRACE
HURST
MCBAINMEMORY
SYDNOR
BRIARW
OOD
OAK PARK
PARKDALE
STANFIELD
CAMEO
DUNCANVILLE
ARAM
WHITETHORNE
PE
T
E R
JUSTO
JASMINE
STONEHURST
SUNNYBROOK
ALPHA
GAMMA
BUDD
SOBRATO
SOBRATO
SOBRATO
WILSON
BUCKNAM
PEGGY
INWOOD
LAMONT
GINDEN
HYDE
DARRYL
LOVELL
CHAMBERLIN
HACIENDA
ARCHER
LITTLETON
FAWN
MAYSUN
HARRIET
ELWOOD
BURNHAM
VIRGINIA
CAMDEN
PARSONS
SHARP
PATIO
MONICA
CENTRAL
SAN TOMAS AQUINO
ABBOTT
JONATHAN
WHITE OAKS
LAURAN C
E
HILL
RICKY
CENTURY
BEDAL PARK
CRISTICH
LOWELL
UNION
GRIFFITH
DELL
PINE
JOHN KIRK
COBBLESTONE
BASCO
M
SALERNO
Rosemary
Elementary School
Los Gatos
County Park
Campbell
Jr. High
School
John D.
Morgan Park
Campbell
Community
Center
Dover
School
Rollings Hills
Jr. High School
Hazelwood
Elementary School
Capri
Elementary
School
Forest Hill
Elementary
School
Jack
Fischer
Park
Virginia
Park
VTA
VTA
LosGatosCreek
Stojanovich
Park
San Tomas Aquino Creek
VTA
Edith Morely
Park
Civic
Center
Document Path: J:\GIS\MAPS\Map of Campbell\Campbell_Street_Parcel_LayersOnly.mxd
SAN JOSE
SAN JOSE
SAN JOSE
SARATOGA
LOS GATOS
CITY OF CAMPBELLMONTE
SERENO
[N
1 " = 1,000 'SCALE:
WINCHESTER BLVD
KNOWLES DR
ANNUAL STREET MAINTENANCE PROJECT 22-BB: LOCATION MAP
LEGEND:
Rubber Cape Seal Streets
Crack Seal + Slurry Seal Streets
2" Mill and Fill (w/ 5" Digouts)
2.25" Wedge/Conform Grind;
1/2" Leveling Course;
Pavement Reinforcing Fabric; and
1.75" Overlay
Unless otherwise noted, digouts are 4" in depth.
Attachment 2: Location Map
7.c
Packet Pg. 62
Attachment: Location Map (Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB) City of Campbell
Request for Budget Adjustments
Department/Program Division Date Request No.
February 1, 2022 BA-11
Budget to be Reduced
Fund/Program Account Number Description Amount
204.760 4518 (32,630)$
204.990 9999 (32,630)
Budget to be Increased
Fund/Program Account Number Description
212.535 4528 40,980
212.535 4571 233,515
435.535 4921 143,476
435.535 4921 335,000
435.22BB 7883 464,714
435.22BB 7883 720,341
435.990 6999 241,865
212.990 9999 274,495
REASON FOR REQUEST - BE SPECIFIC:
Capital Transfer Out
Measure B Revenue
Los Gatos Cost Share
Annual Street Maintenance
Utility Reimbursement
Transfer from 21-BB
Capital Transfer In
Finance Director Public Works Director City Manager
Public Works
Will Fuentes Todd Capurso Brian Loventhal
To amend the overall budget of 22-BB:
1. To reflect a $464,714 transfer from 21-BB.
2. To reflect a total increase in total source of funds, excluding transfer from 21-BB, for $720,341. 22-BB Annual Street Maintenance
SB1 Revenue
Capital Transfer Out
VRF Revenue
7.d
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Attachment: Budget Adjustment (Approval of Plans and Specifications, Authorize Advertisement of Bids, 22-BB)
City
Council
Report
TITLE: Receive Input from the Community on the Draft District Maps Submitted for the Redistricting of City Council District Boundarie s (Time Certain 7:45 PM)
RECOMMENDED ACTION
Receive input from the Community on the draft district maps submitted for the Redistricting of City Council district boundaries and provide any necessary feedback and direction to Staff.
BACKGROUND
Every ten years, cities with by -district election systems must use new census data to review and, if needed, adjust district boundary lines to reflect how local populations have changed. This process, called redistricting, ensures all districts have nearly equal population. By Statute, t he redistricting process for the City of Campbell must be completed by April 15, 2022.
The City adopted its current district boundaries on July 2, 2019 based on 2010 Census data as required by law. The districts must now be adjusted using the 2020 Census data and be in compliance with the FAIR MAPS Act, which was adopted by the California legislature as Assembly Bill (AB) 849 and took effect January 1, 2020.
On August 3, 2021 Council approved the use of a Staff -led process with an i dentified community outreach plan for this year’s redistricting process. The first and second of four required public hearings w ere held on September 7, 2021 and October 5, 2021 at which time the public and Council received an update on the process overall and received public comment s. On January 15, 2022 the City hosted a public workshop to educate the community on the redistricting process and demonstrate d how to use the map drawing tools provided on the City’s website.
Members of the public were instruc ted to provide feedback and develop draft maps that best depict their neighborhoods and/or communities of interest (COI). A COI is a group of people that share common social or economic interests, live in a geographically definable area, and should be incl uded within a single district for purposes of effective and fair representation in future elections. There are some communities of interest that are considered “protected classes” in that they have rights through state or federal civil rights or voting rig hts laws. Some examples of protected classes in districting would be Item: 8
Category: PUBLIC HEARINGS AND
INTRODUCTION OF
ORDINANCES
Meeting Date: February 1, 2022
8 Packet Pg. 64
Redistricting 2021 Public Hearing 3 Page 2 of 4
ethnic and racial minorities such as a concentration of Latinx, Asian or African American people. There are other potential COI’s that can also be considered in districting, such as: seni or citizens, college students, people who live in a particular neighborhood, or even people who share concerns such as parents with young children, bicycle enthusiasts, topic interest groups, etc. COI’s do not include relationships with political parties, incumbents, or political candidates.
Possible community features include, but are not limited to:
1. School attendance areas
2. Natural dividing lines such as major roads, hills, or highways
3. Areas around parks and other neighborhood landmarks
4. Common issues, neighborhood activities, or legislative/election concerns
5. Shared demographic characteristics, such as:
a. Similar levels of income or education
b. Languages spoken at home
c. Single-family and multi-family housing unit areas
DISCUSSION
Elections Code Section 21607. 1 directs that the City must conduct at least four public hearings throughout the redistricting process; one public hearing before maps are drawn, at least two public hearings after draft maps are drawn, and one public hearing scheduled on an evening or weekend, at which time the public is invited to provide input regarding the composition of the districts.
This third public hearing is the first opportunity to review and discuss draft maps of proposed districts that have been submitted by members of the c ommunity before the initial deadline of January 18, 2022. At its meeting on November 16, 2021 City Council voted unanimously to include the City’s current district boundary map for consideration.
The 2020 U.S. Census indicated that the City’s current distr ict boundaries are still population balanced. In addition, the City received a total of four (4) draft maps (labeled 101–104). Upon receipt of a draft map from the public, NDC, Inc., the City’s contracted demographer, reviewed each map for compliance with the Federal Voting Rights Act and the Fair Maps Act which include:
Federal Voting Rights Act
• Each council district shall contain a nearly equal population. • No council district shall be drawn with race as the predominate factor in violation of the principl es established by the United States Supreme Court in Shaw v. Reno, 509 U.S. 630 (1993), and its progeny.
Fair Maps Act
• Each council district shall be a geographically contiguous territory. • Each council district shall contain undivided neighborhoods and Communities of Interest.
8 Packet Pg. 65
Redistricting 2021 Public Hearing 3 Page 3 of 4
• Each council district border shall be easily identifiable and follow visible natural and man-made geographical and topographical features , including mountains, flat land, forest lands, highways, canals, etc.
• Each council district sha ll be as compact as possible. Districts cannot bypass one group of people to get to a more distant group.
After careful review and analysis of the above described rules and laws and the draft maps submitted, it was determined that three of the four submitted draft maps meet the requirements of the Federal Voting Rights Act and the Fair Maps Act. Map 103 was deemed non-compliant as it is currently presented, as it is not population balanced.
Plan Type Submitter Dev. Contig? Pairings
Existing MOR NDC 7.64% Y None
101 PDF Various 7.64% Y None
102 DRA 2020 Ben Wynd 3.53% Y D1: D2
103 DRA 2020 Ben Wynd 10.51% Y
104 DRA 2020 Ben Wynd 4.23% Y None
The City’s current district boundary map and a ll four (4) submitted draft maps are included as Attachment A.
Staff is requesting the City Council provide input on the presented draft maps and take public testimony. T he City will continue to accept draft maps from the public until the final submission deadline of February 1 8, 2022. The fourth and final required public hearing is scheduled for March 1, 2022 , at which time the City Council will select a final district boundary map and introduce an ordinance to adopt the final map with the second and final reading of the ordinance scheduled for March 15, 2022.
FISCAL IMPACT
The below project budget reflects NDC, Inc’s consultant fees as well as the estimated community outreach costs through the end of the project hearings in March 2022. The direct mail postcard to more than 13,000 Campbell addresses represents the largest expense in the Community Outreach Costs category. The Fiscal Year 21/22 adopted budget for the City Clerk’s Office includes $35,000 (Election Expenses – Acct. 7436) for this project expense, leaving a difference of approximately $10, 500. This budget difference will be included as a budget adjustment during the mid-year budget review.
Projected Redistricting Project Costs
Consultant – Basic Project Elements $19,500
Consultant – Virtual Meeting Attendance $5,000
Consultant – Demographer/Mapping Tool $6,000
Community Outreach Costs (translation
services, publishing costs, direct mailers,
printing costs, mailing costs, community
workshop supplies)
$15,000 (est.)
8 Packet Pg. 66
Redistricting 2021 Public Hearing 3 Page 4 of 4
Total: $45,500
*The above costs are based on holding four public heari ngs during regular City Council meetings and one community workshop.
Prepared by:
Dusty Christopherson, City Clerk
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Existing Map & Draft Maps Submitted before 1_18_22
b. 2021-2022 City of Campbell 3rd Public Hearing Redistricting Powerpoint c. NDC, Inc. Powerpoint Presentation
d. Public Comments Received Through 1_26_22 Redacted
8 Packet Pg. 67
3 2
1 4
5 Winchester Blvd
San Tomas Expy
Latim
er Cir
Silacci Dr
Campb
ell Te
ch
no
logy
Pky
Emory Ave
Longfellow
Ave
W
Cam
pbell Ave
El Solyo A
ve
Monica Ln
Shamrock Dr
Arroyo Seco Dr
Few
trell D
r
Ridgeley Dr
N Milton Ave
Catalpa Ln
Railway Ave
Lenor Way
M
cbain Av
e
W
Rosem
ary Ln
El Cm
t Ave
Esther Ave
Harrison Ave
Dell Ave
White Oaks Rd
Lovell Ave
Jef
frey Ave
Salmar Ave
Salerno Dr
Ravenscourt Ave
Heritage Village Ln
Almarida Dr
Loyalton Dr
Michael Dr
Virginia Ave
Old Orchard Rd
Bent Dr
W
Parr Ave
Chamberlin Ct
Theresa Ave
Jane Ann Way
Camden Ave
Pa
lo Santo Dr
Audrey Ave
Sharmon Palms Ln
Ec
ho Ave
Steinway Ave
Weston Dr
La Paz
Pollard Rd
Van Duse
n Ln
Dot Ave
La Paloma
Abbey Ln
Victor Ave
Denver Dr
N 1st St
Cristich Ln
Inwood Dr
Regina W
ay
Alice Ave
Gilman Ave
S Bascom Ave
Lisa Way
E Hami
lton Ave
Knowles Dr
Tolworth Dr
Colleen Way
Villarita Dr
M
ontem
ar W
ay
Bland Ave
Superior Dr
W
Ham
ilton Ave
Elwood Dr
Linda Dr
Abbott Ave
W
Rincon Ave
Gale Dr
Wal
nut Dr
Millich Dr
S Leigh Ave
Morrene Dr
Robnick Ct
Bucknall Rd
E H
aciend
a Ave
Leigh Ave
Cam
brian Dr
Kenneth Ave
Patio Dr
Redding Rd
Dallas Dr
Union Ave
W
Hacienda Ave
Capri Dr
Campisi W
ay
Hyde Dr
Pecan Way
Louise Ct
Filbert Way
Sharp Ave
Arnott W
ay
Bucknam Ave
W
estm
ont Ave
Amato Ave
Orchard Oak Cir
Del Oro Ct
S Peter Dr
Rose Ct
Calado Ct
Dover Way
N 3rd St
Sobrato Dr
La Corona Dr
Clifton Ave
Crockett Ave
Bism
arck Dr
E Sunnyoaks Av
e
Flamingo Dr
Hurst Ave
Arc Rd
Timber Cove Dr
Shelley Ave
Budd Ave
Ecker Ct
Justo Ct
Hardy Ave
S Bascom Ave
Phantom Ave
Grace Ave
Mccoy Ave
Peachtree Ct
Harriet Ave
Holmes Ave
City of Campbell
Redistricting 2021
Existing Districts
Map layers
Existing Districts
Landmark Point
Railroad
River
Streets
Water Area©2021 CALIPER
8.a
Packet Pg. 68
Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) Category Field 1 2345 Total
Total Population 8,902 9,024 9,097 8,423 8,582 44,028
Population Deviation 96 218 291 -383 -224 674
Pct. Deviation 1.09% 2.48% 3.30% -4.35% -2.54% 7.65%
Hispanic/Latino 24% 18% 23% 17% 14% 19%
NH White 44% 57% 45% 44% 47% 47%
NH Black 4% 3% 3% 3% 2% 3%
NH Asian/Pac.Isl. 26% 21% 26% 35% 35% 28%
NH Native Amer. 1% 1% 1% 1% 1% 1%
Total 5,269 6,315 5,997 5,520 5,395 28,495
Hisp 14% 16% 16% 14% 13% 15%
NH White 60% 68% 59% 57% 60% 61%
NH Black 5% 3% 3% 3% 2% 3%
Asian/Pac.Isl. 19% 12% 21% 26% 23% 20%
Native Amer. 1% 1% 0% 0% 1% 1%
Total 4,640 5,780 5,034 5,231 5,337 26,022
Latino est. 15% 13% 14% 12% 9% 13%
Spanish-Surnamed 14% 12% 14% 11% 8% 12%
Asian-Surnamed 13% 8% 13% 19% 17% 14%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 68% 76% 68% 66% 72% 70%
NH Black 4% 3% 3% 2% 1% 3%
Total 3,903 4,991 4,268 4,515 4,676 22,353
Latino est. 14% 12% 13% 11% 9% 12%
Spanish-Surnamed 13% 11% 13% 10% 8% 11%
Asian-Surnamed 13% 8% 13% 19% 17% 14%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 68% 76% 68% 66% 72% 70%
NH Black 4% 3% 3% 2% 1% 3%
Total 2,879 3,567 3,308 3,361 3,437 16,552
Latino est. 12% 9% 13% 10% 7% 10%
Spanish-Surnamed 11% 9% 12% 10% 7% 10%
Asian-Surnamed 10% 6% 11% 16% 13% 11%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 73% 80% 71% 70% 77% 74%
NH Black est. 3% 3% 3% 2% 1% 2%
age0-19 23% 16% 21% 22% 27% 22%
age20-60 59% 65% 56% 56% 53% 58%
age60plus 18% 18% 22% 21% 20% 20%
immigrants 29% 17% 28% 32% 30% 27%
naturalized 51% 55% 50% 55% 59% 54%
english 60% 80% 69% 64% 66% 68%
spanish 14% 8% 10% 11% 5% 10%
asian-lang 14% 6% 15% 15% 15% 13%
other lang 11% 6% 6% 10% 14% 10%
Language Fluency Speaks Eng. "Less than
Very Well" 13% 6% 12% 14% 10% 11%
hs-grad 32% 35% 35% 35% 30% 34%
bachelor 34% 35% 30% 30% 34% 33%
graduatedegree 22% 19% 22% 18% 25% 21%
Child in Household child-under18 32% 19% 27% 32% 43% 30% Pct of Pop. Age 16+ employed 72% 77% 70% 68% 67% 71%
income 0-25k 9% 8% 10% 14% 4% 9%
income 25-50k 11% 10% 13% 15% 7% 11%
income 50-75k 10% 9% 9% 11% 7% 9%
income 75-200k 51% 51% 43% 34% 43% 45%
income 200k-plus 20% 22% 24% 26% 40% 26%
single family 41% 42% 55% 59% 93% 56%
multi-family 59% 58% 45% 41% 7% 44%
rented 66% 60% 46% 45% 21% 49%
owned 34% 40% 54% 55% 79% 51%
Housing Stats
Voter Registration (Nov
2020)
Voter Turnout (Nov
2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).
Voter Turnout (Nov
2018)
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Campbell - Existing Districts
2020 Census
Total Pop.
Citizen Voting Age Pop
8.a
Packet Pg. 69
Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) 4 3
5 2
1 STATE RT 17
Winchester Blvd
Latim
er Cir
San Tomas Expy
Silac
ci D
r
Emory Ave
Longfellow Ave
W
Cam
pbell Ave
El Solyo A
ve
Monica Ln
Shamrock Dr
Arroyo
Seco
Dr
E Cam
pbell Ave
Fewt
rell Dr
Ridgeley Dr
N Milton Ave
Carlyn Ave
Catalpa Ln
Shady Dale Ave
Railway Ave
Lenor Way
M
cbain Ave
W
Rosem
ary Ln
Hardy Ave
El Cm
t Ave
Cherry Ln
Esther Ave
Harrison Ave
Dell Ave
White Oaks Rd
Lovell Ave
Jeffrey Ave
Normandy Dr
April Way
Richlee Dr
Kenneth Ave
Salma
r Ave
Salerno Dr
Ravenscourt Ave
W
VALLEY FW
Y
Regas Dr
Almarida Dr
Dunster Dr
Loyalton Dr
Palo Santo Dr
Virginia Ave
Old Orchard Rd
Bent Dr
Christopher Ave
Cam
eo Dr
W
Parr Ave
Darryl Dr
Cham
ber
lin Ct
Theresa Ave
Camden Ave
Hunt Way
Connie Dr
Audrey Ave
Sharmon Palms Ln
Manchester Ave
Nottingham Way
Curtner Ave
Steinway Av
e
Weston Dr
Palomar Real
Pollar
d
Rd
Van Dusen Ln
M
ccoy Ave
Dot Ave
Victor Ave
Denver Dr
N 1st St
W
Hacienda Ave
Dillon Ave
Springfield Dr
Cristich Ln
S Milton Ave
Inwood Dr
W
endell D
r
E Mcglincey Ln
Regina W
ay
Bud
d Ave
Gilman Ave
S Bascom Ave
Mo
nte Villa
Ct
Lisa Way
E Ham
ilton Ave
Knowles Dr
Juanita W
ay
Sweetbriar Dr
Century Dr
Tolworth Dr
Colleen Way
Villarita Dr
Holmes Ave
N Peter Dr
Sunberry Dr
Paula Dr
Superior Dr
W
H
ami
lton
Ave
Elwood Dr
Linda D
r
W
Rincon Ave
W
ilton
Dr
Walnut Dr
Millich Dr
Division St
Robnick Ct
Bucknall Rd
E Hac
ienda Ave
Leigh Ave
N 2nd St
Dry Creek Rd
Crockett Ave
Industrial St
M
aple Ave
S 3rd St
Bucknam
Ave
Lucot W
ay
N Central Ave
Adrien
Dr
Redding Rd
Dallas D
r
Sm
ith Ave
Margaret Ln
Union Ave
Nido Dr
W
ekiva Ave
N 3rd St
Capri Dr
Lavonne Dr
Campisi Way
Gale Dr
Calado Ave
Hyde Dr
Pecan Way
Scot
t Ct
Louise Ct
W
Latim
er Ave
Filbert Way
Central Park Dr
Sharp Ave
Cam
brian Dr
Civic Center Dr
Bedal Ln
S 1st St
Mitchell Ct
W
VALLE
Y FW
Y
Whitwood Ln
Dover Way
Sobrato Dr
Pam
lar Ave
Marilyn Dr
Harriet Ave
Clifton Ave
Jasmine Ct
Hurst Ave
Grace Ave
Barbano Ave
Bism
arck Dr
Shelley Ave
Parkhurst Dr
Patio Dr
El Patio Dr
Arc Rd
Chalet W
oods Cir
Ro
se Ct
S Bascom Ave
Castro Ct
Timber Cove Dr
Burnham Ct
Boise Dr
Archer Ct
Phelps Ave
Ecker Ct
Hedegard Ave
Payne Ave
N San Tomas Aquino Rd
Forman Dr
Ion Ct
Sheffield Ct
Phantom Ave
Braxton Ter
Westmont Ave
Peachtree Ct
Abbott Ave
City of Campbell
Redistricting 2021
Map 101
National Demographics Corporation
January 10, 2022
Map layers
101
Landmark Point
Railroad
River
Streets
Water Area
©2021 CALIPER
8.a
Packet Pg. 70
Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) Category Field 1 2345 Total
Total Population 8,963 8,963 9,097 8,423 8,582 44,028
Population Deviation 157 157 291 -383 -224 674
Pct. Deviation 1.78% 1.78% 3.30% -4.35% -2.54% 7.65%
Hispanic/Latino 24% 18% 23% 17% 14% 19%
NH White 44% 57% 45% 44% 47% 47%
NH Black 4% 3% 3% 3% 2% 3%
NH Asian/Pac.Isl. 26% 21% 26% 35% 35% 28%
NH Native Amer. 1% 1% 1% 1% 1% 1%
Total 5,301 6,283 5,997 5,520 5,395 28,495
Hisp 14% 16% 16% 14% 13% 15%
NH White 60% 68% 59% 57% 60% 61%
NH Black 5% 3% 3% 3% 2% 3%
Asian/Pac.Isl. 19% 12% 21% 26% 23% 20%
Native Amer. 1% 1% 0% 0% 1% 1%
Total 4,654 5,766 5,034 5,231 5,337 26,022
Latino est. 15% 13% 14% 12% 9% 13%
Spanish-Surnamed 14% 12% 14% 11% 8% 12%
Asian-Surnamed 13% 8% 13% 19% 17% 14%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 68% 76% 68% 66% 72% 70%
NH Black 4% 3% 3% 2% 1% 3%
Total 3,912 4,982 4,268 4,515 4,676 22,353
Latino est. 14% 12% 13% 11% 9% 12%
Spanish-Surnamed 13% 11% 13% 10% 8% 11%
Asian-Surnamed 13% 8% 13% 19% 17% 14%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 68% 76% 68% 66% 72% 70%
NH Black 4% 3% 3% 2% 1% 3%
Total 2,894 3,552 3,308 3,361 3,437 16,552
Latino est. 12% 9% 13% 10% 7% 10%
Spanish-Surnamed 12% 9% 12% 10% 7% 10%
Asian-Surnamed 10% 6% 11% 16% 13% 11%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 73% 80% 71% 70% 77% 74%
NH Black est. 3% 3% 3% 2% 1% 2%
age0-19 23% 16% 21% 22% 27% 22%
age20-60 59% 65% 56% 56% 53% 58%
age60plus 18% 18% 22% 21% 20% 20%
immigrants 28% 17% 28% 32% 30% 27%
naturalized 51% 55% 50% 55% 59% 54%
english 61% 80% 69% 64% 66% 68%
spanish 14% 8% 10% 11% 5% 10%
asian-lang 14% 6% 15% 15% 15% 13%
other lang 11% 6% 6% 10% 14% 10%
Language Fluency Speaks Eng. "Less than
Very Well" 13% 6% 12% 14% 10% 11%
hs-grad 32% 35% 35% 35% 30% 34%
bachelor 34% 35% 30% 30% 34% 33%
graduatedegree 22% 19% 22% 18% 25% 21%
Child in Household child-under18 32% 19% 27% 32% 43% 30% Pct of Pop. Age 16+ employed 73% 77% 70% 68% 67% 71%
income 0-25k 9% 8% 10% 14% 4% 9%
income 25-50k 11% 10% 13% 15% 7% 11%
income 50-75k 10% 9% 9% 11% 7% 9%
income 75-200k 51% 51% 43% 34% 43% 45%
income 200k-plus 20% 22% 24% 26% 40% 26%
single family 41% 42% 55% 59% 93% 56%
multi-family 59% 58% 45% 41% 7% 44%
rented 66% 60% 46% 45% 21% 49%
owned 34% 40% 54% 55% 79% 51%
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Campbell - Map 101
2020 Census
Total Pop.
Citizen Voting Age Pop
Housing Stats
Voter Registration (Nov
2020)
Voter Turnout (Nov
2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).
Voter Turnout (Nov
2018)
8.a
Packet Pg. 71
Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) 4 3
5 2
1 STATE RT 17
Winchester Blvd
San Tomas Expy
Latim
er Cir
Silacci Dr
Emory Ave
Longfellow Ave
W
Cam
pbell A
ve
El Solyo Ave
Monica Ln
Shamrock Dr
Arroyo
Seco
Dr
E Cam
pbell Ave
Fewt
rell Dr
Ridgeley Dr
N Milton Ave
Carlyn Ave
Catalpa Ln
Shady Dale Ave
Railway Ave
Lenor Way
M
cbain Ave
W
Rosem
ary Ln
Hardy Ave
El Cm
t Ave
Cherry Ln
Esther Ave
Harrison Ave
Dell Ave
White Oaks Rd
Lovell A
ve
Jeffre
y Ave
Normandy Dr
April Way
Richlee Dr
Kenneth Ave
Salmar Ave
Salerno Dr
Ravenscourt Ave
Heritage Village Ln
W
VALLE
Y FW
Y
Regas Dr
Almarida Dr
Loyalton Dr
Michael Dr
Palo Santo Dr
Virginia Ave
Old Orchard Rd
Bent Dr
Christopher Ave
Cam
eo Dr
W
Parr Ave
Darryl Dr
Cha
mberlin Ct
Theresa Ave
Camden Ave
Hunt Way
Connie Dr
Audrey A
ve
Sharmon Palms Ln
Manchester Ave
Nottingham Way
Curtner Ave
Ech
o Ave
Ste
inway Av
e
Weston Dr
Palomar Real
Pollard Rd
Van D
usen Ln
M
ccoy
Ave
Dot Ave
Victor Ave
Denver Dr
N 1st St
W
Hacienda Ave
Dillon Ave
Springfield Dr
Cristich Ln
S Milton Ave
Hollis Ave
Inwood Dr
W
endell Dr
E Mcglincey Ln
Re
gina W
ay
Gilman Ave
S Bascom Ave
Mo
nte Villa Ct
Lisa Way
E Ham
ilton Ave
Knowles Dr
Juanita W
ay
Sweetbriar Dr
Century Dr
Tolworth Dr
Colleen Way
Villarita Dr
Holmes Ave
N Peter Dr
Sunberry Dr
Paula D
r
Superior Dr
W
Ham
ilton Ave
Elwood Dr
Linda Dr
W
Rincon Ave
W
ilton
Dr
Walnut Dr
Millich Dr
Division S
t
Robnick Ct
Bucknall Rd
E
Hacienda Ave
Leigh Ave
Dry Creek Rd
Crockett Ave
Industrial St
M
aple Ave
S 3rd St
Bucknam
Ave
N Central Ave
Adrien Dr
Redding Rd
Da
llas Dr
Sm
ith Ave
Margaret Ln
Union Ave
W
ekiva Ave
Capri Dr
Lavonne Dr
Calado Ave
Cam
pisi W
ay
Hyde Dr
Pecan Way
Scott Ct
Louise Ct
W
Latim
er Ave
Filbert Way
Central Park Dr
Sharp Ave
Cam
brian Dr
Bedal Ln
S 1st St
Mitchell Ct
W
VALLEY FW
Y
Grant St
Whitwood Ln
Dover Way
Sobrato Dr
Pam
lar Ave
Marilyn Dr
Friar W
ay
N 3rd St
Harriet Ave
Clifton Ave
Jasmine Ct
Hurst Ave
Grace Ave
Bism
arck Dr
Shelley Ave
Parkhurst Dr
Patio Dr
El Patio Dr
Budd Ave
Arc Rd
Chalet W
oods Cir
S Bascom Ave
Castro Ct
Timber Cove Dr
Burnham Ct
Boise Dr
Archer Ct
Jonathan Ct
Phelps Ave
Ecker Ct
N San Tomas Aquino Rd
Forman Dr
Sheffield Ct
Phantom Ave
Braxton Ter
Westmont Ave
Peachtree Ct
Abbott Ave
City of Campbell
Redistricting 2021
Map 102
National Demographics Corporation
January 19, 2022
Map layers
102
Landmark Point
Railroad
River
Streets
Water Area
©2021 CALIPER
8.a
Packet Pg. 72
Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) Category Field 1 2345 Total
Total Population 8,797 8,946 8,635 8,790 8,860 44,028
Population Deviation -9 140 -171 -16 54 311
Pct. Deviation -0.10% 1.59% -1.94% -0.18% 0.61% 3.53%
Hispanic/Latino 17% 20% 23% 21% 15% 19%
NH White 54% 54% 44% 39% 46% 47%
NH Black 3% 3% 4% 3% 3% 3%
NH Asian/Pac.Isl. 26% 20% 26% 35% 34% 28%
NH Native Amer. 1% 1% 1% 1% 1% 1%
Total 5,572 6,469 5,250 5,692 5,512 28,495
Hisp 14% 18% 12% 14% 13% 15%
NH White 69% 61% 60% 56% 60% 61%
NH Black 2% 3% 4% 3% 2% 3%
Asian/Pac.Isl. 13% 17% 22% 26% 23% 20%
Native Amer. 1% 0% 1% 0% 1% 1%
Total 5,255 5,838 4,885 4,629 5,415 26,022
Latino est. 13% 13% 15% 14% 9% 13%
Spanish-Surnamed 12% 12% 13% 13% 9% 12%
Asian-Surnamed 10% 9% 15% 20% 17% 14%
Filipino-Surnamed 2% 1% 1% 2% 1% 1%
NH White est. 73% 75% 68% 62% 72% 70%
NH Black 3% 3% 3% 2% 2% 3%
Total 4,476 5,099 4,111 3,937 4,730 22,353
Latino est. 12% 12% 13% 13% 9% 12%
Spanish-Surnamed 12% 11% 12% 12% 8% 11%
Asian-Surnamed 10% 9% 15% 20% 17% 14%
Filipino-Surnamed 2% 1% 1% 2% 1% 1%
NH White est. 73% 75% 68% 62% 72% 70%
NH Black 3% 3% 3% 2% 2% 3%
Total 3,167 4,003 3,027 2,883 3,472 16,552
Latino est. 10% 10% 12% 12% 8% 10%
Spanish-Surnamed 9% 10% 11% 12% 7% 10%
Asian-Surnamed 8% 7% 12% 17% 13% 11%
Filipino-Surnamed 1% 1% 1% 1% 1% 1%
NH White est. 78% 78% 72% 65% 76% 74%
NH Black est. 2% 3% 2% 2% 2% 2%
age0-19 19% 20% 21% 23% 27% 22%
age20-60 64% 58% 57% 58% 53% 58%
age60plus 17% 22% 22% 19% 20% 20%
immigrants 23% 19% 32% 33% 30% 27%
naturalized 54% 58% 49% 52% 58% 54%
english 74% 76% 60% 63% 65% 68%
spanish 9% 9% 15% 11% 6% 10%
asian-lang 8% 9% 16% 17% 15% 13%
other lang 9% 6% 9% 10% 14% 10%
Language Fluency Speaks Eng. "Less than
Very Well" 7% 9% 17% 13% 10% 11%
hs-grad 34% 35% 36% 34% 30% 34%
bachelor 34% 33% 33% 30% 34% 33%
graduatedegree 22% 22% 17% 21% 25% 21%
Child in Household child-under18 25% 25% 26% 34% 43% 30% Pct of Pop. Age 16+ employed 75% 72% 67% 73% 66% 71%
income 0-25k 9% 6% 17% 10% 4% 9%
income 25-50k 9% 10% 16% 13% 7% 11%
income 50-75k 8% 9% 10% 11% 7% 9%
income 75-200k 54% 45% 40% 42% 43% 45%
income 200k-plus 19% 31% 17% 24% 39% 26%
single family 40% 57% 38% 60% 92% 56%
multi-family 60% 43% 62% 40% 8% 44%
rented 64% 45% 66% 44% 22% 49%
owned 36% 55% 34% 56% 78% 51%
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Campbell - Map 102
2020 Census
Total Pop.
Citizen Voting Age Pop
Housing Stats
Voter Registration (Nov
2020)
Voter Turnout (Nov
2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).
Voter Turnout (Nov
2018)
8.a
Packet Pg. 73
Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) 3 4
5 2
1 STATE RT 17
Winchester Blvd
San Tomas Expy
Latim
er Cir
Silac
ci D
r
Emory Ave
Longfellow Ave
W
Cam
pbell Ave
El Solyo A
ve
Monica Ln
Shamrock Dr
Arroyo
Seco
Dr
E Cam
pbell Ave
Fewt
rell Dr
Ridgeley Dr
N Milton Ave
Carlyn Ave
Catalpa Ln
Shady Dale Ave
Railway Ave
Lenor Way
M
cbain Ave
W
Rosem
ary Ln
Hardy Ave
El Cm
t Ave
Cherry Ln
Esther Ave
Harrison Ave
Dell Ave
White Oaks Rd
Lovell Ave
Jeffrey Ave
Normandy Dr
April Way
Richlee Dr
Kenneth Ave
Salma
r Ave
Salerno Dr
Ravenscourt Ave
Heritage Village Ln
W
VALLEY FW
Y
Regas Dr
Almarida Dr
Loyalton Dr
Michael
Dr
Palo Santo Dr
Virginia Ave
Old Orchard Rd
Bent Dr
Christopher Ave
Cam
eo Dr
W
Parr Ave
Darryl Dr
Cham
ber
lin Ct
Theresa Ave
Camden Ave
Hunt Way
Audrey Ave
Sharmon Palms Ln
Manchester Ave
Nottingham Way
Curtner Ave
Echo Av
e
Steinway Av
e
Weston Dr
Palomar Real
Pollar
d
Rd
Van Dusen Ln
M
ccoy Ave
Dot Ave
Victor Ave
Denver Dr
N 1st St
W
Hacienda Ave
Dillon Ave
Springfield Dr
Cristich Ln
S Milton Ave
Hollis Ave
Inwood Dr
W
endell D
r
E Mcglincey Ln
Regina W
ay
Gilman Ave
S Bascom Ave
Mo
nte Villa
Ct
Lisa Way
E Ham
ilton Ave
Knowles Dr
Juanita W
ay
Sweetbriar Dr
Century Dr
Tolworth Dr
Colleen Way
Villarita Dr
Holmes Ave
N Peter Dr
Sunberry Dr
Paula Dr
Superior Dr
W
H
ami
lton
Ave
Elwood Dr
Linda D
r
W
Rincon Ave
W
ilton
Dr
Walnut Dr
Millich Dr
Division St
Robnick Ct
Bucknall Rd
E Hac
ienda Ave
Leigh Ave
Dry Creek Rd
Crockett Ave
Industrial St
M
aple Ave
S 3rd St
Bucknam
Ave
Lucot W
ay
N Central Ave
Adrien
Dr
Redding Rd
Dallas D
r
Sm
ith Ave
Margaret Ln
Union Ave
W
ekiva Ave
Capri Dr
Lavonne Dr
Gale Dr
Calado Ave
Cam
pisi W
ay
Hyde Dr
Pecan Way
Scot
t Ct
Louise Ct
W
Latim
er Ave
Filbert Way
Central Park Dr
Sharp Ave
Cam
brian Dr
Bedal Ln
S 1st St
Mitchell Ct
W
VALLE
Y FW
Y
Grant St
Whitwood Ln
Dover Way
Sobrato Dr
Pam
lar Ave
Marilyn Dr
Friar W
ay
N 3rd St
Harriet Ave
Clifton Ave
Jasmine Ct
Hurst Ave
Grace Ave
Bism
arck Dr
Shelley Ave
Parkhurst Dr
Patio Dr
El Patio Dr
Budd Ave
Arc Rd
Chalet W
oods Cir
Ro
se Ct
S Bascom Ave
Castro Ct
Timber Cove Dr
Burnham Ct
Boise Dr
Archer Ct
Phelps Ave
Ecker Ct
Hedegard Ave
Payne Ave
N San Tomas Aquino Rd
Forman Dr
Sheffield Ct
Phantom Ave
Braxton Ter
Westmont Ave
Peachtree Ct
Abbott Ave
City of Campbell
Redistricting 2021
Map 103
(Not population balanced)
National Demographics Corporation
January 19, 2022
Map layers
103
Landmark Point
Railroad
River
Streets
Water Area
©2021 CALIPER
8.a
Packet Pg. 74
Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) Category Field 1 2345 Total
Total Population 9,188 8,555 8,929 9,093 8,263 44,028
Population Deviation 382 -251 123 287 -543 925
Pct. Deviation 4.34% -2.85% 1.40% 3.26% -6.17% 10.50%
Hispanic/Latino 16% 21% 25% 21% 13% 19%
NH White 53% 54% 42% 39% 48% 47%
NH Black 3% 3% 4% 3% 2% 3%
NH Asian/Pac.Isl. 26% 20% 26% 35% 35% 28%
NH Native Amer. 1% 1% 2% 1% 1% 1%
Total 5,894 6,148 5,301 5,913 5,240 28,495
Hisp 13% 19% 13% 14% 12% 15%
NH White 68% 62% 58% 57% 61% 61%
NH Black 3% 3% 5% 3% 1% 3%
Asian/Pac.Isl. 14% 16% 23% 25% 23% 20%
Native Amer. 1% 0% 1% 0% 1% 1%
Total 5,468 5,625 4,825 4,907 5,197 26,022
Latino est. 13% 13% 16% 13% 8% 13%
Spanish-Surnamed 12% 12% 15% 13% 8% 12%
Asian-Surnamed 10% 9% 15% 19% 17% 14%
Filipino-Surnamed 2% 1% 1% 2% 1% 1%
NH White est. 73% 75% 66% 63% 73% 70%
NH Black 3% 3% 4% 2% 1% 3%
Total 4,656 4,919 4,013 4,189 4,576 22,353
Latino est. 13% 12% 14% 13% 8% 12%
Spanish-Surnamed 12% 11% 13% 12% 8% 11%
Asian-Surnamed 10% 9% 15% 19% 17% 14%
Filipino-Surnamed 2% 1% 1% 2% 1% 1%
NH White est. 73% 75% 66% 63% 73% 70%
NH Black 3% 3% 4% 2% 1% 3%
Total 3,304 3,866 2,937 3,077 3,368 16,552
Latino est. 10% 10% 13% 12% 7% 10%
Spanish-Surnamed 9% 10% 12% 12% 7% 10%
Asian-Surnamed 8% 7% 12% 17% 13% 11%
Filipino-Surnamed 1% 1% 1% 1% 1% 1%
NH White est. 77% 78% 71% 66% 78% 74%
NH Black est. 3% 2% 3% 2% 1% 2%
age0-19 19% 20% 21% 23% 27% 22%
age20-60 64% 58% 57% 58% 52% 58%
age60plus 17% 22% 22% 19% 20% 20%
immigrants 23% 19% 31% 32% 30% 27%
naturalized 54% 58% 48% 52% 60% 54%
english 74% 77% 59% 63% 67% 68%
spanish 9% 9% 16% 11% 4% 10%
asian-lang 9% 9% 17% 17% 15% 13%
other lang 9% 6% 8% 10% 15% 10%
Language Fluency Speaks Eng. "Less than
Very Well" 8% 8% 17% 13% 9% 11%
hs-grad 34% 35% 36% 34% 29% 34%
bachelor 34% 33% 33% 30% 34% 33%
graduatedegree 22% 22% 16% 21% 26% 21%
Child in Household child-under18 25% 25% 27% 33% 42% 30% Pct of Pop. Age 16+ employed 76% 72% 66% 73% 68% 71%
income 0-25k 9% 6% 17% 9% 4% 9%
income 25-50k 9% 10% 17% 13% 6% 11%
income 50-75k 8% 9% 10% 11% 6% 9%
income 75-200k 54% 44% 40% 42% 42% 45%
income 200k-plus 20% 31% 16% 23% 41% 26%
single family 38% 60% 37% 60% 95% 56%
multi-family 62% 40% 63% 40% 5% 44%
rented 64% 43% 67% 44% 20% 49%
owned 36% 57% 33% 56% 80% 51%
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Campbell - Map 103
2020 Census
Total Pop.
Citizen Voting Age Pop
Housing Stats
Voter Registration (Nov
2020)
Voter Turnout (Nov
2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).
Voter Turnout (Nov
2018)
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Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) 4 3
5 1
2 STATE RT 17
Winchester Blvd
Latim
er Cir
San Tomas Expy
Silac
ci D
r
Emory Ave
Longfellow Ave
W
Cam
pbell Ave
El Solyo A
ve
Monica Ln
Shamrock Dr
Arroyo
Seco
Dr
E Cam
pbell Ave
Fewt
rell Dr
Ridgeley Dr
N Milton Ave
Carlyn Ave
Catalpa Ln
Shady Dale Ave
Railway Ave
Lenor Way
M
cbain Ave
W
Rosem
ary Ln
Hardy Ave
El Cm
t Ave
Cherry Ln
Esther Ave
Harrison Ave
Dell Ave
White Oaks Rd
Lovell Ave
Jeffrey Ave
Normandy Dr
April Way
Richlee Dr
Kenneth Ave
Salma
r Ave
Salerno Dr
Ravenscourt Ave
W
VALLEY FW
Y
Regas Dr
Almarida Dr
Dunster Dr
Loyalton Dr
Palo Santo Dr
Virginia Ave
Old Orchard Rd
Bent Dr
Christopher Ave
Cam
eo Dr
W
Parr Ave
Darryl Dr
Cham
ber
lin Ct
Theresa Ave
Camden Ave
Hunt Way
Connie Dr
Audrey Ave
Sharmon Palms Ln
Manchester Ave
Nottingham Way
Curtner Ave
Steinway Av
e
Weston Dr
Palomar Real
Pollar
d
Rd
Van Dusen Ln
M
ccoy Ave
Dot Ave
Victor Ave
Denver Dr
N 1st St
W
Hacienda Ave
Dillon Ave
Springfield Dr
Cristich Ln
S Milton Ave
Inwood Dr
W
endell D
r
E Mcglincey Ln
Regina W
ay
Bud
d Ave
Gilman Ave
S Bascom Ave
Mo
nte Villa
Ct
Lisa Way
E Ham
ilton Ave
Knowles Dr
Juanita W
ay
Sweetbriar Dr
Century Dr
Tolworth Dr
Colleen Way
Villarita Dr
Holmes Ave
N Peter Dr
Sunberry Dr
Paula Dr
Superior Dr
W
H
ami
lton
Ave
Elwood Dr
Linda D
r
W
Rincon Ave
W
ilton
Dr
Walnut Dr
Millich Dr
Division St
Robnick Ct
Bucknall Rd
E Hac
ienda Ave
Leigh Ave
N 2nd St
Dry Creek Rd
Crockett Ave
Industrial St
M
aple Ave
S 3rd St
Bucknam
Ave
Lucot W
ay
N Central Ave
Adrien
Dr
Redding Rd
Dallas D
r
Sm
ith Ave
Margaret Ln
Union Ave
Nido Dr
W
ekiva Ave
N 3rd St
Capri Dr
Lavonne Dr
Campisi Way
Gale Dr
Calado Ave
Hyde Dr
Pecan Way
Scot
t Ct
Louise Ct
W
Latim
er Ave
Filbert Way
Central Park Dr
Sharp Ave
Cam
brian Dr
Civic Center Dr
Bedal Ln
S 1st St
Mitchell Ct
W
VALLE
Y FW
Y
Whitwood Ln
Dover Way
Sobrato Dr
Pam
lar Ave
Marilyn Dr
Harriet Ave
Clifton Ave
Jasmine Ct
Hurst Ave
Grace Ave
Barbano Ave
Bism
arck Dr
Shelley Ave
Parkhurst Dr
Patio Dr
El Patio Dr
Arc Rd
Chalet W
oods Cir
Ro
se Ct
S Bascom Ave
Castro Ct
Timber Cove Dr
Burnham Ct
Boise Dr
Archer Ct
Phelps Ave
Ecker Ct
Hedegard Ave
Payne Ave
N San Tomas Aquino Rd
Forman Dr
Ion Ct
Sheffield Ct
Phantom Ave
Braxton Ter
Westmont Ave
Peachtree Ct
Abbott Ave
City of Campbell
Redistricting 2021
Map 104
National Demographics Corporation
January 19, 2022
Map layers
104
Landmark Point
Railroad
River
Streets
Water Area
©2021 CALIPER
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Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) Category Field 1 2345 Total
Total Population 8,649 8,740 9,022 8,757 8,860 44,028
Population Deviation -157 -66 216 -49 54 373
Pct. Deviation -1.78% -0.75% 2.45% -0.56% 0.61% 4.24%
Hispanic/Latino 23% 18% 24% 16% 15% 19%
NH White 45% 56% 45% 45% 46% 47%
NH Black 4% 3% 3% 2% 3% 3%
NH Asian/Pac.Isl. 26% 22% 26% 34% 34% 28%
NH Native Amer. 1% 1% 1% 1% 1% 1%
Total 5,056 6,190 5,963 5,775 5,512 28,495
Hisp 14% 16% 17% 13% 13% 15%
NH White 61% 68% 58% 59% 60% 61%
NH Black 4% 3% 3% 3% 2% 3%
Asian/Pac.Isl. 18% 13% 21% 25% 23% 20%
Native Amer. 1% 1% 0% 0% 1% 1%
Total 4,582 5,587 5,137 5,301 5,415 26,022
Latino est. 15% 13% 14% 12% 9% 13%
Spanish-Surnamed 14% 12% 14% 11% 9% 12%
Asian-Surnamed 13% 8% 13% 19% 17% 14%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 68% 75% 69% 67% 72% 70%
NH Black 4% 3% 3% 2% 2% 3%
Total 3,847 4,820 4,380 4,576 4,730 22,353
Latino est. 14% 12% 13% 11% 9% 12%
Spanish-Surnamed 13% 11% 13% 10% 8% 11%
Asian-Surnamed 13% 8% 13% 19% 17% 14%
Filipino-Surnamed 1% 1% 1% 2% 1% 1%
NH White est. 68% 75% 69% 67% 72% 70%
NH Black 4% 3% 3% 2% 2% 3%
Total 2,816 3,473 3,339 3,452 3,472 16,552
Latino est. 11% 10% 13% 10% 8% 10%
Spanish-Surnamed 11% 9% 13% 10% 7% 10%
Asian-Surnamed 10% 7% 11% 15% 13% 11%
Filipino-Surnamed 1% 1% 1% 1% 1% 1%
NH White est. 74% 79% 71% 71% 76% 74%
NH Black est. 4% 3% 3% 1% 2% 2%
age0-19 23% 17% 21% 22% 27% 22%
age20-60 60% 64% 57% 56% 53% 58%
age60plus 17% 19% 22% 22% 20% 20%
immigrants 29% 17% 28% 32% 30% 27%
naturalized 51% 56% 50% 55% 58% 54%
english 61% 79% 69% 64% 65% 68%
spanish 13% 8% 10% 11% 6% 10%
asian-lang 14% 6% 15% 15% 15% 13%
other lang 12% 6% 6% 10% 14% 10%
Language Fluency Speaks Eng. "Less than
Very Well" 12% 7% 12% 15% 10% 11%
hs-grad 32% 36% 35% 35% 30% 34%
bachelor 35% 35% 30% 30% 34% 33%
graduatedegree 22% 19% 22% 18% 25% 21%
Child in Household child-under18 32% 20% 27% 31% 43% 30% Pct of Pop. Age 16+ employed 74% 76% 71% 68% 66% 71%
income 0-25k 9% 9% 8% 16% 4% 9%
income 25-50k 10% 11% 13% 15% 7% 11%
income 50-75k 10% 8% 10% 11% 7% 9%
income 75-200k 52% 51% 44% 33% 43% 45%
income 200k-plus 20% 21% 25% 25% 39% 26%
single family 40% 42% 56% 58% 92% 56%
multi-family 60% 58% 44% 42% 8% 44%
rented 68% 60% 45% 46% 22% 49%
owned 32% 40% 55% 54% 78% 51%
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Campbell - Map 104
2020 Census
Total Pop.
Citizen Voting Age Pop
Housing Stats
Voter Registration (Nov
2020)
Voter Turnout (Nov
2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).
Voter Turnout (Nov
2018)
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Attachment: Existing Map & Draft Maps Submitted before 1_18_22 (Redistricting 2021 Public Hearing 3) 2021 City of Campbell
Redistricting Process
FEBRUARY 1, 2022
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Attachment: 2021-2022 City of Campbell 3rd Public Hearing Redistricting Powerpoint • Districts originally formed 2019
• State Law requires adjusting boundaries
based on the 2020 Federal Census Data.
• August 3, 2021 - Council voted to forgo
the use of a formal Redistricting Commission
and approved a Community Outreach Plan.
• 1ST Public Hearing held on September 7,
2021; 2nd Public Hearing held on October
5, 2021; Council was provided Census
update on November 16, 2021.
A Brief
Background
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Attachment: 2021-2022 City of Campbell 3rd Public Hearing Redistricting Powerpoint 2021 Redistricting Outreach Efforts
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Attachment: 2021-2022 City of Campbell 3rd Public Hearing Redistricting Powerpoint
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Attachment: 2021-2022 City of Campbell 3rd Public Hearing Redistricting Powerpoint
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Attachment: 2021-2022 City of Campbell 3rd Public Hearing Redistricting Powerpoint Remaining
Schedule of
Events
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Attachment: 2021-2022 City of Campbell 3rd Public Hearing Redistricting Powerpoint City of Campbell
Redistricting Draft Maps
February 1, 2022 Dr. Jeff Tilton, Senior Consultant
National Demographics Corporation
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) Redistricting Process
2February 1, 2022
Step Description
Two Initial Hearings
September 7 & October 5
• Held prior to release of draft maps
• Education and to solicit input on the communities in the Districts Census Data Releases • Census Bureau’s official 2020 Census population data – Aug. 12 • California’s official ‘prisoner-adjusted’ 2020 redistricting data – Sept. 21, 27 Draft Map Hearing
February 1, 2022
• Discuss and revise the draft maps; discuss the election sequence Draft Map Hearing
March 1, 2022
• Discuss and select final map; discuss and determine election sequence • Deadline to submit draft maps: February 18, 2022, 5 p.m. • Post draft maps by February 22, 2022, 5 p.m.
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) ◻ Equal Population
◻ Federal Voting Rights Act
◻ No Racial
Gerrymandering
Federal Laws California Criteria
For Cities
1. Geographically
contiguous
2. Undivided
neighborhoods and
“communities of
interest”
3. Easily identifiable
boundaries
4. Compact
Redistricting Rules and Goals
3February 1, 2022
Prohibited: “Shall not favor or discriminate against a political party.”
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) Neighborhoods/Communities of Interest
Neighborhoods
1. What is your neighborhood?
2. What are its geographic
boundaries?
In the absence of public testimony, planning
records and other similar documents may
provide definition.
4February 1, 2022
Communities of Interest
1. What defines your community?
2. Would this community benefit
from being “included within a
single district for purposes of its
effective and fair
representation”?
Communities of Interest may not include
relationships with political parties, incumbents,
or political candidates.
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) 5February 1, 2022
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) 6 8.c
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) Map 101
7February 1, 2022
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) 8February 1, 2022
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) 9February 1, 2022
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3) Discussion/Action
10February 1, 2022
Which map(s) do
you prefer?
What
modifications
would make your
preferred map(s)
even better?
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Attachment: NDC, Inc. Powerpoint Presentation (Redistricting 2021 Public Hearing 3)
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Attachment: Public Comments Received Through 1_26_22 Redacted (Redistricting 2021 Public Hearing 3) ID Are you
What is the nature of the common social or economic
interest of your community? You can describe what the
common interests of your community are and why or how
they are important to you.
Where is your community located? You can define it by
neighborhood, streets, address, proximity to a key
landmark (such as school or community center), or other boundaries.
What are the geographic definers/boundaries of your
neighborhood? Examples of definers/boundaries could be
highways, roads, rivers, hills, or parks.
What is the rationale for your community of interest to be used in this redistricting? Please describe how the issues before the City Council have a unique impact on your
group.
What do you like about the current district lines? What do you dislike about the current district lines?
2 Yes Renting, close
to major roads and shopping. Budd Ave near JD Morgan park. Between San Tomas Expressway and Winchester Blvd. 3 Yes
High school activities, after hour events, downtown weekend activities. W. Hacienda & Winchester Rolling Hills Middle School to Winchester & Hamilton.
I don’t know where the district lines are & I don’t believe most people do. I know I can look them up but like myself I don’t believe most people have a need to know.
4 Yes
The Moreland School District is strong and highly regarded in our area. El Paseo, Westgate and Kirkwood Plaza get lots of activity. The fields at Moreland Middle School and Latimer School get a fair amount of use.
Moreland West, which is about 2/3rds West San Jose and
1/3rd Campbell.
We're sort of nice little, quiet section of our big urban area, bounded by Hamilton Avenue, Campbell Avenue and San
Tomas Aquino Road.
Our neighborhood is pretty distant from the "main" parts of Campbell ‐‐ downtown, Pruneyard, Campbell Park, Los Gatos Creek, John D. Morgan Park and the Community Center.
We've always felt perhaps a bit more West San Jose‐ish than Campbell‐ish, but I am pretty certain most Campbell
residents of our neighbor do prefer being in Campbell to the larger San Jose. That said, West SJ really differs greatly from downtown SJ and other parts of SJ, so we're sort of unique little region.
I know the legal issues and rationale for district elections, and I think it makes great sense in many cities. But not for Campbell. It's too bad we had to move this way. I think the boundaries for our District 4 are pretty sound. Covers the general area. What we have in common with, say, the Rincon‐ Winchester neighborhood is just a general sort of high
regard for a well‐functioning city, but nothing else too ... concrete. Sorry for this weak input, but bottom line is that I believe the current boundaries are fine.
5 Yes
Middle class working families (both young families with kids and older families with grown children)
Defined by roads (Hamilton, Campbell Ave, San Thomas
Aquino Rd)
Defined by roads (Hamilton, Campbell Ave, San Thomas
Aquino Rd) Don’t have a rationale Don’t have an option 6 Yes
PUD development built in 1974‐75 consisting of 60
townhomes (2 & 3 bedrooms). Multi cultural and lingual, homes in the $890‐$950K range. 8 families, mostly couples and some singles Most homes owned and lived in. About 28% rented
Isolate corner ‐ north west of city. Near Campbell Little League ballpark, 2 large office buildings to south. Across street (east) are duplexes and to the North are
apartment/converted condos. We are the only residential area which is next to San Jose City housing/apartments.
Rosemary School nearby on Hamilton Avenue. Millich is off of Hamilton Avenue with San Tomas Expressway on our
west, Valley Forge Way on North.
San Tomas Expressway (west), Millich (east) Merrimac Drive (south) and Valley Forge (north).
Because of the close proximity to city of San Jose, we have a parking permit program. The City of San Jose instituted a parking permit program that grossly affected our residents use of Campbell City Streets for parking.
We have not felt any effect (positive or negative) from the current district lines. We have been able to make our voices heard and the city council and city officials have always been responsive.
7 Yes
Supportive and involved
neighbors, supporting local
businesses, enjoying our parks, Community Center, Library and historic properties. Campbell School District. Downtown Campbell (currently District 3.) See answers # 4 and 5. No rationale. Council represents all of Campbell very well. The current district lines are fine.
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Attachment: Public Comments Received Through 1_26_22 Redacted (Redistricting 2021 Public Hearing 3)
City
Council
Report
TITLE: Public Hearing to Consider an Ordinance Extending Interim Ordinance No. 2277 that Adopted Urgency Measures to Implement Senate Bill No. 9 (SB-9), Concerning Two-Unit Developments and Lot Splits in Single Family Residential Zones; and Adoption of New Application Fees for SB -9 Applications to be Included in the Schedule of Fees and Charges (Ordinance/Resolution - 4/5 Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt an Ordinance to extend Interim Ordinance No. 2277 that adopted urgency measures to implement Senate Bill No. 9, concerning two -unit developments and lot splits in single family residential zones; and to a dopt a Resolution approving new application fees for SB-9 applications.
ENVIRONMENTAL DETERMINATION
Staff recommends that the City Council find that the proposed ordinance is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 65852.21(j) and Section 66411.7(n) of the Government Code relating to implementation of Senate Bill No. 9.
BACKGROUND
Senate Bill (SB) No. 9, signed into law by Governor Newsom on September 16, 2021, allows all properties within a "single -family residential zone" to develop two primary dwelling units and to be subdivided into two parcels, irrespective of existing local zoning, General Plan, or subdivision standards. The law, which functionally eliminated single-family residential zoning in California, went into effect on January 1, 2022.
To provide for the orderly implementation of SB -9 ahead of January 1, 2022, the City Council adopted Interim Ordinance No. 2277 on an urgency basis at its December 7, 2021 meeting. This ordinance includes new o bjective zoning, design, and subdivision standards, and established a permitting process for SB -9 applications. Pursuant to California Government Code Section 65858, the interim ordinance is in effect for 45 days.
Following initial adoption, the Governmen t Code allows a city to extend an interim ordinance for a period up to 10 months and 15 days after a noticed public hearing. The additional time is intended to allow for the preparation of a formal ordinance and/or Item: 9
Category: PUBLIC HEARINGS AND
INTRODUCTION OF
ORDINANCES
Meeting Date: February 1, 2022
9 Packet Pg. 96
Extension of the SB-9 Interim Ordinance Page 2 of 3
adoption of a policy to address the land use matter that prompted the need for an interim ordinance.
DISCUSSION
Extension of Interim Ordinance : The draft ordinance ( Attachment A ) would extend Interim Ordinance No. 2277 for approximately six months until August 1, 2022.
Application Fees : Staff has also prepared a draft resolution (Attachment B ) adopting new SB-9 application fees, as noted, below. It is anticipated that a typical SB -9 Zoning Clearance application, on average, will consume a comparable amount of staff time as an Administrative Site and Architectural Review Permit. Therefore, staff recommends an equivalent base fee of $1,864, which would cover review of all proposed dwellings. An additional fee would be charged for an exception request —to deviate from objective development standards—in the amount of $621 (equaling four hours of a Planner’s staff time). Similarly, SB-9 applications including an urban lot split (two -lot subdivision) would be charged and additional $414 (two hours of a Planner’s staff time). This fee would be in addition to the $5,600 Public Works Department fee for a Parcel Map application.
SB-9 Zoning Clearance : $1,864
With an Exception Request (1): $ 621
With an Urban Lot Split: $ 414
NEXT STEPS
Staff will schedule a meeting with the Planning Commission in F ebruary to review the design and subdivision standards for SB -9 projects, followed by consideration of a formal ordinance in March or April. A public hearing before the City Council would occur approximately six weeks after the Planning Commission makes a recommendation on a draft ordinance.
PUBLIC NOTICE
A notice of this public hearing was published in the Metro Silicon Valley newspaper and posted on the City's public notices page and SB-9 webpage and pushed through the City's social media channels. No comments have been received.
FISCAL IMPACT
With adoption of the proposed fees, the City would obtain cost recovery of staff time required to review SB-9 applications. Additional fees would also be charged for building permits for each individual structure based on the City’s existing adopted fees.
Prepared by:
Daniel Fama, Senior Planner
9 Packet Pg. 97
Extension of the SB-9 Interim Ordinance Page 3 of 3
Reviewed by:
Rob Eastwood, Community
Development Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Draft Ordinance - SB-9 Interim Ordinance Extension
b. Draft Resolution - SB-9 Application Fees
9 Packet Pg. 98
ORDINANCE NO. _____
BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL EXTENDING URGENCY MEASURES TO IMPLEMENT SENATE BILL NO. 9 TO ALLOW
FOR TWO-UNIT HOUSING DEVELOPMENTS AND URBAN LOT SPLITS IN SINGLE - FAMILY RESIDENTIAL ZONING DISTRICTS. (FILE NO. PLN-2021-187) WHEREAS, on September 16, 2021, the Governor of the State California signed into law Senate Bill No. 9 (Atkins), "An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the California Government Code, relating to land use ," which requires ministerial approval of a housing development of no more than two units in a single- family zone (proposed housing development), the subdivision of a parcel zoned for residential use into two parcels (urban lot split), or both.
WHEREAS, certain zoning and subdivision standards of the City of Campbell Zoning and Subdivision Codes, respectively , and their permitting procedures are inconsistent with the proposed housing developments and urban lot splits authorized by Senate Bill No. 9.
WHEREAS, the provisions of Senate Bill No. 9 went into effect on January 1, 202 2, and without locally codified objective design standards and implementation procedures, the law presented a current and immediate threat to the public peace, health, safety, and welfare, in that certain existing zoning and subdivision standards are in conflict with Senate Bill No. 9 and could create confusion and hinder the developm ent of the additional resid ential units enabled under Senate Bill No. 9.
WHEREAS, pursuant to Section 65858 of the Government Code and Section
21.60.090 of the Campbell Municipal Code, the City Council may take appropriate action to adopt urgency measures as an interim ordinance.
WHEREAS, pursuant to Section 65852.21(j) and Section 66411.7(n) of the Government Code, a local agency may adopt an ordinance to implement Senate Bill No. 9.
WHEREAS, on December 7, 2021, the City Council adopted an i nterim ordina nce (Ordinance No. 2277) to approve urgency objective zoning standards, objective subdivision standards, and objective residential design standards as to allow for orderly housing development and subdivision of land as authorized by Senate Bill No. 9 while protecting the public peace, health, safety, or welfare in the City of Campbell.
WHEREAS, it was not the intent of the interim ordinance to adopt permanent standards to govern the development of single -family zoned properties. The City Council reserves the right to adopt permanent standards consistent with Senate Bill No. 9 that will supersede those contained in this interim ordinance.
WHEREAS, it was not the intent of the interim ordinance to deny approvals needed for the development of projects with a significant component of multifamily housing.
WHEREAS, pursuant to Section 65858 of the Government Code, the City Council may extend the interim ordinance for 10 months and 15 days after public notification and following a public hearing.
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Attachment: Draft Ordinance - SB-9 Interim Ordinance Extension (Extension of the SB-9 Interim Ordinance)
WHEREAS, in light of the foregoing findings, the City Council finds that there is a continuing and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use which is in conflict with this ordinance would result in that threat to public health, safety, or welfare.
WHEREAS, adoption of this ordinance is not a project under the California Environmental Quality Act (CEQA) pursuant to California Government Code Section 65852.21(j) and Section 66411.7(n) relating to implementation of Senate Bill No. 9.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1 (SEVERABILITY): If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 2 (REPEAL): If Senate Bill No. 9 is repealed or otherwise rescinded by the California State Legislature or by the People of the State of California, this ordinance shall cease to be in effect.
SECTION 3 (PUBLICATION): The City Clerk shall cause this interim ordinance to be published at least once in a newspaper of general circulation within 15 days after its adoption in accordance with Government Code Section 36933.
SECTION 4 (APPLICABILITY): The interim ordinance shall apply to any land use or subdivision proposal submitted on or
after January 1, 2022 pursuant to Senate Bill No. 9.
SECTION 5 (EFFECTIVENESS) : Ordinance No. 2277 is hereby extended to August 1, 2022 or until it is repealed by the City Council, whichever comes first PASSED AND ADOPTED this _____ day of ____________, 2022 by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
________________________
Paul Resnikoff, Mayor
ATTEST:
_______________________________
Dusty Christopherson, City Clerk
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Attachment: Draft Ordinance - SB-9 Interim Ordinance Extension (Extension of the SB-9 Interim Ordinance)
RESOLUTION NO._______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL ADOPTING NEW APPLICATION FEE S FOR SENATE BILL 9 (SB-9) APPLICATIONS IN THE
CITY'S SCHEDULE OF FEES AND CHARGES
WHEREAS, on December 7, 2021, the City Council adopted Interim Ordinance No. 2277 to approve urgency objective zoning standards, objective subdivision standards, and objective residential design standards as to allow for the orderly implementation of Senate Bill No. 9 (SB-9); and
WHEREAS, Ordinance No. 2277 establishes a permitting process for the proposed housing developments and urban lot splits as authorized by SB-9; and
WHEREAS, SB-9 did not provide a local reimbursement for implementation pursuant to Section 6 of Article XIII B of the California Constitution because a local agency has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by the law; and
WHEREAS, the proposed fees are commensurate with the amount of staff time anticipated to review SB-9 applications; and
WHEREAS, it is in the public interest to balance the City's goal of cost recovery with the property owners' right to develop their property as permitted by SB-9.
NOW, THEREFORE, BE IT RESOLVED that the City Council adopts the following SB-9 applications, to be included in the Schedule of Fees and Charges:
SB-9 Zoning Clearance : $1,864
With an Exception Request: $ 621
With an Urban Lot Split: $ 414
PASSED AND ADOPTED this _____ day of ____________, 2022 by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
________________________
Paul Resnikoff, Mayor
ATTEST:
_______________________________
Dusty Christopherson, City Clerk
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Attachment: Draft Resolution - SB-9 Application Fees (Extension of the SB-9 Interim Ordinance)
City
Council
Report
TITLE: Acceptance of Fiscal Year 20/21 Annual Comprehensive Financial Report and Auditor’s Written Communication on Internal Controls
RECOMMENDED ACTION
That the Ci ty Council accept the Fiscal Year 20/21 Annual Comprehensive Financial Report and Auditor’s written communication on internal control structure and the audit process as submitted with this report.
BACKGROUND
The Finance Department prepares an Annual Comp rehensive Financial Report (ACFR) to report the City’s financial results for the fiscal year. The financial statements, and the accounts comprising them, are subjected to an independent audit as required by Campbell Municipal Code Section 2.08.080. The Cit y’s audit firm Eide Bailly , LLP, issued their report (opinion) on these financial statements which is contained within the ACFR document (Attachment A).
At the conclusion of the audit process, the auditor also issues its communication to the City Council, in the form of various letters, regarding the audit process and the City’s internal control structure and reports its findings and/or recommendations for improvement (Attachments B and C).
DISCUSSION
Annual Comprehensive Financial Report for Fiscal Year Ending June 30, 2021
The ACFR is divided into three basic parts: 1) Introductory Section 2) Financial Section and 3) Statistical Section. The introductory section includes a letter of transmittal, award certificate and a listing of City officials, staff , Board and Commissions. The financial section includes the auditors’ report, management discussion and analysis, basic financial statements, fund financial statements, notes to the financial statements, required supplementary information and other supplementary information. The statistical section contains various schedules of trend information that provides useful information for analytical purposes.
The ACFR document is submitted annually to the Government Finance Officers Association (GFOA) award progr am which grants a Certificate of Achievement for Item: 10
Category: NEW BUSINESS
Meeting Date: February 1, 2022
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Excellence in Financial Reporting to qualifying ACFRs. The City has received this award for the past 36 consecutive years and has again submitted this year’s document for consideration.
The “Independent Aud itor’s Report” reflects an unqualified, “clean opinion” on the financial statements, meaning that it meets the standards of generally accepted accounting principles. Next is the “Management’s Discussion and Analysis,” (MD&A) which begins on page 4 of the ACFR, and contains significant financial highlights for the fiscal year ending June 30, 2021, as well as an explanation of the different types of financial statements and other information found in the ACFR. Included in the discussion are tables which compa re the audit year financial results to the prior year, and an explanation of the significant changes between years.
Fiscal Year 2021 highlights from the ACFR are as follows:
Citywide, which includes all funds, the City ended its fiscal year with total re venues of $64.4 million, an increase of $2.7 million from the previous year, and total expenses of $61.0 million, a decrease of $4.8 million compared to the previous year. Excluding property taxes, general revenues comprised of sales tax, transient occupan cy tax and other revenues, decreased $1.5 million. Other financial highlights of the past year are as follows:
Citywide (All Funds):
• Total City assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $39.8 m illion. Of this amount, $56.2 million represents the net investment in capital assets while $21.5 million is restricted for various purposes including affordable housing, streets and roads, community development and debt service. The negative $37.9 million in unrestricted net position decreased by $5.3 million since last year.
• Total net position increased from the previous year by $3.4 million primarily attributable to an increase in deferred outflow of resources and a decrease in deferred inflow of resources related to pensions.
Fund level:
• Total governmental fund balances were $61.0 million at fiscal year -end, an increase of $17.1 million from the previous year.
• General Fund revenues, excluding transfers, decreased $1.0 million to $48.6 million from the previous year. Related expenditures decreased by $1.3 million from the previous year to $50.1 million.
• General Fund’s fund balance decreased $1.4 million to $20.9 million at fiscal year-end.
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• Total Committed General Fund balance of $4.3 million is for fu ture contingencies and capital improvement projects. Total Assigned General Fund balance of $3.7 million is for CalPERS retirement costs and other post -employment benefits, and the remainder for general government. The reserves represent a 41.3% reserve ratio to General Fund expenditures excluding transfers out.
General Fund Highlights
The General Fund realized a deficiency of revenues over expenditures of $1.5 million, excluding transfers. General Fund revenues, excluding transfers, decreased $1.0 million from the previous year to $48.6 million. Property taxes increased $0.7 million, sales tax increased $1.0 million, and other taxes decreased $1.6 million.
General Fund expenditures, excluding transfers, were $50.1 million, a decrease of $1.3 million from the previous year. The decrease was primarily due to decreased personnel costs.
The General Fund’s fund balance at fiscal year -end was $20.9 million, a decrease of $1.4 million from the previous year. Committed and Assigned fund balances at year end were $4.3 million and $3.6 million, respectively. These balances are utilized to fund operational costs such as capital projects, compensated absences, and to maintain a reserve for California Public Employees’ Retirement System (Cal PERS) and Other Postemployment Benefits ( OPEB) related costs. Unassigned fund balance of $13.0 million serves as an additional reserve for unanticipated needs that may arise including a $9.0 million reserve for economic fluctuations and $2.6 million for emergencies. A detailed listing of each reserve account, its balances, and its description can be found in Attachment D.
Per City Administrative Financial Policies, the Economic Fluctuations Reserve is to be set at 16.67% of operating expenditures for use during economic downturns. Due to a decrease in the City’s Fiscal Year 2022 Adopted General Fund expenditures, the reserve also decreased from $9.4 million to $9.0 million at fiscal year -end. The Emergency Reserve, however, is to be set at 10% of revenue and used for unexpected physical or fiscal emergency. Due to COVID -19 and revenue shortfalls the City experienced in its main revenue categories such as sales tax, charges for services and transient occupancy tax, the City utilized $3.0 million of emergency reserves in fiscal year 19/20. As such, its balance decreased from $5.6 million to $2.6 million. For fiscal year ending June 30, 2021, the emergency reserve balance remains unchanged and $3.1 million below its targeted level of $5.7 million.
The City has been allocated approximat ely $10.0 million total over two fiscal years by the American Rescue Plan Act (ARPA). ARPA funds will be sent to the City in two equal payments of approximately $5.0 million each. The first payment was received in July 2021 and was recorded in Fiscal Year 2021. At its September 21, 2021 meeting, City Council provided staff with authorization via Resolution No. 12767 to offset up to $3.25 million in allowable Fiscal Year 2021 General Fund expenditures with the City’s ARPA 10 Packet Pg. 104
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allocations. As of fiscal year endi ng June 30, 2021 and the presentation of this report, staff utilized only $2.21 million of the $3.25 million Council -approved ARPA allocation; thereby leaving an additional $1.04 million in the APRA fund which can be used for other allowable purposes.
Furthermore in Fiscal Year 2021, the City did not need to draw upon its economic fluctuation or emergency reserve. As such, the City continues to maintain strong General Fund reserve balances. The GFOA recommends, at a minimum, a General Fund unrestricted fund balance of no less than two months (or 16.67%) of general fund operating expenditures. At fiscal year -end, the City maintained an unassigned reserve ratio of 23.96%. This increases to 28.11% if the General Fund CalPERS reserve is also taken into acco unt. The CalPERS reserve is intended to either pay down unfunded pension liabilities or mitigate pension premium increases from year to year. Thus, an appropriate use of the CalPERS reserve, pending Council discussion and authorization, could be to fund annual ongoing pension premium costs in any given year.
Auditor’s Written Communications
The auditor is required by professional auditing standards to report upon various matters at the conclusion of their audit, with letters addressing any findings with respect to the City’s internal controls, compliance issues and other matters they may have encountered during the course of their audit. While not specifically engaged to provide assurance on the internal control structure itself, the auditor considers th ese controls as part of rendering of an opinion on the City’s financial statements.
The first of the attached letters (Attachment B) describes the auditor’s observations and findings on various matters prescribed by professional auditing standards includ ing qualitative aspects of accounting practices, any difficulties that may have been encountered during the audit, corrected and uncorrected mistakes, disagreements with management and other findings or issues. There were no significant audit findings or other unusual items noted in this report.
The second letter (Attachment C) addresses the City’s internal control structure and compliance matters based on government auditing standards. While not specifically engaged to provide assurance on the internal co ntrol structure itself, the auditor considers these controls as part of rendering of an opinion on the City’s financial statements. The resultant auditor’s letter discloses those findings, if any, and determines whether they constitute a “material weakness .” The letter also documents the auditor’s recommendations to management for improving the internal control structure as well as staff’s response to the comments and recommendations. There were no findings considered to be a “material weakness” or “significant deficiency.”
Finance Subcommittee Meeting
The results of the audit and written communications were presented by City staff and Eide Bailly, LLP and discussed with the City’s Finance Sub committee on January 21, 2022. The Sub committee reviewed and as ked questions of staff regarding year over 10 Packet Pg. 105
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year changes to property tax revenue, sales tax revenue, General Fund reserves, and pension liability. The Sub committee also inquired about the three phases of an audit (Interim, Final, Reporting) and how audit f indings, if any, are communicated to Council and staff.
The Subcommittee was satisfied with the presentation and the answers provided by the auditor and staff, and recommended the FY 20/21 ACFR and auditor’s written communication be accepted by the City Council on February 1, 2022.
FISCAL IMPACT
There is no fiscal impact as a result of accepting the ACFR and the auditor’s written communications.
ALTERNATIVES
Do not accept the ACFR and/or written communications as submitted , and provide alternative direction to staff.
Prepared by:
Norite Vong, Finance Manager
Approved by:
Brian Loventhal, City Manager
Attachment:
a. ACFR - FY2020-21
b. AU-C 260 Letter
c. GAS Letter
d. General Fund Comparison FYE 06-30-20 to 06-30-21
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City of
California
Campbell
Fiscal Year Ended
June 30, 2021
Annual Comprehensive
Financial Report
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
City of Campbell
Prepared by:
Fin
ance Department
Will Fuentes, Finance Director
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) City of Campbell
Table of Contents
June 30, 2021
Int
roductory Section
Letter of Transmittal ................................................................................................................................................... i Certificate of Achievement ...................................................................................................................................... vii Organizational Chart ............................................................................................................................................... viii City Officials .............................................................................................................................................................. ix Commissions, Committees and Advisory Boards ....................................................................................................... x Financial Section
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................... 4 Government Wide Financial Statements
Statement of Net Position ................................................................................................................................... 14 Statement of Activities ......................................................................................................................................... 15 Government Fund Financial Statements
Balance Sheet – Governmental Funds ................................................................................................................. 17 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ............................ 18 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................ 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................................... 21 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds ................................................................................................... 24 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds .............................. 25 Statement of Cash Flows – Proprietary Funds ..................................................................................................... 26 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position – Fiduciary Funds ....................................................................................... 28 Statement of Changes in Net Position – Fiduciary Funds .................................................................................... 29 Notes to Financial Statements ................................................................................................................................. 30 Required Supplementary Information
Schedule of Changes in the Pension Liability and Related Ratios – CalPERS Miscellaneous Plan ....................... 74 Schedule of Pension Contributions – CalPERS Miscellaneous Plan ..................................................................... 75 Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans ....................................... 76 Schedule of Pension Contributions – CalPERS Safety Plan .................................................................................. 77 Schedule of Changes in the Net OPEB Liability and Related Ratios ..................................................................... 78 Sch
edule of OPEB Contributions .......................................................................................................................... 79 Budgetary Comparison Schedule – General Fund ............................................................................................... 80 Budgetary Comparison Schedule – Housing Assets Special Revenue Fund ........................................................ 82 Budgetary Comparison Schedule – Other Grants Special Revenue Fund ............................................................ 83 Budgetary Comparison Schedule – ARPA Special Revenue Fund ........................................................................ 84
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) Notes to Required Supplementary Information .................................................................................................. 85 Supplementary Information
Description of Other Governmental Funds .......................................................................................................... 86 Combining Balance Sheet – Other Governmental Fund ...................................................................................... 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds .. 90 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget Actual – Gas Tax Special Revenue Fund ..................................................................................................................................................................... 92 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Vehicle Impact Fees Special Revenue Fund .......................................................................................................................................... 93 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund .................................................................................................................................. 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Lighting and Landscaping District Special Revenue Fund .............................................................................................................................. 95 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund ........................................................................................................................... 96 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund .......................................................................................................................................... 97 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund .................................................................................................................... 98 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #1 Special Revenue Fund ......................................................................................................................... 99 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #2 Special Revenue Fund ....................................................................................................................... 100 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund 101 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Capital Projects Fund ..................................................................................................................................................... 102 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund ................................................................................................................................................................... 103 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund ................................................................................................................................................................... 104 Internal Service Funds ........................................................................................................................................ 105 Combining Statement of Net Position – Internal Service Funds ........................................................................ 106 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds ............ 107 Combining Statement of Cash Flows – Internal Service Funds .......................................................................... 108 Custodial Funds .................................................................................................................................................. 109 Combining Statement of Fiduciary Net Position – Custodial Funds .................................................................. 110 Com
bining Statement of Changes in Fiduciary Net Position – Custodial Funds ................................................ 111 Statistical Section (Unaudited)
Description of Statistical Section Contents ........................................................................................................ 112 Net Position by Component ............................................................................................................................... 113 Net Position by Component ............................................................................................................................... 114 Changes in Net Position ..................................................................................................................................... 115 Fund Balances of Governmental Funds ............................................................................................................. 116 Changes in Fund Balances of Governmental Fund ............................................................................................ 117 Assessed and Estimated Actual – Value of Taxable Property ............................................................................ 118 Property Tax Rates – All Overlapping Governments ......................................................................................... 119 Principal Property Taxpayers ............................................................................................................................. 120 Property Tax Levies and Collections .................................................................................................................. 121 Ratio of Outstanding Debt by Type .................................................................................................................... 122 Computation of Direct and Overlapping Debt ................................................................................................... 123
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) Computation of Legal Bonded Debt Margin ...................................................................................................... 124 Bonded Debt Pledged Revenue Coverage – Redevelopment/Successor Agency Tax Allocation Bonds ........... 125 Demographic and Economic Statics ................................................................................................................... 126 Top Ten Principal Employers .............................................................................................................................. 127 Full-Time Equivalent City Government Employees by Function ........................................................................ 128 Operating Indicators by Function/Program ....................................................................................................... 129 Capital Assets Statistics by Function/Program .................................................................................................. 130
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1 Introductory Section
June 30, 2021
City of Campbell
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i
70 North First Street· Campbell, California 95008-1423 · TEL 408.866.2111 · FAX 408.379.2572 · TDD 408.866.2790
CITY OF CAMPBELL
Finance Department
December 30, 2021
Honorable Mayor, City Council, and Citizens of Campbell
It my pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Campbell for the fiscal year ended June 30, 2021. The report and accompanying independent audit are published pursuant to State law and the requirements of Section 2.08.080 of the Campbell Municipal Code. The financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with Generally Auditing Standards by an independent auditing firm of licensed certified public accountants.
While traditionally addressed to the governing legislative body of the City, this report is also intended to provide relevant financial information to the citizens of the City of Campbell, City staff, creditors, investors and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.
Purpose and Management Responsibility
The report consists of management’s representations concerning the finances of the City of Campbell.
Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As the City’s Chief Executive Officer, I assert that, to the best of my knowledge and belief, this financial report is complete and reliable in all material respects.
Further, every attempt has been made to conform to the highest standards of public financial reporting as set forth by the following organizations:
• Governmental Accounting Standards Board (GASB);
• American Institute of Certified Public Accountants (AICPA) and its Committee on Governmental Accounting and Auditing;
• Government Finance Officers Association (GFOA) of the United States and Canada; and • California Society of Municipal Finance Officers (CSMFO).
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City of Campbell
Letter of Transmittal
June 30, 2021
Audited Financial Statements
Eide Bailly LLP, a firm of licensed certified public accountants, has audited the City of Campbell financial statements. The City’s independent audit was meant to provide reasonable assurance that its financial statements are free of material misstatement. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Campbell for the fiscal year ended June 30, 2021 are presented fairly in all material respects. After a thorough evaluation of the City’s internal controls and all required financial documents, the independent auditors rendered an unmodified (“clean”) opinion that the City of Campbell’s financial statements contained herewith are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial Section of this report.
Organization of Report
The Management’s Discussion and Analysis (MD&A) provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Campbell’s MD&A can be found immediately following the report of the independent auditors.
In addition to meeting the requirements set forth by State law, the audit was also designed to meet the requirement of the Single Audit Act of 1984 as amended in 1996 and the U.S. Office of Management and the Uniform Guidance. The standards governing Single Audit engagements require the auditor to report on the City’s internal controls and compliance with certain legal requirements with special emphasis on the administration of federal awards. For the year ended June 30, 2021 the City did expend over $750,000 on Federal financial assistance programs; and therefore, a Single Audit will be required by March 31, 2022. The Single Audit will be prepared and presented separately from the ACFR and by the required deadline.
City of Campbell Profile
The City of Campbell is located in the heart of Silicon Valley contiguous with the City of San Jose and 50 miles south of San Francisco. The City encompasses 6.7 square miles, is substantially built out, and serves a population of approximately 41,533 as of January 1, 2021. The City is comprised of a mix of residential, office and commercial retail businesses. The City is also home to a number of community festivals and celebrations throughout the year, and it prides itself on fostering a “small town” feel despite being located in the midst of a major metropolitan region. The City’s central geographic setting within Silicon Valley makes it a desirable place to live and work.
The City was incorporated March 28, 1952, as a General Law city and operates under a Council-Manager form of government that includes five council members elected by district for a term of four years. The Mayor is selected each year by majority vote of the other Council members. The Council appoints the City Manager, City Attorney, and City Clerk. The City Council members also serve as the governing board members of the Successor Agency to the dissolved City of Campbell Redevelopment Agency and the Campbell Lighting and Landscape District, which are both included in the accompanying financial reports.
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City of Campbell
Letter of Transmittal
June 30, 2021
City Services
The City provides the following services to its residents: police and contract fire protection; park and street lighting maintenance; recreational classes, services and cultural events; planning, zoning and building review and inspections; construction and maintenance of streets and roads; and leadership provided through general administrative services. Water, sewage, garbage and electric utilities are provided directly through joint powers authorities for which the City participates.
Budgetary Policy and Control
The annual budget serves as the foundation for the City of Campbell’s financial planning and control. The budget process begins in December with each City department receiving preliminary financial information. Initial appropriation requests are made in February and study sessions are held with the City Council between March and May to discuss department goals and work plans as well as to obtain Council’s input on special priorities or concerns that should be considered in developing the budget. Subsequently, the City Manager meets with each department director to discuss the budget requests and make changes where necessary. The City Manager then prepares and presents the recommended budget in late May or early June for Council’s preliminary consideration. Adoption of the operating and capital budget document takes place in June. Requests for increases in appropriations or adjustments to capital projects require approval by the City Council. Changes in appropriations during the year must be submitted by the City Manager to the City Council for review and approval, and must be accompanied by appropriate fiscal impact analysis.
Economic Condition and Outlook
National, State and Local Economies—While Silicon Valley is best known for its significant concentration of high technology and electronics research, development and manufacturing, the area also supports a wide variety of retail, office and personal services industries. Historically, this region has experienced cycles of expansion and contraction and has led the nation in productivity, innovation and economic growth for much of the past two decades. The region is home to numerous institutions of higher learning and education that support a broad base of research and development in advanced technology and design.
As with all areas in the world though, the United States, California, and the San Francisco Bay Area were negatively impacted by the COVID-19 pandemic over the course of the fiscal year. Nevertheless, the nation’s economy saw GDP growth equaling 2.1% in the third quarter of 2021; following a GDP increase equaling 6.7% in the second quarter of 2021. Such an increase was the result of the re-opening of most sectors of the economy, the rollout of vaccinations and improved therapeutics, federal stimulus aid, pent up demand, and significant levels of personal savings. Due to these factors, stock market prices within the Dow Jones Industrial Average increased by 33.9% over the course of fiscal year. However, inflation, supply chain, and new COVID-19 variant concerns are proving to be a slight drag on the economy with the Consumer Price Index (All Items) increasing by
5.4% from June 2020 to June 2021.
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City of Campbell
Letter of Transmittal
June 30, 2021
As of the end of the fiscal year, per the California Employment Development Department (EDD) and the Bureau of Labor Statistics (BLS), the City of Campbell had an unemployment rate of 4.8%, Santa Clara County had an unemployment rate of 5.2%, California had an unemployment rate of 8.0%, and the United States had an unemployment rate of 5.9%. While high compared to the previous fiscal year, the national unemployment rate has decreased significantly from a 11.1% in June 2020. Overall, it appears the U.S. economy will continue to recover well throughout the coming fiscal year, but may continue to be impacted by inflation, supply chain issues, and uncertainties regarding new COVID-19 variants.
Local Economy
Here in the local region of the Silicon Valley, despite the COVID-19 pandemic, the demand for residential housing continues to stimulate construction and development activity with sales transactions and median prices reflecting the current under-supply in building stock. Because of the unique setting of this region, and the fact that many of the surrounding cities have limited capacity for new housing, most property values continue to appreciate. This is predominantly due to the fact that demand in this region regularly exceeds the supply despite the high cost of housing. Such demand and continued growth in residential sales prices and activity is also due to continued historically low mortgage interest rates which have made home purchases less expensive. Commercial development activity in Campbell continue s to be strong, but the development review process could be slowed in the coming fiscal year by various staffing vacancies at the City. These vacancies though are planned to be filled throughout the upcoming fiscal year so that the development review process can proceed smoothly. The Silicon Valley though continues to be a leader in innovation and productivity and interest in commercial developments could further increase as the economy continues to recover from the pandemic and health concerns about COVI D-19 further subside.
Campbell is home to a diversified economic base of business segments located throughout the community.
There are over 4,500 businesses in the City that generated approximately $1 4.5 million in sales and use tax revenue, an increase of 7.4% from the previous fiscal year due to ongoing economic recovery from the COVID-19 pandemic. The largest categories of sales tax producers comprise restaurants and hotels, building and construction, business and industry, and general consumer goods.
Relevant Financial Policies
Because of the many economic and fiscal uncertainties that constantly confront the City, and to address the financial impacts created by these issues, the City has taken nece ssary steps to preserve its fiscal health. The City incorporates long-term financial planning into its budget process. For example, it has established financial and budgetary policies monitored by the City Council that ensure operating revenues are available to fund operating expenditures resulting in a balanced budget. The City has also designated a Reserve for Economic Fluctuations; the purpose of which is to serve as a buffer for those revenue sources most significantly impacted by downturns in the economy and enable the City to better withstand an economic recession. The City’s financial policies specify target funding of two months of General Fund expenditures. Moreover, the City’s 7-year projections include anticipated increases in retirement costs over the next several years due to changes in actuarial assumptions and underperforming retirement pool investment assets. In addition, there are other reserves set aside for both operating as well as emergency purposes to provide the City a financial “safety net” during the next economic slowdown.
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City of Campbell
Letter of Transmittal
June 30, 2021
Cash Management
The City manages a pooled investment program for all funds in which temporarily idle cash is invested in a variety of instruments. The investment program is managed in accordance with the Investment Policy approved by the City Council. Safety, liquidity, and yield in that order, are the objectives of the investment program. Investments are diversified among investment tools that include certificates of deposit, Federal agency securities and the State of California’s Local Agency Investment Fund (LAIF). Quarterly reports on investment status and activity are presented to the City Council.
Capital Improvement / Capital Asset
A five year Capital Improvement Plan is approved on an annual basis with first year projects adopted in conjunction with the operating budget. Sufficient financial commitment is made to preserving the City’s investment in its public facilities (buildings, streets, parks, equipment, etc.) to assure preservation of these assets. Equipment replacement and maintenance is projected and funded throughout its useful life. The annual capital improvement budget includes projects which funding source is reasonably assured and can be started within the fiscal year.
Major Initiatives
The City of Campbell City Council and the City’s management team have dedicated significant attention and resources accomplishing the City’s goals and objectives. And for the upcoming fiscal year, Council priorities are to address Comprehensive Long-Term Land Use Planning, Measure O Implementation, Fiscal Stability, Financial Recovery, and Open Space. The City also seeks to properly respond to the pandemic’s health, safety, and economic impacts timey, enhance economic development with community involvement, maintain and improve the City’s infrastructure and facilities, adapt services to support an evolving community in a changing environment, and enhance internal and external communication.
A number of capital projects were completed over the course of the fiscal year 2020-21, including schematic designs for the Measure O Library and Police buildings, public art murals along the Los Gatos Creek Trail underneath the Creekside Way underpass, Traffic Calming in the East Campbell and Ridgeley Drive neighborhoods, Hamilton Avenue/Winchester Boulevard Signal Pole Replacement, Annual Street Maintenance, and Winchester Boulevard Resurfacing. Additionally, a number of notable capital projects were also started in fiscal year 2020-21, including the Police Department Officer Safety Equipment Replacement Plan, further Measure O design work for the new Police Station and renovated Library, construction work for the John D Morgan All-Inclusive Play Area, and construction/retrofit work on a City-wide energy savings project, including streetlight retrofit work (to LEDs), indoor lighting changes, HVAC improvements, and improved building control systems; funded by PG&E utility rebates and a loan from the California Energy Commission (CEC).
The City also continues to address various labor compensation changes imposed through legislation in the areas of paid sick leave and COVID-19 protections, pension rate increase, healthcare premium increases, and negotiated and implemented labor agreements and terms.
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City of Campbell
Letter of Transmittal
June 30, 2021
Awards (Financial and Budgetary)
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Campbell for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2020. The Certificate of Achievement is a prestigious national award that recognizes conformity with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the past 32 consecutive fiscal years. We believe our current report continues to conform to the Certificate of Achievement Program's requirements, and we are again submitting it to determine its eligibility for another certificate.
The City also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for the fiscal year 2020-21. This is the 28
th consecutive year of receiving this award. In order to receive this award, the budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device.
Acknowledgements
The preparation and publication of this report was made possible by the dedicated service of the entire Finance Department under the leadership of the Finance Director and the Finance Manager. Each member of the Department has my sincere appreciation for the many contributions made in the preparation of this report. In addition, I wish to extend a special thanks to the Finance Department Staff for their hard work in producing this document.
Appreciation is also extended to City departments for their support in planning and conducting the fiscal functions of the City, the commitment of all City employees, as well as the Mayor and City Council for their support and encouragement toward achieving and maintaining the highest standards for the management of the City of Campbell’s finances. Through continued partnership with the community that we serve, the City of Campbell will continue to be a leader in effective municipal governance and maintain high quality of life.
Respectfully submitted,
Will Fuentes
Finance Director
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City Officials
City Council
Mayor – Susan M. Landry
Vice Mayor – Liz Gibbons
Councilmember – Rich Waterman
Councilmember – Paul Resnikoff
Councilmember – Anne Bybee
Note: Mayor serves an annual term from December to December. Names and positions are as of July 1, 2020.
City Administrative Staff
City Manager – Brian Loventhal
Deputy City Manager – Vacant
Acting City Clerk – Andrea Sanders
City Attorney – William Seligmann
Community Development Director – Paul Kermoyan
Finance Director – Will Fuentes
Human Resources Manager – Jill Lopez
Information Technology Manager – Cecil Lawson
Police Chief – Gary Berg
Public Works Director – Todd Capurso
Acting Recreation & Community Services Director – Natasha Bissell
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Commissions, Committees, and Advisory Boards
Planning Commission Parks and Recreation Commission
Michael Krey, Chairperson Traci Mitchell, Chairperson Maggie Ostrowski, Vice Chairperson Robert Fidrych Jr., Vice Chairperson Adam Buchbinder Sherrie Doherty
Stuart Ching Liraz Abraham
Nicholas Colvill Allen Ishibashi
Terrence Hines Frank Beitz
Andrew Rivilin Sharon Teeter
Civic Improvement Commission Building Board of Appeal
Carol Hoffman, Chairperson Bruno Marcelic
William Kaufman, Vice Chairperson Jim Morelan
Amy Carpenter Jay Perrine
Davis Fields Kevin Salazar
Viral Khajuria Todd Zeman
Anne Souza
Maryanne Yoshikawa
Historical Preservation Board Rental Fact Finding Committee D. Michael Foulkes, Chairperson Jennifer Dooley
Yvonne Kendall, Vice Chairperson William Pierce
Laura Taylor Moore
Todd Walter
Susan Blake
Bicycle/Pedestrian Committee
Carmen Lynaugh, Chairperson
David Sadjord, Vice Chairperson
Laura Smith
Barton Smith
Paul Tuttle
Note: Names and Positions as of July 1, 2020
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Financial Section
June 30, 2021
City of Campbell
eidebailly.com
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1 Independent Auditor’s Report
The Honorable City Council
City of Campbell, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Campbell, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE
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2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter – Change in Accounting Principle
As discussed in Notes 1 and 17 to the financial statements, the City has adopted provisions of GASB Statement No. 84, Fiduciary Activities, which has resulted in a restatement of the net position as of July 1, 2020. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 4 to 12, and Schedule of Changes in Miscellaneous Plan Net Pension Liability, Net OPEB Liability and Related Ratios, Schedule of Pension Contributions, Schedule of City’s Proportionate Share of the Plan’s Net Pension Liability, Schedule of OPEB Contributions, Schedules of Budgetary Comparison Schedules for the General Fund and each Major Special Revenue Fund, on pages 74 to 85, be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor, internal service, and agency fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
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3 The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Menlo Park, California
December 30, 2021
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4 City of Campbell
Management’s Discussion and Analysis
June 30, 2021
Management’s Discussion and Analysis
The management of the City of Campbell, California (City) presents this narrative overview and analysis of the financial activities of the City as of, and for the fiscal year ended June 30, 2021. Since Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes, and currently known facts, we encourage readers to consider the information presented herein in conjunction with additional information furnished in the Letter of Transmittal and the accompanying Basic Financial Statements.
Fiscal Year 2020-21 Financial Highlights
City-wide, the City ended its fiscal year with total revenues of $64.4 million, an increase of $2.7 million from the previous year, and total expenses of $61.0 million, a decrease of $4.8 million compared to the previous year.
Excluding property taxes, general revenues; comprised of sales tax, transient occupancy tax and other revenues, decreased $1.5 million.
Other financial highlights of the past year are as follows:
City-wide
• Total City assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $39.8 million. Of this amount, $56.2 million represents the net investment in capital assets while $21.5 million is restricted for various purposes including affordable housing, streets and roads, community development and debt service. The negative $37.9 million in unrestricted net position decreased by $5.3 million since last year.
• Total net position increased from the previous year by $3.4 million primarily attributable to an increase in deferred outflow of resources and a decrease in deferred inflow of resources related to pensions.
Fund level
• Total governmental fund balances were $61.0 million at fiscal year-end, an increase of $17.1 million from the previous year.
• General Fund revenues, excluding transfers, decreased $1.0 million to $48.6 million from the previous year. Related expenditures decreased by $1.3 million from the previous year to $50.1 million. • General Fund’s fund balance decreased $1.4 million to $20.9 million at fiscal year-end. • Total Committed General Fund balance of $4.3 million is for future contingencies and capital improvement projects. Total Assigned General Fund balance of $3.7 million is for CalPERS retirement costs and other post-employment benefits, and the remainder for general government. The reserves represent a 41.3% reserve ratio to General Fund expenditures excluding transfers out.
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5 City of Campbell
Management’s Discussion and Analysis
June 30, 2021
Overview of the Financial Statements
The City is required to present its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standard Board (GASB) pronouncements. The City of Campbell’s Basic Financial Statements are comprised of three components: 1) government-wide financial statements 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the Basic Financial Statements.
Government-wide Financial Statements - These statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. They consist of the statement of net position and statement of activities. The statements are reported on the full accrual basis of accounting and eliminate any duplicate activity between City funds.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources including capital assets and long-term debt, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. It encompasses all revenues and expenses and reports them based on when they are earned or incurred, respectively, rather than the timing of the related cash flows.
The City has only governmental activities that are primarily supported through taxes and intergovernmental revenues. The government-wide financial statements include Campbell Lighting and Landscape District, a legally separate entity that is under the control of the City and for which the City retains financial accountability.
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Campbell, like other state and local governments, uses fund accounting on a day-to-day basis to ensure and demonstrate compliance with finance- related legal requirements. These statements focus on more short-term reporting related to current revenues, expenditures and fund balances. They do not include capital assets or long-term liabilities. The City’s funds can be divided into two categories: governmental funds and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the City-wide financial statements. However, unlike the City-wide financial statements, governmental fund financial statements focus on inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near- term financing requirements.
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6 City of Campbell
Management’s Discussion and Analysis
June 30, 2021
Because the focus of governmental funds is narrower than that of the government-wide statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the City-wide financial statements. By doing so, a better understanding may result of the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Campbell maintains individual governmental funds. Information for the General Fund, Housing Assets Special Revenue Fund and Capital Projects Fund is presented separately in the fund statements as they are considered major funds of the City. The data for the remaining funds are shown in the aggregate in the financial statements. However, the individual fund data for each of these non-major funds is provided as supplemental information in the form of combining statements.
The City of Campbell adopts an annually appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.
Fiduciary funds are used to account for resources held for the benefit of parties outside of the City. Fiduciary funds are not reflected in the City-wide financial statements because the resources of those funds are not available to support the City’s own programs. Accordingly, only assets and liabilities are reported for these funds. The City reports three agency funds, representing a joint powers authority, a local improvement district, and a task force. It also reports a Private Purpose Trust Fund which consists of the Successor Agency to the former Campbell Redevelopment Agency, which was dissolved by State legislation on February 1, 2012.
Notes to the Basic Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the City-wide and fund financial statements. They can be found immediately following the financial statements.
Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain supplemental information in the form of budget and actual schedules for major governmental funds other than the general fund; combining statements for non-major governmental funds and the City’s internal service funds; and a statement of changes in assets and liabilities for the City’s agency funds.
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7 City of Campbell
Management’s Discussion and Analysis
June 30, 2021
City-Wide Financial Analysis
These City-wide financial statements provide information about the City’s overall financial picture from the perspective of all the City’s governmental funds. The analysis focuses on the net position and changes in net position at the City-wide level as presented in the statement of net position and statement of activities. Net positions for the City are summarized below as of June 30 and an analysis follows (in millions):
2021 2020
Cash and Investments 56.7$ 43.3$
Capital Assets 68.8 58.7
Other Assets 18.5 12.7
Total assets 144.0 114.7
Deferred Outflows of Resources 15.6 12.8 Noncurrent Liabilities 39.9 17.6 Other Liabilities 10.8 7.2
Net OPEB Liability 4.0 3.9
Net Pension Liability 64.2 60.0
Total liabilities 118.9 88.7
Deferred Inflows of Resources 0.9 2.4 Net Position
Net investment in capital assets 56.2 48.8 Restricted 21.5 20.2
Unrestricted (37.9) (32.6)
Total net position 39.8$ 36.4$
Governmental Activities
The changes in net position were comprised of the following elements:
• Cash and investments increased by a net of $13.4 million, which is primarily due to the issuance of Measure O general obligation bonds.
• Capital asset additions during the year were $13.0 million and increases in accumulated depreciation were $2.9 million. In net, capital assets increased by $10.1 million. • Other assets such as taxes receivable, accounts receivable, and note receivables increased by a net of $5.8 million.
• Deferred outflows of resources increased $2.8 million, all of which is related to deferred pension contributions that will be recognized as a reduction to the net pension liability next year, change in assumptions, and the net differences between projected and actual earnings on plan investments that is being amortized and recognized as a component of pension expense over future periods. • Long-term liabilities increased $22.3 million mostly resulting from issuance of the Measure O general obligation bonds.
• Other liabilities increased by $3.6 million due primarily to increases in unearned revenues as a result of American Rescue Plan Act of 2021 timing.
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Management’s Discussion and Analysis
June 30, 2021
• Net Pension Liability increased $4.2 million resulting from a combination of an increase in service cost, interest on total pension liability, and differences between expected and actual investment earnings on pension assets.
• Deferred Inflows of Resources decreased $1.5 million due primarily to amounts related to pensions and OPEB.
• Net investment in capital assets increased by $7.4 million mainly due to ongoing capital projects and the issuance of Measure O bonds, which are to be used towards building a new Police Station and renovating the Library.
• Restricted net position assets have external limitations placed upon them regarding how they may be spent. This balance increased by $1.3 million mostly due to an increase in restricted assets from the Measure O general obligation issuance.
On the following page is a summary of the components that resulted in the change to net position for the fiscal year ended June 30:
2021 2020
Revenues
Program revenues
Charges for services 10.8$ 11.1$
Operating grants and contributions 7.1 4.7 Capital grants and contributions 3.5 2.6 General revenues
Property taxes 21.0 19.8
Sales and use taxes 14.0 14.0
Other taxes 6.5 8.0
Investment Income 0.1 1.1
Miscellaneous 1.4 0.4
Total revenues 64.4 61.7
Expenses
General government 7.7 8.3
Recreation 4.3 6.8
Community development 2.9 4.2
Public safety 32.0 31.2
Public works 13.0 15.0
Interest on long term debt 1.1 0.3 Total expenses 61.0 65.8
Change in Net Position 3.4 (4.1) Beginning of Year 36.4 40.5
End of Year 39.8$ 36.4$
Governmental Activities
Changes in Governmental Net Position (in millions)
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9 City of Campbell
Management’s Discussion and Analysis
June 30, 2021
Government-wide net position increased $3.4 million from the prior year. Key elements of activity are as follows:
Revenues
• Within program revenues, charges for services decreased $0.3 million due to a decrease in Recreation programmatic revenues as a result of a statewide and regional stay-at-home orders and social distancing protocols to combat the spread of COVID-19. Operating grants and contributions increased $2.4 million due to the receipt of the first tranche of American Rescue Plan Act (ARPA) funds. Capital grants and contributions increased $0.9 million, funding several ongoing capital projects during the fiscal year.
• Within general revenues, property tax revenues increased $1.2 million reflecting continued strength in the real estate market as assessed values on secured residential and commercial properties continue to grow. Furthermore, of the $21.0 million in Property Tax Revenues collected government-wide, $1.2 million is attributed to the levies as a result of the 2018 passage of Measure O.
• General tax revenue, other than property tax, decreased by $1.5 million primarily due to a decrease in transient occupancy.
• Other revenue including investment income and miscellaneous revenue did not significantly change.
Expenses
• General Government expenses decreased $0.6 million attributable to a decrease in personnel costs related to vacation leave cash out.
• Recreation expenses decreased $2.5 million largely due to decreased staffing costs and other contractual or professional services.
• Community Development expenses decreased $1.3 million partly due to staffing vacancy and decreased personnel costs.
• Public Safety expenses increased $0.8 million due primarily to increased staffing, increased cost in providing services, and increased contractual fire services costs of over $0.5 million. • Public Works expenses decreased $2.0 million due to a decrease in personnel costs. • Interest on long-term debt increased $0.8 million as a result of debt service payment for the Measure O general obligation bond.
Financial Analysis of Fund Financial Statements
Combined governmental fund balances at fiscal year-end were $61.0 million, an increase of $17.1 million from the previous year. The City has Restricted, Committed, Assigned and Unassigned fund balances of $40.6 million; $4.3 million; $4.6 million and $11.5 million, respectively, at year end.
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Management’s Discussion and Analysis
June 30, 2021
Governmental fund revenues, excluding transfers, were $64.9 million, increasing $4.0 million from the previous year. Property taxes were higher by $1.2 million due to continued strength in the real estate market as well as levies from the 2018 passage of Measure O. Intergovernmental revenues increased by $4.0 million largely due to grant reimbursements for capital projects and ARPA funds. On the other hand, other taxes such as transient occupancy tax decreased for a combined $1.5 million as a direct result of statewide and regional stay-at-home orders to contain COVID-19. Furthermore, investment income decreased by $0.8 million.
Governmental fund expenditures, excluding transfers, increased from the prior year by a net amount of $8.9 million to $71.5 million. The increase is attributable to an increase in capital project expenditures and debt service payments.
Analysis of Major Governmental Funds
General Fund
The General Fund realized a deficiency of revenues over expenditures of $1.5 million, excluding transfers.
General Fund revenues, excluding transfers, decreased $1.0 million from the previous year to $48.6 million.
Property taxes increased $0.7 million, sales tax increased $1.0 million, and other taxes decreased $1.6 million.
General Fund expenditures, excluding transfers, were $50.1 million, a decrease of $1.3 million from the previous year. The decrease was primarily due to decreased personnel costs.
The General Fund’s fund balance at fiscal year-end was $20.9 million, a decrease of $1.4 million from the previous year. Committed and Assigned fund balances at year end were $4.3 million and $3.6 million, respectively. These balances are utilized to fund operational costs such as capital projects, compensated absences, and to maintain a reserve for PERS and OPEB related costs. Unassigned fund balance of $13.0 million serves as an additional reserve for unanticipated needs that may arise including a $9.0 million reserve for economic fluctuations and $2.6 million for emergencies.
Housing Assets Special Revenue Fund
The principal assets of this fund consist of long-term housing loans receivable from various housing programs which were formerly administered by the Campbell Redevelopment Agency. Limited funds are available for new homebuyers, consisting primarily of loan repayment proceeds and interest earnings.
Other Grants Special Revenue Fund
Accounts for Federal, State and local grant funds which are provided for specific purposes.
ARPA Special Revenue Fund
Accounts for American Rescue Plan Act (ARPA) federal grant funds which are provided for specific purposes.
Capital Projects Fund
Accounts for the expenditures and financing of the City’s capital projects.
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Management’s Discussion and Analysis
June 30, 2021
Measure O Capital Projects Fund
Accounts for the expenditures and financing of the City’s capital projects related to the Measure O bond.
Other Governmental Funds
These funds are not separately presented in the basic financial statements but are individually presented as supplemental information.
Capital Assets
The City had net capital assets of $68.8 million as of June 30, 2021. The following is a summary of the City’s capital assets for the fiscal year ended June 30:
2021 2020
Land 9.1$ 9.1$
Construction in progress 8.3 4.0
Building & improvements 26.2 25.4
Machinery & equipment 13.1 12.8
Infrastructure 59.7 52.3
Less: Accumulated depreciation (47.6) (44.8) Net capital assets 68.8$ 58.8$
Capital Assets (in millions)
Total additions to capital assets were $13.0 million during the year consisting primarily of infrastructure and construction in progress, offset by an increase in accumulated depreciation. Additional detail on capital assets can be found in Note 5 of the notes to the basic financial statements.
Debt Administration
In August 2016, the City and its Successor Agency concurrently refinanced a combined four outstanding debt issues to achieve significant interest savings for the City and the Agency, given the low rate environment that existed for the past couple of years. In August 2020, the City issued $20 million of general obligation bonds to fund a police emergency operations center and a renovated library. Additional detail regarding the City’s long- term debt can be found at Note 6 in the notes to financial statements. The Successor Agency debt is reported in a Private Purpose Trust separate from the City’s financial statement reporting entity. The debt obligations appear on the Fiduciary Funds Statement of Net Position of the ACFR. Total outstanding debt of the Successor Agency for the refunding tax allocation bonds was $17.4 million at June 30, 2021.
The City had $3.6 million in outstanding certificates of participation, $5.2 million in refunding lease revenue bonds, and $18.9 million of 2018 election general obligation bonds outstanding at June 30, 2021.
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12 City of Campbell
Management’s Discussion and Analysis
June 30, 2021
Economic Outlook and Next Year’s Budget
As previously stated, the nation’s economy saw GDP growth equaling 2.1% in the third quarter of 2021; following a GDP increase equaling 6.7% in the second quarter of 2021. The increase was a result of the re- opening of most sectors in the economy, the rollout of vaccinations and improved therapeutics, federal stimulus aid, pent up demand, and significant levels of personal savings. As the U.S. economy continues to recover, the unemployment rate in Campbell is of similar trend. While the unemployment rate in Campbell has improved to
4.8% as of June 2021, it continues to hover above the preceding pre-pandemic years.
For the FY21 budget, the fiscal impacts of COVID-19 were immediate and severe and during a time when budget preparation was already well underway. Despite these immense challenges, City staff quickly adjusted its approach and started to discuss and develop meaningful solutions to address the pressing fiscal issues at hand.
For the FY22 budget, as to ensure long-term fiscal stability, address structural budget issues, and recover from the pandemic, staff developed and Council approved several strategic and operational actions that would place the City in a more stable financial position starting in FY22 and progressing into FY23 and beyond. In developing the FY22 budget, the following information was used:
• Property tax revenues are expected to grow 4.3% compared to FY21 due to continued appreciation in the property tax base. With low mortgage interest rates, growth and demand in the commercial and residential real estate markets are expected to remain strong into the next year. • Sales tax revenue is estimated to increase 9.5% when compared to FY21. This is entirely due to accelerated spending as vaccinations are made available, COVID-19 cases drop, and the economy reopens to pent up demand.
• Charges for Service is historically the City’s third largest revenue source. While it is estimated to increase by 11.9% in FY22, it will still be well below pre-recessionary levels of approximately $6.7 million in FY19.
• Transient Occupancy Tax is estimated to increase 33% in FY22 when compared to FY21. However, similar to charges for service, it will still be well below pre-recessionary levels. • Employee Services costs are expected to increase by 3.1% in FY22 when compared to FY21.
Contacting the City
This financial report is designed to provide a general overview of the City of Campbell’s finances for residents, taxpayers, investors, creditors and any other interested parties. Questions about this report may be directed to the City’s Finance Department at 70 N. First St., Campbell, CA 95008 or by e-mail at [email protected].
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
13 City of Campbell
Government Wide Financial Statements
June 30, 2021
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis of accounting. The effect of all the City’s transactions is considered, regardless of whether or when cash changes hands.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. It focuses the reader on the composition of the City’s net position, by subtracting total liabilities and total deferred inflows of resources from total assets and total deferred outflows of resources. The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities in a single column.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Debt Service and Capital Projects Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis of accounting, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands.
The format of the Statement of Activities presents the City’s expenses first, which are listed by program.
Program revenues - that is, revenues which are generated directly by these programs - are then deducted from program expenses to arrive at the net expense of each governmental program. The City’s general revenues are then listed in the Governmental Activities column, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the City of Campbell Lighting and Landscape District, which is a legally separate but blended component unit of the City because it is controlled by the City, which is financially accountable for its activities.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 14
City of Campbell
Statement of Net Position
June 30, 2021
Governmental
Activities
Assets
Cash and investments 56,720,213$
Cash held with fiscal agent 13,518
Receivables
Taxes 3,963,552
Accounts 6,566,353
Interest 53,447
Notes and loans 7,853,726
Deposits 90,000
Capital assets, not depreciated 17,355,804
Capital assets, depreciated, net 51,425,801
Total assets 144,042,414
Deferred outflows of resources
Amount related to pensions 14,849,366
Amount related to OPEB 718,463
Total deferred outflows of resources 15,567,829
Liabilities
Accounts payable 3,533,031
Accrued expenses 2,233,919
Interest payable 270,625
Deposits payable 1,982,016
Unearned revenues 2,784,217
Noncurrent liabilities
Due in less than one year
Bonds, notes, claims, compensated absences 4,817,386
Due in more than one year
Bonds, notes, claims, compensated absences 35,036,281
Net OPEB liability 3,961,740
Net pension liability 64,222,161
Total Liabilities 118,841,376
Deferred inflows of resources
Amount related to pensions 651,958
Amount related to OPEB 297,278
Total deferred inflows of resources 949,236
Net Position
Net investment in capital assets 56,200,867
Restricted for
Debt service 3,517,244
Streets and roads 4,052,154
Museum and adult center 22,755
Public safety 262,700
Low and moderate income housing 9,010,071
Community development 4,676,356
Unrestricted (37,922,516)
Total net position 39,819,631$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 15
City of Campbell
Statement of Activities
Year Ended June 30, 2021
Net (Expenses)
Revenues and
Change in Net
Position
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Governmental Activities
General government 7,740,547$ 342$ 34,370$ -$ (7,705,835)$ Recreation 4,281,719 3,225,350 107,630 - (948,739) Community development 2,938,422 2,857,170 697,815 - 616,563 Public safety 31,982,827 409,743 689,226 - (30,883,858) Public works 12,994,559 4,289,206 5,606,558 3,537,522 438,727 Interest expense and
other charges 1,056,277 - - - (1,056,277) Total governmental activities 60,994,351$ 10,781,811$ 7,135,599$ 3,537,522$ (39,539,419) General revenues
Taxes
Property 21,009,102
Sales and use 14,006,163
Transient occupancy 1,568,908
Franchise 3,458,300
Other 1,352,164
Payments in lieu of taxes 135,448
Investment income 122,547
Miscellaneous 1,343,131
Total general revenues 42,995,763
Change in net position 3,456,344
Net Position At Beginning of Year 36,363,287
Net Position At the End of Year 39,819,631$
Program Revenues
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
16 City of Campbell
Government Fund Financial Statements
June 30, 2021
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal year 2021. Individual other governmental (nonmajor) funds may be found in the Supplemental Section.
General Fund
Accounts for activities traditionally associated with governments, such as administration, recreation, community development, engineering, and public safety, which are not required to be accounted for in another fund.
Housing Assets Special Revenue Fund
Accounts for assets of the City’s Successor Housing Agency, formed to take over certain housing assets from the former Redevelopment Agency Low-Moderate Income Housing Fund upon its dissolution by the State of California.
Other Grants Special Revenue Fund
Accounts for Federal, State and local grant funds which are provided for specific purposes.
ARPA Special Revenue Fund
Accounts for American Rescue Plan Act (ARPA) federal grant funds which are provided for specific purposes.
Capital Projects Fund
Accounts for the expenditures and financing of the City’s capital projects.
Measure O Capital Projects Fund
Accounts for the expenditures and financing of the City’s capital projects related to the Measure O bond.
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Packet Pg. 145
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 17
City of Campbell
Balance Sheet – Governmental Funds
June 30, 2021
General Fund
Housing
Assets
Other
Grants
ARPA
Fund
Capital
Projects
Fund Measure O
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and Investments 16,093,295$ 1,320,984$ 804,516$ -$ 2,026,967$ 19,318,490$ 12,848,015$ 52,412,267$ Cash held with fiscal agent - - - - - - 13,518 13,518 Receivables
Accounts 611,460 - 750,960 4,998,887 8,280 - 187,215 6,556,802 Taxes 3,787,668 - - - - - 175,884 3,963,552 Interest 26,055 580 1,274 - - 18,509 7,029 53,447 Notes and loans - 7,713,726 - - - - 140,000 7,853,726 Due From other Funds 5,939,132 - - - - - - 5,939,132 Total assets 26,457,610$ 9,035,290$ 1,556,750$ 4,998,887$ 2,035,247$ 19,336,999$ 13,371,661$ 76,792,444$ Liabilities
Accounts payable 1,546,076$ 25,565$ -$ -$ 1,121,015$ 533,421$ 203,705$ 3,429,782$ Accrued payroll 2,013,068 - - - - - 166,829 2,179,897 Deposits payable 1,982,016 - - - - - - 1,982,016 Due to other funds - - 2,981,147 2,214,670 - - 198,947 5,394,764 Unearned revenue - - - 2,784,217 - - - 2,784,217 Total Liabilities 5,541,160 25,565 2,981,147 4,998,887 1,121,015 533,421 569,481 15,770,676 Fund balances (deficit)
Restricted - 9,009,725 - - - 18,803,578 12,802,180 40,615,483 Committed 4,296,174 - - - - - - 4,296,174 Assigned 3,643,857 - - - 914,232 - - 4,558,089 Unassigned 12,976,419 - (1,424,397) - - - - 11,552,022 Total fund balances (deficit) 20,916,450 9,009,725 (1,424,397) - 914,232 18,803,578 12,802,180 61,021,768 Total liabilities, deferred inflows
of resources and fund balances 26,457,610$ 9,035,290$ 1,556,750$ 4,998,887$ 2,035,247$ 19,336,999$ 13,371,661$ 76,792,444$ Capital Projects Funds Special Revenue Funds
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
See Notes to Financial Statements 18
City of Campbell
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Year Ended June 30, 2021
Fund balances - total governmental funds 61,021,768$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds balance sheet:
Capital assets 107,626,090$
Accumulated depreciation (40,333,452)
67,292,638
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term liabilities is not accrued in governmental funds, but rather is recognized as an expenditures when due. All liabilities, both current and long-term, are reported in the Statement of Net Position.
Balances at year-end are:
Bonds and certificates of participation (31,384,316)
Compensated absences (4,484,685)
Claims payable (246,103)
Accrued interest (270,625)
(36,385,729)
OPEB related liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to OPEB are only reported in the Statement of Net Position as the changes in these amounts affects only the government-wide statements for governmental activities:
Deferred outflows of resources 718,463
Deferred inflows of resources (297,278)
Net OPEB liability (3,961,740)
(3,540,555)
Pension related liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts effects only the government-wide statements for governmental activities:
Deferred outflows of resources 14,849,366
Deferred inflows of resources (651,958)
Net pension liability (64,222,161)
(50,024,753)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, information technology, and workers' compensation self-insurance, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position.
1,456,262
Net Position of Govenmental Activities 39,819,631$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 19
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended June 30, 2021
Other Total
General Housing Other ARPA Capital Projects Governmental Governmental Fund Assets Grants Fund Fund Measure O Funds Funds
Revenues
Property taxes 17,950,698$ -$ -$ -$ -$ -$ 3,058,404$ 21,009,102$ Sales and use taxes 14,478,163 - - - - - - 14,478,163 Other Taxes 6,375,526 104,432 - - - - - 6,479,958 Special assessments - - - - - - 1,398,933 1,398,933 Licenses and permits 4,493,838 - - - - - - 4,493,838 Fines and forfeitures 547,469 - - - - - - 547,469 Investment income (8,137) 23,637 (5,219) - - 139,827 (12,027) 138,081 Rents and leases 1,927,211 - - - - - - 1,927,211 Intergovernmental 914,806 - 4,566,230 2,214,670 - - 2,744,955 10,440,661 Charges for services 1,762,593 - - - - - 804,350 2,566,943 Project revenues - - - - 270,309 - - 270,309 Parkland dedication fees - - - - - - 400,116 400,116 Miscellaneous revenues 162,023 - - - - 510,000 30,983 703,006 Total revenues 48,604,190 128,069 4,561,011 2,214,670 270,309 649,827 8,425,714 64,853,790 Capital
Projects Fund
Special
Revenue Funds
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
See Notes to Financial Statements 20
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds, Continued Year Ended June 30, 2021
Other Total
General Housing Other ARPA Capital Projects Governmental Governmental Fund Assets Grants Fund Fund Measure O Fu nds Funds
Expenditures
Current
General government 7,262,628 - - - - - 3,538 7,266,166 Recreation 4,018,010 - - - - - - 4,018,010 Community development 2,689,081 179,881 - - - 69,068 - 2,938,030 Public safety 31,052,874 - - - - - 366,367 31,419,241 Public works 5,044,678 - - - - - 5,703,796 10,748,474 Capital outlay - - - - 11,046,339 1,504,384 - 12,550,723 Debt service
Principal - - - - - - 1,690,000 1,690,000 Interest and fiscal charges - - - - - - 833,397 833,397 Total expenditures 50,067,271 179,881 - - 11,046,339 1,573,452 8,597,098 71,464,041 Excess (deficiency) of revenues
over (under) expenditures (1,463,081) (51,812) 4,561, 011 2,214,670 (10,776,030) (923,625) (171,384) (6,610,251) Other financing sources (uses)
Proceeds from the sale of bonds - - - - - - 23,171,626 23,171,626 Transfers in 5,364,551 - - - 10,773,712 20,000,000 4,646,837 40,785,100 Transfers out (5,257,528) - (7, 184,451) (2,214,670) (787,083) - (24,796,064) (40,239,796) Total other financing
sources (uses) 107,023 - (7, 184,451) (2,214,670) 9,986,629 20,000,000 3,022,399 23,716,930 Net change In fund balances (1,356,058) (51,812) (2, 623,440) - (789,401) 19,076,375 2,851,015 17,106,679 Fund balances at beginning of year 22,272,508 9,061,537 1,199, 043 - 1,703,633 (272,797) 9,951,165 43,915,089 Fund balances at end of year 20,916,450$ 9,009,725$ (1, 424,397)$ -$ 914,232$ 18,803,578$ 12,802,180$ 61,021,768$ Revenue Funds Projects Fund
Special Capital
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
See Notes to Financial Statements 21
City of Campbell
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2021
Net change in fund balances - total governmental funds 17,106,679$ Amounts reported for governmental activities in the Statement of Activities are different because:
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives and reported as depreciation expense. As a result, fund balance decreases by the amount of financial resources expensed, whereas net position decreases by the amount of depreciation expense charged for the year.
Capital outlay 12,550,723
Depreciation expense (2,606,800)
9,943,923
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Principal payment on lease revenue bond 1,690,000
Accrued interest expense related to the long-term liabilities. This amount is the difference between the amount of interest paid and the amount of interest incurred on long-term liabilities.
(222,880)
Bond proceeds provide current financial sources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amoutns are deferred and amortized in the statement of activities.
(23,171,626)
Some expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in the governmental funds.
Net change in compensated absences (440,271)
Net change in claims payable (37,263)
(477,534)
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 22
City of Campbell
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2021
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. (279,517) Pension expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (235,492)
OPEB expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, OPEB expense includes the change in the net OPEB liability, and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources. 59,015
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, information technology, and workers' compensation self-insurance, to individual funds. The net revenue (expense) of these internal service funds are included in the governmental ac
tivities in the Statement of Net Position. (956,224) Change in net position of governmental activities 3,456,344$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
23 City of Campbell
Proprietary Fund Financial Statements
June 30, 2021
Internal Service Funds
Account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services to other City funds be financed through user charges to those funds.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 24
City of Campbell
Statement of Net Position – Proprietary Funds
June 30, 2021
Governmental
Activities
Internal
Service Funds
Assets
Current assets
Cash and investments $ 4,307,946
Accounts receivable 9,551
Deposits 90,000
Total current assets 4,407,497
Noncurrent assets
Capital assets, net of accumulated depreciation 1,488,967 Total assets 5,896,464
Liabilities
Current liabilities
Accounts payable 103,249
Accrued payroll 54,022
Due to other funds 544,368
Compensated absences, current portion 68,219 Claims and judgments payable, current portion 476,174 Total current liabilities 1,246,032
Noncurrent liabilities
Compensated absences 83,627
Claims payable and judgments 3,110,543
Total noncurrent liabilities 3,194,170
Total liabilities 4,440,202
Net position
Investment in capital assets 1,488,967
Unrestricted (32,705)
Total net position 1,456,262$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 25
City of Campbell
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds Year Ended June 30, 2021
Governmental
Activities
Internal
Service Funds
Operating revenues
Investment income (15,534)$
Charges for services 2,901,934
Other 84,439
Total operating revenues 2,970,839
Operating expenses
Personnel services 1,162,851
Services and supplies 1,929,000
Depreciation 289,908
Total operating expenses 3,381,759
Operating loss (410,920)
Transfers
Transfers in 301,000
Transfers out (846,304)
Total transfers (545,304)
Change In net position (956,224)
Net position at beginning of year 2,412,486
Net position at end of year 1,456,262$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 26
City of Campbell
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2021
Governmental
Activities
Internal
Service Funds
Cash flows from operating activities
Cash received from department users 2,981,382$
Cash payments to suppliers of goods and services (1,655,367) Cash payments to employees for services (1,115,638)
Net cash provided by operating activities 210,377
Cash flows from noncapital financing activities:
Cash received from other funds 301,000
Cash paid to other funds (811,446)
Net cash provided by noncapital financing activities (510,446) Cash flows from capital and related financing activities Acquisition of capital assets (240,602)
Net cash used by capital and related financing activities (240,602) Net decrease in cash and cash equivalents (540,671)
Cash and cash equivalents at beginning of year 4,848,617 Cash and cash equivalents at end of year 4,307,946$
Reconciliation of operating loss to
Net cash provided by operating activities
Operating loss (410,920)$
Adjustments to reconcile operating loss to net
cash provided by operating activities
Depreciation 289,908
Changes in operating assets and liabilities
(Increase) decrease in accounts receivable 10,543
Increase (decrease) in accounts payable 29,704
Increase (decrease) in accrued payroll 10,542
Increase (decrease) in compensated absences 36,671
Increase (decrease) in claims and judgments payable 243,929 Net cash provided by operating activities 210,377$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
27 City of Campbell
Fiduciary Fund Financial Statements
June 30, 2021
Private-Purpose Trust Fund
The private-purpose trust fund was created to account for the assets and liabilities of the Campbell Successor Agency, effective February 1, 2012. These amounts represent the assets and liabilities of the former Campbell Redevelopment Agency.
Custodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the government-wide financial statements but are presented in separate Fiduciary Fund financial statements.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 28
City of Campbell
Statement of Fiduciary Net Position – Fiduciary Funds
June 30, 2021
Private-
Purpose Custodial
Trust Fund Funds
Assets
Cash and investments 811,724$ 2,104,992$
Accounts receivable 29 154
Capital assets, not being depreciated 7,123,531 -
Capital assets, net of accumulated depreciation 9,032,530 - Total assets 16,967,814 2,105,146
Liabilities
Accounts payable - 15,186
Accrued interest payable 91,631 -
Long-term liabilities
Due within one year 1,375,000 -
Due in more than one year 16,050,000 -
Total liabilities 17,516,631 15,186
Net Position
Restricted for individuals and organizations (548,817)$ 2,089,960$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Financial Statements 29
City of Campbell
Statement of Changes in Net Position – Fiduciary Funds
Year Ended June 30, 2021
Private-
Purpose Custodial
Trust Fund Funds
Additions
Local government-administered contributions 1,596,378$ 747,268$ Other income - 695,243
Investment income (5,047) (930)
Total additions 1,591,331 1,441,581
Deductions
Professional and special services 3,000 317,731 Administrative - 988,469
Depreciation 697,519 -
Interest and fiscal agent costs 400,308 -
Total deductions 1,100,827 1,306,200
Change in net position 490,504 135,381
Net position at beginning of year, restated (1,039,321) 1,954,579 Net position at end of year (548,817)$ 2,089,960$
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
30 City of Campbell
Notes to Financial Statements
June 30, 2021
Note 1 - Summary of Significant Accounting Policies
The financial statements of the City of Campbell, California (the City), have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the government’s accounting policies are described below.
Reporting Entity
The City of Campbell was incorporated March 28, 1952, under the general laws of the State of California. The City operates under a Council Manager form of government providing such services as public safety (police, contracted fire services, and building inspection), street and sidewalk maintenance, recreation, planning and zoning, and general administrative services. The accompanying financial statements present the activities of the City of Campbell (the primary government) and its blended component units, entities for which the City is financially accountable.
City of Campbell Lighting and Landscape District (the District) is a City-wide assessment District established in 1980 to provide lighting and landscape services and a funding source for these services. The District is governed by a Board composed of City Council members and lighting services are provided by City employees.
Although legally separate, this District is so intertwined with the City that it is, in substance, one and the same.
Accordingly, it is blended with the City in these financial statements. No separate financial statements are prepared for the District.
Measurement Focus and Basis of Accounting
The basic financial statements of the City are composed of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government-Wide Financial Statements:
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include a column for the governmental activities of the primary government (including its blended component units). Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, interfund services provided and used are not eliminated in the process of consolidation.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
31 City of Campbell
Notes to Financial Statements
June 30, 2021
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Government-wide financial statements are presented using the economic resources measurement focus and accrual basis of accounting, as are the proprietary fund financial statements and the fiduciary private-purpose trust fund financial statements. Under the economic resources’ measurement focus, all (both current and long- term) economic resources and obligations are reported. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of resources, resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government- wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate.
Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and proprietary funds. Fiduciary statements include financial information for the private-purpose trust fund, and agency funds. Custodial funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
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Notes to Financial Statements
June 30, 2021
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets.
Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days.
Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so they have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.
Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first.
Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Due to the nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
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Notes to Financial Statements
June 30, 2021
Proprietary and Fiduciary Funds
The City’s internal service funds are proprietary funds. In the fund financial statements, proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds and the fiduciary funds, are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their statements of net position. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary funds operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. In addition, Proprietary funds defines investment earnings as operating income.
Nonoperating revenues, such as subsidies, and taxes result from nonexchange transactions or ancillary activities.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements. Amounts paid to reduce long- term indebtedness of the proprietary funds are reported as a reduction of the related liability.
Fund Classifications
The City reports the following major governmental funds:
The General Fund is used to account for resources traditionally associated with governments, such as administration, engineering and public safety, which are not required to be accounted for in another fund.
The Housing Assets Special Revenue Fund is used to account for resources received from the dissolution of the former Campbell Redevelopment Agency dedicated to low- and moderate-income housing activities pursuant to the California Health and Safety Code.
The Other Grants Special Revenue Fund is used to account for Federal, State and local grant funds which are provided for specific purposes.
The ARPA Special Revenue Fund is used to account for American Rescue Plan Act (ARPA) federal grant funds which are provided for specific purposes.
The Capital Projects Fund is used to account for the expenditures and financing of the City’s capital projects.
The Measure O Capital Projects Fund is used to accounts for the expenditures and financing of the City’s capital projects related to the Measure O bond.
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Additionally, the City reports the following fund types:
Special Revenue Funds - These funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose.
Debt Service Fund - These funds are used to account for the activity related to the City’s share of proceeds from the 2016 Refunding Lease Revenue Bonds and 2018 election General Obligation Bonds, which were utilized chiefly to fund capital projects and refund debt related to the Police Station, City’s Community Center and deferred street maintenance projects.
Internal Service Funds - These funds are used to account for the City’s motor vehicle pool, workers’ compensation self-funded insurance program and information technology services. Departments of the City are charged for the services provided or benefits received from these funds.
Fiduciary Funds - The City maintains two types of Fiduciary Funds - a Private-Purpose Trust Fund and Custodial Funds. The Private-Purpose Trust Fund accounts for activities of the Successor Agency to the Campbell Redevelopment Agency. Custodial Funds are used to account for monies held for the West Valley Solid Waste Management Authority, 1915 Act Bonds, and the Santa Clara County Specialized Enforcement Task Fund (SCCET).
Change in Accounting Principles
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance related to fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The provisions of this statement have been implemented as of July 1, 2020.
GASB Statement No. 97 – In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. The primary objectives of this statement are to increase consistency and comparability related to the reporting of fiduciary component units; mitigate costs associated with the reporting; and enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.
The requirements of this statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021. For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this statement that provide that the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021. This Statement did not have an impact on the financial statements.
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Notes to Financial Statements
June 30, 2021
New Accounting Pronouncements
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The Statement is effective for the reporting periods beginning after December 15, 2020, or fiscal year 2021-22. The City is evaluating the impact of this Statement on the financial statements.
GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. GASB Statement No. 89 requires that interest costs incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred and no longer included in the historical cost of capital assets. The new standard is effective for periods beginning after December 15, 2020. Application of this statement is effective for the City’s year ending June 30, 2022.
GASB Statement No. 91 – In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. GASB Statement No. 91 clarifies the definition of conduit debt and establishes new recognition, measurement, and disclosure requirements. The new standard is effective for periods beginning after December 15, 2021.
Application of this statement is effective for the City’s year ending June 30, 2023.
GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020. The objectives of this Statement are to establish accounting and financial reporting requirements for specific issues related to leases, intra-entity transfers of assets, postemployment benefits, government acquisitions, risk financing and insurance- related activities of public entity risk pools, fair value measurements, and derivative instruments. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 or fiscal year 2021-22, except for Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. The City is evaluating the impact of this Statement on the financial statements.
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Notes to Financial Statements
June 30, 2021
GASB Statement No. 93 – In May 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates.
The objectives of this Statement is to address those and other accounting and reporting implications resulting from the replacement of an IBOR by providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced and providing clarification to the hedge accounting termination provisions, removing LIBOR as a benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap, identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap and providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 or FY 2021/2022, except the removal of LIBOR as a benchmark interest rate which is effective for periods beginning after December 31, 2022 or fiscal year 2022-23. The City is evaluating the impact of this Statement on the financial statements.
GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objectives of this Statement improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The requirements of this Statement are effective for reporting periods beginning after June 15, 2022 or fiscal year 2022-23. The City is evaluating the impact of this Statement on the financial statements.
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objectives of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022 or fiscal year 2022-23. The City is evaluating the impact of this Statement on the financial statements.
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Notes to Financial Statements
June 30, 2021
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
• Deferred outflows related to OPEB and pension plans equal to employer contributions made after the measurement date of the net OPEB liability and the net pension liability.
• Deferred outflows related to OPEB and pensions for differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred outflows related to OPEB and pensions resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred outflows related to pension plans for the changes in the employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred outflows related to OPEB and pensions resulting from the net differences between projected and actual earnings on plan investments of the pension plans fiduciary net position. These amounts are amortized over five years.
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Notes to Financial Statements
June 30, 2021
In addition to liabilities, the statement of net position and governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
• Deferred inflows related to OPEB and pensions for differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred inflows related to OPEB and pensions resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred inflows related to pensions for the changes in employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions.
These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred inflows related to OPEB and pension plans resulting from the net differences between projected and actual earnings on plan investments of the plan’s fiduciary net position. These amounts are amortized over five years.
• Deferred inflows related to unavailable revenues. These amounts will be recognized once cash is received in a fiscal year or with the availability period.
Net Position and Fund Balance Flow Assumptions
In the government-wide financial statements, when expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.
In the governmental fund financial statements, when expenditures are incurred for purposes for which all categories of fund balances are available, the City’s general policy is to apply the expenditures against fund balance in the following order: restricted, committed, assigned, and unassigned.
Property Taxes
All property taxes and special assessments are levied and collected by the County of Santa Clara (the County) and paid upon collection to the various taxing entities including the City, Successor Agency of the former Redevelopment Agency, and Lighting and Landscape District. Secured taxes are levied on July 1 and are due in two installments on November 1 and February 1 and become delinquent on December 10 and April 10, respectively. Unsecured taxes are due on July 1 and become delinquent on August 31. The lien date for secured and unsecured property taxes is January 1 of the preceding fiscal year.
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Notes to Financial Statements
June 30, 2021
The County is permitted by State law to levy taxes at 1% of full market value at time of purchase plus other increases approved by the voters and can increase the assessed value no more than 2% per year. The City receives its proportionate share of this levy.
The City has adopted an alternative method of property tax distribution called the Teeter Plan. Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County throughout the year. Secured property tax levy is recognized as revenue upon receipt, including the final payment, which generally is received within 60 days after the fiscal year end.
The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. Property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above.
Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments in external investment pools are valued based on the stated fair value represented by the external investment pool.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s quarterly average cash and investment balance.
For purposes of the Statement of Cash Flows, cash equivalents are defined as short-term, highly liquid investments with maturities of three months or less at the time of purchase that they present insignificant risk of changes in value because of limited interest rate risk. Cash equivalents also represent the proprietary fund’s share in the cash and investment pool of the City.
Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their acquisition value at the date of the contribution. Generally, the City capitalizes all infrastructures with a value greater than $25,000. All other capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of more than one year. Capital assets include all public domain (infrastructure) assets consisting of certain improvements, including roads, streets, sidewalks, medians, and storm drains.
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Notes to Financial Statements
June 30, 2021
The following schedule summarizes capital asset useful lives:
Buildings and improvements 40 years
Other improvements 20 years
Machinery and equipment 3 to 20 years
Infrastructure 15 to 40 years
Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds.
Compensated Absences
Accrued vacation and sick leave are accrued as earned by employees. City employees may accrue vacation up to certain maximums as of December 31 of each calendar year, which vary depending on classification and years of service. Upon termination, they may be compensated for their vacation balance at current hourly rates.
Similarly, sick leave may be accumulated without limit and employees may be compensated upon termination based on a vesting schedule determined by years of service, compensated at current hourly rates.
For all governmental funds, a liability of these amounts is reported only if they have matured, for example, as a result of employee resignations and retirements. The remaining portion is recorded as a liability in the Statement of Net Position. For Internal Service Funds, liabilities of these amounts are recorded liabilities of those funds.
Compensated absences are typically liquidated in the General Fund.
Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the City’s OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.
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Notes to Financial Statements
June 30, 2021
Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources, at the date of the financial statements, as well as the reported amounts of revenue and expenses/expenditures during the reporting period. Actual results could differ from those estimates.
Note 2 - Cash and Investments
Cash and Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments 56,720,213$
Cash held with fiscal agent 13,518
Statement of Fiduciary Net Position
Cash and investments 2,916,716
Total Cash and Investments 59,650,447$
Cash and investments as of June 30, 2021 consisted of the following:
Cash on Hand 7,490$
Deposits with Financial Institutions 2,675,074
Investments 56,967,883
Total Cash and Investments 59,650,447$
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Notes to Financial Statements
June 30, 2021
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Maximum Maximum
Maximum Minimum Percentage Investment in
Authorized Investment Types Maturity Credit Q uality Allowed One I ssuer U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years None 75% None
Federal Instrumentality
(government sponsored enterprise) 5 years None 75% None Repurchase Agreements 1 year A/A-1 10% None
Commercial Paper 270 days * 25% 10%
A-1 or P-1 or
Banker’s Acceptance 180 days F-1 30% 10%
Medium-Term Notes 5 years AA or Aa2 30% None
Non-negotiable Time
Certificates of Deposit 5 years None 25% $1 million
Negotiable Certificates
of Deposit 5 years None 30% None
California Local Agency $75 million
Investment Fund (LAIF) N/A None None per account
AAAm or Aaa
Mutual Funds N/A or AAA/V1+ 15% 10%
AAAm or Aaa
Money Market Mutual Funds N/A or AAA/V1+ 15% 10%
Municipal and State Obligations 5 years A-A-1 10% None
* Issuer must be U.S. general corporation having assets in excess of $500,000,000 with debt other than commercial paper rated A or higher or U.S. special purpose corporation, trust or limited liability company having program-wide credit enhancements and commercial paper rated A-1 or higher.
N/A - Not Applicable
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Notes to Financial Statements
June 30, 2021
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Maximum Minimum Percentage Investment in
Authorized Investment Types Maturity Credit Quality Allowed One Issuer U.S. Treasury Bonds, Notes and Bills 5-7 years None No Limit No Limit U.S. Government Sponsored Entities 5-7 years AAA No Limit No Limit Time Certificates of Deposit -
Banks or Savings and Loans 1 year None No Limit No Limit Banker’s Acceptance 360 days A-1/P-1 No Limit No Limit
Commercial Paper 270 days A No Limit No Limit
Repurchase Agreements 30 days - 7 Years A No Limit No Limit California Local Agency $75 million
Investment Fund (LAIF) N/A None No Limit per account
Money Market Funds N/A A No Limit 10%
Investment Agreements 5-7 years A No Limit No Limit
Other Tax Exempt Organizations 7 years A No Limit No Limit California Asset Management
Program (CAMP) N/A None No Limit No Limit
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
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Notes to Financial Statements
June 30, 2021
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity. For purposes of the schedule shown below, any callable securities are assumed to be held to maturity.
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Total
U.S. Government Sponsored Entities -$ -$ 1,993,910$ 1,993,910$ California Local Agency Investment Fund 52,927,814 - - 52,927,814 Negotiable Certificates of Deposits - 2,046,159 - 2,046,159 Total Investments 52,927,814$ 2,046,159$ 1,993,910$ 56,967,883$ Remaining Maturity (in Months)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year-end for each investment type.
Minimum
Legal Total as of Not
Investment Type Rating June 30, 2021 AA+ Rated
U.S. Government Sponsored Entities None 1,993,910$ 1,993,910$ -$ California Local Agency Investment Fund None 52,927,814 - 52,927,814 Negotiable Certificates of Deposits None 2,046,159 - 2,046,159 Total Investments 56,967,883$ 1,993,910$ 54,973,973$
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. At June 30, 2021, the City’s investments included no issuers represented more than 5% of total City investments.
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Notes to Financial Statements
June 30, 2021
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:
the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2021, the City’s deposits were either federally insured or collateralized.
For investments identified herein as held with fiscal agent, the trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
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Notes to Financial Statements
June 30, 2021
Fair Value Measurements
The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy. Level 1 inputs are quoted prices in active markets for identical investments, Level 2 inputs are observable inputs other than those in Level 1; and Level 3 inputs are unobservable inputs.
Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund.
Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs.
Uncategorized - Investments in the California Investment Pool are not measured using the input levels above because the City’s transactions are based on a stable net asset value per share. All contributions and redemptions are transacted at $1.00 net asset value per share.
The City has the following recurring fair value measurements as of June 30, 2021:
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
U.S. Government Sponsored Entities -$ 1,993,910$ -$ 1,993,910$ Negotiable Certificates of Deposits - 2,046,159 - 2,046,159 Total investments -$ 4,040,069$ -$ 4,040,069 Uncategorized
California local agency investment fund* 52,927,814
Total investment portfolio 56,967,883$
* uncategorized; not subject to fair value measurement tiers.
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Notes to Financial Statements
June 30, 2021
Note 3 - Interfund Transactions
Due To/From Other Funds
The current interfund outstanding balances result mainly from the time lag between the dates, that (1) interfund goods and services are provided (2) transactions are recorded in the accounting system, (3) payments between funds are made. These balances are normally repaid as they arise.
Current interfund balances are as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Other Governmental Funds 198,947$
Other Grants Fund 2,981,147
ARPA Fund 2,214,670
Internal Service Funds 544,368
5,939,132$
Transfers In/Out
Transfers between funds during the fiscal year ended June 30, 2021 were as follows:
Transfers Out Transfers In Amount
General Fund Other Governmental Funds (a) (b) (c) (d) (e) 3,950,537$ Capital Projects Fund (e) 1,005,991
Internal Service Funds (b) 301,000
Other Grants General Fund (d) 12,064
Capital Projects Fund (e) 7,172,387
ARPA Fund General Fund (d) 2,214,670
Capital Projects Fund General Fund (a) 787,083
Other Governmental Funds General Fund (a) (b) (d) 1,504,430 Capital Projects Fund (e) 2,595,334
Measure O (e) 20,000,000
Other Governmental Funds (a) (e) 696,300
Internal Service Funds General Fund (a) 846,304
41,086,100$
Interfund transfers were principally used for the following purposes:
(a) To fund specific program expenditures
(b) To fund equipment and vehicle replacements
(c) To fund a portion of debt service payments
(d) Grant funded program expenditures
(e) Capital project expenditures
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
48 City of Campbell
Notes to Financial Statements
June 30, 2021
Note 4 - Notes and Loans Receivables
First-Time Homebuyer Loan Program
The City’s Housing Assets Special Revenue Fund engages in a first-time homebuyer down payment assistance program designed to encourage home ownership among low- and moderate-income households. Under this program, a loan up to $50,000 is provided to eligible households to be used as part of the down payment for the purchase of a home in the City of Campbell. These promissory notes are secured by second deeds of trust and are due thirty years from the date the property was purchased. The notes require a payback of principal plus an 8% fee or an equity share payment, whichever is lower. The balance of the notes’ receivable arising from this program at June 30, 2021 was $532,000.
Housing Rehabilitation and Affordable Housing Loans:
The City’s Housing Assets Special Revenue Fund engages in programs designed to encourage construction or improvement in low to moderate income housing or other projects. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. The balance of the loan receivable arising from these programs at June 30, 2021 was $1,410,468.
Maravilla Loans
The City’s Housing Assets Special Revenue Fund engages in programs designed to encourage home ownership among low- and moderate-income households in the Maravilla Community in the City of Campbell. Under this program, an interest free loan up to $200,274 is provided to eligible households to be used as part of the down payment for the purchase of a home in the Maravilla Community in the City of Campbell. These promissory notes are secured by second deeds of trust and are due forty-five years from the date the property was purchased. The balance of the note receivable arising from this program at June 30, 2021 was $3,515,258.
Additionally, under this program, a loan of $94,000 is provided to eligible households to be used as part of the down payment for the purchase of a home in the Maravilla Community in the City of Campbell. These promissory notes are secured by second deeds of trust, earn interest at a rate of 1% per annum, and are due thirty years from the date the property was purchased. The balance of the note receivable arising from this program at June 30, 2021 was $2,256,000.
Rehabilitation Loans
The City administers a housing rehabilitation program using Housing and Community Development Act funds.
Under the Program, individuals with incomes below a certain level are eligible to receive low or no interest loans, secured by deeds of trust, for construction work on their homes. Federal funds received by the City are deposited with a commercial bank. Upon approval of loans, the bank disburses the funds and arranges for and collects repayments.
At June 30, 2021, the City had outstanding rehabilitation loans of $140,000 in its Community Development Block Grant Special Revenue Fund.
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49 City of Campbell
Notes to Financial Statements
June 30, 2021
Note 5 - Capital Assets
Capital assets activity for the year ended June 30, 2021 is as follows:
Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital Assets, not Being Depreciated
Land 9,105,635$ -$ -$ -$ 9,105,635$ Construction in progress 3,956,653 12,550,723 - (8,257,207) 8,250,169 Total capital assets, not
being depreciated 13,062,288 12,550,723 - (8,257,207) 17,355,804 Capital Assets, Being Depreciated
Buildings and improvements 25,352,837 - - 862,779 26,215,616 Machinery and equipment 12,782,135 443,409 (164,477) - 13,061,067 Infrastructure 52,323,091 - - 7,394,428 59,717,519 Total capital assets,
being depreciated 90,458,063 443,409 (164,477) 8,257,207 98,994,202 Less Accumulated Depreciation for
Buildings and improvements (16,295,567) (544,749) - - (16,840,316) Machinery and equipment (9,160,580) (601,590) 154,153 - (9,608,017) Infrastructure (19,369,699) (1,750,369) - - (21,120,068) Total accumulated depreciation (44,825,846) (2,896,708) 154,153 - (47,568,401) Total capital assets,
being depreciated, net 45,632,217 (2,453,299) (10,324) 8,257,207 51,425,801 Governmental Activities
capital assets, net 58,694,505$ 10,097,424$ (10,324)$ -$ 68,781,605$
Depreciation expense, including $277,929 relating to the internal service funds, was charged in the following functions in the Statement of Activities:
General government 233,065$
Recreation 247,150
Public safety 309,658
Public works 2,106,835
Total depreciation expense - governmental activities 2,896,708$
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Notes to Financial Statements
June 30, 2021
Note 6 - Long-Term Liabilities
The following is a summary of changes in the City’s long-term liabilities for the year ended June 30, 2021:
Balance Balance Due within
July 1, 2020 Additions Reductions June 30, 2021 One Year Other Debt
2002 refunding certificates of
participation - civic center project 3,443,762$ 203,329$ -$ 3,647,091$ -$ 2016 refunding lease revenue bonds 5,725,000 - (550,000) 5,175,000 570,000 Bond premium 727,223 - (90,903) 636,320 90,903 2018 general obligation bond,
series 2020 - 20,000,000 (1,140,000) 18,860,000 1,660,000 2018 GOB, series 2020 premium - 3,171,626 (105,721) 3,065,905 105,721 Other Noncurrent Liabilities
Compensated absences 4,159,589 552,913 (75,971) 4,636,531 1,914,588 Claims payable (Note 12) 3,551,628 879,888 (598,696) 3,832,820 476,174 17,607,202$ 24,807,756$ (2,561,291)$ 39,853,667$ 4,817,386 $
2002 Refunding Certificates of Participation - Civic Center Project
Net proceeds of $9,678,751 from the City’s 2002 Refunding Certificates of Participation were used to prepay and refund the City’s 1993 Certificates of Participation. An additional $1,830,975 of proceeds was used to provide partial funding or renovation and expansion of the City’s Police Department and construction of an animal shelter. As of June 30, 2021, the defeased 1993 Certificates had been retired.
Capital Appreciation Certificates in the amount of $1,245,844 bear interest at rates ranging from 5.80% to
5.83%. Capital Appreciation Certificate maturities begin October 1, 2029 and continue annually through 2032.
The Capital Appreciation Certificates are subject to optional redemption in whole or in part any time after October 1, 2022. Each year the outstanding principal balance is increased for the accretion of interest associated with the Capital Appreciation Certificates. The accumulated accreted interest at June 30, 2021 is $2,401,247.
Principal and interest payments are guaranteed under an insurance policy issued by Ambac Assurance Corporation.
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51 City of Campbell
Notes to Financial Statements
June 30, 2021
The amount shown in the schedule of changes include the accreted value to date. The future debt service requirements on the 2002 Refunding Certificates of Participation outstanding at June 30, 2021 are as follows:
Fiscal
Year Ending Principal Interest Total
2022 -$ -$ -$ 2023 - - - 2024 - - - 2025 - - - 2026 - - - 2027-2031 660,357 2,569,643 3,230,000 2032-2033 585,487 2,644,513 3,230,000 1,245,844 5,214,156 6,460,000
Accumulated Accreted
Interest 2,401,247 (2,401,247) -
3,647,091$ 2,812,909$ 6,460,000$
2002 Refunding COP
2016 Refunding Lease Revenue Bonds
In August of 2016, the Campbell Joint Public Finance Authority issued 2016 Refunding Lease Revenue Bonds (the 2016 PFA Bonds), in the aggregate principal amount of $8,085,000. The bonds pay interest at a rate from 2.0% to 4.0% payable semiannually on April 1 and October 1, commencing on April 1, 2016. The bonds were issued to prepay a portion of the 1997 Refunding Certificates of Participation (Civic Center Project) (the 1997 Certificates) of the City of Campbell (the City), prepay a portion of the 2002 Refunding Certificates of Participation (Civic Center Project) (the 2002 Certificates) of the City, and pay the costs of bond issuance. There is no reserve requirement on bonds.
Fiscal
Year Ending Principal Interest Total
2022 570,000$ 192,750$ 762,750$ 2023 585,000 172,500 757,500 2024 605,000 148,700 753,700 2025 630,000 124,000 754,000 2026 655,000 98,300 753,300 2027-2031 2,130,000 130,200 2,260,200 Total 5,175,000$ 866,450$ 6,041,450$ 2016 Lease Revenue Bonds
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
52 City of Campbell
Notes to Financial Statements
June 30, 2021
2018 Measure O General Obligation Bond
On August 18, 2020, the City issued $20,000,000 of general obligation bonds to fund a police emergency operations center and innovative library. The interest rate on the bonds is 0.20% to 4% and the maturity date is September 1, 2038. Payments are made semiannually on April 1 and October 1, commencing on April 1, 2021.
There is no reserve requirement on bonds.
Fiscal
Year Ending Principal Interest Total
2022 1,660,000$ 636,000$ 2,296,000$ 2023 1,000,000 596,100 1,596,100 2024 780,000 565,500 1,345,500 2025 345,000 543,000 888,000 2026 360,000 528,900 888,900 2027-2031 2,025,000 2,412,000 4,437,000 2032-2036 2,460,000 1,964,900 4,424,900 2037-2041 2,930,000 1,508,550 4,438,550 2042-2046 3,315,000 1,111,000 4,426,000 2047-2051 3,985,000 411,100 4,396,100 Total 18,860,000$ 10,277,050$ 29,137,050$
2018 Measure O General Obligation Bond
Note 7 - Construction and other Significant Commitments
In the regular course of business, the City enters into contracts for various services and construction projects. At June 30, 2021, the City had the following construction commitments:
Remaining
Project Commitment
Campbell Park Improvement - Design 32,674$
JDM Improvements - Budd 1,023,535
Measure O Civic Center 1,312,122
Energy Efficiency Project. (ESCO) 1,100,363
All other capital projects commitments 2,769,997
6,238,691$
At June 30, 2021, the City had the following other significant commitments under various contracts:
Fund Amount
General Fund 496,602$
Capital Projects Fund 6,238,691
Other Governmental Funds 17,254
Internal Service Funds 80,144
Total commitments 6,832,691$
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Notes to Financial Statements
June 30, 2021
Note 8 - Net Position and Fund Balances
Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.
Net Investment in Capital Assets groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.
Restricted Net Position reflects net position that is subject to constraints either (l) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (2) imposed by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. A legally enforceable enabling legislation restriction is one that a party external to a government - such as citizens, public interest groups, or the judiciary - can compel a government to honor.
Unrestricted Net Position represents net position of the City that is not restricted for any project or purpose.
Fund Balances
Governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for government funds are classified as follows:
Nonspendable Fund Balance - includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories and prepaid amounts.
Restricted Fund Balance - includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.
Committed Fund Balance - includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by a City Council resolution taking the same formal action that imposed the constraint originally. The decision-making authority is defined as City Council resolutions.
Assigned Fund Balance - includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as committed. City Council has by resolution authorized the City Manager to assign fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily.
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54 City of Campbell
Notes to Financial Statements
June 30, 2021
Unassigned Fund Balance - is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. In the event that funds other than the General Fund are included in the unassigned fund balance it would be a deficit.
Within this classification of fund balance, the City has established by City Council resolution, an Economic Fluctuations Reserve that is maintained at $9,028,076 to provide budget stabilization during economic downturn that could otherwise result in significant reductions in service levels and/or organizational staffing. The reserve shall not be less than $2,000,000. However, if the reserve balance falls below $4 million, or the City’s five-year financial projections indicate the reserve will fall below this minimum requirement at any time during this period, City staff shall present to Council, by the following year’s budget adoption, a plan to return to the target amount within five years. Further, within this classification of fund balance, the City has established by City Council resolution, a General Fund Emergency Reserve that shall be maintained at a level of 10% of General Fund revenues. To be used as determined by the City Council upon declaration of a physical or financial emergency.
Fund balances for all the major and other governmental funds as of June 30, 2021, were classified as follows:
Other Total
General Housing and Other Capital Projects Measure O Governmental Governmental Fund Assets Grants Fund Fund Funds Funds
Restricted
Debt service -$ -$ -$ -$ -$ 3,787,869$ 3,787,869$ Streets and roads - - - - - 4,052,154 4,052,154 Museum and adult center - - - - - 22,755 22,755 Public Safety - - - - - 262,700 262,700 Community development - - - - 18,803,578 4,676,356 23,479,934 Housing - 9,009,725 - - - 346 9,010,071 Total restricted - 9,009,725 - - 18,803,578 12,802,180 40,615,483 Committed
General plan update 250,460 - - - - - 250,460 Compensated absences 1,202,662 - - - - - 1,202,662 Liability insurance 173,311 - - - - - 173,311 Capital improvements
reserve 1,609,113 - - - - - 1,609,113 Capital projects 771,825 - - - - - 771,825 Workers' compensation - - - - - - - Community Center 33,498 - - - - - 33,498 Heritage Theater 255,305 - - - - - 255,305 Total committed 4,296,174 - - - - - 4,296,174 Assigned
Capital projects 532,255 - - 914,232 - - 1,446,487 Unemployment insurance 90,000 - - - - - 90,000 PERS 2,252,000 - - - - - 2,252,000 OPEB 273,000 - - - - - 273,000 All other 496,602 - - - - - 496,602 Total assigned 3,643,857 - - 914,232 - - 4,558,089 Unassigned 1,000,000 - (1,424,397) - - - (424,397) City council reserve 362,624 - - - - - 362,624 Economic fluctuations 9,028,076 - - - - - 9,028,076 Emergency 2,585,719 - - - - - 2,585,719 Total unassigned 12,976,419 - (1,424,397) - - - 11,552,022 Total 20,916,450$ 9,009,725$ (1,424,397)$ 914,232$ 18,803,578$ 12,802,180$ 61,021,768$ Special
Revenue Funds
Capital
Projects Fund
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Notes to Financial Statements
June 30, 2021
Note 9 - Pension Plans
The following is a summary of pension related items for the year ended June 30, 2021:
Deferred Deferred
Pension Outflows Inflows Pension
Liability of Resources of Resources Expense
CalPERS Miscellaneous 33,054,446$ 6,380,242$ -$ 4,823,251$ CalPERS Safety 31,167,715 8,469,124 (651,958) 5,202,066 64,222,161$ 14,849,366$ (651,958)$ 10,025,317$
Public Employees’ Retirement System (CalPERS)
General Information about the Pension Plans:
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Safety (police) cost- sharing multiple-employer defined benefit plan or the Miscellaneous (all other) Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least 5 years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
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Notes to Financial Statements
June 30, 2021
The Plans’ provisions and benefits in effect for the measurement period ended June 30, 2020, are summarized as follows:
Hire date Prior to On or After On or after
Normal benefit formula 2.5%@55 2%@60 2%@62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Earliest retirement age 50 50 52
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.1% to 2.4% 1.0% to 2.5% Required employee contribution rates 7.75% 7% 7.25%
Required employer contribution rates:
Normal cost rate 11.364% 11.364% 11.364%
Employer portion of unfunded liability 2,190,073$ -$ -$ Hire date Prior to On or After On or after
Normal benefit formula 3%@50 2%@50 2.7%@57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Earliest retirement age 50 50 50
Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates:
Normal cost rate 25.540% 19.214% 13.044%
Employer portion of unfunded liability 2,822,720$ 27,740$ 28,461$ Miscellaneous
Safety
Employees Covered
At June 30, 2020, the measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:
Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 230 Inactive employees entitled but not yet receiving benefits 161 Active employees 137
Total 528
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Notes to Financial Statements
June 30, 2021
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions.
Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial methods and assumptions:
Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry Age Normal Entry Age Normal Cost Method Cost Method
Actuarial Assumptions:
Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary Increase (1) (1)
Mortality (2) (2)
Post Retirement Benefit Increase (3) (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
(3) Contract COLA up to 2.0% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter.
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Notes to Financial Statements
June 30, 2021
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS considered both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
Asset Class
Current Target
Allocation
Real Return Years
1 - 10 (a)
Real Return Years
11+ (b)
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0% 1.00% 2.62%
Inflation Sensitive 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Infrastructure and Forestland 0.0% 0.00% 0.00%
Liquidity 1.0% 0.00% -0.92%
100.0%
(a) An expected inflation of 2.00% used for this period (b) An expected inflation of 2.92% used for this period
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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59 City of Campbell
Notes to Financial Statements
June 30, 2021
Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan during the current fiscal year are as follows:
Total Pension Plan Fiduciary Net Net Pension
Balance at June 30, 2020 116,002,176$ 85,557,280$ 30,444,896$ Changes in the Year
Service cost 2,407,298 - 2,407,298 Interest on the total pension liability 8,227,199 - 8,227,199 Changes in assumptions - - - 613,576 - 613,576 Contribution - employer - 3,446,237 (3,446,237) Contribution - employee - 1,052,758 (1,052,758) Net investment income - 4,262,754 (4,262,754) Administrative expenses - (120,615) 120,615 Benefit payments, including refunds
of employee contributions (5,507,392) (5,507,392) - Other miscellaneous income (expense) - (2,611) 2,611 Net changes 5,740,681$ 3,131,131$ 2,609,550$ Balance at June 30, 2021 121,742,857$ 88,688,411$ 33,054,446$ Increase (Decrease)
Differences between expected and
actual experience
Proportionate Share of Net Pension Liability - Safety Plan
The City’s Safety Plan is included in the Safety Risk Pool administered by CalPERS in its Public Agency Cost- Sharing Multiple Employer Defined Benefit Pension Plan (PERFC). As of the year-end, the City’s proportionate share of the net pension liability for the Safety Risk Pool was as follows:
Proportionate
Share of
Net Pension
Liability
Safety Plan 31,167,715$
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Notes to Financial Statements
June 30, 2021
The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plans is measured as of June 30, 2020, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2021 using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
The City’s change in proportionate share of the net pension liability for the Plan as of the measurement dates ended June 30, 2019 and 2020 was as follows:
Safety
Proportion - Fiscal Year ended June 30, 2020 0.47274%
Proportion - Fiscal Year ended June 30, 2021 0.46782%
Change - Increase (decrease) -0.00492%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for the Miscellaneous Plan and proportionate share of net pension liability for the Safety Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability and proportionate share of net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability 48,784,903$ 45,249,195$ Current Discount Rate 7.15% 7.15%
Net Pension Liability 33,054,446$ 31,167,715$ 1% Increase 8.15% 8.15%
Net Pension Liability 20,021,538$ 19,612,529$
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
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Notes to Financial Statements
June 30, 2021
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized an aggregate pension expense of $10,025,317. The City recognized pension expense of $4,823,251 related to the Miscellaneous Plan and $5,202,066 related to the Safety Plan. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred Deferred Deferred Deferred Deferred
4,821,385 $ -$ 4,968,440 $ -$ 9,789,825$ -$ 738,383 - 2,416,898 - 3,155,281 - Changes in assumptions - - - (103,820) - (103,820) 820,474 - 406,380 - 1,226,854 - Change in proportion - - - (548,138) - (548,138) on pension plan investments - - 677,406 - 677,406 - 6,380,242 $ -$ 8,469,124 $ (651,958)$ 14,849,366$ (651,958)$ Pension contributions subsequent
to measurement date
Difference between expected
Difference between actual and
projected contribution
Net difference between projected
and actual earnings
Safety TotalMiscellaneous
$4,821,385 and $4,968,440 reported as deferred outflows of resources related to contributions subsequent to the measurement date for the miscellaneous and safety plans, respectively, will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year
Ending
June 30, Miscellaneous Safety Total
2022 313,942$ 639,621$ 953,563$ 2023 415,618 1,110,596 1,526,214 2024 468,107 759,090 1,227,197 2025 361,190 339,418 700,608 1,558,857$ 2,848,725$ 4,407,582$
Payable to the Pension Plans
At June 30, 2021, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2021.
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Notes to Financial Statements
June 30, 2021
Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the plan.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements.
Note 10 - Other Retirement System
The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992 be covered by either Social Security or an alternative plan. Effective July 1, 2004, the City contracted with the Public Agency Retirement System (PARS), a defined contribution plan. This Plan covers employees that are part-time, seasonal or temporary and all other employees that are not covered by another retirement system. All eligible employees covered by the Plan are fully vested. Employer liabilities are limited to the amount of current contributions.
Under PARS, employees contribute 6.2% and the City contributes 1.3% of the employees’ salary each pay period.
For the fiscal year ended June 30, 2021, total contributions of $29,918 ($24,733 employee and $5,185 employer) were made based on covered compensation of $399,190.
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Notes to Financial Statements
June 30, 2021
Note 11 - Post-Employment Benefits Plan
General Information about the OPEB Plan:
Plan Description
The City administers Retiree Award Program which provides medical insurance benefits on a reimbursement basis to eligible retirees in accordance with various labor agreements. The City pays up to $325 per month for retiree only medical insurance premiums or the actual cost of the retiree premium, whichever is less. Eligible retirees must be retired from the City with at least 17 years of service with the City and be at least 50 years of age.
The City has established a trust with the California Employers Retiree Benefit Trust, an agent multiple-employer plan, for the purpose of holding assets accumulated for plan benefits. Copies of PERS’ annual financial reports for its OPEB Trust may be obtained from its executive office at 400 “P” Street, Sacramento, California 95814.
Funding Policy
The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on the most recent actuarial study using a 10-year phase-in option.
Employees Covered:
As of the June 30, 2020 measurement date, the following current and former employees were covered by the benefit terms under the plan:
Inactive employees or beneficiaries currently receiving benefits 96 Inactive employees or beneficiaries entitled to but not yet receiving benefit payments 75 Active plan members 173
344
Contributions
The contribution requirements are established by the City and may be amended by City Council. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2021, the City’s cash contributions were $115,548 in payments to the trust, $376,308 of cash benefits payments and an estimated implied subsidy of $120,000 and administrative expenses paid outside the trust of $1,535 resulting in payments of $613,391.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown on the next page.
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Notes to Financial Statements
June 30, 2021
Actuarial Assumptions
The total OPEB liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.75%
Expected Long-Term Rate of Return 6.75%
Inflation 2.75%
Mortality, Retirement, Disability,
Termination
CalPERS 1997-2015 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2019.
Salary Increase 3.00% per annum, in aggregate.
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of
4.0% in 2076 and later years.
Medicare - 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years.
The actuarial assumptions used in the June 30, 2019 valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.
Long Term Expected Rate of Return
The long-term expected rate of return was determined using a building-block method in which best- estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of year-end, are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Global Equity 59.00% 4.82%
Global Fixed Income 25.00% 1.47%
Treasury Inflation Protection Securities 5.00% 1.29%
Real Estate Investment Trusts 8.00% 3.76%
Commodities 3.00% 0.84%
Total 100.00%
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Notes to Financial Statements
June 30, 2021
Discount Rate
The discount rate used to measure the total OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that City’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in the Net OPEB Liability
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balance at June 30, 2019 (measurement date) 8,608,828$ 4,754,101$ 3,854,727$ Changes recognized for year
Service cost 331,712 - 331,712 Interest 587,481 - 587,481 Contributions
Employer - explicit subsidy - 530,871 (530,871) Employer - implicit subsidy - 116,000 (116,000) Net investment income - 169,139 (169,139) Administrative expenses - (3,830) 3,830 Benefit payments (474,260) (474,260) - Net changes 444,933$ 337,920$ 107,013$ Balance at June 30, 2020 (measurement date) 9,053,761$ 5,092,021$ 3,961,740$ Increase (Decrease)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current discount rate:
Discount Rate - 1%
(5.75%)
Current Discount Rate
(6.75%)
Discount Rate + 1%
(7.75%)
5,029,238$ 3,961,740$ 3,066,472$
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Notes to Financial Statements
June 30, 2021
Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare cost trend rates:
1% Decrease (6.25% Non-
Medicare/5.25% Medicare
decreasing to 3.00% Non-
Medicare/3.00% Medicare)
Current Healthcare Cost Trend
Rates (7.25% Non-
Medicare/6.25% Medicare
decreasing to 4.00% Non-
Medicare/4.00 Medicare)
1% Increase (8.25% Non-
Medicare/7.25% Medicare
decreasing to 5.00% Non-
Medicare/5.00% Medicare)
3,337,642$ 3,961,740$ 4,732,173$
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB:
For the year ended June 30, 2021, the City recognized OPEB expense of $554,376. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Employer contributions made subsequent
to the measurement date 613,391$ -$ Differences between expected and actual experience - (268,241) Changes in assumptions - (29,037) Net differences between projected and
actual earnings on plan investments 105,072 - Total 718,463$ (297,278)$
$613,391 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Fiscal Year Ended Deferred Outflows/(Inflows)
2022 (47,823)$
2023 (31,147)
2024 (24,660)
2025 (29,118)
2026 (59,458)
Thereafter -
(192,206)$
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Notes to Financial Statements
June 30, 2021
Note 12 - Risk Management
General Liability
Risk management activity for City exposure to torts (general liability) is accounted for as a liability on the Statement of Net Position. The City is self-insured for the first $100,000 of liability for each occurrence, and the excess (up to $20,000,000) is covered through the City’s participation in the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) general liability risk pool. PLAN JPA also provides $1,000,000 of employee theft coverage in the excess of the City’s $5,000 deductible. Over the past three years, no claims exceeded the coverages above.
PLAN JPA pool consists of twenty-eight member agencies within the San Francisco Bay Area. The stated purpose of the PLAN JPA pool is to provide certain levels of liability insurance coverage, claims management, risk management services, and legal defense to each participating city within the pool.
Each city was required to make an initial deposit premium based on an actuarial study of each City’s risk exposure. The premium consists of a risk portion and administrative portion. The premium is revised each year based on claims experience and risk exposure.
Workers’ Compensation
The City has a risk financing fund to account for work related injuries and accidents to City employees. This fund is accounted for as an internal service fund in which assets are set aside for claim payments. Under the California Workers’ Disability and Compensation laws, the City, as an employer, is permissibly self-insured for the first $1,000,000 of claims arising from each occurrence. The City obtains excess Workers’ Compensation insurance through a policy up to statutory limits. A premium is charged to each fund and program that budgets for part-time or full-time employees. The total charge allocated is based upon the percentage of each fund’s current-year payroll as it relates to total payroll of the City.
Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and number of payouts and other economic and social factors. For the past three fiscal years, no claims were settled in excess of commercial insurance coverage.
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Notes to Financial Statements
June 30, 2021
City’s Claims Liabilities
The City’s liability for uninsured claims was estimated by management based on prior year claims experience, as follows:
General Workers'
Liability Compensation Total
Balance as of July 1, 2019 213,524$ 3,128,462$ 3,341,986$ Liability for current year fiscal claims 106,119 519,830 625,949 Increase (decrease) in estimated liability (83,359) (37,270) (120,629) Claims paid (27,444) (268,234) (295,678) Balance as of June 30, 2020 208,840$ 3,342,788$ 3,551,628$ Balance as of July 1, 2020 208,840$ 3,342,788$ 3,551,628$ Liability for current year fiscal claims 103,822 519,641 623,463 Increase (decrease) in estimated liability 44,935 211,490 256,425 Claims paid (111,494) (487,202) (598,696) Balance as of June 30, 2021 246,103$ 3,586,717$ 3,832,820$
Note 13 - Joint Powers Agreements
Congestion Management Agency
The Congestion Management Agency (CMA) was formed in 1991 by a joint exercise of powers agreement between the County of Santa Clara and each of the cities of Santa Clara County for the purpose of preparing, implementing, and administering a traffic congestion management plan pursuant to California Government Code Section 66531.
The CMA financial statements are included as part of the Special Fund of the Santa Clara Valley Transportation Authority. Audited financial statements may be obtained at 3331 N. First Street, Building B-2, San Jose, California 95134-1927.
Silicon Valley Animal Control Authority
The City is a member of Silicon Valley Animal Control Authority (SVACA), established in 2000 to deliver animal control services. SVACA provides its own field services and has an agreement with the Humane Society of Santa Clara Valley to provide facilities, personnel, shelter, and animal services. SVACA is governed by a Board of Directors consisting of representatives from member cities.
During the fiscal year ended June 30, 2021, the City contributed $308,530 to SVACA for field services and sheltering costs. Audited financial statements are available from SVACA at 2340-A Walsh Avenue, Santa Clara, California 95051.
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Notes to Financial Statements
June 30, 2021
West Valley Solid Waste Management Authority
The West Valley Solid Waste Management Authority (WVSWMA) was formed on October 1, 1997 to implement and administer the West Valley Solid Waste Management Plan, manage rate studies, and negotiate the related contracts for member’s entities.
WVSWMA includes the Cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos. The City of Campbell maintains the financial records and provides accounting services for WVSWMA. Audited financial statements are available from the City of Campbell.
California Municipal Finance Authority
The California Municipal Finance Authority (CMFA) was created to assist local governments, non-profit organizations and business with the issuance of taxable and tax-exempt bonds aimed at improving the standards of living in California. In order for the CMFA to have the authority to serve as the issuer of the bonds for the rehabilitation of a project within the City limits, it was necessary for the City to become a member of the CMFA.
The City has no obligation with respect to the bonds issued by the CMFA, and the City has the right to withdraw from the Joint Exercise of Powers Agreement upon written notice to the Board of Directors of the CMFA.
Note 14 - Rental Income from Use of City Property
The City leases a portion of the space at its Community Center. Rental income from leases and facility rentals during the fiscal year ended June 30, 2021 amounted to $1,628,245. Major tenants include Delphi Academy, Old Orchard School, Casa DiMir Montessori, Santa Clara County Office of Education, and West Valley College.
Minimum future lease rental commitments at June 30, 2021 are as follows:
Fiscal Year Ended Rental Income
2022 1,509,847$
2023 164,748
2024 26,841
1,701,436$
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Notes to Financial Statements
June 30, 2021
Note 15 - Contingent Liabilities
Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City attorney, there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.
Grant Programs
The City participates in Federal and State grant programs. The amounts received or receivable from granting agencies are subject to audit adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
Annexation of Territory
On May 1, 2013, the City annexed approximately 103 acres from the County of Santa Clara and 24 acres from the City of San Jose as part of a territorial reorganization between these entities. As a condition to the reorganization of territory from the City of San Jose to the City, the City entered into a 40-year agreement with the City of San Jose to provide it with compensation for future net revenues it has given up as a result of the territorial reorganization. Under the terms of the agreement, the City is committed to make annual payments to San Jose based on an initial base amount for the first five years, effective fiscal year 2013-14. This base amount is subject to adjustment if certain conditions are met. In the sixth year, and every subsequent fifth year thereafter, the payment is to be adjusted by an agreed upon formula that calculates the increase/decrease in net revenues, as defined in the agreement, as a percentage, and applies it to the base payment resulting in a revised based payment amount for the ensuing five-year period. Other provisions call for a recalculation of the revised base payment in between calculation dates if certain economic conditions are met. The City expects its annual payment amount to be approximately $230,042 through fiscal 2020-21, however if certain conditions are met, this annual amount may be adjusted.
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Notes to Financial Statements
June 30, 2021
Note 16 - Successor Agency
Capital Assets
Capital assets of the Successor Agency as of June 30, 2021 consisted of the following:
Balance at Balance at
July 1,2020 Additions Deletions Reclassification June 30,2021 Capital assets, not being depreciated
Land 7,123,531$ -$ -$ -$ 7,123,531$ Total capital assets, not
being depreciated 7,123,531 - - - 7,123,531 Capital assets, being depreciated
Buildings and improvements 18,939,961 - - - 18,939,961 Other improvements 11,805,911 - - - 11,805,911 Total capital assets,
being depreciated 30,745,872 - - - 30,745,872 Less accumulated depreciation for
Buildings and improvements (10,800,161) (309,152) - - (11,109,313) Other improvements (10,215,661) (388,368) - - (10,604,029) Total accumulated depreciation (21,015,822) (697,520) - - (21,713,342) Total capital assets,
being depreciated, net 9,730,050 (697,520) - - 9,032,530 Governmental Activities
capital assets, net 16,853,581$ (697,520)$ -$ -$ 16,156,061$
Long-term Liabilities
Long-term liabilities of the Successor Agency as of June 30, 2021 consisted of the following:
Balance Balance Due Within
July 1,2020 Additions Deletions June 30,2021 One Year
2016 Tax Allocation Refunding Bonds 18,625,000$ -$ (1, 200,000)$ 17,425,000$ 1,375,000 $
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Notes to Financial Statements
June 30, 2021
Advances from the City of Campbell
The City has advanced funds to the former redevelopment agency under the terms of a Third Amended and Restated Indebtedness Agreement. Principal was payable out of the excess of tax increment revenues over other similar liabilities and agreements. The Campbell Redevelopment Agency was dissolved on January 31, 2012 and the advance liability was transferred to the Successor Agency to be paid as an enforceable obligation.
This advance was refunded in August 2016 with proceeds from the 2016 Tax Allocation Refunding Bonds issued by the Successor Agency of the former Campbell Redevelopment Agency. The proceeds repaid to the City were utilized by the City to refund a portion of the 1997 Refunding Certificates of Participation and a portion of the 2002 Refunding Certificates of Participation as described in Note 6.
2016 Tax Allocation Refunding Bonds
Concurrently with the issue of the 2016 Refunding Lease Revenue Bonds, the City of Campbell Successor Agency issued Tax Allocation Refunding Bonds, Series 2016 in the aggregate principal amount of $22,705,000. These bonds were private placement bonds that pay interest at a rate from 1.825% to 2.15% payable semiannually on April 1 and October 1 commencing on April 1, 2017. The proceeds from the Tax Allocation Refunding Bonds, Series 2016 were used to prepay the 2002 RDA Tax Allocation Bonds, Series A, to prepay the 2005 RDA Tax Allocation Bonds, Series A, to prepay a portion of the 1997 Refunding Certificates of Participation and the 2002 Refunding Certificates of Participation, and to pay the cost of issuing the bonds.
The annual debt service requirements to amortize the 2016 Tax Allocation Refunding Bonds outstanding at June 30, 2021 are as follows:
Year Ending
June 30, Principal Interest Total
2022 1,375,000$ 365,150$ 1,740,150$ 2023 1,555,000 334,192 1,889,192 2024 1,595,000 300,984 1,895,984 2025 1,630,000 266,871 1,896,871 2026 1,660,000 232,066 1,892,066 2027-2031 9,610,000 614,369 10,224,369 Total 17,425,000$ 2,113,632$ 19,538,632$
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Notes to Financial Statements
June 30, 2021
Note 17 - Restatement of Prior Year Net Position
As of July 1, 2020, the city adopted GASB Statement No. 84, Fiduciary Activities (GASB 84). As a result of the implementation of GASB 84, the city has reclassified its custodial funds previously reported without net position.
The following table describes the effects of the implementation on beginning net position.
Custodial
Funds
Net position - Beginning -$
Reclassification of agency funds to custodial funds 1,954,579 Net position - Beginning as restated 1,954,579$
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Required Supplementary Information
June 30, 2021
City of Campbell
eidebailly.com
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See Notes to Required Supplementary Information 74
City of Campbell
Schedule of Changes in the Pension Liability and Related Ratios – CalPERS Miscellaneous Plan Last Ten Fiscal Years*
Fiscal Year ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement period ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:
Service cost 2,407,298$ 2,335,864$ 2,318,339$ 2,334,869$ 1,958,173$ 1,794,374$ 1,803,589$ Interest on total pension liability 8,227,199 7,839,384 7,392,762 7,134,146 6,827,812 6,544,912 6,237,266 Differenc General Revenues 613,576 1,563,454 (487,309) 166,228 (487,339) (413,601) - Changes in assumptions - - (809,156) 5,879,356 - (1,598,990) - Changes in benefits - - - - - - - Benefit payments (5,507,392) (5,293,752) (4,779,950) (4,314,617) (4,673,560) (3,798,085) (3,467,485) Net Change in Total Pension Liability 5,740,681 6,444,950 3,634,686 11,199,982 3,625,086 2,528,610 4,573,370 Total Pension Liability - Beginning of Year 116,002,176 109,557,226 105,922,540 94,722,558 91,097,472 88,568,862 83,995,492 Total Pension Liability - End of Year 121,742,857$ 116,002,176$ 109,557,226$ 105,922,540$ 94,722,558$ 91,097,472$ 88,568,862$ Plan Fiduciary Net Position:
Contributions - employer 3,446,237$ 3,062,946$ 2,683,458$ 2,424,792$ 2,168,070$ 1,811,356$ 1,592,734$ Contributions - employee 1,052,758 1,050,023 1,040,310 920,368 903,290 818,954 869,838 Net investment income 4,262,754 5,242,422 6,387,875 7,735,412 518,527 1,566,471 10,321,563 Plan to plan resource movement - - (189) - - (12,655) - Administrative expenses (120,615) (58,198) (119,314) (103,210) (43,290) (79,967) - Benefit payments (5,507,392) (5,293,752) (4,779,950) (4,314,617) (4,673,560) (3,798,085) (3,467,485) Other miscellaneous income/expenses (2,611) 189 (226,579) - - - - Net Change in Plan Fiduciary Net Position 3,131,131 4,003,630 4,985,611 6,662,745 (1,126,963) 306,074 9,316,650 Plan Fiduciary Net Position - Beginning of Year 85,557,280 81,553,650 76,568,039 69,905,294 71,032,257 70,726,183 61,409,533 Plan Fiduciary Net Position - End of Year (b) 88,688,411$ 85,557,280$ 81,553,650$ 76,568,039$ 69,905,294$ 71,032,257$ 70,726,183$ Net Pension Liability - Ending (a) - (b) 33,054,446$ 30,444,896$ 28,003,576$ 29,354,501$ 24,817,264$ 20,065,215$ 17,842,679$ Plan's fiduciary net position as a percentage of
the plan's total pension liability 72.85% 73.75% 74.44% 72.29% 73.80% 77.97% 79.85% Covered payroll $13,742,363 $13,302,927 $12,620,931 $12,359,036 $11,526,124 $10,550,178 $9,939,320 Net pension liability as percentage of coverd payroll 240.53% 238.95% 221.88% 237.51% 215.31% 190.19% 179.52%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%.
* - Fiscal year 2015 was the 1st year of implementation.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Required Supplementary Information 75 City of Campbell
Schedule of Pension Contributions – CalPERS Miscellaneous Plan Last Ten Fiscal Years*
Fiscal Year ended 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 3,446,237 $ 3,062,946$ 2,683,458$ 2,424,792$ 2,168,070$ 1,811,356$ 1,592,734 $ Contributions in relation to the actuarially
determined contributions (3,446,237) (3,062,946) (2,683,458) (2,424,792) (2,168,070) (1,811,356) (1,592,734) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll $13,359,291 $13,742,363 $13,302,927 $12,620,931 $12,359,036 $11,526,124 $10,550,178 Contributions as a percentage of covered payroll 25.80% 22.29% 20.17% 19.21% 17.54% 15.72% 15.10%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017:
The discount rate was reduced from 7.65% to 7.15%.
* - Fiscal year 2015 was the 1st year of implementation.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
See Notes to Required Supplementary Information 76 City of Campbell
Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans Last Ten Fiscal Years*
Fiscal Year ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement period ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Proportion of the net pension liability 0.46782% 0.47274% 0.48183% 0.47999% 0.50062% 0.52828% 0.52660% $31,167,715 $29,511,142 $28,271,751 $28,680,686 $25,928,666 $21,767,656 $19,752,687 Covered payroll $6,137,525 $6,194,278 $6,180,899 $5,832,083 $5,370,852 $5,168,789 $5,062,342 507.82% 476.43% 457.41% 491.77% 482.77% 421.14% 390.19% Fiduciary net position as a percentage of the
plan's total pension liability 73.12% 73.37% 73.39% 71.74% 72.69% 77.27% 78.83% Net pension liability as a percentage
of covered payroll
Proportionate share of the
net pension liability
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017:
The discount rate was reduced from 7.65% to 7.15%.
* - Fiscal year 2015 was the 1st year of implementation.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
See Notes to Required Supplementary Information 77 City of Campbell
Schedule of Pension Contributions – CalPERS Safety Plan Last Ten Fiscal Years*
Fiscal Year ended 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 4,968,440$ 3,858,649$ 3,579,757$ 3,180,698$ 2,928,596$ 2,610,566$ 2,079,597$ Contributions in relation to the
actuarially determined contributions (4,968,440) (3,858,649) (3,579,757) (3,180,698) (2,928,596) (2,610,566) (2,079,597) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll $6,646,761 $6,137,525 $6,194,278 $6,180,899 $5,832,083 $5,370,852 $5,168,789
74.75% 62.87% 57.79% 51.46% 50.22% 48.61% 40.23%
Contributions as a percentage
of covered payroll
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017:
The discount rate was reduced from 7.65% to 7.15%.
* - Fiscal year 2015 was the 1st year of implementation.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
See Notes to Required Supplementary Information 78
City of Campbell
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
Fiscal Year ended 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement period ended 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service cost 331,712$ 339,543$ 329,653$ 320, 051$ Interest on total OPEB liability 587,481 582,939 549,781 518,912 Actual vs. expected experience - (375,537) - - Assumption changes - (40,651) - - Benefit payments (474,260) (388,140) (408,022) (374, 490) Net Change in Total OPEB Liability 444,933 118,154 471,412 464, 473 Total OPEB Liability - Beginning of Year 8,608,828 8,490,674 8,019,262 7, 554,789 Total OPEB Liability - End of Year (a) 9,053,761 8,608,828 8,490,674 8, 019,262 Plan Fiduciary Net Position:
Contributions - employer 646,871 675,398 1,566,022 829, 490 Net investment income 169,139 261,853 255,576 251, 971 Administrative expenses (3,830) (2,124) (5,460) ( 1,332) Benefit payments (474,260) (388,140) (408,022) (374, 490) Net Change in Plan Fiduciary Net Position 337,920 546,987 1,408,116 705,639 Plan Fiduciary Net Position - Beginning of Year 4,754,101 4,207,114 2,798,998 2, 093,359 Plan Fiduciary Net Position - End of Year (b) 5,092,021 4,754,101 4,207,114 2, 798,998 Net OPEB Liability - Ending (a) - (b) 3,961,740$ 3,854,727$ 4,283,560$ 5, 220,264$ Plan fiduciary net position as a percentage of the
total OPEB Liability 56.24% 55.22% 49.55% 34.90%
Covered employee payroll $23,681,909 $22,349,167 $22,223,899 $21,017,236 Net OPEB Liability as percentage of covered payrol 16.73% 17.25% 19.27% 24.84%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.25% to 6.75%.
* - Fiscal year 2018 was the 1st year of implementation.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Required Supplementary Information 79
City of Campbell
Schedule of OPEB Contributions
Last Ten Fiscal Years*
Fiscal Year ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 610,000$ 642,000$ 629,000$ 1,038,000$ Contributions in relation to the actuarially
determined contributions (613,391) (646,871) (675,398) (1,566,022) Contribution deficiency (excess) (3,391)$ (4,871)$ (46,398)$ (528,022)$ Covered employee payroll $23,360,322 $23,681,909 $22,349,167 $22,223,899 Contributions as a percentage of covered payroll 2.63% 2.73% 3.02% 7.05%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.25% to 6.75%.
* - Fiscal year 2018 was the 1st year of implementation.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Required Supplementary Information 80
City of Campbell
Budgetary Comparison Schedule – General Fund
Fiscal Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 17,481,100$ 17,225,206$ 17,950,698$ 725,492$ Sales and use taxes 14,172,118 13,153,960 14,478,163 1,324,203 Other taxes 8,117,414 6,216,201 6,375,526 159,325 Licenses and permits 3,265,000 2,034,000 4,493,838 2,459,838 Fines and forfeitures 175,000 44,001 547,469 503,468 Investment income 384,400 384,400 (8,137) (392,537) Rents and leases 2,828,400 1,812,100 1,927,211 115,111 Intergovernmental 900,075 5,562,920 914,806 (4,648,114) Charges for services 4,332,526 2,807,982 1,762,593 (1,045,389) Miscellaneous 922,735 235,178 162,023 (73,155) Total Revenues 52,578,768 49,475,948 48,604,190 (871,758) Expenditures
General government
City council 384,977 384,977 310,840 74,137 City manager 796,037 784,678 845,740 (61,062) City clerk 485,335 449,567 339,330 110,237 Human resources 1,223,136 1,135,832 1,262,118 (126,286) Accounting 1,762,023 1,780,793 1,783,486 (2,693) Non-departmental finance 1,335,751 1,602,329 2,034,590 (432,261) COVID response 500,000 250,000 108,923 141,077 Legal services 562,800 534,628 577,601 (42,973) Total general government 7,050,059 6,922,804 7,262,628 (339,824) Recreation
Community services and administration 366,925 337,083 180,259 156,824 Senior citizens nutrition program 217,113 215,979 221,063 (5,084) Adult services 553,483 353,629 339,322 14,307 Campbell community center 1,313,477 1,186,641 1,223,881 (37,240) Museum services 353,964 333,520 321,897 11,623 Theater 748,469 480,435 451,367 29,068 Sports, aquatics and fitness 820,933 675,388 714,129 (38,741) Trips, tours and classes 962,104 623,951 566,092 57,859 Total recreation 5,336,468 4,206,626 4,018,010 188,616 Community development
Community development administration 536,017 573,183 560,415 12,768 Current planning 963,774 808,434 722,700 85,734 Policy development 171,471 706,409 227,028 479,381 Building 1,354,319 1,221,591 1,044,497 177,094 Economic development 204,705 191,145 134,441 56,704 Total community development 3,230,286 3,500,762 2,689,081 811,681 Budgeted Amounts
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Required Supplementary Information 81
City of Campbell
Budgetary Comparison Schedule – General Fund
Fiscal Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Public safety
Police administration 1,435,559$ 1,430,209$ 1, 315,946 114,263$ Communications 2,704,444 2,728,202 2, 675,477 52,725 Records 1,382,253 1,315,803 1, 415,004 (99,201) Special enforcement services 4,711,192 4,289,525 4, 559,546 (270,021) Field services 9,996,481 10,073,004 11, 530,341 (1,457,337) Fire protection services 9,552,487 9,552,487 9, 556,560 (4,073) Total public safety 29,782,416 29,389,230 31, 052,874 (1,663,644) Public works
Public works administration 709,405 682,367 657, 388 24,979 Transportation engineering 417,918 413,099 374, 019 39,080 Engineering 1,386,421 1,304,875 1, 215,846 89,029 Land development/environment programs 967,621 1,052,073 934, 405 117,668 Maintenance administration 605,530 597,712 563, 400 34,312 Building maintenance 1,466,101 1,420,645 1, 299,620 121,025 Total Public works 5,552,996 5,470,771 5, 044,678 426,093 Total expenditures 50,952,225 49,490,193 50, 067,271 (577,078) Excess (deficiency) of revenues
over (under) expenditures 1,626,543 (14,245) ( 1,463,081) (1,448,836) Other financing sources (uses)
Transfers in 1,248,626 3,144,688 5, 364,551 2,219,863 Transfers out (4,182,007) (5,730,059) ( 5,257,528) 472,531 Total other
financing sources (uses) (2,933,381) (2,585,371) 107, 023 2,692,394 Net change in fund balance (1,306,838) (2,599,616) ( 1,356,058) 1,243,558 Fund balance at beginning of year 22,272,508 22,272,508 22, 272,508 - Fund balance at end of year 20,965,670$ 19,672,892$ 20, 916,450$ 1,243,558$ Budgeted Amounts
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Required Supplementary Information 82
City of Campbell
Budgetary Comparison Schedule – Housing Assets Special Revenue Fund Fiscal Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 18,000$ 18,000$ 23,637$ 5,637$ Miscellaneous revenue 50,000 50,000 - (50,000) Total Revenues 68,000 68,000 23,637 (44,363) Expenditures
Current
Community development 265,679 265,012 179,881 85,131 Net change in fund balance (197,679) (197,012) (156,244) 40,768 Fund balance at beginning of year 9,061,537 9,061,537 9,061,537 - Fund balance at end of year 8,863,858$ 8,864,525$ 8,905,293$ 40,768$ Budgeted Amounts
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Required Supplementary Information 83
City of Campbell
Budgetary Comparison Schedule – Other Grants Special Revenue Fund Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ (5,219)$ (5,219)$ Intergovernmental 6,086,965 6,199,179 4,566,230 (1,632,949) Total Revenues 6,086,965 6,199,179 4,561,011 (1,638,168) Expenditures
Current
Public works - 102,000 - 102,000 Excess (deficiency) of revenues
over (under) expenditures 6,086,965 6,097,179 4,561,011 (1,536,168) Other financing sources (uses)
Transfers out (6,086,965) (9,895,874) (7,184,451) 2,711,423 Total other
financing sources (uses) (6,086,965) (9,895,874) (7,184,451) 2,711,423 Net change in fund balance - (3,798,695) (2,623,440) 1,175,255 Fund balance at beginning of year 1,199,043 1,199,043 1,199,043 - Fund balance at end of year 1,199,043$ (2,599,652)$ (1,424,397)$ 1,175,255$ Budgeted Amounts
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
See Notes to Required Supplementary Information 84
City of Campbell
Budgetary Comparison Schedule – ARPA Special Revenue Fund Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Intergovernmental -$ -$ 2,214,670$ 2,214,670$ Total Revenues - - 2,214,670 2,214,670 Other financing sources (uses)
Transfers out - - (2,214,670) 2,214,670 Total other
financing sources (uses) - - (2,214,670) (2,214,670) Net change in fund balance - - - - Fund balance at beginning of year - - - - Fund balance at end of year -$ -$ -$ -$ Budgeted Amounts
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
85 City of Campbell
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2021
Note 1 - Budgets and Budgetary Data
The City adopts a budget annually for General, Special Revenue, Capital Projects and Debt Service Funds. This budget is effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted by the City Council and controlled by each department head, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The legal level of budgetary control is at the total department level. For the General Fund, budgetary comparisons for line operating departments are presented and supporting departments, Finance and City Manager are combined as General Government. All appropriations lapse at year-end. During the fiscal year, supplemental adjustments to appropriations were adopted by City Council and have been included in the budget versus actual statements.
Annual budgets are adopted on a basis consistent with generally accepted accounting principles, except for the Museum and Adult Center and Community Development Block Grant Special Revenue Funds for which no budget was adopted in the current fiscal year. Accordingly, no budgetary comparison for these funds are presented in the financial statements.
Under encumbrance accounting, purchase orders, contracts and other commitments of the expenditures are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of the formal budgetary process. Encumbrances outstanding at year-end lapse and must be re- appropriated as part of the following year budget.
Excess of Expenditures over Appropriations
Expenditures exceeded budgeted appropriations in the following funds:
Final
Budget Actual
Variance with
Final Budget
Major Fund
General Fund - General Government 6,922,804$ 7,262,628$ (339,824)$ General Fund - Public Safety 29,389,230 31,052,874 (1,663,644)
Budgetary Results Reconciled to GAAP
Grant revenues received in advance are recognized on the budgetary basis financial schedules, but are deferred and not recognized as revenue on GAAP basis financial statements. This reconciliation causes variances in recognizing revenue from the prior year in the current year. Additionally, year-end encumbrances are recognized as the equivalent of expenditures in the budgetary basis financial schedules, while encumbered amounts are not recognized as expenditures on GAAP basis.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
Supplementary Information
June 30, 2021
City of Campbell
eidebailly.com
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86 City of Campbell
Description of Other Governmental Funds
June 30, 2021
Other Governmental Special Revenue Funds
Gas Tax
Accounts for revenues and expenditures pertaining to the construction and maintenance of City streets.
Vehicle Impact Fees
Accounts for revenues and expenditures pertaining to street maintenance.
Parkland Dedication Fees
Accounts for Quimby Act monies received from developers and records expenditures related to development of designated areas.
Lighting and Landscaping District
Accounts for revenues and expenditures providing for City street lighting and landscaping.
Community Development Block Grant
Accounts for Federal Block Grant Funds used for community development, such as low-and-moderate rehabilitation grants and loans.
Drug Enforcement Revenue
Accounts for revenues received through drug related asset seizures and any drug related convictions.
Environmental Services
Accounts for revenues received from developers and franchised garbage collection to be utilized for solid waste management and storm drain improvements.
Supplemental Law Enforcement
Accounts for revenues and expenditures pertaining to grants received from enhancing law enforcement services.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
87 City of Campbell
Description of Other Governmental Funds
June 30, 2021
Community Facilities District #1
Accounts for revenues and expenditures pertaining to specific ongoing maintenance of the District’s boundaries.
Community Facilities District #2
Accounts for revenues and expenditures pertaining to specific ongoing maintenance of the District’s boundaries.
Museum and Adult Center
Accounts for donations received from expenditures related to the City’s Museum and Adult Center. The City’s Museum and Adult Care Center did not have an adopted or final budget.
Other Governmental Debt Service Fund:
2016 LRB
Accounts for the City’s share of proceeds from the repayments of the 2016 Lease Revenue Bonds, which were utilized for the refunding of the City’s 1997 and 2002 COP obligations.
Measure O Debt Service Fund
Accounts for the City’s repayments of the 2020 Measure O General Obligation Bond.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
88 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2021
Vehicle Parkland Lighting and Community Drug
Gas Impact Dedication Landscaping Development Enforcement Environmental Tax Fees Fees District Block Grant Revenue Services
Assets
Cash and investments -$ 2,623,856 $ 4,499,248 $ 866,161$ 16$ 81,402$ 624,437$ Cash held with fiscal agent - - - - - - - Receivables:
Accounts 2,479 39,800 - 43,651 - - 101, 285 Taxes 142,860 - - 28,319 - - - Interest 407 1,308 2,078 - - - 357 Notes and loans - - - - 140,000 - - Total assets 145,746$ 2,664,964 $ 4,501,326 $ 938,131$ 140,016$ 81,402$ 726,079$ Liabilities
Accounts payable 30,346$ -$ -$ 172,514$ -$ 490$ -$ Accrued payroll 56,123 - - 97,710 - - 6, 796 Due to other funds 59,277 - - - 139,670 - - Total liabilities 145,746 - - 270,224 139,670 490 6, 796 Fund balances (deficit)
Restricted - 2,664,964 4,501,326 667,907 346 80,912 719,283 Total fund balances (deficit) - 2,664,964 4,501,326 667,907 346 80,912 719,283 Total liabilities, deferred inflows
of resources and fund balances 145,746$ 2,664,964 $ 4,501,326 $ 938,131$ 140,016$ 81,402$ 726,079$ Special Revenue Funds
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
89 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2021
Assets
Cash and investments
Cash held with fiscal agent
Receivables:
Accounts
Taxes
Interest
Notes and loans
Total assets
Liabilities
Accounts payable
Accrued payroll
Due to other funds
Total liabilities
Fund balances (deficit)
Restricted
Total fund balances (deficit)
Total liabilities, deferred inflows
of resources and fund balances
Total
Supplemental Community Community Museum Other
Law Facilities Facilities and Governmental
Enforcement District #1 District #2 Adult Center Measure O 2016 LRB Funds 187,987$ 3,431$ 170,698$ 22,744$ 3,768,035 $ -$ 12,848,015$ - - - - - 13,518 13,518 - - - - - - 187,215 - 1,180 - - 3,525 - 175,884 1 3 73 11 2,778 13 7,029 - - - - - - 140,000 187,988$ 4,614$ 170,771$ 22,755$ 3,774,338 $ 13,531$ 13,371,661$ -$ -$ 355$ -$ -$ -$ 203,705$ 6,200 - - - - - 166,829 - - - - - - 198,947 6,200 - 355 - - - 569,481 181,788 4,614 170,416 22,755 3,774,338 13,531 12,802,180 181,788 4,614 170,416 22,755 3,774,338 13,531 12,802,180 187,988$ 4,614$ 170,771$ 22,755$ 3,774,338 $ 13,531$ 13,371,661$ Debt Service FundSpecial Revenue Funds
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
90 City of Campbell
Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds Year Ended June 30, 2021
Vehicle Parkland Lighting and Community Drug
Gas Impact Dedication Landscaping Development Enforcement Environmental Tax Fees Fees District Block Grant Revenue Services
Revenues
Property taxes -$ -$ -$ 1,822,758$ -$ -$ -$ Special assessments - - - 1,204,646 - - - Investment income (1,124) (3,695) (15,988) (1,095) - (1,354) (1,142) Intergovernmental 1,708,595 757,321 - 42,071 - 55,605 24,636 Charges for services - - - - - - 804,350 Parkland dedication fees - - 400,116 - - - - Miscellaneous revenues 4,129 - - 26,754 - - - Total revenues 1,711,600 753,626 384,128 3,095,134 - 54,251 827,844 Expenditures
Current:
General government - - - - - - - Public safety - - - - - 183,895 - Public works 1,842,826 - - 3,704,776 - - 131,240 Debt service:
Principal - - - - - - - Interest and fiscal charges - - - - - - - Total expenditures 1,842,826 - - 3,704,776 - 183,895 131,240 Excess (deficiency) of revenues
over (under) expenditures (131,226) 753,626 384,128 (609,642) - (129,644) 696,604 Other financing sources (uses)
Proceeds from the sale of bonds - - - - - - - Transfers in 1,289,914 - - 1,559,098 - - 1,029,000 Transfers out (1,814,280) (232,697) (548,357) (242,840) - (4,500) (1,643,620) Total other financing
sources (uses) (524,366) (232,697) (548,357) 1,316,258 - (4,500) (614,620) Net change in fund balances (655,592) 520,929 (164,229) 706,616 - (134,144) 81,984 Fund balances at beginning of year 655,592 2,144,035 4,665,555 (38,709) 346 215,056 637,299 Fund balances at end of year -$ 2,664,964$ 4,501,326$ 667,907$ 346$ 80,912$ 719,283$ Special Revenue Funds
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Packet Pg. 224
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
91 City of Campbell
Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds Year Ended June 30, 2021
Revenues
Property taxes
Special assessments
Investment income
Intergovernmental
Charges for services
Parkland dedication fees
Miscellaneous revenues
Total revenues
Expenditures
Current:
General government
Public safety
Public works
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Proceeds from the sale of bonds
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Total
Supplemental Community Community Museum Ot her
Law Facilities Facilities and Go vernmental
Enforcement District #1 District #2 Adult Center Mea sure O 2016 LRB Funds -$ -$ -$ -$ 1,235,646$ -$ 3,058,404$ - 145,394 48, 893 - - - 1,398,933 (2,231) 187 ( 378) (807) 15,533 67 (12,027) 156,727 - - - - - 2,744,955 - - - - - - 804,350 - - - - - - 400,116 - - - 100 - - 30,983 154,496 145,581 48, 515 (707) 1,251,179 67 8,425,714 - 3,538 - - - - 3,538 182,472 - - - - - 366,367 - - 24, 954 - - - 5,703,796 -
- - - - 1,140,000 550,000 1,690,000 - - - - 622,597 210,800 833,397 182,472 3,538 24, 954 - 1,762,597 760,800 8,597,098 (27,976) 142,043 23, 561 (707) (511,418) (760,733) (171,384) - - - - 23,171,626 - 23,171,626 - - - - - 768,825 4,646,837 - (143,000) ( 12,000) (154,770) (20,000,000) - (24,796,064) - (143,000) ( 12,000) (154,770) 3,171,626 768,825 3,022,399 (27,976) (957) 11, 561 (155,477) 2,660,208 8,092 2,851,015 209,764 5,571 158, 855 178,232 1,114,130 5,439 9,951,165 181,788$ 4,614$ 170, 416$ 22,755$ 3,774,338$ 13,531$ 12,802,180$ Debt Service FundSpecial Revenue Funds
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Packet Pg. 225
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
92 City of Campbell
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget Actual – Gas Tax Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ (1,124)$ (1,124)$ Intergovernmental 1,766,267 1,766,267 1,708,595 (57,672) Miscellaneous revenue 2,500 2,500 4,129 1,629 Total Revenues 1,768,767 1,768,767 1,711,600 (57,167) Expenditures
Current
Public works 1,990,180 1,986,180 1,842,826 143,354 Excess (deficiency) of revenues
over (under) expenditures (221,413) (217,413) (131,226) 86,187 Other financing sources (uses)
Transfers in 645,300 630,120 1,289,914 659,794 Transfers out (740,000) (2,354,776) (1,814,280) 540,496 Total other
financing sources (uses) (94,700) (1,724,656) (524,366) 1,200,290 Net change in fund balance (316,113) (1,942,069) (655,592) 1,286,477 Fund balance at beginning of year 655,592 655,592 655,592 - Fund balance at end of year 339,479$ (1,286,477)$ -$ 1,286,477$ Budgeted Amounts
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Packet Pg. 226
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
93 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Vehicle Impact Fees Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 250$ 250$ (3,695)$ (3,945)$ Intergovernmental 777,000 777,000 757,321 (19,679) Total revenues 777,250 777,250 753,626 (23,624) Other financing sources (uses)
Transfers out (777,000) (2,491,079) (232,697) 2,258,382 Net change in fund balance 250 (1,713,829) 520,929 2,234,758 Fund balance at beginning of year 2,144,035 2,144,035 2,144,035 - Fund balance at end of year 2,144,285$ 430,206$ 2,664,964$ 2,234,758$ Budgeted Amounts
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Packet Pg. 227
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
94 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 85,827$ 85,827$ (15,988)$ (101,815)$ Parkland dedication fees 400,000 400,000 400,116 116 Total revenues 485,827 485,827 384,128 (101,699) Other financing sources (uses)
Transfers out (925,000) (1,609,135) (548,357) 1,060,778 Net change in fund balance (439,173) (1,123,308) (164,229) 959,079 Fund balance at beginning of year 4,665,555 4,665,555 4,665,555 - Fund balance at end of year 4,226,382$ 3,542,247$ 4,501,326$ 959,079$ Budgeted Amounts
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Packet Pg. 228
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
95 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Lighting and Landscaping District Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 1,143,000$ 1,143,000$ 1,822,758$ 679,758$ Special assessments 1,210,000 1,210,000 1,204,646 (5,354) Investment income - - (1,095) (1,095) Intergovernmental - - 42,071 42,071 Miscellaneous revenues 27,500 27,500 26,754 (746) Total revenues 2,380,500 2,380,500 3,095,134 714,634 Expenditures
Current
Public works 3,794,683 3,721,582 3,704,776 16,806 Excess (deficiency) of revenues
over (under) expenditures (1,414,183) (1,341,082) (609,642) 731,440 Other financing sources (uses)
Transfers in 1,559,098 1,531,362 1,559,098 27,736 Transfers out (111,300) (242,840) (242,840) - Total other
financing sources (uses) 1,447,798 1,288,522 1,316,258 27,736 Net change in fund balance 33,615 (52,560) 706,616 759,176 Fund balance at beginning of year (38,709) (38,709) (38,709) - Fund balance at end of year (5,094)$ (91,269)$ 667,907$ 759,176$ Budgeted Amounts
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Packet Pg. 229
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
96 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ (1,354)$ (1,354)$ Intergovernmental 5,000 5,000 55,605 50,605 Total revenues 5,000 5,000 54,251 49,251 Expenditures
Current
Public Safety - - 183,895 (183,895) Excess (deficiency) of revenues
over (under) expenditures 5,000 5,000 (129,644) (134,644) Other financing sources (uses)
Transfers out (4,500) (4,500) (4,500) - Total other
financing sources (uses) (4,500) (4,500) (4,500) - Net change in fund balance 500 500 (134,144) (134,644) Fund balance at beginning of year 215,056 215,056 215,056 - Fund balance at end of year 215,556$ 215,556$ 80,912$ (134,644)$ Budgeted Amounts
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Packet Pg. 230
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
97 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ (1,142)$ (1,642)$ Intergovernmental 10,000 10,000 24,636 14,636 Charges for services 621,464 621,464 804,350 182,886 Miscellaneous revenues 49,356 49,356 - (49,356) Total revenues 681,320 681,320 827,844 146,524 Expenditures
Current
Public works 135,670 133,749 131,240 2,509 Excess (deficiency) of revenues
over (under) expenditures 545,650 547,571 696,604 149,033 Other financing sources (uses)
Transfers in 1,029,000 1,011,899 1,029,000 17,101 Transfers out (1,574,526) (1,670,603) (1,643,620) 26,983 Total other
financing sources (uses) (545,526) (658,704) (614,620) 44,084 Net change in fund balance 124 (111,133) 81,984 193,117 Fund balance at beginning of year 637,299 637,299 637,299 - Fund balance at end of year 637,423$ 526,166$ 719,283$ 193,117$ Budgeted Amounts
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Packet Pg. 231
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
98 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ (2,231)$ (2,231)$ Intergovernmental - 100,000 156,727 56,727 Total revenues - 100,000 154,496 54,496 Expenditures
Current
Public safety - 305,929 182,472 123,457 Net change in fund balance - (205,929) (27,976) 177,953 Fund balance at beginning of year 209,764 209,764 209,764 - Fund balance at end of year 209,764$ 3,835$ 181,788$ 177,953$ Budgeted Amounts
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Packet Pg. 232
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
99 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #1 Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Special assessments 146,350$ 146,350$ 145,394$ (956)$ Investment income 500 500 187 (313) Total revenues 146,850 146,850 145,581 (1,269) Expenditures
Current
Community development 3,500 3,500 3,538 (38) Excess (deficiency) of revenues
over (under) expenditures 143,350 143,350 142,043 (1,307) Other financing sources (uses)
Transfers out (143,000) (143,000) (143,000) - Net change in fund balance 350 350 (957) (1,307) Fund balance at beginning of year 5,571 5,571 5,571 - Fund balance at end of year 5,921$ 5,921$ 4,614$ (1,307)$ Budgeted Amounts
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Packet Pg. 233
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
100
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #2 Special Revenue Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ (378)$ (378)$ Special assessments 35,250 35,250 48,893 13,643 Total revenues 35,250 35,250 48,515 13,265 Expenditures
Current
Community development 23,000 24,200 24,954 (754) Excess (deficiency) of revenues
over (under) expenditures 12,250 11,050 23,561 12,511 Other financing sources (uses)
Transfers out (12,000) (12,000) (12,000) - Total other
financing sources (uses) (12,000) (12,000) (12,000) - Net change in fund balance 250 (950) 11,561 12,511 Fund balance at beginning of year 158,855 158,855 158,855 - Fund balance at end of year 159,105$ 157,905$ 170,416$ 12,511$ Budgeted Amounts
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Packet Pg. 234
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
101
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Project revenues -$ -$ 270,309$ 270,309$ Miscellaneous revenues 60,000 60,000 - (60,000) Total revenues 60,000 60,000 270,309 210,309 Expenditures
Current
Capital outlay 9,104,049 66,019 11,046,339 (10,980,320) Excess (deficiency) of revenues
over (under) expenditures (9,044,049) (6,019) (10,776,030) (10,770,011) Other financing sources (uses)
Transfers in 9,104,049 18,574,226 10,773,712 (7,800,514) Transfers out - (787,083) (787,083) - Total other
financing sources (uses) 9,104,049 17,787,143 9,986,629 (7,800,514) Net change in fund balance 60,000 17,781,124 (789,401) (18,570,525) Fund balance at beginning of year 1,703,633 1,703,633 1,703,633 - Fund balance at end of year 1,763,633$ 19,484,757$ 914,232$ (18,570,525)$ Budgeted Amounts
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Packet Pg. 235
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
102
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Capital Projects Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 139,827$ 139,827$ Miscellaneous revenues - - 510,000 510,000 TOTAL REVENUES - - 649,827 649,827 Expenditures
Current
Capital outlay 1,844,695 2,925,115 1,573,452 1,351,663 Excess (deficiency) of revenues
over (under) expenditures (1,844,695) (2,925,115) (923,625) 2,001,490 Other financing sources (uses)
Sale of bond proceeds 10,000,000 10,000,000 - (10,000,000) Transfers in - - 20,000,000 20,000,000 Total other
Financing sources (uses) 10,000,000 10,000,000 20,000,000 10,000,000 Net Change in Fund Balance 8,155,305 7,074,885 19,076,375 12,001,490 Fund Balance at Beginning of Year (272,797) (272,797) (272,797) - Fund Balance at End of Year 7,882,508$ 6,802,088$ 18,803,578$ 12,001,490$ Budgeted Amounts
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Packet Pg. 236
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
103
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ 67$ (433)$ Expenditures
Debt Service
Principal 550,000 550,000 550,000 - Interest and fees 219,300 219,300 210,800 8,500 Total expenditures 769,300 769,300 760,800 8,500 Excess (deficiency) of revenues
over (under) expenditures (769,300) (768,800) (760,733) 8,067 Other financing sources (uses)
Transfers in 762,825 762,825 768,825 6,000 Net change in fund balance (6,475) (5,975) 8,092 14,067 Fund balance at beginning of year 5,439 5,439 5,439 - Fund balance at end of year (1,036)$ (536)$ 13,531$ 14,067$ Budgeted Amounts
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Packet Pg. 237
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
104
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund
Year Ended June 30, 2021
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes -$ -$ 1,235,646$ 1,235,646$ Investment income - - 15,533 15,533 Total revenues - - 1,251,179 1,251,179 Expenditures
Debt Service
Interest and fees - - 1,762,597 (1,762,597) Excess (deficiency) of revenues
over (under) expenditures - - (511,418) (511,418) Other financing sources (uses)
Proceeds from the sale of bonds - - 23,171,626 23,171,626 Transfers out - - (20,000,000) (20,000,000) Total other
financing sources (uses) - - 3,171,626 3,171,626 Net change in fund balance - - 2,660,208 2,660,208 Fund balance at beginning of year 1,114,130 1,114,130 1,114,130 - Fund balance at end of year 1,114,130$ 1,114,130$ 3,774,338$ 2,660,208$ Budgeted Amounts
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Packet Pg. 238
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
105
City of Campbell
Internal Service Funds
June 30, 2021
Account for goods or services provided to other departments of the City where the intent of the City is that the costs of these goods or services are to be recovered through interdepartmental charges at the time that the goods are delivered, or the services rendered to those departments.
Motor Vehicle Pool
Accounts for the costs of operating maintaining and replacing vehicle and other equipment used by City departments. Rental rates charged to user departments include costs and equipment depreciation.
Workers’ Compensation Self-Insurance
Accounts for revenues derived from charges made to operating departments at rates based on the State Compensation Fund annually adjusted to ensure an adequate reserve for future claims. This fund is charged for administrative costs of settling claims, as well as material and other costs of job-related illness or injury.
Information Technology Services
Accounts for the costs of operating maintaining and replacing computer hardware and software. Rental rates charged to the user departments include operating costs and equipment depreciation.
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Packet Pg. 239
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
106
City of Campbell
Combining Statement of Net Position – Internal Service Funds June 30, 2021
Motor Workers' Information
Vehicle Compensation Technology
Pool Self-Insurance Services Total
Assets
Current assets
Cash and investments -$ 4,073,351$ 234,595$ 4,307,946$ Accounts receivable - 1,954 7,597 9,551 Deposits - 90,000 - 90,000 Total current assets - 4,165,305 242,192 4,407,497 Noncurrent assets
Capital assets, net of accumulated depreciation 1,165,487 - 323,480 1,488,967 Total noncurrent assets 1,165,487 - 323,480 1,488,967 Total assets 1,165,487 4,165,305 565,672 5,896,464 Liabilities
Current liabilities
Accounts payable 45,217 38,789 19,243 103,249 Accrued payroll 23,726 - 30,296 54,022 Due to other funds 544,368 - - 544,368 Compensated absences, current portion 27,658 - 40,561 68,219 Claims and judgments payable, current portion - 476,174 - 476,174 Total current liabilities 640,969 514,963 90,100 1,246,032 Noncurrent liabilities
Compensated absences 28,222 - 55,405 83,627 Claims and judgments payable - 3,110,543 - 3,110,543 Total noncurrent liabilities 28,222 3,110,543 55,405 3,194,170 Total liabilities 669,191 3,625,506 145,505 4,440,202 Net position
Investments in capital assets 1,165,487 - 323,480 1,488,967 Unrestricted (669,191) 539,799 96,687 (32,705) Total net position 496,296$ 539,799$ 420,167$ 1,456,262$
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Packet Pg. 240
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
107
City of Campbell
Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds Year Ended June 30, 2021
Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service Total
Operating revenues
Investment income -$ (14,382)$ (1,152)$ (15,534)$ Charges for services 1,101,068 638,874 1,161,992 2,901,934 Other 66,726 - 17,713 84,439 Total operating revenues 1,167,794 624,492 1,178,553 2,970,839 Operating expenses
Personnel services 474,918 - 687,933 1,162,851 Services and supplies 740,224 839,419 349,357 1,929,000 Depreciation 235,525 - 54,383 289,908 Total operating expenses 1,450,667 839,419 1,091,673 3,381,759 Operating gain (loss) (282,873) (214,927) 86,880 (410,920) Transfers
Transfers in 97,000 - 204,000 301,000 Transfers out (50,000) (649,734) (146,570) (846,304) Total transfers 47,000 (649,734) 57,430 (545,304) Net change in fund balance (235,873) (864,661) 144,310 (956,224) Fund balance at beginning of year 732,169 1,404,460 275,857 2,412,486 Fund balance at end of year 496,296$ 539,799$ 420,167$ 1,456,262$
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Packet Pg. 241
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
108
City of Campbell
Combining Statement of Cash Flows – Internal Service Funds Year Ended June 30, 2021
Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service Tota l
Cash flows from operating activities
Cash received from department users 1,168,651 $ 637,480$ 1,175,251$ 2,981,382$ Cash payments to suppliers of goods and services (706,530) (575, 475) (373,362) (1,655,367) Cash payments to employees for services (464,413) - ( 651,225) (1,115,638) Net cash provided (used)
by operating activities (2,292) 62,005 150,664 210,377 Cash flows from noncapital
financing activities
Cash received from other funds 97,000 - 204, 000 301,000 Investment earnings
Cash paid to other funds (15,142) (649, 734) (146,570) (811,446) Net cash provided by
noncapital financing activities 81,858 (649, 734) 57,430 (510,446) Cash flows from capital and related financing activities Acquisition of capital assets (79,566) - ( 161,036) (240,602) Net cash used by capital and
related financing activities (79,566) - ( 161,036) (240,602) Net increase (decrease) in
cash and cash equivalents - (587, 729) 47,058 (540,671) Cash and cash equivalents
at beginning of year - 4,661, 080 187,537 4,848,617 Cash and cash equivalents
at end of year -$ 4,073, 351$ 234,595$ 4,307,946$ Reconciliation of opearting income (loss)
to net cash provided (used) by operating activities
Operating income (loss) (282,873)$ (214, 927)$ 86,880$ (410,920)$ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 235,525 - 54, 383 289,908 Changes in operating assets and liabilities .
(Increase) decrease in accounts receivables 857 12,988 (3,302) 10,543 Increase (decrease) in accounts payable 33,694 20,015 (24,005) 29,704 Increase (decrease) in accrued payroll 6,045 - 4, 497 10,542 Increase (decrease) in compensation absences 4,460 - 32, 211 36,671 Increase (decrease) in claims and judgements payable - 243,929 - 243,929 Net cash provided (used)
by operating activities (2,292)$ 62,005$ 150,664$ 210,377$
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Packet Pg. 242
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
109
City of Campbell
Custodial Funds
June 30, 2021
Custodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Entity-wide financial statements but are presented in separate Fiduciary Fund financial statements.
Account for assets held by the City on behalf of other organizations are as follows:
West Valley Solid Waste Management Authority
Accounts for the monies of the West Valley Solid Waste Management Authority. The City acts as custodian for the operating resources of the entity.
1915 Acts Bonds
Accounts for the assessments received and the payment of principal and interest under the Improvement Bond Act of 1915.
Santa Clara County Specialized Enforcement Task Fund (SCCSET)
Accounts for the monies of the Santa Clara County Specialized Enforcement Task Force. The City acts as custodian for the operating resources of the task force.
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Packet Pg. 243
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
110
City of Campbell
Combining Statement of Fiduciary Net Position – Custodial Funds June 30, 2021
West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Assets
Cash and investments 289,722$ 32,094$ 1,783,176$ 2,104,992$ Accounts receivable 139 15 - 154 Total assets 289,861 32,109 1,783,176 2,105,146 Liabilities
Accounts payable 15,186 - - 15,186 Net Position
Restricted for individuals
and organizations 274,675$ 32,109$ 1,783,176$ 2,089,960$
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Packet Pg. 244
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
111
City of Campbell
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds Year Ended June 30, 2021
West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Additions
Local government-administered
contributions 747,268$ -$ -$ 747,268$ Other income 21,376 - 673,867 695,243 Investment income (842) (88) - (930) Total additions 767,802 (88) 673,867 1,441,581 Deductions
Professional and special services 317,731 - - 317,731 Administrative 450,000 - 538,469 988,469 Total deductions 767,731 - 538,469 1,306,200 Change in net position 71 (88) 135,398 135,381 Net position at beginning of year, restated 274,604 32,197 1,647,778 1,954,579 Net position at end of year 274,675$ 32,109$ 1,783,176$ 2,089,960$
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Packet Pg. 245
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
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Packet Pg. 246
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
Statistical Section (Unaudited)
June 30, 2021
City of Campbell
eidebailly.com
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Packet Pg. 247
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 112
City of Campbell
Description of Statistical Section Contents
Year Ended June 30, 2021
This
part of the City of Campbell, California’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.
Con
tents:
Pages
Financial Trends theses schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 113 - 117
Revenue Capacity these schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 118 - 121 Debt Capacity these schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 122 - 125 Demographic and Economic Information these schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 126 - 127 Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 128 - 130 Sou
rces:
Unl
ess otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 113
City of Campbell
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
$(40,000,000)
$(20,000,000)
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
Net of Related Debt Restricted Unrestricted
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Packet Pg. 249
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written 114
City of Campbell
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
2012 2013 2014 2015 2016
Governmental activities: (A) (B)
Net investments in
capital assets 11,036,245$ 15,612,650$ 17,024,512$ 22,884,579$ 26,997,661$ Restricted 13,973,818 20,802,425 22,841,487 21,868,884 23,616,442 Unrestricted 25,667,911 19,239,382 22,067,786 (20,170,607) (12,748,328) Total governmental activities net position 50,677,974$ 55,654,457$ 61,933,785$ 24,582,856$ 37,865,775$ Primary government:
Net investments in
capital assets 11,036,245$ 15,612,650$ 17,024,512$ 22,884,579$ 26,997,661$ Restricted 13,973,818 20,802,425 22,841,487 21,868,884 23,616,442 Unrestricted 25,667,911 19,239,382 22,067,786 (20,170,607) (12,748,328) Total primary government net position 50,677,974$ 55,654,457$ 61,933,785$ 24,582,856$ 37,865,775$ Expenses
2017 2018 2019 2020 2021
Governmental activities:
Net investments in
capital assets 34,884,223$ 38,177,017$ 47,429,206$ 48,798,520$ 56,200,867$ Restricted 17,077,829 15,970,726 17,211,524 20,196,004 21,541,280 Unrestricted (12,358,383) (21,605,385) (24,121,289) (32,631,237) (37,922,516) Total governmental activities net position 39,603,669$ 32,542,358$ 40,519,441$ 36,363,287$ 39,819,631$ Primary government:
Net investments in
capital assets 34,884,223$ 38,177,017$ 47,429,206$ 48,798,520$ 56,200,867$ Restricted 17,077,829 15,970,726 17,211,524 20,196,004 21,541,280 Unrestricted (12,358,383) (21,605,385) (24,121,289) (32,631,237) (37,922,516) Total primary government net position 39,603,669$ 32,542,358$ 40,519,441$ 36,363,287$ 39,819,631$ comply with provision in GASB 54.
(B) Reported Pension Liability resulted in a negative $20.1 million of unrestricted in net position in order to comply with provision of GASB 68.
(A) Dissolution of the Redevelopment Agency on 1/31/2012 resulted in a $17.2 million reduction in net position.
Fiscal Year Ended June 30,
Fiscal Year Ended June 30,
(A) Activities previously classified as Unrestricted have been reclassified to Restricted in order to
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Packet Pg. 250
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 115
City of Campbell
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses:
Governmental activities:
General government 4,768,208$ 5,895, 629$ 5,165,958$ 6,146,700$ 6,679,357$ 9,472,432$ 7,671,343$ 7,315,270$ 8,363,548$ 7,740,547$ Public safety 19,808,247 20,871, 425 20,361,802 21,022,373 22,179,057 23,679,842 27,628,421 29,623,711 31,160,818 31,982,827 Public Works 9,756,513 9,397, 310 9,945,032 11,194,915 10,595,886 11,122,831 15,187,009 13,981,288 15,040,395 12,994,559 Community Development 6,124,075 2,119, 263 1,787,491 2,047,303 2,590,034 3,111,691 3,484,767 3,661,787 4,166,582 2,938,422 Recreation and Community Services 3,938,036 5,164, 889 5,297,874 5,613,775 5,689,721 6,166,806 6,894,086 7,183,132 6,765,508 4,281,719 Interest on long-term debt 1,791,038 1,013, 545 990,140 965,225 936,250 579,013 336,577 330,687 324,934 1,056,277 Total Primary Government Expenses 46,186,117 44,462, 061 43,548,297 46,990,291 48,670,305 54,132,615 61,202,203 62,095,875 65,821,785 60,994,351 Program Revenues:
Governmental activities:
Charges of services:
General government - 1,201 1, 492,558 1,478,895 1,624,617 1,602,647 1,586,881 18,592 9,375 342 Public safety 789,476 685,552 684, 986 686,364 740,750 790,163 857,212 693,216 787,204 409,743 Public Works 1,150,645 2,421, 622 2,696,169 2,787,091 3,443,486 3,464,407 3,178,780 3,522,641 3,530,034 4,289,206 Community Development 2,090,710 3,372, 735 2,851,264 2,072,487 4,375,330 3,335,990 2,947,460 2,817,123 2,257,036 2,857,170 Recreation and Community Services 4,918,137 3,592, 223 3,887,599 3,831,513 3,822,648 4,136,749 4,142,115 5,946,637 4,536,171 3,225,350 Operating Grants and Contribution 4,418,376 2,313, 510 3,725,646 4,133,704 5,437,108 2,316,936 2,789,656 3,512,647 4,681,319 7,135,599 Capital Grants and Contributions 3,117,438 3,117, 506 1,760,526 1,744,822 3,240,726 1,688,085 534,583 634,321 2,595,822 3,537,522 Total Primary Government Program Revenues 16,484,782 15,504, 349 17,098,748 16,734,876 22,684,665 17,334,977 16,036,687 17,145,177 18,396,961 21,454,932 Net (Expense)/Revenue:
Total primary government net revenue (29,701,335) (28, 957,712) (26,449,549) (30,255,415) (25,985,640) (36,797,638) (45,165,516) (44,950,698) (47,424,824) (39,539,419) General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property tax 11,893,082 10,621, 755 11,134,726 12,297,621 13,161,587 14,191,181 15,251,542 16,921,874 19,812,728 21,009,102 Sales Tax 11,777,407 12,649, 768 13,115,263 13,915,291 14,818,495 14,297,751 14,859,014 15,684,222 13,965,745 14,006,163 Transient Occupancy Tax 2,578,323 2,875, 976 3,417,412 4,091,923 4,439,668 4,420,208 4,554,949 4,768,870 3,144,208 1,568,908 Franchise Fees 2,657,964 2,776, 192 2,917,263 3,322,031 3,319,603 3,478,916 3,586,297 3,515,547 3,527,926 3,458,300 Business License Taxes 598,342 625,050 647,872 662,787 683,445 694,569 698,184 693,263 664,071 666,642 Property Transfer Taxes 199,791 285,292 354,112 526,054 551,007 467,990 761,583 519,407 566,794 542,456 Construction Taxes 87,701 67,920 212,522 50,710 338,718 208,373 85,406 26,451 50,505 143,066 Motor Vehicle In Lieu 20,214 20,946 17,335 26,321 69,109 19,077 45,523 20,494 34,231 135,448 Investment earnings 221,274 329,371 621,301 529,495 487,662 171,257 181,016 1,040,069 1,062,566 122,547 Miscellaneous 471,107 627,170 291,071 153,958 1,399,265 586,210 436,370 293,126 439,896 1,343,131 Total Primary Government 30,505,205 30,879, 440 32,728,877 35,576,191 39,268,559 38,535,532 40,459,884 43,483,323 43,268,670 42,995,763 Change in Net Position
Governmental activities 803,870 1,921, 728 6,279,328 5,320,776 13,282,919 1,737,894 (4,705,632) (1,467,375) (4,156,154) 3,456,344 Extraordinary Loss (18,006,154) (a) (1,159,962) (b) - - - - - - - - Total primary government (17,202,284)$ 761,766$ 6,279,328$ 5,320,776$ 13,282,919$ 1,737,894$ (4,705,632)$ (1,467,375)$ (4,156,154)$ 3,456,344$ (a) Extraordinary gain resulted from the State mandated dissolution of the Redevelopment Agency (RDA) as of 1/31/2012. (b) Housing rehabilitation loans transferred to the County due to dissolution of RDA.
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Packet Pg. 251
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written 116
City of Campbell
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) $(10,000,000)
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
Non-Spendable Committed Assigned Unassigned Total General Fund Total General Fund Restricted Committed Assigned Unassigned 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Non-Spendable -$ 12,782$ -$ -$ -$ -$ -$ -$ -$ -$ Committed 19,816,774 20,748,137 22,443,923 22,930,342 25,392,112 23,896,221 21,592,089 21,743,948 5,192,639 4,296,174 Assigned 1,414,030 1,681,171 1,881,401 2,176,615 3,830,100 4,027,890 4,528,546 4,257,115 3,757,823 3,643,857 Unassigned 1,013,113 987,225 1,104,285 961,258 1,000,000 999,994 360,129 1,026,759 13,322,046 12,976,419 Total General Fund 22,243,917$ 23,429,315$ 25,429,609$ 26,068,215$ 30,222,212$ 28,924,105$ 26,480,764$ 27,027,822$ 22,272,508$ 20,916,450$ All Other Governmental Funds
Restricted 17,983,177$ 20,467,472$ 22,443,840$ 21,623,743$ 23,493,450$ 16,993,836$ 15,772,926$ 17,211,524$ 20,250,454$ 40,615,483$ Committed - - - - 1,223,623 - - - - -
Assigned 93,599 303,127 371,381 108,767 140,666 1,758,104 1,747,982 1,715,955 1,703,633 914,232 Unassigned (70,955) (1,411,586) (44,852) (1,234,364) (2,414,736) (2,064,713) (498,452) (242,428) (311,506) (1,424,397) Total all other governmental funds 18,005,821$ 19,359,013$ 22,770,369$ 20,498,146$ 22,443,003$ 16,687,227$ 17,022,456$ 18,685,051$ 21,954,087$ 40,105,318$
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Packet Pg. 252
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written 117
City of Campbell
Changes in Fund Balances of Governmental Fund
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes 29,804,611$ 29,913, 954$ 31,811,171$ 34,881,417$ 37,324,522$ 37,768,238$ 39,809,475$ 42,145,259$ 41,269,352$ 41,967,223$ License, permits and fees 2,676,684 2,914, 942 4,852,752 2,839,871 6,900,052 3,873,976 3,214,847 3,232,524 3,714,070 4,493,838 Special Assessments 1,135,465 1,139, 132 1,309,750 1,329,637 1,369,696 1,387,853 1,377,069 1,469,308 1,391,283 1,398,933 Fines and forfeitures 354,359 302,199 332,100 354,445 324,137 320,193 345,627 704,030 694,347 547,469 Use of money and property 2,095,435 2,259, 585 2,567,440 2,604,602 2,746,371 2,829,484 3,115,345 4,273,538 3,492,676 2,065,292 Intergovernmental revenues 3,723,529 2,957, 860 4,626,035 3,880,357 5,346,920 4,172,179 4,630,928 3,262,896 6,466,424 10,440,661 Changes for services 4,059,731 4,150, 652 4,256,235 4,422,552 4,491,002 4,623,876 4,897,185 4,784,243 3,268,310 2,566,943 Other 3,246,290 1,110, 711 1,275,310 1,117,511 2,237,463 1,200,939 981,249 1,105,429 610,516 1,373,431 Total Revenues 47,096,104 44,749, 035 51,030,793 51,430,392 60,740,163 56,176,738 58,371,725 60,977,227 60,906,978 64,853,790 Expenditures
Current:
General government 4,380,461 4,915, 926 5,210,662 5,673,874 6,220,587 8,543,097 6,832,027 7,245,353 8,194,825 7,266,166 Public safety 19,384,848 20,379, 876 20,299,917 21,049,851 23,007,615 24,544,078 25,837,666 27,423,109 29,132,295 31,419,241 Public works 10,156,056 9,012, 996 9,040,957 10,305,115 10,506,080 11,493,731 12,576,675 10,940,940 11,170,432 10,748,474 Community development 6,090,582 2,087, 094 1,791,094 2,063,640 2,702,702 3,230,153 3,166,797 3,387,115 3,608,339 2,938,030 Recreation and Community Services 4,721,100 4,841, 625 4,983,642 5,340,786 5,611,544 6,080,395 6,235,452 6,663,662 5,854,410 4,018,010 Capital outlay 201,883 2,191, 794 2,512,727 6,773,543 4,675,614 2,487,393 4,878,204 2,103,720 3,878,985 12,550,723 Debt services:
Principal repayment 1,745,000 715,000 740,000 775,000 810,000 625,000 595,000 605,000 535,000 1,690,000 Interest and fiscal changes 1,688,531 892,369 861,944 829,600 793,300 176,642 259,200 244,275 227,076 833,397 Bond issuance costs - - - - - 209,762 - - - -
Payments to refunding escrow agent - - - - - 6,203,790 - - - - Total Expenditures 48,368,461 45,036, 680 45,440,943 52,811,409 54,327,442 63,594,041 60,381,021 58,613,174 62,601,362 71,464,041 Excess (deficiency) of revenues over
(under) expenditures (1,272,357) (287, 645) 5,589,850 (1,381,017) 6,412,721 (7,417,303) (2,009,296) 2,364,053 (1,694,384) (6,610,251) Other Financing Sources (Uses)
Transfers In 14,780,957 7,533, 103 7,489,674 11,266,904 10,100,282 9,809,123 10,383,455 6,759,234 8,251,100 40,785,100 Transfers Out (14,711,057) (7, 478,203) (7,667,874) (11,519,504) (10,414,149) (9,659,635) (10,481,271) (6,913,634) (8,354,500) (40,239,796) Extraordinary Loss (4,593,067) (1, 159,962) - - - - - - - - Issuance of debt - - - - - 8,085,000 - - - -
Premium from bond issuance - - - - - 1,090,835 - - - - Payments to refunding escrow agent - - - - - (8,962,993) - - - - Total other financing sources (uses) (4,523,167) (1, 105,062) (178,200) (252,600) (313,867) 362,330 (97,816) (154,400) (103,400) 545,304 Net Change in fund balances (5,795,524)$ (1, 392,707)$ 5,411,650$ (1,633,617)$ 6,098,854$ (7,054,973)$ (2,107,112)$ 2,209,653$ (1,797,784)$ (6,064,947)$ Debt service as a percentage of
noncapital expenditures 7.1% 3.8% 3. 7% 3.5% 3.2% 11.5% * 1.5% 1.5% 1.3% 4.3% * 2017 Debt service as a percentage of noncapital expenditures is calculated by taking the sum of the principal repayment, interest and fiscal changes, and payments to refunding escrow agent by Total expenditures less capital outlay.
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Packet Pg. 253
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written 118
City of Campbell
Assessed and Estimated Actual – Value of Taxable Property Last Ten Fiscal Years
$-
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
S ec ured Unsecured
Total Total
Fiscal Secured HOPTR SBE S ecured Unsecured Total Direct Year Property Exemptions Utilities Value Property Assessed (a) Tax Rate (b) 2012 6,042,798,505$ 46,079,600$ 145,750$ 6,089,023,855$ 253,185,951$ 6,342,209,806$ 1% 2013 6,155,290,542 45,424,400 145,750 6,200,860,692 280,367,332 6,481,228,024 1% 2014 6,903,997,112 46,993,800 145,750 6,951,136,662 284,251,723 7,235,388,385 (c) 1% 2015 7,361,679,060 46,186,046 172,250 7,408,037,356 288,458,347 7,696,495,703 1% 2016 7,912,201,031 45,357,200 172,250 7,957,730,481 273,569,603 8,231,300,084 1% 2017 8,522,484,862 45,200,400 172,250 8,567,857,512 290,398,591 8,858,256,103 1% 2018 9,158,664,046 44,251,200 172,250 9,203,087,496 276,228,712 9,479,316,208 1% 2019 9,866,148,537 43,876,000 238,500 9,910,263,037 276,847,459 10,187,110,496 1% 2020 10,724,368,314 43,384,600 238,500 10,767,991,414 295,779,677 11,063,771,091 1% 2021 11,446,319,015 42,973,000 238,500 11,489,530,515 318,127,779 11,807,658,294 1% Source: Santa Clara County Assessor's Office
(a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. (b) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. The City of Campbell encompasses more than 20 tax rate areas. (c) Total assessed value increased 11.6% due primarily to the annexation of several County pockets in 2013.
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Packet Pg. 254
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written 119
City of Campbell
Property Tax Rates – All Overlapping Governments
Last Ten Fiscal Years
0.0 0.2
0.4 0.6
0.8 1.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Per Hundred $
A xis Title
City of Campbell Housing Bond SCVWD State Project Library Retirement Hospital Facilities Bond West Valley College SCC Retirement High School Bonds Elem or Unified Schools Basic Direct Tax Rate Elem or
Basic Unified High SCVWD West Hospital
Expenses Direct SCC Library Cit y of School School State Valley Facilities Housing Year Tax Rate Retirement Reti rement Campbell Bonds Bonds Project College Bond Bond Total 2012 1.0000 0.0388 0.0024 0. 0000 0.0244 0.0342 0.0064 0.0137 0.0047 0.00000 1.1246 2013 1.0000 0.0388 0.0024 0. 0000 0.0251 0.0325 0.0069 0.0289 0.0051 0.00000 1.1397 2014 1.0000 0.0388 0.0024 0. 0000 0.0231 0.0290 0.0070 0.0255 0.0035 0.00000 1.1293 2015 1.0000 0.0388 0.0024 0. 0000 0.0517 0.0284 0.0065 0.0120 0.0091 0.00000 1.1489 2016 1.0000 0.0388 0.0024 0. 0000 0.0467 0.0257 0.0057 0.0232 0.0088 0.00000 1.1513 2017 1.0000 0.0388 0.0024 0. 0000 0.0442 0.0252 0.0086 0.0196 0.0086 0.00000 1.1474 2018 1.0000 0.0388 0.0024 0. 0000 0.0437 0.0519 0.0062 0.0200 0.0082 0.01266 1.1839 2019 1.0000 0.0388 0.0024 0. 0000 0.0418 0.0487 0.0042 0.0198 0.0072 0.01050 1.1734 2020 1.0000 0.0388 0.0024 0. 0100 0.0415 0.0436 0.0041 0.0296 0.0069 0.01000 1.1869 2021 1.0000 0.0388 0.0024 0. 0100 0.0415 0.0439 0.0037 0.0311 0.0069 0.00000 1.1783 Source: Santa Clara County Assessors Office
Note
: In 1978, California voters passed Proposition 13 which set property tax rate at a fixed amount of 1.00% of assessed value.
Each year, the assessed values may be increased by the California consumer price index (CPI), not to exceed 2.0%. Properties are reassessed at market value upon sale. The 1.0% tax levy is shared by all jurisdictions within the County. Based upon the Assessors report for 2019-20 the levy was distributed as follows:
School Districts 44% Community Colleges 7%
Cities 14% Special Districts 6%
Other (Successor Agencies) 11% County 18%
Total 100%
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Packet Pg. 255
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 120
City of Campbell
Principal Property Taxpayers
Current Year and Ten Years Ago
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Pruneyard Regengy LLC 212,500,000$ 1 1.80%
Pruneyard Office Investors LLC 160,344,000 2 1.36% AG-SW Hamilton Plaza Owner L P 148,293,197 3 1.26% Revres LLC 123,716,183 4 1.05%
Bravista Parcelco II LLC 117,877,318 5 1.00%
Parc Residences LLC 109,948,516 6 0.93%
675 Creekside Owner LLC 104,525,402 7 0.89%
Campbell Technology Pk LLC 84,970,777 8 0.72% 72,533, 204 2 1.15% Raintree Campbell LLC 70,097,692 9 0.59%
Railway Campbell LLC 69,781,322 10 0.59%
Blackhawk Parent LLC 168,719,810 1 2.68%
Legacy III Campbell LLC 63,675,894 3 1.01%
Hines VAF No Cal Properties LP 60,235,189 4 0.96% Buzolich Marc W Trustee & Et Al 50,347,764 5 0.80% Bay Apartment Communities Inc 48,867,260 6 0.78%
Fund X PY Campbell LLC 47,750,718 7 0.76%
Essex The Commons LP 42,538,752 8 0.67%
Allergen Sales LLC 30,164,067 9 0.48%
Dell Industrial Campbell LLC 29,081,063 10 0.46%
1,202,054,407$ 10.19% 613,913,721$ 9.75%
Total Net Assessed Valuation
Fiscal Year 2020-2021 11,807,658,294$
Fiscal Year 2011-2012 6,302,265,402
Source: Santa Clara Tax Assessor's Office.
2020-21 2011-12
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Packet Pg. 256
Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 121
City of Campbell
Property Tax Levies and Collections
Last Ten Fiscal Years
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Tax Levy (a) Tax Collections
Percent
of Total
Current Percent Delinquent Total Tax
Fisal Total Tax of Levy Tax Tax Collections
Year Tax Levy (a) Collections Collected Collections Collections to Tax Levy 2012 11,893,082$ 11,893,082$ 100% -$ 11,893,082$ 100% 2013 10,621,754 10,621,754 100% - 10,621,754 100%
2014 11,134,726 11,134,726 100% - 11,134,726 100%
2015 12,297,621 12,297,621 100% - 12,297,621 100%
2016 13,161,587 13,161,587 100% - 13,161,587 100%
2017 14,191,181 14,191,181 100% - 14,191,181 100%
2018 16,058,014 16,058,014 100% - 16,058,014 100%
2019 16,882,323 16,882,323 100% - 16,882,323 100%
2020 19,812,728 19,812,728 100% - 19,812,728 100%
2021 20,965,132 20,965,132 100% - 20,965,132 100%
Source: City of Campbell Records
NOTE
S: Proposition 13 approved by the voters in 1978 provided for a maximum tax rate. The proceeds are apportioned to the various taxing entities on a formula basis. In 1981 – 1982 the basis of assessed valuation was adjusted to full cash value upon resale or new construction, rather than the previous 25 percent estimate. The property tax levy was not to exceed one percent. (a) Inc
ludes RDA in total tax levy through 1/31/2012.
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City of Campbell
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal
Tax Allocation
Lease Revenue
Bonds and
Certificates of
Total
Primary
Percentage of
Personal Per
Year Bonds (b) Participation (c) Government Income (a) Capita (a) 2012 -$ 20,201, 391$ 20,201,391$ 0.7452% 506.53 2013 - 19,614,880 19,614,880 0.6920% 485.47 2014 - 19,010,976 19,010,976 0.6470% 452.72 2015 - 18,380,066 18,380,066 0.6290% 439.12 2016 - 17,722,700 17,722,700 0.5742% 416.18 2017 - 11,359,261 11,359,261 0.3481% 265.86 2018 - 10,844,548 10,844,548 0.3157% 253.99 2019 - 10,329,913 10,329,913 0.2863% 238.85 2020 - 9,895,985 9,895,985 0.2347% 234.01
2021 - 9,458,411 9,458,411 0.2202% 227.73
Note: De
bt amounts exclude any premiums, discounts, or other amortization amounts.
RDA tax allocation bonds are included in total debt through 1/31/2012.
Sour
ces: City of Campbell
State of California, Department of Finance (population) U.S. Department of Commerce, Bureau of the Census (income) (a) Se
e page 126 (Demographic Statistics) for personal income and population data. (b) Tax allocation bonds related to the RDA dissolution are no longer an obligation of the City. (c) Certificates of Participation were refinanced in 2017. A portion of the Certificates related to the Campbell Successor Agency was repaid during the refinancing.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 123
City of Campbell
Computation of Direct and Overlapping Debt
June 30, 2021
Amount
Net Debt Applicable Applicable to
Outstanding Percentage (1) City of Campbell
Santa Clara County 812,685,000$ 2.143% 17,415,840$
West Valley - Mission Community College District 589,080,000 7.432% 43,780,426 Campbell Union High School District 357,945,000 21.375% 76,510,744 Cambrian School District 62,324,944 31.158% 19,419,206 Campbell Union School District 211,274,895 31.486% 66,522,013 Moreland School District 127,582,251 12.865% 16,413,457 City of Campbell 18,860,000 100.000% 18,860,000
Midpeninsula Regional Open Space District 86,400,000 0.027% 23,328 Santa Clara County Valley Water District benefit Assessment District 57,010,000 2.143% 1,221,724 260,166,738$
Santa Clara County General Fund Obligations 914,957,860$ 2.143% 19,607,547$ Santa Clara County Pension Obligations Bonds 341,399,194 2.143% 7,316,185 Santa Clara County Board of Education Certificates of Participation 2,670,000 2.143% 57,218 West Valley - Mission Community College District General Fund Obligations 49,850,000 7.432% 3,704,852 Campbell Union High School District General Fund Obligations 20,000,000 21.375% 4,275,000 Campbell Union School District General Fund Obligations 2,180,000 31.486% 686,395 City of Campbell General Fund Obligations 8,822,091 100.000% 8,822,091 Midpeninsula Regional Open Space District General Fund Obligations 106,000,600 0.027% 28,620 Santa Clara County Vector Control District Certificates of Participation 1,765,000 2.143% 37,824 SUB-TOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT 44,535,732$ Less: Santa Clara County supported obligations 541,692
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 43,994,040$ OVERLAPPING TAX INCREMENT DEBT (Successor agency): 17,425,000 100.000% 17,425,000$ TOTAL DIRECT DEBT 27,682,091$
TOTAL GROSS OVERLAPPING DEBT 294,445,379$
TOTAL NET OVERLAPPING DEBT 293,903,687$
GROSS COMBINED TOTAL DEBT 322,127,470$
NET COMBINED TOTAL DEBT (excludes County supported item) 321,585,778$ Ratios to 2020-21 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.20%
Total Direct Debt ($27,682,091) 0.23%
Gross Combined Total Debt 2.73%
Net Combined Total Debt 2.72%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,308,323,372):
Total Overlapping Tax Increment Debt 1.33%
OVERLAPPING GENERAL FUND DEBT
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
(1) The percentage of overlapping debt applicable to the town is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the town divided by the district's total taxable assessed value.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 124
City of Campbell
Computation of Legal Bonded Debt Margin
Last Ten Fiscal Years
Total
Net Debt Legal
Fiscal Assessed Debt Limit Applicable Debt
Year Value 3.75% (1) to Limit Margin
2012 6,342,209,806$ 237,832,868$ -$ 237,832, 868$ 2013 6,481,228,024 243,046,051 - 243,046,051
2014 7,235,388,385 271,327,064 - 271,327,064
2015 7,696,495,703 288,618,589 - 288,618,589
2016 8,231,300,084 308,673,753 - 308,673,753
2017 8,858,256,103 332,184,604 - 332,184,604
2018 9,479,316,208 355,474,358 - 355,474,358
2019 10,187,110,496 382,016,644 - 382,016,644
2020 11,063,771,091 414,891,416 - 414,891,416
2021 11,807,658,294 442,787,186 18,860,000 423,927,186
(1) Pursuant to California Government Code Section 43605 (15% of 25% of full cash value).
Source: City of Campbell Finance Department.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 125
City of Campbell
Bonded Debt Pledged Revenue Coverage – Redevelopment/Successor Agency Tax Allocation Bonds Last Ten Fiscal Years
Tax Interest and Total
Fiscal Increment Fiscal Debt
Year Revenue Principal Charges Service Coverage
2012 2,180,452$ 1,060,000$ 1,107,923$ 2,167,923$ 1.01 2013 1,377,810 300,000 1,077,810 1,377,810 1.00
2014 1,375,013 310,000 1,065,013 1,375,013 1.00
2015 1,376,201 325,000 1,051,201 1,376,201 1.00
2016 1,376,380 340,000 1,036,380 1,376,380 1.00
2017 652,867 335,000 317,867 652,867 1.00
2018 1,821,338 1,355,000 466,338 1,821,338 1.00
2019 1,595,695 1,170,000 425,695 1,595,695 1.00
2020 1,590,741 1,175,000 415,741 1,590,741 1.00
2021 1,590,737 1,200,000 390,737 1,590,737 1.00
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 126
City of Campbell
Demographic and Economic Statics
Last Ten Fiscal Years
2.08%
2.10%
2.12%
2.14%
2.16%
2.18%
2.20%
2.22%
2.24%
2.26%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City Population % of County
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Personal Income
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
0 2 4 6 8 10 12
Per Capita Personal Income
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Unemployment Rate
Calendar Population Personal Per Capita Personal Unemployment Santa Clara City Population % 2012 39,882 2,710,939 $ 67,974$ 7.5% 1, 816,486 2.20% 2013 40,404 2,834,381 70,151 5.8% 1,842,254 2.19% 2014 41,993 2,938,192 69,969 4.6% 1,868,558 2.25% 2015 41,857 2,921,953 69,808 2.8% 1,889,638 2.22% 2016 42,584 3,086,261 72,475 2.9% 1,927,888 2.21% 2017 42,726 3,262,837 76,367 2.5% 1,938,180 2.20% 2018 42,696 3,435,638 80,467 2.4% 1,956,598 2.18% 2019 43,250 3,607,941 83,421 2.4% 1,954,286 2.21% 2020 42,288 4,215,608 99,688 8.5% 1,961,969 2.16% 2021 41,533 4,294,776 103,406 4.5% 1,934,171 2.15% Sources: State of California, Department of Finance; Employment Development Department U.S. Department of Commerce, Bureau of Economic Analysis Note
: Unemployment rate for FY2011 is an average. FY2012-2016 are collected as of June 30 Per Capita Income for 2017 is adjusted using the California Department of Finance Change in Per Capita Income as reported in May 2016 (5.37%).
(1) Th
e City annexed several County pockets effective May 1, 2013.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 127
City of Campbell
Top Ten Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Chargepoint, Inc. 1,029 1 4.00%
8x8 Inc 742 2 2.89%
Barracuda Networks Inc. 315 3 1.23% 393 1 1.7%
Home Depot 230 4 0.89% 189 7 0.8%
Family Matters In-Home Care 210 5 0.82% 0.0%
Whole Foods Market 208 6 0.81% 250 4 1.1%
Moss Adams LLP 201 7 0.78% 0.0%
SAAMA Technologies 185 8 0.72% 182 8 0.8%
Bioreference Laboratories Inc 170 9 0.70% 0.0%
Groupware Technology 170 10 0.70% 0.0%
Safeway Inc 338 2 1.5%
Fry's Electronics 250 3 1.1%
Hunter Laboratories 200 5 0.9%
Yousendit Inc. 200 6 0.9%
Mohler, Nixon & Williams Accountancy 165 9 0.7%
City of Campbell 154 10 0.7%
Total City Labor Force 25,700 23,146
Source: City of Campbell - California Employment Development Department 2020-21 2011-12
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 128
City of Campbell
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
0 50
100
150
200
250
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function General government Public safety Pu blic work s Community development Recreation & community services
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General government 21.07 21.65 21. 72 23.88 25.28 26.26 25.35 24.45 24.55 22.30 Public safety 66.81 68.01 69. 01 70.01 70.01 73.01 74.13 76.33 76.83 72.37 Public works 46.67 47.42 50. 5 53.14 54.26 56.65 56.05 55.7 55.00 51.10 Community development 11.91 10.91 11. 51 13.51 15.55 16.1 16.77 16.77 16.77 15.14 Recreation & community
services 49.04 50.52 50.67 53. 48 56.37 57.49 58.5 57.73 58.57 31.81 Total 195.50 198.51 203.41 214. 02 221.47 229.51 230.80 230.98 231.72 192.72 Source: City of Campbell, California Budget Documents.
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
129
City of Campbell
Operating Indicators by Function/Program
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
Public safety
Fire:
Fire calls for service 72 70 76 90 81 67 72 90 84 78
Medical aid calls 1,931 1,946 1,886 1,966 2,177 2,318 2,354 2,174 2,102 2,044 Police:
Police calls for service 22,098 23,353 24,151 24,624 24,408 23,275 23,312 26,242 25,141 29,917 Law violations:
Arrests 1,535 1,660 1,835 2,141 2,183 2,027 2,080 1,898 1,347 1,657 Traffic violations 4,232 4,083 4,607 6,205 4,501 4,638 4,339 3,544 1,356 825 Parking violations 2,986 2,394 2,335 3,110 3,733 4,384 3,741 3,716 2,369 518 Public works
Miles of streets (major) 15 15 16 16 16 16 16 16 15 14
Miles of streets (secondary) 77 77 80 80 80 80 80 80 80 80 Potholes repaired 160 78 81 90 108 58 228 350 200
Culture and recreation:
Community services:
Recreation class participants 32,674 33,526 31,749 30,022 35,082 35,737 42,195 63,207 51,150 23,133 Performing Arts Center performances 10 7 8 8 6 6 7 6 4 0 Wastewater
Miles of sewers (storm) 50 50 50 50 50 50 59 59 59 59
Miles of sewers (sanitary - entire district) 618 618 618 618 618 618 602 602 602 602 Miles of sewers (sanitary - Campbell only) 158 158 158 158 158 158 168 168 168 168 Solid Waste
Refuse landfilled (tons per year) - 25,514 26,555 27,398 29,422 28,386 28,300 22,082 26,460 24,943 Green waste - - - - - 6,781 7,312 6,893 7,375 7,201 Recyclables processed (tons per year) 15,561 14,541 15,414 16,702 15,866 10,004 18,483 10,251 9,085 9,362
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written
130
City of Campbell
Capital Assets Statistics by Function/Program
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
Public works:
Miles of streets 92 96 96 96 96 96 96 96 96 94
Street lights 2535 2610 2610 2705 2705 2706 2715 2715 2800 2800 Traffic Signals 43 43 43 44 44 44 45 45 46 45
Culture and recreation:
Community services:
City parks 12 12 12 12 12 12 12 12 12 12
City park acreage 87 87 87 87 87 87 87 87 87 87
Playgrounds 7 7 7 7 7 7 8 8 8 8
City trails 1 1 1 1 1 1 1 1 1 1
City trails miles 3 3 3 3 3 3 3 3 3 3
Historic house (museum) 1 1 1 1 1 1 1 1 1 1
Community gardens 1 1 1 1 1 1 1 1 1 1
Community centers 1 1 1 1 1 1 1 1 1 1
Adult centers 1 1 1 1 1 1 1 1 1 1
Sports centers 1 1 1 1 1 1 1 1 1 1
Performing arts centers 1 1 1 1 1 1 1 1 1 1
Swimming pools 1 1 1 1 1 1 1 1 1 1
Tennis courts 8 8 8 8 8 8 4 4 4 4
Baseball/softball diamonds 3 3 3 3 3 3 3 3 3 3
Soccer/football fields 9 9 9 9 9 9 9 9 9 9
Library:
City Libraries 1 1 1 1 1 1 1 1 1 1
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Attachment: ACFR - FY2020-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written 1 Dec
ember 30, 2021
To the City Council of the
City of Campbell
Campbell, California
We have audited the financial statements of City of Campbell, California (City) as of and for the year ended June 30, 2021, and have issued our report thereon dated December 30, 2021. Professional standards require that we advise you of the following matters relating to our audit.
Our R
esponsibility in Relation to the Financial Statement Audit under Government Auditing Standards As co
mmunicated in our letter dated May 5, 2021, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We ar
e also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Pla
nned Scope and Timing of the Audit
We c
onducted our audit consistent with the planned scope and timing we previously communicated to you.
Com
pliance with All Ethics Requirements Regarding Independence The
engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
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Attachment: AU-C 260 Letter (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 2 Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management h
as the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. The City implemented the requirements of GASB Statement No. 84, Fiduciary Activities. As a result of adopting GASB 84, the City reclassified the presentation of its agency funds to a custodial funds, which included a restatement to beginning net position that is further described in Note 17. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions
and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past a
nd current events and assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are the amounts related to net pension liability, and net other-post employment benefits (OPEB) liability, and related deferred inflows and outflows
of resources, and claims liabilities.
Management’s estimate of the net pension liability, and net OPEB liability, and related deferred inflows and outflows of resources, and claims liabilities. are based on actuarial valuations. We evaluated the key factors and assumptions used to develop the net pension liability, and net OPEB liability, and related deferred inflows and outflows
of resources, and claims liabilities and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Financial Statement Disclosures
The City’s disclosure of the net pension liabilities and related deferred inflows and outflows of resources required by City’s reporting of the related information, are particularly sensitive. As disclosed in the notes, a 1% increase or decrease in the rates has a material effect on the City’s net pension and OPEB liability.
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Attachment: AU-C 260 Letter (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 3 Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions
identified during our audit. No significant unusual transactions identified as a result of our audit procedures were brought to the attention of management.
Significant Difficulties Encountered during the Audit
We e
ncountered no significant difficulties in dealing with management relating to the performance of the audit.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which
could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. For these purposes there has been a modification to our opinion.
An emphasis of matter paragraph has been included in the report as a result of implementation of Governmental
Accounting Standards Board (GASB) pronouncement 84, fiduciary activities. We express no opinion on neither the Required Supplementary Information nor Supplementary I nformation in the financial statements. Additionally, the audit was performed in accordance with Government Auditing Standards.
Representations Requested from Management
We have requested certain written representations from management which are included in t he management representation letter dated December 30, 2021.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
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Attachment: AU-C 260 Letter (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
4 Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Other Information in Documents Containing Audited Financial Statements
Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.
However, in accordance with such standards, we will review the information inputted into the data collection form and will consider whether such information, or the manner of its presentation, is materially consistent with the financial statements.
Additionally, with respect to the supplementary information accompanying the financial statements, we applied certain limited procedures to management's discussion and analysis and General fund, budgetary comparison schedules, pension schedules of contributions and proportionate share and other postemployment schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the Schedule of Expenditures of Federal Awards and other supplementary information, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
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Attachment: AU-C 260 Letter (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
5 Modification of the Auditor’s Report
We made the following modification to our auditor’s report.
Our Auditor’s Report is listed an Emphasis of Matter Paragraph related to implementation of GASB No. 84, Fiduciary Activities, as aforementioned in this letter.
This report is intended solely for the information and use of the City Council, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Menlo Park, California
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Attachment: AU-C 260 Letter (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) 1 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
To the H
onorable Mayor and Members of the City Council
of the City of Campbell
Campbell, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Campbell (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 30, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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Attachment: GAS Letter (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control)
2 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including compliance with, including Section 6666 of Title 21 of the California Code of Regulations, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or Section 6666 of Title 21 of the California Code of Regulations.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Menlo Park, California
December 30, 2021
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Attachment: GAS Letter (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on Internal Control) General Fund - Fund Balance Comparison
Fiscal Year Ending (FYE) June 30, 2020 to FYE June 30, 2021 Audited Audited
FYE 06/30/20 FYE 06/30/21 Variance Short Description
Restricted:
None -$ -$ -$ N o General Fund monies are restricted by external factors Total Restricted -$ -$ -$ Committed:
General plan update 277,411$ 250,460$ ( 26,951)$ A ccounts for General Plan (GP) expenses and GP Maint. Fees.
Compensated absences 1,028,759 1,202,662 173, 903 5 0% of noncurrent liability for absences.
Liability insurance 114,475 173,311 58, 836 S et at minimum of 100% of self-insured retention for claims.
Capital improvements reserve 1,579,450 1,609,113 29, 663 C IPR for General Fund funded capital projects. Target $5M.
Capital projects 1,509,835 771,825 ( 738,010) C arryover CIPR projects approved in prior years.
Workers' compensation 427,404 - ( 427,404) E liminated due to duplicity with Worker's Compensation Fund Heritage Theater 255,305 255,305 - F or use at Heritage Theater.
Community Center Facility - 33,498 33, 498 F or use at Community Center.
Total Committed 5,192,639$ 4,296,174$ ( 896,465)$ Assigned:
Capital projects 664,478$ 532,255$ ( 132,223)$ C onstruction tax funded capital projects.
Unemployment insurance 60,000 90,000 30, 000 F ixed amount to pay for anticipated unemployment costs.
PERS 2,252,000 2,252,000 - S et aside for pay down of PERS, trust, or cost mitigation.
OPEB 295,000 273,000 ( 22,000) A nnual required contribution for OPEB liabilities.
Other 486,345 496,602 10, 257 S et aside for operating encumbrance carryovers.
Total Assigned 3,757,823$ 3,643,857$ ( 113,966)$ Unassigned:
Unassigned, Undesignated 999,923 1,000,000 77 T o be maintained at $1M for operating cash flow purposes.
City council reserve 362,624 362,624 - C ouncil discretionary reserve for requests, recognition, etc.
Economic fluctuations 9,373,782 9,028,076 ( 345,706) 1 6.67% of Operating Expenditures for economic downturns.
Emergency 2,585,719 2,585,719 - 1 0% of Revenue for unexpected physical or fiscal emergency.
Total Unassigned 13,322,048$ 12,976,419$ ( 345,629)$ TOTAL FUND BALANCE 22,272,510 20,916,450 ( 1,356,060) Adopted GF Operating Budget 54,559,148 54,168,458 ( 390,690) Unassigned as % of Budget 24.42% 23.96%
Unassigned + PERS as % of Budget 28.55% 28.11%
Unassigned Reserve Stress Test (GFOA Guidance 16.67%)
$1 million deficit in FY 2022 (1,000,000) 22.11%
$2 million deficit in FY 2022 (2,000,000) 20.26%
$3 million deficit in FY 2022 (3,000,000) 18.42%
$4 million deficit in FY 2022 (4,000,000) 16.57%
$5 million deficit in FY 2022 (5,000,000) 14.73%
Unassigned + PERS Reserve Stress Test (GFOA Guidance 16.67%) $1 million deficit in FY 2022 (1,000,000) 26.27%
$2 million deficit in FY 2022 (2,000,000) 24.42%
$3 million deficit in FY 2022 (3,000,000) 22.57%
$4 million deficit in FY 2022 (4,000,000) 20.73%
$5 million deficit in FY 2022 (5,000,000) 18.88%
10.d
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Attachment: General Fund Comparison FYE 06-30-20 to 06-30-21 (Acceptance of Fiscal 2020-21 ACFR and Auditor’s Written Communication on
City
Council
Report
TITLE: Fiscal Year 21/22 Mid-Year Financial Update and Budget Adjustments (Resolution/Roll Call Vote)
RECOMMENDED ACTION
Staff recommends that the City Council accept the Fiscal Year 21/22 Mid-Year Financial Update Report and adopt a Resolution authorizing the Fiscal Year 21/22 Mid - Year Budget Adjustments.
BACKGROUND
The City’s Financial policies require staff to provide the City Council with a mid -year financial status update report each fiscal year. The report discusses how the City’s year- to-date actual results are progressing with respect to their prior-year actual and current- year budgeted revenues and expenditures, including a discussion of recommended budgetary adjustments, if any. The current mid -year report before Council is for Fiscal Year (FY) 2022 and the basis for year -end estimates is current trends through December 31, 2021, Executive Team analysis, and discussions with the City’s property and sales tax consultants. The main focus of this report will be the General Fund (101), which supports most of the City’s ongoing and essential operations, but recommended budgetary adjustments when necessary may also be included for other funds as well.
DISCUSSION
Attachment A of this report provides Council with a high -level overview of the items described above and incorporates mid -year budget corrections and requests, which are further detailed in Attachments B and C . For reference purposes, a full reconcil iation of the FY 2022 Adopted Budget to the FY 2022 Amended Budget is shown in Attachment D. This attachment provides a summary of Council approved budgetary adjustments since July 1, 2021, as well as any encumbrance and Capital Improvement Program (CIP) carryovers from FY 2021 that are still expected to be expended and any City Manager approved adjustments less than $5,000 that are within City Budget Policy.
General Fund Overview
As a whole, the economy is performing quite well , with many sectors return ing to or exceeding pre-pandemic levels, with the exception of the hospitality industry. And this is reflected in favorable year-to-date revenue numbers for the City, which will be explained Item: 11
Category: NEW BUSINESS
Meeting Date: February 1, 2022
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FY 2022 Mid-Year Update and Budget Adjustments Page 2 of 14 in more detail below. While inflationary, supply chain, and linge ring pandemic related issues provide headwinds for economic growth, staff and its consultants still expect strong growth throughout the remainder of the fiscal year and a continuing return to economic normalcy as mitigating factors are more fully addressed . As a result, the requested mid-year adjusted budget before City is fully balanced for FY 2022, with no need to draw upon General Fund reserves and a reduced need by $1.10 million to utilize the City’s American Rescue Plan Act (ARPA) allocations. Such remaining ARPA funds can be used for other purposes and provide a safety net should the pandemic and other factors be stronger headwinds than currently expected. In total, after factoring in $2.21 million of ARPA funds used to balance the General Fund in FY 2021 and $2.26 million expected to be used in FY 2022, the ARPA fund will have a remaining balance of $5.53 million to use for other purposes though December 31, 2024.
• Revenues - As of December 31, 2021, General Fund revenues equaled approximately $19.93 million; an increase of approximately $1.40 million or 7.58% when compared to the same time period last fiscal year, which showed approximately $18.52 million in year -to-date revenues. And when compared to budgetary estimates for FY 2021, revenues are at 33.76%. Last fiscal year at the same time period, General Fund revenues equaled 34.32% of year -end actual revenues. After extensive analysis and before a necessary accounting adjustment which will be explained in more detail below , staff now expects year -end General Fund revenues for FY 2022 to equal approximately $ 60.88 million; an increase of approximately $1.85 million from the budgetary estimates for FY 2022. As shown in Attachment A, t his due to improved expectations for Sales and Use Taxes (+$66,000), Other Taxes including Transient Occupancy Tax (+$428,000), Licenses and Permits (+$580,000), Charges for Service (+898,000), Leases and Rentals (+$440,000), and Misc./Other Revenues; offset by slight decreases in expectations for Property Tax ( -$264,000), Fines/Forfeits/Penalties ( -$98,000), and Investment Income (-$189,000).
However, as previously discussed with Council and due to final US Treasury guidance on how ARPA monies can be spent, the City has chosen to make an accounting adjustment and deposit all ARPA monies into their own fund (#221) outside the General Fund. The City is still expected to receive a second and final ARPA payment of approximately $5.00 million in FY 2022 (in addition to approximately $5.00 million received in FY 2021), but sin ce it will not be recorded as revenue directly in the General Fund, expected Intergovernmental Revenues for the General Fund show a $5.00 million decrease (post accounting adjustment) when compared to original budgetary estimates in FY 2022. Original budgetary estimates assumed that all ARPA funds would be deposited directly into the General Fund.
Nevertheless, this decrease is partially offset by a recommended and new $2.26 million Transfer In to the General Fund from the ARPA fund to fully cover any operating deficits in FY 2022. The net result is $883,000 less in expected year -end General Fund revenues (post accounting adjustment) than originally reflected in the Adopted Budget for FY 2022. However, the General Fund will again remain fully 11 Packet Pg. 276
FY 2022 Mid-Year Update and Budget Adjustments Page 3 of 14 balanced; with less need to utilize the ARPA fund and after factoring in all requested mid-year adjustments.
• Expenditures - As of December 31, 2021, General Fund expenditures equaled approximately $27.06 million; a decrease of approximately $193,000 or 0.71% when compared to the same time period last fiscal year, which showed approximately $27.26 million in year -to-date expenditures. And when compared to budgetary appropriations for FY 2022, expenditures are at 47.44%. Last fiscal year at the same time period, Gener al Fund expenditures equaled 49.27% of year -end actual expenditures. Thus, current year expenditures are slightly lower than the “burn rate” of last fiscal at the same time period and lower overall expenditures are largely due to cost control measures enacted by staff and the City Council as well as unexpected vacancies and salary savings realized in several departments.
Requested Mid-Year Budget Adjustments (General Fund)
In addition to an approximately $883,000 reduction to projected General Fund reve nues previously explained (post accounting adjustment ), staff also requests budget appropriation increases to General Fund expenditure accounts totaling $1.10 million in FY 2022. Some of these are of a necessary nature due to unexpected costs which the City did not anticipate or chose to exclude when it adopted the budget for FY 2022 (e.g., negotiated salary and benefit increases) . Others are requests in response to an improving economy and the need to ramp up some operations quicker than expected and before FY 2023 due to increased service level demands and expectations from the community; directly as a result of a steadily improving economy . All are needed and recommended by staff at mid-year as opposed to in FY 2023. Table 1 below provides a summary of staff recommendations followed by more detailed descriptions immediately after the table as to why these items are being requested now at mid -year as opposed to during the FY 2023 budget preparation process:
Table 1 – FY 2022 Requested Mid -Year Budget Adjustments to Appropriations (General Fund Only)
Citywide Amount
• Labor negotiations and corrections $601,417
• Increase to general liability and property insurance premium costs $153,280 City Manager’s Office
• Transfer to IT Fund to support increased equipment and software needs 148,652 City Clerk’s Office
• Increased redistricting costs $10,500
Recreation & Community Services
• Shifting allowable Heritage Theatre expenses to SVOG ($492,962) • Unfreezing Recreation Coordinator in Adult Services (est. hire 04-01-22) $33,000 Finance
• Implementation of pension costing software $15,000
Community Development
• Realization of salary savings to offset other cost increases ($99,000) • Contract Permit Technician Support $50,000
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FY 2022 Mid-Year Update and Budget Adjustments Page 4 of 14 • Unfreezing Planning Technician (est. hire 03-15-22) $32,500 • Housing Element Consultant (encumber but spend through FY 2023) $600,000 • Convert Exec. Assistant to Administrative Analyst (est. hire 04-01-22) $7,750 • Contract Code Enforcement Officer $60,000
Police Department
• Realization of salary savings to offset other cost increases ($165,987) • Unfreeze Police Records Specialist (est. hire 03-15-22) $37,308 • Increased recruitment costs and background checks $25,000 • Wellness app $15,000
• Increased training costs $40,000
• Intersection License Plate Reader (LPR) cameras $50,000 Public Works
• Realization of salary savings to offset other cost increases ($165,000) • Convert Sr. Eng. Tech. to Administrative Analyst (est. hire 03-15-22) $48,000 • Museum flooding repairs (offset by insurance reimbursement) $20,784 • Installation of new 220V power line for Police Department MEOC $20,000 • Increased contractual costs in Building Maintenance $50,000 Total Requested Budget Adjustments to Appropriations $1,095,242
Citywide
• Labor negotiations and corrections (+$601,147) – New labor terms for all City bargaining groups relating to salary and healthcare benefits were either agreed to or implemented in FY 2022; after the adoption of the budget. As was discussed with Council during the negotiation s process, these adjustments increased City costs by approximately $361,000 in FY 2022; with a lessor annual amount of $231,000 in future years. In addition, during negotiations, staff discovered that it had costed the former healthcare structure incorrectly; thereby resulting in approximately $240,000 in additional costs for FY 2022. Such costs though will go away under the City’s revised healthcare plan structure. This requested adjustment accounts for noted labor negotiations and corrections.
• Increase to general liability and property insurance premium costs (+$153,280) – Due to the pandemic, an increase in cybercrimes, and tort law in California which strongly favors plaintiffs, the City’s risk pool (PLAN JPA) has seen its costs increase dramatically the last several years; with many carriers declining to even offer coverage. For example, in FY 2019 , actual general liability and property insurance premiums equaled approximately $419,000. In FY 2022 they will equal $990,012. A steep increase was expe cted by staff when the FY 2022 Budget was prepared, but the final premium number was not known with certainty until after adoption. This adjustment accounts for the variance.
City Manager’s Office
• Transfer to IT Fund to support increased equipment and sof tware needs (+$148,652) – The IT fund (#647) is an internal service fund and is mainly 11 Packet Pg. 278
FY 2022 Mid-Year Update and Budget Adjustments Page 5 of 14 supported by user charges to other City departments . The fund was expected to be fully balanced in FY 2022,with planned revenues slightly exceed planned expenditures. However, the City has realized greater than expected costs for its server, data storage, GIS systems, water tower lighting controls, cellular and Wi - Fi services, software license, and desktop computing needs. This adjustment accounts for those unexpected items in the IT fund and transfers a corresponding amount from the General Fund to support the increased costs.
City Clerk’s Office
• Increased redistricting costs (+$10,500) – In a separate report for February 1, 2022, staff provides Council with an update on redistricting. As shown in that report, based upon current estimated consulting and community outreach needs, the City will exceed its FY 2022 Adopted Budget in this area. This adjustment accounts for those increased costs.
Recreation & Community Services
• Shifting allowable Heritage Theatre expenses to SVOG (-$492,962) – The City’s Heritage Theatre was awarded a Shuttered Venue Operators Grant (SVOG) from the U.S. Small Business Administration (SBA) in July 2021 in the amount of $406,292 to account fo r pandemic related losses and support operations in FY 2022. In addition, the City received a supplemental award of $203,146 in September 2021, raising its total award to $609,438 for FY 2022.
This adjustment shifts allowable and planned Theatre expenses from the General Fund to the SVOG fund (#218) in the amount of $492,962. In addition, it also supports $116,476 in unexpected rental and replacement heating and air conditioning (HVAC) unit costs at the Heritage Theatre. These emergency expenses have already occurred and will be charged to the Building Maintenance division in the General Fund.
• Unfreezing Recreation Coordinator in Adult Services (est. hire 04 -01-22) (+$33,000) - The Recreation Program Coordinator for Adult Services is currently vacant due to a retirement in Spring 2021. During the development of the FY 2022 budget it was determined that this position would remain frozen throughout the fiscal year due to the ongoing pandemic and limited class offerings available for this population. The Adul t Center Supervisor would oversee all the classes, programs, services along with the Senior Nutrition Program until July 2022. Since that time, vaccinations have been distributed and the 50+ population was among the first to receive the vaccination. In Sum mer 2021 , there was an immediate increase to enrollment in 50+ classes once the vaccine had begun being administered to members of the Campbell community. In the Fall of 2021 , these enrollment numbers continued to increase along with demand for more class offerings. Staff budgeted approximately 40 classes per quarter and is currently operating at 75 due to the increase in demand. The budgeted revenue for FY22 was approved at $92,700 and Adult Services has already brought in $115,000 with registration contin uing for the next 6 months. It is estimated that a Recreation Program Coordinator would be approximately $33,000 in additional 11 Packet Pg. 279
FY 2022 Mid-Year Update and Budget Adjustments Page 6 of 14 expenditures if hired for the last quarter of the fiscal year. The revenue from this division will continue to increase and with the additional team member, the ability to expand services even further can be realized sooner. Programming for activities and classes happens six months in advance . With the onboarding of a new team member in April 2022 , this would allow for the new hire to begin by planning and expanding programs and services for the Fall 2022 season while managing Summer programs. If the position isn’t filled until the approval of the FY 2023 budget, the recruitment would not take place until after July 1. Summer is the busiest time of year for Recreation and Community Services and managing a recruitment would not be feasible with existing staffing levels until mid to late August. Since programming takes place six months in advance the ability to expand services and generate more revenue would be delayed until 2023.
Finance
• Implementation of pension costing software (+$15,000) – Finance’s FY 2020 and FY 2021 Workplans contained an item to “Review City’s unfunded pension and OPEB liabilities and present pay down plans for consideration,” but was temporarily removed in FY 2022 and deferred until FY 202 3 due to other competing priorities. G iven the continued high annual cost of the City’s pension plans and the increased ability that a recovering economy affords to pay down unfunded liabilities, staff sought the software services of GovInvest to cost pension pay down plans in anticipation that some level of added funding may be ideal to program into the FY 2023 Proposed Budget . Thus, staff is requesting $15,000 to enter into an agreement with GovInvest under the City’s Manager’s contract authority so that it can begin needed work now in preparation for the FY 2023 Proposed Budget. GovInvest has developed a one -of-its-kind proprietary software to cost pension pay down options and will do most of the work to implement the software once the City sends it some basic employee census data. Pension paydown plans could include the establishment of a 115 trust to earn investment earnings or additional payments made to the California Public Employees' Retirement System (CalPERS). The City also has a current reserve balance of $2.25 million as of June 30, 2021 to address unfunded pension liabilities, but it will surely need to set aside more if its is to have a meaningful impact. GovInvest is also able to provide OPEB costing software, but staff did not feel it was beneficial at this time since the City’s OPEB plan is currently a closed plan and well-funded.
Community Development
• Realization of salary savings to offset other cost increa ses (-$99,000) – The Community Development Department has had unexpected vacancies at the Assistant Planner and Executive Assistant level s in FY 2022. Thus, staff recommends shifting estimated salary savings to the following requests to partially offset their added costs in FY 2022.
• The next five (5) mid-year requests for FY 2022 relate to increased workload demands in the Community Development Department due to an improving 11 Packet Pg. 280
FY 2022 Mid-Year Update and Budget Adjustments Page 7 of 14 economy, pending State mandates, assigned Workplan items, and current inadequate staffing levels to support those needs:
o Contract Permit Technician Support (+$50,000)
o Unfreezing Planning Technician (est. hire 03-15-22) (+$32,500) o Housing Element Consultant (encumber but spend through FY 2023) (+$600,000)
o Convert Exec. Assistant to Administrative Analyst (est. hire 04-01-22) (+$7,750)
o Contract Code Enforcement Officer (+$60,000)
As identified in the FY 2022 Budget and as highlighted in recent City Council meetings regarding the General Plan and Housing Element Updates, the Department is currently experiencing intensive workload demands in addition to its ongoing requirements to process development applications and permits . The Department is actively managing updates to the General Plan and Housing Element together within an expedited timeline to meet State mandated goals for adoption at the end of 2022. In addition, staff is also working on over seven (7) additional Council priority workplan items, many of which are required to allow Campbell’s codes to come into conformance with Stat e laws. These include the following:
o Objective Design Standards
o Density Bonus Ordinance
o Inclusionary Housing Ordinance
o Camping Ordinance
o SB 9 Ordinance
o Conformance with recent 2021 State adopted legislation o ADU Ordinance (amnesty, short term rentals)
Current staffing levels in the Community Development Department (identified as
0.65 FTE for policy development in the FY 2022 Budget) are not sufficient to allow completion of the identified ordinances in the near term.
Police Department
• Realization of sala ry savings to offset other cost increases (-$165,987) – The Public Safety Department has had unexpected vacancies at the Dispatcher, Communications Supervisor, Records Specialist, Crossing Guard, and Police Officer levels in FY 2022. Thus, staff recommend s shifting estimated salary savings to the following requests to partially offset their added costs in FY 2022.
• Unfreeze Police Records Specialist (est. hire 03-15-22) (+$37,308) A Records Specialist was frozen during FY 2021. During that time, freezing t he position was feasible because of the reduced services the Records unit was providing. With the public health restriction on services being lifted and the unit returning to its normal workload, the Police Department needs to fill this position to return to 11 Packet Pg. 281
FY 2022 Mid-Year Update and Budget Adjustments Page 8 of 14 previous levels of service to the community, City, and internal staff. The reduction in staff has made it necessary for the Records Supervisor to take on more of the daily records duties and the time -consuming tasks of completing Public Records Act (PRA) requests, performing digital redaction, and responding to subpoenas ; making it very difficult to supervise and mentor employees adequately. At this time, staff is requesting the position be re -opened to begin the recruitment process. The priority in the Records division for the remainder of FY 2022 will be to hire new personnel to fill the current vacancy, recruit to fill an upcoming Property and Evidence Technician vacancy, and continue working on designing and implementing the new AXON records management system.
• Increased recruitment costs and background checks (+$25,000) – The FY 2022 Adopted Budget in the Police Department includes $1,000 for recruitment as a new line item. Over the last five years, staff has observed a decrease in the number of total applicants for the position of police officer. 2021 has seen the most precipitous decline in applications with an approximately 50% decrease from 2020 application s. A pplications over last five years reflected in Chart 1 below:
Chart 1 – Historical Employment Applications
The City is competing with law enforcement agencies throughout the State and nationally for an increasingly smaller pool of qualified candidates. Staff anticipates replacing a minimum of five (5) P olice Officers over the next year primarily due to retirements. Of those applicants that make it through the hiring and background process, approximately 50% are able to complete the academy and field training process. The overall process takes about eighteen (18) months to get an applicant to permanent Police Officer status from the point of hire.
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FY 2022 Mid-Year Update and Budget Adjustments Page 9 of 14 Several recruitment efforts such as job fairs, military transitioning programs, distributing fliers, and other recruitment efforts have been undertaken by staff.
Unfortunately, while cost -effective, these methods have not had the desired effect. In November 2021, staff initiated a two -month radio ad run on KRTY at a total cost of $3 ,500. The City has seen a dramatic increase in recruiting website visits, and staff is continuing to research other ra dio, media outlets, and online platforms in an effort to reach as diverse of an applicant pool as possible. Staff has also received quotes from YouTube. Staff is requesting an increase of $10,000 to this account to establish an online recruiting campaign, continued radio campaign, and additional recruiting efforts for the position of police officer through the end of FY 2022.
Additionally, costs associated with background investigations were budgeted for $18,000 in FY 2022. During the first half of this fiscal year, $14,896 has already been spent on background investigations (not including outstanding invoices for backgrounds that are currently in progress). Staff currently anticipate s hiring a minimum of four (4) Police Officers, (1) Records position, an d (1) Evidence Technician before the end of the fiscal year. It is common to background multiple candidates for one position during the hiring process based on failures during the background investigation. This account is anticipated to be over -budget by approximately $15,000.
• Wellness app (+$15,000) - Unlike most other professions, law enforcement is an emotionally challenging and often physically dangerous career. The nature of policing places law enforcement officers in situations where trauma is unavoidable, chronic stress and post -traumatic stress are the norm, and suicide, depression, risky behavior, obesity, anxiety and addiction are dangerously potential health outcomes. In addition to these incident-based stressors, it is well- known that organizational stressors also negatively impact officer wellness. Over the last two years, the Campbell Police Department has put an emphasis on a more holistic approach to wellness to address these issues.
Cordico is the world leader in wellness technology for high-stress professions, providing trusted, confidential, 24/7 proactive and preventative wellness support specially developed for law enforcement, firefighters, dispatchers, medical professionals, and others serving in the most demanding and critical rol es. Their customized, continuously updated wellness platform solutions provide handheld access to anonymous self -assessments, peer support, instructional videos, geo - mapping of vetted therapists, one -touch calling, and on -demand tools targeting alcohol abuse, anger management, anxiety, behavioral health, brain health and cognitive strength, burnout, childhood adversity, compassion fatigue, COVID -19 resources, critical incidents, depression, emotional health and survival, family support, financial fitness, g oal-setting and achievement, grief and loss, healthy habits, heart health, ICAC coping and resiliency, injury prevention, intrusive traumatic images, major life events, marital guidance, mental toughness, mindfulness, nutrition, panic attacks, parenting ti ps, peak performance, physical 11 Packet Pg. 283
FY 2022 Mid-Year Update and Budget Adjustments Page 10 of 14 fitness, physical therapist videos, posttraumatic stress, relationship success, resilience, sleep optimization, stress management, substance abuse, trauma, suicide risk and prevention, work -life balance, YFFR Yoga for First R esponders videos, and much more . This request is for a software application that has been built specific to the immediate needs of public safety personnel and is not being requested for citywide use. However, as was discussed with Council during APRA usage planning on December 7, staff will also explore other means to address citywide staff wellness outside of public safety.
• Increased training costs (+$40,000) - For the current fiscal year, $118,000 was budgeted for staff development in the Police Departme nt. This includes legislative and POST mandated training, other mandatory department training, advanced Police Officer and professional staff training, and costs for the Police Academy. Due to turnover and hiring, over half of all Police Department employees have less than five (5) years of experience, which has created a training gap. Compounding on this issue is the fact that the department still has position openings and will continue to recruit and hire new employees during the second half of this fisc al year. Due to these factors, increases in academy costs, and a specific focus on new employee training, this account is currently at $94,410 expended and encumbered . With the continual hiring and training occurring over the next six months, staff anticipates spending an additional $40,000 on staff development and training costs.
• Intersection License Plate Reader (LPR) cameras (+$50,000) - Staff requests an additional $50,000 to establish a new line item for a Flock Safety camera pilot program. Multiple jurisdictions throughout Santa Clara County have added these cameras to their public safety technology systems and have seen immediate results in enforcement and investigative leads. With a dramatic increase in crime over the pandemic , having additional to ols to increase solvability and expand awareness of when crime vehicles are entering the City has proven to provide a more effective and efficient staffing deployment.
In addition, as a Flock Safety agency, the City will have the ability to share data throughout the County, further increasing crime solvability rates, as the City has seen many of these criminal networks come through multiple counties and jurisdictions throughout the Bay Area. Flock Safety also provides that opportunity for private parties such as HOA’s and shopping complexes to purchase cameras for their properties and tie them to the Police Department accounts, further expanding the data collection network. Flock Safety has partnered with Axon, and their software systems interact seamlessl y with Axon’s Evidence.com ; creating an easy transfer of information into evidence for the purpose of prosecution.
Public Works
• Realization of salary savings to offset other cost increases (-$165,000) – The Public Works Department has had unexpected vaca ncies at the Sr. 11 Packet Pg. 284
FY 2022 Mid-Year Update and Budget Adjustments Page 11 of 14 Engineering Technician and Building Maintenance levels in FY 2022. Thus, staff recommends shifting estimated salary savings to the following requests to partially offset their added costs in FY 2022.
• Convert Sr. Eng. Tech. to Administrat ive Analyst (est. hire 03 -15-22) (+$48,000) – The Public Works Department is not l ooking to add any new resources. Rather, staff is proposing to exchange an already funded and vacant Senior Engineering Technician position , which staff is encountering some challenges related to both the job spec ification and compensation. This has caused staff to re -evaluate its strategy and recommend conversion of this position to an Administrative Analyst at mid -year to fill immediate service level needs within Public Works. The City Manager’s Office is looking at recruiting for the same classification relatively soon and the Community Development Department has requested this position as well . If Council approves at mid-year, Public Works can also be part of the same re cruitment; thereby achieving economies of scale and reducing overall hiring costs . This may also work for CDD if you are looking at a position conversion.
• Museum flooding repairs (offset by insurance reimbursement) (-$20,784) – The Historical Museum ex perienced flooding in the early part of the fiscal year which damaged exhibits and caused significant damage to flooring. This request accounts for those costs, but is also nearly fully offset by expected insurance reimbursement.
• Installation of new 220V power line for Police Department MEOC (+$20,000) – In order to ensure that the Police Department’s new Mobile Emergency Operations Center (MEOC) could remain fully charged and operational at all times if needed, the Public Work’s Building Maintenance divis ion installed a new 220V power outlet and conduit to where the vehicle is parked at City Hall. This request will pay for these added and unexpected costs; offset by salary savings.
• Increased contractual costs in Building Maintenance (+$50,000) – Due to unexpected vacancies in Building Maintenance along with other unexpected items and emergency work, the contractual account is expected to exceed its budget by $50,000. This adjustment will correct that and is supported fully by salary savings in the division.
Economic Update
Inflation continues to run well above the Fed eral Reserve’s longer-run target of approximately 2.0%. The Consumer Price Index (CPI) was up 7.0% year -over-year in December 2021, versus up 6.8% year-over-year in November 2021. Core CPI (CPI less food and energy) was up 5.5% year -over-year in December 2021, versus up 4.9% in November 2021. Pricing pressures were widespread in December 2021, with notable gains for used cars and trucks, new vehicles, food, and rent. While staff believes year- over-year inflation may be at or near a peak, staff expects pricing pressure will remain 11 Packet Pg. 285
FY 2022 Mid-Year Update and Budget Adjustments Page 12 of 14 elevated over the near -term. The ports of Long Beach and Los Angeles remain congested, and staff believes China’s ‘zero-Covid’ strategy and the upcoming Chinese Lunar New Year holiday may also exacerbate global supply chain disruptions near-term.
Meanwhile, staff believes the current surge in U .S. Omicron cases is likely putting additional strain on labor supply, fueling continued upward pressure on wages.
However, staff expects inflationary pressure will start to abate later this year, amid an improvement in the global health situation, easing supply chain bottlenecks, and a potential shift in consumer spending toward more services spending rather than goods.
On a ye ar-over-year basis, retail sales nationwide were up 16.9% in December 2021 versus up 18.2% in November 2021. On a month -over-month basis, retail sales were softer than expected in December 2021, down 1.9% versus expectations of down 0.1%, following a modes t gain of just 0.2% in November 2021. Excluding vehicles and gas, retail sales were down 2.5% month-over-month. In staff’s view, the data suggests that consumers started shopping early in the holiday season and that high gas prices are likely taking some w allet share. Staff believes the surge in Omicron virus cases likely hindered December sales as well. Staff remains hopeful on the outlook for consumer spending this year, but believes the current surge in virus cases is likely to take a toll on January ret ail sales. Looking further ahead, staff believes high levels of consumer savings along with improvement in the health situation and continued improvement in the labor market, should provide a healthy tailwind for consumer spending.
Total housing starts we re better than expected nationwide in December 2021, up 1.4% to an annual pace of 1,702,000. The strength was driven by an acceleration in multi - family starts. Single -family starts declined 2.3% while multi -family starts increased
10.6%, month -over-month. On a year -over-year basis , total housing starts were up
2.5% in December 2021. Permits nationwide were also greater than expected in December 2021, up 9.1%. The backlog of permits for homes remains elevated, but staff believes labor and materials supply co nstraints continue to hold back the pace of new starts. Existing home sales were softer than expected in December 2021, down 4.6%, to 6.18 million units. On a year -over-year basis, existing home sales were down 7.1%.
Inventory of U .S. existing homes declin ed to the lowest level on record in December 2021. The National Association of Home Builders’ housing market index eased slightly this month but remains well above its 5 -year average, suggesting that home builder optimism remains strong. Overall, staff believes strong housing demand coupled with low inventory should remain supportive of housing prices this year. Staff also believes wage gains and an improving labor market should be favorable tailwinds for housing, but anticipate s that further upside to home prices may be constrained by lack of affordability, particularly if mortgage rates continue to rise. According to Bankrate.com, the average rate for a 30 -year fixed mortgage is now 3.67% up from 3.20% one month ago.
Job growth slowed in December 2021, with U.S. nonfarm payroll growth of just 199,000 in the month versus the consensus forecast of 450,000, but the unemployment rate still declined to 3.9%, the lowest level since February 2020. Nonfarm payrolls for the prior two months were revised higher by a total of 141,000. On a trailing 3 -month and 6 - 11 Packet Pg. 286
FY 2022 Mid-Year Update and Budget Adjustments Page 13 of 14 month basis, payrolls increased an average of 365,000 and 508,000 per month, respectively, which still compares favorably to the average job gains in the five years leading up to the pandemic of about 196,000 per month. Staff believes a variety of factors are keeping some workers out of the labor force for now, which continues to hold back job growth despite strong demand from employers. Staff believes the resurgence of the virus in December 2021 has likely prolonged some workers from returning to the labor force. The labor participation rate was unchanged in December 2021 at 61.9% and remains lower than the pre -pandemic level of 63.4%. The employment -population ratio increased to 59.5% in December 2021 from 59. 3% in November 2021, but also remains below the pre -pandemic level of 61.2%. In staff’s view, labor participation will likely improve gradually as the health situation improves. The U -6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 7.3% in December 2021 from 7.7% in November 2021 (versus 7.0% in February 2020). Annualized average hourly earnings rose 0.6% month -over-month and were up 4.7% year -over-year in D ecember 2021 versus 5.1% in November 2021. Although wage growth eased slightly on a year -over- year basis in December 2021, staff believes the month-over-month gain is indicative of an ongoing imbalance in the supply and demand for labor which may keep upwa rd pressure on wages over the near- to intermediate-term.
In California, total nonfarm employment in the state increased by 50,700 jobs over the month of December 2021. Additionally, statewide unemployment decreased to a rate of
6.5% in December 2021; down from 7.0% in November 2021 and 9.3% in December 2020. In Santa Clara County, the rate decreased to 2.9% in December 2021; down from
3.1% in November 2021 and 5.9% in December 2020. And in Campbell, the rate decreased to 2.5% in December 2021; down from 2.8% in November 2021 and 5.6% in December 2020. At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11.7%. While the current Campbell unemployment rate is not at the ten-year low of 2.0% seen in May 2019, there has still b een considerable improvement since the start of the pandemic.
FISCAL IMPACT
If approved, staff proposed adjustments would result in a decrease to General Fund budgeted revenues of $ 882,850 and an increase to General Fund budgeted expenditures of $ 1,095,242; as shown in Attachment s A, B, and C. However, the requested actions will not result in any General Fund reserves being utilized in FY 2022.
Additionally, if approved, the General Fund will continue to be fully balanced in FY 2022.
ALTERNATIVES
1. Approve requested budget adjustments, but modify as desired.
2. Do not approve requested budget adjustments, but ask staff to return at a later date with modifications.
3. Provide staff with other direction.
11 Packet Pg. 287
FY 2022 Mid-Year Update and Budget Adjustments Page 14 of 14
Prepared by:
Will Fuentes, Finance Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Summary of Revenues vs Expenditures FY 2022 (Mid-Year) b. Resolution - Mid-Year Adjustments (FY 2022)
c. Reconciliation of FY 2022 Adopted Budget to FY 2022 Amended Budget 11 Packet Pg. 288
SUMMARY ‐ Fiscal Year (FY) 2022 Attachment A
Q2 ‐ Ending December 31, 2021
GENERAL FUND
YTD Actuals Amd. Budget % of Budget Proj YE Proj vs Bud YTD Actuals Year‐End % of YE YTD Growth ($) YTD Growth (%)
REVENUES
Property Tax 4,526,895$ 18,847,020$ 24.02% 18,583,16 8$ (263,852)$ ‐ 4,374,676$ 17,911,445$ 24.42% 152,220$ 3.48% Sales & Use Taxes 5,373,122$ 15,521,900$ 34.62% 15,587,825$ 65,925$ + 4,907,962$ 14,478,163$ 33.90% 465,16 0$ 9.48% Other Taxes 3,076,170$ 7,210,365$ 42.66% 7,637,89 6$ 427,531$ + 2,299,785$ 6,375,527$ 36.07% 776,385$ 33.76% Licenses and Permits 1,775,774$ 2,738,858$ 64.84% 3,319,20 0$ 580,342$ + 1,199,580$ 2,963,368$ 40.48% 576,19 4$ 48.03% Fines/Forfeits/Penalties 33,107 $ 160,000$ 20.69% 62,000$ (98,000)$ ‐ 28,029$ 85,149$ 32.92% 5,077$ 18.11% Investments Income 5,809$ 395,900$ 1.47% 207,282$ (188,618)$ ‐ (103,046)$ (8,137)$ 1266.35% 108,855$ ‐105.64% Intergovernmental Revenue 348,156$ 6,022,411$ 5.78% 1,001,92 4$ (5,020,487)$ ‐ 858,988$ 1,414,419$ 60.73% (510,831)$ ‐59.47% Charges for Service 2,040,647$ 3,310,465$ 61.64% 4,208,57 6$ 898,111$ + 1,151,797$ 3,327,691$ 34.61% 888,85 0$ 77.17% Leases & Rentals 1,400,258$ 2,116,800$ 66.15% 2,556,90 0$ 440,100$ + 1,034,544$ 1,894,089$ 54.62% 365,71 4$ 35.35% Miscellaneous Revenues 57,746$ 127,268$ 45.37% 132,327$ 5,059$ + 52,642$ 82,509$ 63.80% 5,105$ 9.70% Other Revenues 39,548$ 72,100$ 54.85% 82,100$ 10,000$ + 36,001$ 79,962$ 45.02% 3,546$ 9.85% OFS ‐ Operating Transfers In 434,424$ 868,847$ 50.00% 3,129,88 6$ 2,261,039$ + 2,682,275$ 5,364,551$ 50.00% (2,247,852)$ ‐83.80% OFS ‐ Committed / Assigned Reserves 815,292$ 1,630,584$ 50.00% 1,630,58 4$ ‐$ = ‐$ ‐$ N/A 815,292$ N/A TOTAL REVENUES 19,926,947$ 59,022,518$ 33.76% 58,139,66 8$ (882,850)$ ‐ 18,523,233$ 53,968,736$ 34.32% 1,403,71 4$ 7.58%
TRUE TRUE TRUE TRUE TRUE
YTD Actuals Amd. Budget % of Budget Mid‐Year Adj Adj vs Bud YTD Actuals Year‐End % of YE YTD Growth ($) YTD Growth (%)
EXPENDITURES
City Council 154,800$ 353,921$ 43.74% 343,601$ (10,320)$ + 153,378$ 310,840$ 49.34% 1,422$ 0.93% City Manager's Office 887,895$ 2,523,689$ 35.18% 2,557,215$ 33,526$ ‐ 1,019,055$ 2,242,302$ 45.45% (131,160)$ ‐12.87% City Clerk's Office 245,819$ 543,999$ 45.19% 572,24 4$ 28,245$ ‐ 138,357$ 339,328$ 40.77% 107,463$ 77.67% Recreation & Comm Srvcs 2,105,540$ 4,615,657$ 45.62% 4,216,553$ (399,103)$ + 1,845,820$ 4,018,012$ 45.94% 259,72 0$ 14.07% Finance 905,185 $ 1,892,681$ 47.83% 1,933,48 4$ 40,804$ ‐ 769,890$ 1,783,488$ 43.17% 135,295$ 17.57% Community Development 1,288,996$ 3,686,505$ 34.97% 4,399,943$ 713,438$ ‐ 1,228,092$ 2,554,639$ 48.07% 60,90 4$ 4.96% Legal Services 272,306$ 523,658$ 52.00% 532,54 4$ 8,886$ ‐ 241,847$ 577,601$ 41.87% 30,459$ 12.59% Police Department 9,853,311$ 19,443,463$ 50.68% 19,735,61 9$ 292,155$ ‐ 10,486,008$ 21,496,304$ 48.78% (632,698)$ ‐6.03% Fire Services 4,928,300$ 9,856,600$ 50.00% 9,856,60 0$ ‐$ = 4,778,28 0$ 9,556,560$ 50.00% 150,02 0$ 3.14% Public Works 2,731,629$ 6,030,005$ 45.30% 6,115,68 4$ 85,678$ ‐ 2,436,487$ 5,044,678$ 48.30% 295,142$ 12.11% COVID‐19 (Payroll) 87,608$ ‐$ N/A ‐$ ‐$ = 296,81 4$ 422,541$ 70.24% (209,206)$ ‐70.48% COVID‐19 (Non‐Payroll) 25,688$ 144,021$ 17.84% 144,021$ ‐$ = 65,104$ 108,363$ 60.08% (39,416)$ ‐60.54% Non‐Departmental (Other) 3,577,338$ 7,430,228$ 48.15% 7,732,16 0$ 301,932$ ‐ 3,797,828$ 6,870,140$ 55.28% (220,490)$ ‐5.81% TOTAL EXPENDITURES 27,064,413$ 57,044,426$ 47.44% 58,139,66 8$ 1,095,242$ ‐ 27,256,958$ 55,324,796$ 49.27% (192,545)$ ‐0.71% Revenues vs. Expenditures (7,137,466)$ 1,978,092$ ‐$ (1,978,092)$ (8,733,725)$ (1,356,060)$ FY 2021 Year over Year FY 2022
FY 2022 FY 2021 Year over Year