Agenda, regular meeting — Campbell City Council, March 18, 2025 (part 2 of 3)

governments the authority to adopt regulations designed to promote the public health, safety and general welfare of its citizenry;
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, the approval of accessory dwelling units and junior accessory dwelling units based solely on the few default statutory standards of the California Government Code, without local regulations governing height, setback, landscape, and architectural review, among other things, would threaten the character of existing neighborhoods, negatively impact property values, personal privacy, fire safety, and create confusion that would hinder the creation of accessory dwelling units and junior accessory dwelli ng units within the community;
WHEREAS, the proposed amendments are consistent with the goals, policies, and actions of the 2040 General Plan, as well as all applicable development agreements, area plans, neighborhood plans, and specific plans;
WHEREAS, no substantial evidence has been presented demonstrating that the project, as currently presented, will have a significant adverse impact on the environment; WHEREAS, the adoption of this interim o rdinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resource Code Section 21080.17;
WHEREAS, the City is undertaking a study to update its current zoning code provisions to conform to the changes in the State law, which shall be completed within a reasonable time, not to exceed 10 months and fifteen days from the adoption of this ordinance, or until it is superseded by adoption of superseding ordinance, whichever comes first; WHEREAS, the City Council finds and determines that the proposed ordinance would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and is internally consistent with other applicable provisions of the Campbell M unicipal Code;
WHEREAS, in consideration of the recommended adoption of the interim ordinance, the City Council provided due consideration of all evidence presented and included in the entire administrative record;
WHEREAS, the proposed revisions are necessary to maintain the status quo pending the investigation and adoption of a permanent ordinance by conforming the City’s regulations to the requirements of State Law, while preserving such local regulations are appropriate , lawful and currently in force;
WHEREAS, in consideration of the foregoing findings, the City Council further finds that there is a current and immediate threat to the public health, safety, or welfare, justify adoption of this interim ordinance on an urgency basis to be effective immediately upon adoption by a four-fifths vote of the City Council;

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WHEREAS, on February 18, 2025, the City Council adopted an interim ordinance (Ordinance No. 2322) to implement recent feedback and direction from the California Department of Housing and Community Development (HCD) and recent legislative updates (SB 1211 & AB 2533);
WHEREAS, pursuant to Section 65858 of the Government Code, the City Council may extend the previously adopted interim ordinance for 10 months and 15 days after public notification and following a public hearing;
WHEREAS, the City Council finds and determines that the extending Interim Ordinance No. 2322 would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and is internally consistent with other applicable provisions of the Campbell Municipal Code; and
WHEREAS, it is not the intent of this Ordinance to deny or delay the approval of accessory dwelling units that are in compliance with Senate Bill 1211 (2024) & Assembly Bill 2533 (2024);

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 interim 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 interim ordinance. The City Council hereby declares that it would have passed this interim 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 (PUBLICATION): The City Clerk shall cause this interim ordinance or a summary thereof 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 3 (EFFECTIVENESS): This interim ordinance shall become effective immediately upon adoption for a period of 45 days, unless extended by the City Council.

PASSED AND ADOPTED this _____ day of ____________, 2025 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Sergio Lopez, Mayor
ATTEST:

_______________________________
Andrea Sanders, City Clerk

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Attachment: Draft Extension Ordinance (ADU Interim Ordinance Extension) City
Council
Report
TITLE: Public Hearing to Consider an Interim Ordinance Related to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) to Implement Recent Feedback and Direction from the California Department of Housing and Community Development (HCD) and Recent Legislative Updates (SB 1211 & AB 2533). (Ordinances / Roll Call Vote)

RECOMMENDED ACTION
It is recommended that the City Council adopt an Interim Ordinance to implement recent feedback and direction from the California Department of Housing and Community Development (HCD) and recent legislative updates (SB 1211 & AB 2533).

ENVIRONMENTAL DETERMINATION
This action is Statutorily Exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resource Code Section 21080.17, which exempts the adoption of a local ordinance to implement the provisions of Section 65852.1 or Section s 66310 through 66324 of the Government Code relating to the accessory dwelling units.

PURPOSE
The purpose of this interim ordinance is to both address the Department of Housing and Community Development’s (HCD) finding the City's prior ADU ordinance was not consistent with State law and to adopt new ADU provisions to respon d to recently enacted State legislation (SB 1211 & AB 2533) concerning ADUs.

BACKGROUND
In recent years, California has enacted several laws that limit local authority over the regulation of accessory dwelling units (ADUs). The California Department of Housing and Community Development (HCD) enforces these laws and may issue guidelines to ensure statewide consistency in ADU standards.
• On June 30, 2023, the City received a formal notification from the HCD, stating that the City’s ADU ordinance did not comply with State law. • In response, the City adopted an interim ADU ordinance on November 7, 2023 (which expired on December 31, 2024).

Item: 9
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: February 18, 2025

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Attachment: Staff Report (ADU Interim Ordinance Extension) ADU Interim Ordinance Page 2 of 4
• On August 7, 2024, HCD provided informal, high -level feedback on the interim ordinance to assist City staff in drafting a permanent ordinance to replace the interim ordinance.
• On September 19 and 28, 2024, two bills, SB 1211 and AB 2533 were signed into law. These bills modified State ADU laws by increasing the number of ADUs allowed in multi-family dwellings to eight and extending amnesty for unpermitted ADUs respectively.

As a result, of these events, City staff prepared a new ADU ordinance to incorporate these changes to ensure compliance with the updated State laws as well as feedback from HCD. The Planning Commission conducted a public hearing on October 22, 2024, and unanimously recommended approval of the new ADU ordinance consistent with HCD feedback and State law. However, just days before the scheduled City Council meeting to consider adoption of the ADU Ordinance on November 13, 2024, the City received a technical a ssistance letter from HCD identifying a discrepancy between the City’s implementation of State law and HCD’s interpretation. Subsequently, on December 17, 2024, HCD released the latest edition of the ADU Handbook ( ADU Handbook January 2025 ) which included the updated interpretations of State law and the recent legislative changes.

Due to the expiration of the previous interim ordinance, staff has incorporated these updates to be reintroduced as a new interim ordinance to take immediate effect.

APPROACH
Historically, the City’s ADU ordinances have been self -contained within the Municipal Code, incorporating state law and local modifications such that homeowners, architects, and staff need not reference State government code to understand the standards.

However, in light of the repeated updates to State ADU laws and frequent reinterpretations by HCD staff, staff is recommending that the city use a different approach to the drafting of the ADU ordinance.

Specifically, the draft ordinance directly implements sections of the State Government Code by reference and provides section -specific modifications to the standards where the City has discretion to do so, as described below. This approach is akin to how cities adopt the California Building Code every three years.

Staff believes this approach is more suitable to the current regulatory environment where both HCD interpretations and state legislative updates are constantly changing the applicable ADU standards, avoiding the need for the City to consistently update its Municipal Code.

In order to provide guidance to the Campbell community and applicants on the ADU standards, staff will prepare a "bulletin" that will summarize the State ADU requirements

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Attachment: Staff Report (ADU Interim Ordinance Extension) ADU Interim Ordinance Page 3 of 4
along with local amendments. Under this approach, Campbell can more quickly update its ADU materials resulting from any new HCD interpretations or state legislation . In addition, staff anticipates a higher likelihood that HCD will approval the ordinance, leaving less room for comment.

LOCAL AMENDMENTS
• The following local amendments to State Law are described in the ordinance, and will be applied as permitted by law. The majority of these standards are carryovers from the previous interim ADU Ordinance that expired on December 31, 2024 , enacted to ensure that new ADUs remain compatible with the neighborhood. They align with Campbell's single -family residential standards, with updated references to the current development and design standards under the interim SB-450 ordinance.
o Development Standards. For ADUs over 800 square feet, the ordinance aligns their development standards with those of the primary dwelling, including:
o Maximum Height : The height of attached and interior conversion ADUs will be limited to that of the primary dwelling unit.
o Front Setback : ADUs must adhere to the front setback requirements applicable to the primary dwelling unit.
o Lot Coverage and Floor Area : These will be capped at the same limits established for the primary dwelling unit.
o Exceptions: For ADUs 800 square feet and under, the ordinance would automatically waives floor area ratio (FAR), lot coverage, and minimum open space requirements, as required by State law. The front yard setback would also be waived, as required by State law, only when an application has demonstrated that the ADU cannot be placed elsewhere on the property.
o Objective Design Standards . Attached and interior ADUs exceeding 800 square feet must comply with the same objective design standards as the primary dwelling, including those standards included in the current interim SB-450 ordinance.
o Parking Requirements . As allowed under the previous interim ADU ordinance, the city will continue to waive all parking requirements for ADUs, including the replacement of parking spaces removed in association with creation of an ADU, to support ADU production. o Multi-family Detached ADUs . In accordance with SB -1211, lots with existing multi-family dwellings are allowed up to two detached ADUs, while lots with proposed multi -family dwellings may have up to eight detached ADUs. Additionally, aligning with the City’s application for a "pro -housing" designation1, the draft ordinance permits up to eight ADUs in association with either existing or proposed multi-family dwellings. 1 The City's recent application for a Prohousing Designation (https://www.campbellca.gov/1486/Prohousing-Designation) from the California Department of Housing and Community Development (HCD) mentioned the City would consider allowing up to 8 -units (regardless of whether the units were existing or proposed) when updating its ADU Ordinance

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Attachment: Staff Report (ADU Interim Ordinance Extension) ADU Interim Ordinance Page 4 of 4

FISCAL IMPACT
There are no direct fiscal impacts associated with the City Council’s adoption of this interim ordinance.

NEXT STEPS
The interim ordinance must be extended by the Council at the meeting on March 4, 2025, before its 45 -day expiration. Following the extension, the ordinance will be submitted to HCD for review, as required by Government Code section 65852.2, subdivision (h), within 60 days of its adoption. Pending HCD approval, this ordinance will be formally incorporated into a comprehensive Zoning Code Update scheduled to be brought to the Planning Commission and Council in late spring / early summer of this year. Meanwhile, as noted, the City will develop an informational bulletin to facilitate the creation of ADUs, providing necessary guidance and support, which will be published shortly.

ALTERNATIVES
As the prior interim ordinance expired on December 31, 2024, the City is currently unable to enforce its local ADU provisions , creating a gap in the application of consistent ADU standards. As such, it is imperative that an interim ordinance be adopted so that the City can continue to review and permit ADUs in a timely manner. If the Council wishes to make specific revisions, staff recommends that those revisions be deferred until formal adoption.

Prepared by:

Larissa Lomen, Assistant Planner
Reviewed by:

Rob Eastwood, Community
Development Director
Approved by:

Brian Loventhal, City Manager

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Attachment: Staff Report (ADU Interim Ordinance Extension) ORDINANCE NO. 2322

BEING AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CAMPBELL ADOPTING URGENCY REVISIONS TO CAMPBELL ZONING CODE

RELATED TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING

UNITS TO CONFORM WITH RECENT STATE LEGISLATION AND DIRECTIVES FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

FILE NO.: PLN- 2024- 144
WHEREAS, on June 30, 2023, the City of Campbell received a letter from the California Department of Housing and Community Development ( HCD) providing written findings pursuant to Government Code Section 66326 identifying certain section( s), subsection( s), sentence( s), clause( s), and/ or phrase( s) of the City's accessory dwelling unit ordinance that do not comply with State law;
WHEREAS, on July 27, 2023, the Community Development Director transmitted a letter in response to HCD' s written findings, within the 30-day period provided by the statute, acknowledging a need to amend the City's accessory dwelling unit ordinance, and requesting additional clarification and information;
WHEREAS, HCD's written findings determined that the City's local accessory dwelling unit ordinance is no longer consistent with Government Code Sections 66314 and 66333; WHEREAS, following the City's July 27, 2023, letter, no further response was received from HCD, and as a result, the City adopted an interim ordinance ( No. 2299) on November 7, 2023, to address HCD' s initial feedback, which was extended through Ordinance No. 2300 to remain effective until December 31, 2024;
WHEREAS, in Summer 2024, staff contacted HCD to notify the agency of the City' s intent to adopt a permanent ordinance to replace the interim ordinance, and on August 7, 2024, HCD provided informal feedback to staff, identifying additional clarifications needed to ensure consistency with State law;
WHEREAS, in September 2024, the California Legislature enacted SB 1211 and AB 2533, signed into law by the Governor on September 19 and 28, 2024, respectively, which made significant changes to State law regarding ADUs, including the number of ADUs allowed for multi- family dwellings and the extension of the amnesty period for unpermitted ADUs; WHEREAS, on December 17, 2024, HCD published the January 2025 edition of its Accessory Dwelling Handbook", which formalized prior HCD interpretations of State ADU law;
WHEREAS, the City Council has determined that it is necessary to adopt an interim ordinance to maintain consistency with State ADU law, as interpreted by HCD; WHEREAS, the legislature of the State of California has, in Article XI, Section 7 of the California Constitution and Government Code Section 65800, conferred upon local governments the authority to adopt regulations designed to promote the public health, safety and general welfare of its citizenry;

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Attachment: Adopted Ordinance (ADU Interim Ordinance Extension) 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, the approval of accessory dwelling units and junior accessory dwelling units based solely on the few default statutory standards of the California Government Code, without local regulations governing height, setback, landscape, and architectural review, among other things, would threaten the character of existing neighborhoods, negatively impactpropertyvalues, personalprivacy, fire safety, andcreateconfusionthat would hinder the creation of accessory dwelling units and junior accessory dwelling units within the community;
WHEREAS, the proposed amendments are consistent with the goals, policies, and actions of the 2040 General Plan, as well as all applicable development agreements, area plans, neighborhood plans, and specific plans;
WHEREAS, no substantial evidence has been presented demonstrating that the project, as currently presented, will have a significant adverse impact on the environment; WHEREAS, the adoption of this interim ordinance is exempt from the California Environmental Quality Act ( CEQA) pursuant to Public Resource Code Section 21080. 17; WHEREAS, the City Council finds and determines that the proposed ordinance would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and is internally consistent with other applicable provisions of the Campbell Municipal Code; and
WHEREAS, in consideration of the recommended adoption of the interim ordinance, the City Council provided due consideration of all evidence presented and included in the entire administrative record.

WHEREAS, the proposed revisions are necessary to maintain the status quo pending the investigation and adoption of a permanent ordinance by conforming the City' s regulations to the requirements of State Law, while preserving such local regulations are are appropriate, lawful and currently in force.

WHEREAS, in consideration of the foregoing findings, the City Council further finds that there is a current and immediate threat to the public health, safety, or welfare, justify adoption of this interim ordinance on an urgency basis to be effective immediately upon adoption by a four- fifths vote of the City_Council.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1 ( PURPOSE AND APPLICABILITY): This Ordinance implements and enforces the mandatory provisions of the California Government Code related to the creation of accessory dwelling units ( ADUs) and junior accessory dwelling units ( JADUs).

It also adopts, where permissible, local standards and restrictions. This ordinance applies to the creation of all ADUs and JADUs within the jurisdiction of the City of Campbell.

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Attachment: Adopted Ordinance (ADU Interim Ordinance Extension) SECTION 2 ( STATE ADU LAW ADOPTED): It is the intent of the City Council to hereby implement and enforce all mandatory provisions of Articles 1, 2, and 3 ( commencing with Section 66310) of Chapter 13 (Accessory Dwelling Units) of Title 7 ( Planning and Land Use) of the California Government Code, hereinafter referred to as the " State ADU Law." In implementing and enforcing the State ADU Law, the City affirmatively accepts all provisions that use mandatory language such as " shall" or " must," which require specific actions or outcomes. However, where the State ADU Law uses discretionary language such as " may," those provisions are not implemented and will not be enforced excepted as explicitly stated in this interim ordinance.

SECTION 3 ( DEFINITIONS): The terms defined in California Government Code Section 66313 and those terms described in the latest edition of the Accessory Dwelling Unit Handbook, published by the California Department of Housing and Community Development, shall take precedenceover conflictingdefinitionsin Chapter21.72 (Definitions) or Section4 of Interim Ordinance No. 2321.

SECTION 4 ( GENERAL STANDARDS): The following clarifications of, and additional requirements adopted pursuant to, the subdivisions of California Government Code cited below, pertaining generally to the creation of accessory dwelling units, are hereby adopted:

A. Section 66314, subd. ( a). Accessory dwelling units may be permitted on properties located within residential or mixed- use zoning district as specified by Chapter 21.08 Residential zoning districts) and Chapter 21. 11 ( Mixed- used districts), respectively, or in the P-D (Planned Development) Zoning District on a parcel with a General Plan land use designation that directly corresponds to a residential zoning or mixed- use district as specified by Section 21. 04.020, Table 2- 1.

B. Section 66314, subd. ( b)( 1). The objective development standards applicable to the base zoning district, including those adopted by Interim Ordinance No. 2321, shall apply to accessory dwelling units, except as provided below.

1. The maximum allowable height for detached accessory dwelling units shall be twenty ( 20) feet.

2. Detached accessory dwelling units shall be separated from single- family dwelling or multifamily dwellings by the same distance that main structures must be separated from other main structures located on the same lot.

3. Accessory dwelling units shall be separated from accessory structures by the same distance that main structures must be separated from accessory structures located on the same lot as specified by Section 21.36.020 (Accessory Structures).

C. Section 66314, subd. ( b)( 1). The objective design standards adopted in Section 10 of Interim Ordinance No. 2321 shall apply to accessory dwelling units in all zoning districts but are limited to attached and converted accessory dwelling units.

D. Section 66314, subds. ( b)( 1), ( b)( 2). No parking standards for an accessory dwelling unit shall be imposed, includingreplacementof parkingspacesthat are removedor demolished in conjunction with the construction or creation of an accessory dwelling Page3of6

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Attachment: Adopted Ordinance (ADU Interim Ordinance Extension) unit. However, parking spaces that are voluntarilyprovidedshall complywith dimensional, design, and access standards of the base zoning district and Chapter

21.28 ( Parking and Loading).

E. Section 66316. The approval process for an accessory dwelling unit created in accordance with California Government Code Section 66314 shall be a ministerial building permit application in compliance with Title 18 ( Building Code), subject to the reviewperiodsprescribedin CaliforniaGovernmentCodeSection66317.

F. Section 66321, subds. ( a), ( b). The following maximum floor area standards for accessory dwelling units shall apply:

1. Detached accessory dwelling units shall not exceed a total floor area of one thousand two hundred ( 1, 200) square feet, in accordance with California Government Code Section 66314( d)( 5).

2. Attached accessory dwelling units shall not exceed fifty percent (50 percent) of the floor area of the existing primary dwelling, in accordance with California Government Code Section 66314( d)( 4). However, notwithstanding this maximum, a minimum living area of one thousand ( 1,000) square feet shall be permitted for units.

G. Section 66321, subd. ( b)( 3). None of the following standards shall apply to an accessory dwelling unit no larger than eight hundred ( 800) square feet with four- foot side and rear yard setbacks: ( 1) maximum lot coverage, ( 2) maximum floor area ratio, 3) minimum required private open space; and ( 4) minimum building, separation distance( s).

H. Section 66321, subd. ( b)( 3). An accessory dwelling unit no larger than eight hundred 800) square feet with four- foot side and rear yard setbacks may be located partially or wholly within the front yard setback if the Community Development Director determines that no alternative location on the property can physically accommodate the proposed accessory dwelling unit. For the purposes of this provision, the term " physically accommodate" means that there is no alternative unimproved area on the ' property with dimensions and physical area equal to or larger than the proposed accessory dwelling unit, as designed, accounting for the waiver of the standards identified in subsection G, above.

I. Section 66323, subd. ( b). The tree preservation requirements of Chapter 21. 32 ( Tree Protection Regulations) shall not apply when the critical root zone of a protected tree is located within the building footprint of an accessory dwelling unit created pursuant to Government Code Section 66323.

SECTION 5 ( MULTI- FAMILY RESIDENTIAL): The following clarifications of, and additional requirements adopted pursuant to the subdivisions of California Government Code cited below, pertaining to the creation of accessory dwelling units on lots including proposed or existing multifamily dwellings, are hereby adopted.

A. Section 66323, subd. ( a)( 3). Carports, garages, and other accessory structures that are detached from an existing multifamily dwelling structure( s) are not considered to Page4of6

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Attachment: Adopted Ordinance (ADU Interim Ordinance Extension) be " within" the existing multifamily dwelling structure( s) and therefore may not be converted to accessory dwelling unit( s), except as provided for in California Government Code Section 66323( a)( 4).

B. Section 66323, subd. ( a)( 4)( A)( iii). On a lot with a proposed multifamily dwelling, up to eight detached accessory dwelling units may be created, provided that the total does not exceed the proposed number of primary dwelling units.

SECTION 6 ( ADU DEVELOPMENT POLICY): Pursuant to, and in furtherance of Government Code Sections 66310, the City of Campbell adopts the following development policy as an innovative strategy to encourage the creation of accessory development units in new housing development projects.

A. A single- family residential subdivision ( inclusive of detached single- family homes and/ or townhomes) resulting in five or more parcels, exclusive of commonly- held parcels, subject to Chapter 21.07 (Housing development regulations) or Chapter 21. 39 Ministerial Approval), shall be subject to the following requirements:

1. Requirement. Twenty percent ( 20%) of the parcels shall be developed with a primary dwelling unit that is designed to allow for future creation of an convertedaccessorydwellingunit. Thisshallbeaccomplishedthrougha floor plan configuration that allows for segmentation of an accessory dwelling unit from the existing living area and pre- installation of electrical, domestic water, and sanitation utilities necessary to accommodate a future bathroom and kitchen to serve an accessory dwelling unit.

2. Alternative. In-lieu of the aforementioned requirement, twenty percent ( 20%) of the parcels may be developed with an accessory dwelling unit, to be constructed concurrently with the primary dwelling units.

3. Implementation. Conditions to carry out the requirement of this section shall be imposed on approval of the tentative map if a land use permit( s) for the creation primary dwelling units is not required. If a land use permit( s) for the creation of primary dwelling units is required in association with a tentative map, the application shall demonstrate compliance as a requirement of the application being accepted as complete pursuant to Section 21.38. 040 ( Initial application review).

B. If the requirement of subsection A. 1 ( Requirement) is determined not to be an objective standard" as defined by the California Government Code and therefore unenforceable, the alternative identified by subsection A. 2 ( Alternative), requiring the creation of the accessory dwelling units, shall instead become the requirement applied to the project subject to this section.

SECTION 7 ( INFORMATIONAL BULLETINS): The Community Development Director may, consistent with the expressed standards, purposes, and intent of State ADU law and this interim ordinance, issue a written informational bulletin( s) to clarify the standards and procedures for the creation of accessory dwellings units. An informational bulletin may also include interpretations of this interim ordinance in accordance with Chapter 21. 02 Interpretations Provisions).

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Attachment: Adopted Ordinance (ADU Interim Ordinance Extension) SECTION 8 ( SEVERABILITY): If at any time the California Department of Housing and Community Development submits to the City written findings pursuant to Government Code 666326 ( a) identifying certain section( s), subsection( s), sentence( s), clause( s), and/ or phrase( s) of this interim ordinance do not comply with State law, then those specific section( s), subsection( s), sentence( s), clause( s), and/ or phrase( s) shall no longer be in effect, such that this Chapter shall maintain its consistency with State ADU Law and not subject to nullification as provided for California Government Code Section 66316. The City Council hereby declares that it would have passed adopted this Chapter and each and every section, subsection, sentence, clause, or phrase not declared to be not in compliance with the California Government Code without regard to whether any portion of this interim ordinance would be subsequently declared non- complaint.

SECTION 9 ( APPLICATIONS IN PROGRESS): Notwithstanding Section 21. 01.050. E (Effect of Zoning Code Changes on Projects in Progress), this interim ordinance shall not apply to any building permit application for an accessory dwelling unit that was filed with the Community Development Department and for which all required fees were paid before the effective date of this ordinance, regardless of whether the application has been deemed complete.

SECTION 10 ( PUBLICATION): The City Clerk shall cause this interim ordinance or a summary thereof 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 11 ( EFFECTIVENESS): This interim ordinance shall become effective immediately upon adoption for a period of 45 days, unless extended by the City Council.

PASSED AND ADOPTED this 18th day of February, 2025 by the following roll call vote:

AYES: Councilmembers: Bybee, Hines, Scozzola, Furtado, Lopez NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROV •
Sergio Lopez, Mayor
ATTEST:
ha' £4d
AndreaSanders CityClerk

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Attachment: Adopted Ordinance (ADU Interim Ordinance Extension) City
Council
Report
TITLE: Public Hearing to Consider the Adoption of an Interim Ordinance Establishing Urgency Measures to Implement a Temporary
Moratorium on the Issuance of Tobacco Retailer Permits at New Locations in the City (Ordinance/Roll Call Vote)

RECOMMENDED ACTION
Adopt an Interim Ordinance, establishing urgen cy measures to implement a Temporary Moratorium on the issuance of Tobacco Retailer Permits at new locations in the City.

EXECUTIVE SUMMARY
Staff has documented that six new “smoke shops 1” have opened in Campbell since the start of 2024, representing a 200% increase in the number of these establishments in the city. The proliferation of smoke shops in Campbell has several negative community impacts, including increased availability of tobacco products with resulting health impacts, association with potential cannabis sales, and visual blight. According to representatives from County Public Health, Campbell has one of the highest concentrations of “smoke shops” for any community in Santa Clara County.

Staff is proposing to establish a temporary moratorium on the issuance of Tobacco Retailer Permits at new locations in the City. The moratorium will prevent the opening of new smoke shops, allowing the City sufficient time to develop and present appropriate 1 The Campbell Municipal Code does not differentiate stand-alone “smoke shops” from other types of tobacco retail sales when operated in conjunction with another use (i.e., grocery store).

Item: 10
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: March 18, 2025
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Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits Page 2 of 7 regulatory measures for the Council to consider limiting the number of smoke shops permitted within the City.

The moratorium would allow existing businesses to continue operating without disruption.

BACKGROUND
In 2012, the City adopted an Ordinance requiring all tobacco retailers to obtain a “Tobacco Retailer Permit” to ensure that retailers comply with tobacco control laws and City business standards (CC Ord. No. 2165; CMC Chapter 5.58).

As of January 2025, the city ha s 42 “active” Tobacco Retailers (reference Attachment B – Tobacco Retailers), which equates to roughly one tobacco retailer per 1,000 residents.

While the majority of tobacco retailers operate in conjunction with another land use activity (i.e., part of a grocery store, liquor store, convenience store), in the past four years the city has seen a significant increase in the number of “smoke shop” tobacco retail stores.

In response to the increase in smoke shops, the Campbell Police Department and Code Enforcement Division conducted inspections to ensure compliance with city regulations and state law. The inspections revealed multiple violations, including the sale of prohibited products, the presence of underage employees, lack of proper permits, and missing business licenses, with numerous items seized at each location.

DISCUSSION
The sale of tobacco can occur in many types of retail stores, including grocery stores, convenience stores, liquor stores, and in stand-alone retail stores, commonly referred to as “smoke shops.” The recent rise specifically in the number of stand -alone “smoke shops” in Campbell (six new establishments since 2024) raises concerns regarding 10 Packet Pg. 154
Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits Page 3 of 7 public health and neighborhood impacts including:

• Health impacts resulting from increased availability and accessibility of tobacco products, leading to higher rates of use and associated health risks. • Social and economic burdens due to smoking -related illnesses, which place greater demands on community health resources and increase healthcare costs. • Environmental concerns as cigarette butts and packaging contribute to litter and environmental degradation.
• Crime and safety challenges, as a higher concentration of retailers can make it more difficult to monitor and enforce age restrictions and tobacco sales laws. • Land use issues, as an overconcentration of tobacco retailers may be found to contribute to visual blight (i.e., contributing to violations of City sign ordinance), result in reduced retail diversity, and alter the character of the community.

The proposed Interim Ordinance aims to provide the City with the necessary tool to stop the recent surge in stand -alone tobacco retail stores (“smoke shops”) and subsequently adopt appropriate regulatory measures.

Several neighboring jurisdictions, including Santa Clara County, San Jose, Los Gatos, and Saratoga, have implemented restrictions on tobacco retailers, such as density limitations, proximity restrictions near schools, or limiting the sale of flavored tobacco or vaping products. Campbell currently lacks these regulatory measures, making it an outlier in the region with also a higher per capita concentration of tobacco retailers:

Tobacco Retailers Per Capita & Adjacent Community Policies by Year Jurisdiction Retailers
per 1,000
Requires
Permit
Restricts
Density
Limits
Near
Schools
Restricts
Flavored
Tobacco
Products
Restricts
Vaping
Products
Campbell .9 2012 N/A N/A N/A N/A
Santa
Clara
County
.6 2010 2010 2010 2010 2019
San Jose .6 2011 2021 2021 2021 N/A
Los Gatos .5 2017 2017 2017 2017 2019
Saratoga .2 2015 2016 2016 2021 2020
Sources: Santa Clara County Office of Supportive Health & California Health Assessment Tool

Enacting the moratorium and developing long -term regulatory strategies will align Campbell’s policies with best practices seen in other jurisdictions and align with action CHW-3.e. of the 2040 General Plan as follows:

• CHW-3.e Consider adoption of an ordinance prohibiting the sale of nicotine and tobacco products. Existing establishments engaged in the sale of nicotine and tobacco products may continue to do so subject to the provisions of the city's 10 Packet Pg. 155
Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits Page 4 of 7 legal non-conforming restrictions.

Staff is currently evaluating potential regulatory strategies to limit the number of “smoke shops” in the city that could include:

• Limiting the location to only certain retail zoning districts (i.e., general commercial).
• Limiting the number of tobacco retailers per capita (i.e., 1 per 1000 residents max.).
• Limiting the concentration of tobacco retailers within proximity to each other. • Prohibiting tobacco retailers close to certain land uses (e.g., 500 feet of schools). • Requiring approval of a discretionary permit (i.e., Conditional Use Permit). • Limiting "stand -alone" tobacco retailers (i.e., when not part of a grocery store, etc.).
• Restricting the sale of flavored tobacco products or vaping products. • Strengthening enforcement measures to ensure compliance with tobacco -related laws.

10 Packet Pg. 156
Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits Page 5 of 7

Figure 1 – Tobacco Retailers in Campbell

PUBLIC OUTREACH
In advance of the public hearing, the City conducted outreach to all existing tobacco retailers as well as non -governmental organizations (such as Breathe California, Tobacco-Free Coalition of California) providing details on the meeting and encouraging participation in the process. At the time of staff report preparation, no formal comments had been received.

PROCEDURAL REQUIREMENTS
California Government Code Section 65858 allows local jurisdictions to adopt an Interim Ordinance to approve urgency measures as needed to provide sufficient time to address pressing land use matters. Consistent with the Government Code, Campbell Municipal Code Section 21.60.090 (Interim Ordinance) also provides that "the City Council may take appropriate action to adopt an urgency measure, as an interim ordinance, in compliance with State law…"
10 Packet Pg. 157
Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits Page 6 of 7

Adoption of an Interim Ordinance requires a supermajority of the City Council ( four- fifths vote ) and is effective for no more than 45 days. The City Council may further extend the interim ordinance for 10 months and 15 days after a noticed public hearing and may subsequently extend the urgency ordinance for up to two years. Ten days prior to the expiration of the ordinance, the City Council must issue a written report describing the measures taken to alleviate the conditions which led to the adoption of the ordinance. Government Code section 65858(a) provides that the City Council may, after notice pursuant to Government Code section 65090 and a public hearing, subsequently extend an interim ordinance for an additional one year beyond expiration of the first extension.

Staff anticipate that the Interim Ordinance will need to be extended at least once prior to the 45-day expiration to allow sufficient time to prepare and adopt a formal ordinance through the normal hearing procedures.

ENVIRONMENTAL DETERMINATION
The California Environmental Quality Act (CEQA) requires agencies to identify the potential environmental effects of “projects”. While adoption of the proposed Interim Ordinance is considered a "project" under Section 15378(a)(1) of the California Environmental Quality Act (CEQA), it may be found exempt from environmental review under Section 15061(b)(3) because it does not create environmental impacts and merely preserves the status quo. The Interim Ordinance may also be found categorically exempt under Section 15308 of the California Environmental Quality Act because it is a temporary regulatory action taken by the City pursuant to its police power and in accordance with Government Code Section 65858 in the interest of evaluating and preventing potential environmental harms related to tobacco sales.

FISCAL IMPACTS
If a Temporary Moratorium on Tobacco Retailers is imposed, existing revenue from Tobacco Retail sales will not be impacted, but the city could miss out on potential revenue from new operators.

On average, stand -alone2 tobacco retail businesses result in approximately $3,196 dollars in revenue for the city per year. Given that the City has issued an average of three (3) Tobacco Retailers per year over the past three years (2022 -2024), the total fiscal impact can be roughly estimated to $10,000 if past trends were to continue.

However, considering that the City of Campbell now has the highest number of tobacco retailers per capita in the surrounding region, the anticipated fiscal impact may be less.

NEXT STEPS

2 The City does not have a precise sales tax data for tobacco retailers when part of another land use (i.e., as part of a grocery store).

10 Packet Pg. 158
Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits Page 7 of 7 If the Temporary Moratorium is approved, staff will:
• Engage with stakeholders, including public health officials, business owners, and community members.
• Develop and return with regulatory recommendations for City Council consideration within the moratorium period.

ALTERNATIVES

1. Direct staff to develop regulations without imposing a moratorium.

2. Take no action and continue issuing new tobacco retail permits under the existing municipal code.

Prepared by:

Stephen Rose, Senior Planner
Reviewed by:

Rob Eastwood, Community
Development Director
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Draft Ordinance
b. List of Tobacco Retailers in Campbell
c. Map of Tobacco Retailers in Campbell
10 Packet Pg. 159

ORDINANCE NO.

BEING AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF CAMPBELL ESTABLISHING URGENCY MEASURES TO

IMPLEMENT A TEMPORARY MORATORIUM ON THE ISSUANCE

OF TOBACCO RETAILER PERMITS AT NEW LOCATIONS IN THE
CITY. FILE NO. PLN-2025-12

WHEREAS, after notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed.

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 (hereinafter “Ordinance”).

WHEREAS, the legislature of the State of California has, in Article XI, Section 7 of the California Constitution and Government Code Sections 65302 and 65800, conferred upon local governments the authority to adopt regulations designed to promote the public health, safety and general welfare of its citizenry.

WHEREAS, in 2012, the City adopted an Ordinance requiring all tobacco retailers to obtain a “Tobacco Retailer Permit” to ensure that retailers comply with tobacco control laws and City business standards (CC Ord. No. 2165; CMC Chapter 5.58).

WHEREAS, as of January 2025, the city has city has approximately 42 “active” Tobacco Retailers, which equates to roughly one tobacco retailer per 1,000 residents.

WHEREAS, while the majority of tobacco retailers operate in conjunction with another land use activity (i.e., part of a grocery store, liquor store, convenience store), in the past four years the City has seen a significant increase in the number of “stand-alone” tobacco retail stores.

WHEREAS, several neighboring jurisdictions, including Santa Clara County, San Jose, Los Gatos, and Saratoga, have implemented restrictions on tobacco retailers, such as density limitations, proximity restrictions near schools, or limiting the sale of flavored tobacco or vaping products. Campbell currently lacks these regulatory measures, making it an outlier in the region with also a higher per capita concentration of tobacco retailers.

WHEREAS, the prevalence of tobacco retail establishments in the City may contribute to various adverse effects, including:
• Health impacts resulting from increased availability and accessibility of tobacco products, leading to higher rates of use and associated health risks. • Social and economic burdens due to smoking-related illnesses, which place greater demands on community health resources and increase healthcare costs. • Environmental concerns as cigarette butts and packaging contribute to litter and environmental degradation.
• Crime and safety challenges, as a higher concentration of retailers can make it more difficult to monitor and enforce age restrictions and tobacco sales laws.

10.a
Packet Pg. 160
Attachment: Draft Ordinance (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) City Council Ordinance No.

PLN-2025-12 – Tobacco Retailer Permits Moratorium Page 2 of 3

• Land use issues , as an overconcentration of tobacco retailers may be found to contribute to visual blight (i.e., frequently found to be in violation of City sign ordinance), result in reduced retail diversity, and alter the character of the community.

These and other concerns highlight the need for thoughtful regulation of tobacco retail uses to protect public health, safety, and overall community well-being.

WHEREAS, the Community Development Department plans to study changes to the City zoning ordinances and other ordinances within a reasonable time to address the foregoing concerns, with which the uses currently authorized by Tobacco Retailer Permits may be in conflict.

WHEREAS, considering the foregoing findings, the City Council further finds that there is a current and immediate threat to the public health, safety, and welfare, and that approval of additional Tob acco Retailer Permits would result in and exacerbate that threat to public health, safety and welfare.

WHEREAS, adoption of the proposed Ordinance is considered a "project" under Section 15378(a)(1) of the California Environmental Quality Act (CEQA).

WHEREAS, the proposed Ordinance may be found categorically exempt from environmental review under Section 15061(b)(3) of the California Environmental Quality Act because it does not create environmental impacts and merely preserves the status quo.

WHEREAS, the proposed Ordinance may also be found categorically exempt under Section 15308 of the California Environmental Quality Act because it is a temporary regulatory action taken by the City pursuant to its police power and in accordance with Government Code Section 65858 in the interest of evaluating and preventing potential environmental harms related to tobacco sales.

WHEREAS, in consideration of the adoption of the subject Ordinance, the City Council provided due consideration of all evidence presented and provided in the entire administrative record.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1 (PURPOSE). This Ordinance establishes urgency measures to implement a temporary moratorium on the issuance of tobacco retailer permits at new locations in the City.

SECTION 2 (MORATORIUM ESTABLISHED). This Ordinance imposes a moratorium on the issuance of any Tobacco Retailer Permit, as set forth by Chapter 5.58 (Tobacco Retailer Permit) of the Campbell Municipal Code . This moratorium shall not apply to the renewal of any existing tobacco retailer’s permit previously issued by the City of Campbell.

SECTION 3 (EXCEPTIONS TO THE MORATORIUM ). This Ordinance shall not apply to the issuance of Tobacco Retailer Permits for a business operating at the exact same physical location where a valid Tobacco Retailer Permit had been previously issued. For the

10.a
Packet Pg. 161
Attachment: Draft Ordinance (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) City Council Ordinance No.

PLN-2025-12 – Tobacco Retailer Permits Moratorium Page 3 of 3

purposes of this Section, 'same physical location' means the identical tenant space as previously permitted by the City of Campbell for a Tobacco Retailer Permit , in accordance with Chapter 5.58 (Tobacco Retailer Permit) of the Campbell Municipal Code , without any enlargement, relocation, or reconfiguration, that would alter its location or gross floor area within the property.

SECTION 4 (SEVERABILITY). If any section, sentence, clause, phrase, word , or other provision of this Ordinance is for any reason held to be unconstitutional or otherwise invalid, such holding shall not affect the validity of the remaining sections, sentences, clauses, phrases, words or other provisions of this Ordinance, or the validity of this Ordinance, shall stand notwithstanding the invalidity of any section, sentence, clause, phrase, word or other provision.

SECTION 5 (CEQA DETERMINATION) The proposed Ordinance is exempt under Section 15061(b)(3) of the California Environmental Quality Act because it does not create environmental impacts and merely preserves the status quo and under Section 15308 of the California Environmental Quality Act because it is a temporary regulatory action taken by the City pursuant to its police power and in accordance with Government Code Section 65858 in the interest of evaluating and preventing pot ential environmental harms related to tobacco sales.

SECTION 6 (EFFECTIVE DATES). This Ordinance shall take effect immediately upon its passage and shall remain in effect for 45 days, unless extended or repealed by the City Council in accordance with applicable law.

SECTION 7 (PUBLICATION). The City Clerk shall cause this Ordinance to be published and shall be published, or summary thereof, one time within fifteen (15) days upon passage and adoption in a newspaper of general circulation, such as the Metro Silicon Valley, for the City of Campbell, County of Santa Clara.

PASSED AND ADOPTED this _______ day of ________________, 202 5, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

Sergio Lopez, Mayor

ATTEST:

Andrea Sanders, City Clerk

10.a
Packet Pg. 162
Attachment: Draft Ordinance (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 1/22 Search Businesses
Search By:Business Type Value: TOBACCO RETAILER PERMIT Active Businesses Closed Businesses
Account # and Status Business Name and Informaon Contact Informaon 029840
Business Status: Open
Start Date: 1/26/2016
End Date:

License Status: Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

AU ENERGY LLC / PRUNEYARD SHELL
Business Address: 2029 S BASCOM AVE
CAMPBELL, CA 95008-3203
Locaon:Inside
Locaon Type:

Phone Number:(408) 377-5403
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
NARESH GOYAL, (51

Emergency Contacts
Alarm Company
SearchSearch

10.b
Packet Pg. 163
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 2/22 Account # and Status Business Name and Informaon Contact Informaon 027516
Business Status: Open
Start Date: 1/22/2013
End Date:

License Status: Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

SAFEWAY INC - FUEL STATION #3241
Business Address: 900 W HAMILTON AVE
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 871-1272
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
SAFEWAY INC, (623)

Emergency Contacts
Alarm Company
027525
Business Status: Open
Start Date: 1/23/2013
End Date:

License Status: Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:
420 LIFESTYLES INC
420lifestyles Corporaon
Business Address: 2345 WINCHESTER BLVD E
CAMPBELL, CA 95008-4066
Locaon:Inside
Locaon Type:

Phone Number:(408) 370-6869
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

FRANK MORENO, PR

Emergency Contacts
Alarm Company

10.b
Packet Pg. 164
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 3/22 Account # and Status Business Name and Informaon Contact Informaon 027526
Business Status: Open
Start Date: 1/23/2013
End Date:

License Status: Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

HAMILTON UNION 76
Business Address: 337 E HAMILTON AVE
CAMPBELL, CA 95008-0247
Locaon:Inside
Locaon Type:Commercial
Phone Number:(408) 866-8363
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

HAMILTON ASSOCAT

Emergency Contacts
Alarm Company
027543
Business Status: Open
Start Date: 1/28/2013
End Date:

License Status: Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

ROTTEN ROBBIE #27
Business Address: 2140 WINCHESTER BLVD
CAMPBELL, CA 95008-3422
Locaon:Inside
Locaon Type:Commercial
Phone Number:(408) 374-2511
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

ROBINSON OIL COR

Emergency Contacts
Alarm Company

10.b
Packet Pg. 165
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 4/22 Account # and Status Business Name and Informaon Contact Informaon 027544
Business Status: Open
Start Date: 1/28/2013
End Date:

License Status: Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

ROTTEN ROBBIE #3
Business Address: 370 E HAMILTON AVE
CAMPBELL, CA 95008-0209
Locaon:Inside
Locaon Type:Commercial
Phone Number:(408) 378-3611
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

ROBINSON OIL COR

Emergency Contacts
Alarm Company
027554
Business Status: Open
Start Date: 1/30/2013
End Date:

License Status: To Be Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #091229749
State License
Type:

RETAILER'S LICENSE
State License
Status:

State License Exp
Date:
6/30/2024
WALGREENS #06585
WALGREEN CO.

Business Address: 1570 W CAMPBELL AVE CAMPBELL,
CA 95008-1528
Locaon:Inside
Locaon Type:

Phone Number:(408) 374-3038
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License
Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
WALGREEN CO, (847

Emergency Contacts
Alarm Company

10.b
Packet Pg. 166
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 5/22 Account # and Status Business Name and Informaon Contact Informaon 027555
Business Status: Open
Start Date: 1/30/2013
End Date:

License Status: To Be Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #091229540
State License
Type:

RETAILER'S LICENSE
State License
Status:

State License Exp
Date:
6/30/2024
WALGREENS #2957
WALGREEN CO.

Business Address: 1660 WINCHESTER BLVD
CAMPBELL, CA 95008-1114
Locaon:Inside
Locaon Type:

Phone Number:(408) 378-7913
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License
Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
WALGREEN CO, (847

Emergency Contacts
Alarm Company
027557
Business Status: Open
Start Date: 1/30/2013
End Date:

License Status: Balance Due
Issue Date: 1/1/2024
Expire Date: 12/31/2024
Balance Due:58
State License #091375426
State License
Type:

TOBACCO RETAILERS LICENSE
State License
Status:

State License Exp
Date:
12/31/2024

VAPORS SMOKE SHOP INC
Business Address: 880 W HAMILTON AVE
CAMPBELL, CA 95008-0457
Locaon:Inside
Locaon Type:

Phone Number:(408) 475-3244
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

A LIN/C GIARRATANA

Emergency Contacts
Alarm Company

10.b
Packet Pg. 167
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 6/22 Account # and Status Business Name and Informaon Contact Informaon 027560
Business Status: Open
Start Date: 1/30/2013
End Date:

License Status: Printed
Issue Date: 1/1/2025
Expire Date: 12/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

GANESH GROUP CORPORATION
Business Address: 1860 W CAMPBELL AVE
CAMPBELL, CA 95008-1531
Locaon:Inside
Locaon Type:

Phone Number:(408) 802-8250
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

SANJAY BHANVADIA

Emergency Contacts
Alarm Company
027569
Business Status: Open
Start Date: 2/1/2013
End Date:

License Status: To Be Printed
Issue Date: 2/1/2025
Expire Date: 1/31/2026
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

CHEVRON STATIONS INC #1505
Business Address: 1589 S BASCOM AVE
CAMPBELL, CA 95008-0603
Locaon:Inside
Locaon Type:

Phone Number:(408) 377-9850
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

CHEVRON STATIONS

Emergency Contacts
Alarm Company

10.b
Packet Pg. 168
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 7/22 Account # and Status Business Name and Informaon Contact Informaon 027581
Business Status: Open
Start Date: 2/5/2013
End Date:

License Status: To Be Printed
Issue Date: 2/1/2025
Expire Date: 1/31/2026
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:
7-ELEVEN STORE 2234-14298E
Business Address: 2223 S BASCOM AVE
CAMPBELL, CA 95008-4351
Locaon:Inside
Locaon Type:

Phone Number:(408) 377-7060
Fax Number:

Email:ELECTRONICRENEWALS@7-

11.COM
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

AMAR STORES INC/P
0567

Emergency Contacts
CHRISTINA GIBBS, (9
Chrisna.Gibbs2@7

Alarm Company
027582
Business Status: Open
Start Date: 2/5/2013
End Date:

License Status: Renewal
Issue Date: 2/1/2024
Expire Date: 1/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:
7 ELEVEN #2367-17406C/BUS-21
Business Address: 2335 S WINCHESTER BLVD
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 370-2055
Fax Number:

Email:electronicrenewals@7-

11.com
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

PARWINDER DHIND
9753

Emergency Contacts
CHRISTINA GIBBS, (9
Chrisna.Gibbs2@7

Alarm Company

10.b
Packet Pg. 169
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 8/22 Account # and Status Business Name and Informaon Contact Informaon 027601
Business Status: Open
Start Date: 2/13/2013
End Date:

License Status: To Be Printed
Issue Date: 2/1/2025
Expire Date: 1/31/2026
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

PARK VASONA CHEVRON
Business Address: 3405 S WINCHESTER BLVD
CAMPBELL, CA 95008-6844
Locaon:Inside
Locaon Type:

Phone Number:

Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
FRANCY AMIDI, (408

Emergency Contacts
Alarm Company
030038
Business Status: Open
Start Date: 4/29/2016
End Date:

License Status: Printed
Issue Date: 4/1/2024
Expire Date: 3/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

CAMPBELL LIQUORS & DELI
Business Address: 479 E CAMPBELL AVE
CAMPBELL, CA 95008-2128
Locaon:Inside
Locaon Type:

Phone Number:(408) 667-5161
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
HARRY PHAM, (408)

Emergency Contacts
Alarm Company

10.b
Packet Pg. 170
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 9/22 Account # and Status Business Name and Informaon Contact Informaon 027637
Business Status: Open
Start Date: 2/28/2013
End Date:

License Status: Renewal
Issue Date: 2/1/2024
Expire Date: 1/31/2025
Balance Due:0
State License #097827541
State License
Type:

SELLER'S PERMIT
State License
Status:

State License Exp
Date:

CAMPBELL EXXON

BAY AREA OIL SUPPLY INC
Business Address: 3035 WINCHESTER BLVD
CAMPBELL, CA 95008-6540
Locaon:Inside
Locaon Type:

Phone Number:(650) 931-0820
Fax Number:(650) 259-9532
Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

JAMES LIN - BAY ARE
[email protected]

Emergency Contacts
Alarm Company
027672
Business Status: Open
Start Date: 3/18/2013
End Date:

License Status: Renewal
Issue Date: 3/1/2024
Expire Date: 2/28/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

COACH'S SPORTS BAR & GRILL
Business Address: 2240 WINCHESTER BLVD
CAMPBELL, CA 95008-3424
Locaon:Inside
Locaon Type:

Phone Number:(408) 379-2654
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
PAGE RAD, (408) 489

Emergency Contacts
Alarm Company

10.b
Packet Pg. 171
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 10/22 Account # and Status Business Name and Informaon Contact Informaon 032537
Business Status: Open
Start Date: 9/10/2019
End Date:

License Status: Printed
Issue Date: 9/1/2024
Expire Date: 8/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

GRAND PETROLEUM INC DBA:CENTRAL GAS
Business Address: 1533 W CAMPBELL AVE
CAMPBELL, CA 95008-1527
Locaon:Inside
Locaon Type:

Phone Number:(510) 331-8405
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
AMIN SALKHI, (510)

Emergency Contacts
Alarm Company
027828
Business Status: Open
Start Date: 5/20/2013
End Date:

License Status: Printed
Issue Date: 5/1/2024
Expire Date: 4/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

CAMPBELL CIGAR
Business Address: 831 UNION AVE CAMPBELL,
CA 95008-5504
Locaon:Inside
Locaon Type:

Phone Number:(408) 377-0777
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
BASS ALSHELEH, (40

Emergency Contacts
Alarm Company

10.b
Packet Pg. 172
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 11/22 Account # and Status Business Name and Informaon Contact Informaon 033098
Business Status: Open
Start Date: 10/6/2020
End Date:

License Status: Printed
Issue Date: 10/1/2024
Expire Date: 9/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

HAZE

AUTUMN MT INC
Business Address: 2050 S BASCOM AVE 5
CAMPBELL, CA 95008-3270
Locaon:Inside
Locaon Type:

Phone Number:(714) 356-1811
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
THAER SUNNAA, (71

Emergency Contacts
Alarm Company
030726
Business Status: Open
Start Date: 4/12/2017
End Date:

License Status: Printed
Issue Date: 4/1/2024
Expire Date: 3/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

CALIFORNIA FOOD MART
Business Address: 100 W HAMILTON AVE D
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 797-6800
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

HARINDER SINGH

Emergency Contacts
Alarm Company

10.b
Packet Pg. 173
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 12/22 Account # and Status Business Name and Informaon Contact Informaon 030930
Business Status: Open
Start Date: 7/17/2017
End Date:

License Status: Printed
Issue Date: 7/1/2024
Expire Date: 6/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

GARDEN CITY LIQUOR
Business Address: 371 E HAMILTON AVE
CAMPBELL, CA 95008-0208
Locaon:Inside
Locaon Type:

Phone Number:(408) 888-6474
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
AJAY SINGH, (408) 3

Emergency Contacts
Alarm Company
031055
Business Status: Open
Start Date: 9/22/2017
End Date:

License Status: Printed
Issue Date: 9/1/2024
Expire Date: 8/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

SUNNYOAKS GAS & FOOD MART
BAL STATIONS INC.

Business Address: 2855 S WINCHESTER BLVD
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 379-8612
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

BAL STATIONS INC, (

BALJIT SINGH, (415)

Emergency Contacts
Alarm Company

10.b
Packet Pg. 174
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 13/22 Account # and Status Business Name and Informaon Contact Informaon 033617
Business Status: Open
Start Date: 7/7/2021
End Date:

License Status: Printed
Issue Date: 7/1/2024
Expire Date: 6/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

AU ENERGY LLC
Business Address: 570 E HAMILTON AVE
CAMPBELL, CA 95008-0210
Locaon:Inside
Locaon Type:

Phone Number:(510) 270-3486
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
VARISH GOYAL, (650

Emergency Contacts
Alarm Company
028939
Business Status: Open
Start Date: 11/7/2014
End Date:

License Status: Printed
Issue Date: 11/1/2024
Expire Date: 10/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

NMSO INC #68117
Business Address: 1370 CAMDEN AVE
CAMPBELL, CA 95008-6702
Locaon:Inside
Locaon Type:

Phone Number:(909) 394-4728
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
SAM ANABI, (909) 3

Emergency Contacts
Alarm Company

10.b
Packet Pg. 175
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 14/22 Account # and Status Business Name and Informaon Contact Informaon 031458
Business Status: Open
Start Date: 4/24/2018
End Date:

License Status: Printed
Issue Date: 4/1/2024
Expire Date: 3/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

CAMPBELL-U-SAVE
Business Address: 1575 S WINCHESTER BLVD A
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 374-2011
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
GIRMAI HAGOS, (40

Emergency Contacts
Alarm Company
034185
Business Status: Open
Start Date: 7/1/2022
End Date:

License Status: Printed
Issue Date: 7/1/2024
Expire Date: 6/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

STAY VAPED
Business Address: 2145 S WINCHESTER BLVD
130 CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 601-9766
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
NAM NGUYEN, (408

Emergency Contacts
Alarm Company

10.b
Packet Pg. 176
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 15/22 Account # and Status Business Name and Informaon Contact Informaon 031673
Business Status: Open
Start Date: 6/29/2018
End Date:

License Status: Printed
Issue Date: 6/1/2024
Expire Date: 5/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

WESTERN REFINING RETAIL LLC
Business Address: 921 W HAMILTON AVE
CAMPBELL, CA 95008-0405
Locaon:Inside
Locaon Type:

Phone Number:(972) 828-6862
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

WESTERN REFINING

Emergency Contacts
Alarm Company
031803
Business Status: Open
Start Date: 8/31/2018
End Date:

License Status: Printed
Issue Date: 8/1/2024
Expire Date: 7/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

CAMPBELL PLAZA BOTTLE SHOP
Business Address: 2345 WINCHESTER BLVD A
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 378-0209
Fax Number:

Email:

Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

SIMRANJIT SINGH G

Emergency Contacts
Alarm Company

10.b
Packet Pg. 177
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 16/22 Account # and Status Business Name and Informaon Contact Informaon 029459
Business Status: Open
Start Date: 7/22/2015
End Date:

License Status: Printed
Issue Date: 7/1/2024
Expire Date: 6/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

FREDDIE'S LIQUORS
Business Address: 1581 W CAMPBELL AVE N
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(408) 425-0166
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

JASKARAN KAHLON,

Emergency Contacts
Alarm Company
034438
Business Status: Open
Start Date: 12/7/2022
End Date:

License Status: Printed
Issue Date: 12/1/2024
Expire Date: 11/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

GURU SAHAI INC DBA: LIQUOR TOWN
Business Address: 790 W HAMILTON AVE
CAMPBELL, CA 95008-0404
Locaon:Inside
Locaon Type:

Phone Number:(669) 300-6535
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5921001 - Liquor Stores
Owners / Oﬃcers

GURUSEWAK SINGH

Emergency Contacts
Alarm Company

10.b
Packet Pg. 178
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 17/22 Account # and Status Business Name and Informaon Contact Informaon 031948
Business Status: Open
Start Date: 11/15/2018
End Date:

License Status: Printed
Issue Date: 11/1/2024
Expire Date: 10/31/2025
Balance Due:0
State License #251-899040
State License
Type:

TOBACCO
State License
Status:

State License Exp
Date:
4/1/2025

VIP SMOKE SHOP

SMOKE OUTLET INC
Business Address: 2389 S WINCHESTER BLVD
CAMPBELL, CA 95008-4001
Locaon:Inside
Locaon Type:

Phone Number:(408) 374-4030
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

ABDULSALAM MOH

Emergency Contacts
Alarm Company
029548
Business Status: Open
Start Date: 8/31/2015
End Date:

License Status: Printed
Issue Date: 8/1/2024
Expire Date: 7/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:
7 ELEVEN STORE #2367-14247D/BUS-22
Business Address: 262 W SUNNYOAKS AVE
CAMPBELL, CA 95008-5349
Locaon:Inside
Locaon Type:

Phone Number:(408) 376-0773
Fax Number:

Email:electronicrenewals@7-

11.com
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

MUHAR ENTERPRISE

Emergency Contacts
CHRISTINA GIBBS, (9
Chrisna.Gibbs2@7

Alarm Company

10.b
Packet Pg. 179
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 18/22 Account # and Status Business Name and Informaon Contact Informaon 034533
Business Status: Open
Start Date: 2/2/2023
End Date:

License Status: Renewal
Issue Date: 2/1/2024
Expire Date: 1/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

NORTHSTAR GAS
10151 INTERNATIONAL
Business Address: 1530 W CAMPBELL AVE
CAMPBELL, CA 95008-1528
Locaon:Inside
Locaon Type:

Phone Number:(408) 379-3850
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
MUSAB ZGHOUL, (4

Emergency Contacts
Alarm Company
029694
Business Status: Open
Start Date: 11/3/2015
End Date:

License Status: Printed
Issue Date: 11/1/2024
Expire Date: 10/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

PARK VASONA LIQUORS
Business Address: 3391 WINCHESTER BLVD
CAMPBELL, CA 95008-6844
Locaon:Inside
Locaon Type:Commercial
Phone Number:(408) 378-8980
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers
GR LIQUORS INC, (4

Emergency Contacts
Alarm Company

10.b
Packet Pg. 180
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 19/22 Account # and Status Business Name and Informaon Contact Informaon 035187
Business Status: Open
Start Date: 11/6/2023
End Date:

License Status: Printed
Issue Date: 11/1/2024
Expire Date: 10/31/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

URBAN PUFFS

URBAN TME, INC
Business Address: 393 E HAMILTON AVE
CAMPBELL, CA 95008-0243
Locaon:Inside
Locaon Type:

Phone Number:(951) 488-5455
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993003 - Tobacco
Stores\retail
Owners / Oﬃcers
URBAN TME, INC, (9

THAER SUNNAA, (71
[email protected]

Emergency Contacts
THAER SUNNAA, (71

Alarm Company
035783
Business Status: Open
Start Date: 1/5/2024
End Date:

License Status: Renewal
Issue Date: 1/5/2024
Expire Date: 12/31/2024
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

MJ SMOKE SHOP
Business Address: 484 W HAMILTON AVE A
CAMPBELL, CA 95008-0548
Locaon:Inside
Locaon Type:

Phone Number:(209) 499-0236
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5194001 - Tobacco And
Tobacco Products
Owners / Oﬃcers

MOHAMED MOHSE

Emergency Contacts
EMAD MOHSEN, (20

Alarm Company

10.b
Packet Pg. 181
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 20/22 Account # and Status Business Name and Informaon Contact Informaon 036059
Business Status: Open
Start Date: 4/17/2024
End Date:

License Status: Printed
Issue Date: 4/17/2024
Expire Date: 3/31/2025
Balance Due:0
State License #245-336224
State License
Type:

TOBACCO
State License
Status:

State License Exp
Date:

DREAMY EXOTICS
Business Address: 835 UNION AVE CAMPBELL,
CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(510) 925-7265
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

SALAH MOHAMED,

Emergency Contacts
Alarm Company
036293
Business Status: Open
Start Date: 7/10/2024
End Date:

License Status: Printed
Issue Date: 7/10/2024
Expire Date: 6/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

CAMPBELL TOBACCO & MORE

HUMISAN LLC
Business Address: 71 N SAN TOMAS AQUINO RD
CAMPBELL, CA 95008-1610
Locaon:Inside
Locaon Type:

Phone Number:(510) 488-8047
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993003 - Tobacco
Stores\retail
Owners / Oﬃcers
HUMISAN LLC, (510)

MOHAMMED HUMI

Emergency Contacts

MOHAMMED HUMI

Alarm Company

10.b
Packet Pg. 182
Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 21/22 Account # and Status Business Name and Informaon Contact Informaon 036312
Business Status: Open
Start Date: 7/16/2024
End Date:

License Status: Printed
Issue Date: 7/16/2024
Expire Date: 6/30/2025
Balance Due:0
State License #216087456
State License
Type:

TOBACCO
State License
Status:

State License Exp
Date:

HAZE
MENT, INC.

Business Address: 469 E CAMPBELL AVE
CAMPBELL, CA 95008
Locaon:Inside
Locaon Type:

Phone Number:(714) 356-1811
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

THAER SUNNAA, OW

Emergency Contacts
Alarm Company
036574
Business Status: Open
Start Date: 12/16/2024
End Date:

License Status: Printed
Issue Date: 12/16/2024
Expire Date: 11/30/2025
Balance Due:0
State License #
State License
Type:

State License
Status:

State License Exp
Date:

HAMILTON SMOKE SHOP

HAMILTON SMOKE SHOP LLC
Business Address: 880 W HAMILTON AVE
CAMPBELL, CA 95008-0457
Locaon:Inside
Locaon Type:Commercial
Phone Number:(510) 328-5787
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993001 - Tobacco Stores And
Stands
Owners / Oﬃcers

HAMILTON SMOKE S

WADHAH ALDHAHE
02/15/1982

Emergency Contacts

WADHAH ALDHAHE
02/15/1982

Alarm Company

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Attachment: List of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance of Tobacco Retailer Permits) 2/3/25, 12:07 PM Search
https://campbell.hdlgov.com/Staff/AuthenticatedSearch/Search 22/22 Account # and Status Business Name and Informaon Contact Informaon 036799
Business Status: Open
Start Date: 1/27/2025
End Date:

License Status: Pending - New
Issue Date: 1/27/2025
Expire Date: 12/31/2025
Balance Due:63
State License #
State License
Type:

State License
Status:

State License Exp
Date:

SAGE SMOKE

SAGE SMOKE
Business Address: 484 W HAMILTON AVE
CAMPBELL, CA 95008-0548
Locaon:Inside
Locaon Type:Commercial
Phone Number:(408) 714-9202
Fax Number:

Email:[email protected]
Website:

Geo Areas:

License Descripon:

Business Type:TOBACCO RETAILER PERMIT
Rate Type:STD - RETAIL TOBACCO
PERMIT
NAICS:-
SIC: 5993003 - Tobacco
Stores\retail
Owners / Oﬃcers

HASSAN HAMED, OW
hashamedsj@gmail

Emergency Contacts

HASSAN HAMED, OW
hashamedsj@gmail

Alarm Company
Total businesses found: 42

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Attachment: Map of Tobacco Retailers in Campbell (Ordinance for Temporary Moratorium on the Issuance

City
Council
Report

TITLE: Ordinance Revising Campbell Municipal Code Chapters 8.38 and 8.40 to Allow Delivery of Lawful Cannabis Products to All Adults in the City of Campbell and Making Other Non -Substantive Changes in Conformance with State Law.

RECOMMENDED ACTION

That the City Council introduce the ordinance for first reading deleting Campbell Municipal Code Chapter 8.38 and modifying Chapter 8.40 to allow delivery of lawful cannabis products to all adults in the City of Campbell, and making non -substantive changes to conform with State Law, as well as deleting the reference to Chapter 8.38 from Municipal Code section 6.10.020.

BACKGROUND
Current Municipal Code Provisions
Campbell Municipal Code Chapters 8.38 and 8.40 currently allow for the delivery of medicinal cannabis products to qualified patients in Campbell, as well as limited indoor cultivation of cannabis plants for personal use on residential property, in keeping with State Law. However, the current Municipal Code provisions do not allow any other commercial cannabis operations, including delivery to the primary caregivers of the qualified patients or to any other adults who do not have the recommendation from a physician. These existing ordinances regulating cannabis were last amended in 2017, by vote of the City’s electorate on an initiative submitted by the City Council.

State Regulatory History
Over the last eighteen (18) years, the State has undergone an evolving regulatory landscape with regard to cannabis. Prior to 2016, the State’s focus was exclusively on medicinal cannabis use. In 1996, the voters approved Proposition 215, known as the Compassionate Use Act (“CUA”), which decriminalized the use of cannabis for medicinal purposes upon recommendation of a physician. In 2003, the State Legislature adopted the Medical Marijuana Program Act ("MMPA"), which permitted qualified patients and their p rimary caregivers to associate collectively or cooperatively to cultivate cannabis for medical purposes without being subject to criminal prosecution.

Some twelve (12) years later, the Legislature adopted the Medical Cannabis Regulation Item: 11
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: March 18, 2025
11 Packet Pg. 186
Ordinance Revising CMC 8.40 Page 2 of 4
and Safety Act (“MCRSA”) that collectively established a comprehensive state regulatory framework for the licensing and enforcement of cultivation, manufacturing, retail sale, transportation, storage, delivery, and testing of medicinal cannabis in California.

In 2016, for the first time, the State effectively legalized cannabis for adult recreational use upon the adoption of Proposition 64 known as the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”). This Proposition was followed in 2017 by the Legislature’s adoption of the Medical and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), which established a combined general framework for the regulation of both commercial medical and adult -use cannabis. Then, in 2022, the Legislature adopted the Medicinal Cannabis Patient’s Right of Access Act, which purports to require cities to allow delivery of medicinal cannabis within their jurisdictions to qualified patients and their primary caregivers . Under State Law, a qualified patient is defined as “a person whose physician has recommended the use of cannabis to treat a serious illness . . . or any other chronic or persistent medical condition for which marijuana provides relief’;” (Cal. Health & Safety Code §§ 11362.5(b)(1)(A) and 11362.7(h);) and a primary caregiver is defined as “the individual designated by the” [qualified patient] “who has consistently assumed responsibility for the housing, health, or safety of that person.” (Cal. Health & Safety Code § 11362.5(e).)
These enactments have changed some of the terminology and statutory sections referenced in the Municipal Code.

Federal Regulation of Cannabis
Under the Federal Controlled Substances Act, codified in 21 U.S.C. Section 801 et seq., the use, possession, and cultivation of cannabis remain illegal under Federal Law.

However, pursuant to the Rohrabacher -Farr Amendment to the Federal Budget, the Justice Department is precluded from using any Federal resources to prosecute state compliant medicinal cannabis operations in states that have legalized medicinal cannabis. This amendment needs to be reauthorized annually, but so far it has received bi-partisan support.

DISCUSSION
The recommended revisions to the Municipal Code would delete Chapter 8.38 and modify Chapter 8.40 to expand the allowed delivery of cannabis to all adults , whether for medicinal or recreational purposes. It would also revise the terminology and statutory references contained in the Municipal Code to conform with the current State Law provisions, including substituting the term “cannabis” for “marijuana.” Additionally, it would remove the reference to the deleted Chapter 8.38 from the definition of “nuisance” contained in Municipal Code section 6.10.020(a)(6)(Q). 11 Packet Pg. 187
Ordinance Revising CMC 8.40 Page 3 of 4
Based on data from the City of San Jose, there are 15 licensed cannabis retailers located within approximately 5 miles of the City of Campbell, of which 11 offer delivery services. However, none of these retailers have so far obtained a business license to deliver cannabis in Campbell. Expanding deliveries to include all adults would expand the market for suppliers, which in turn could result in these suppliers obtaining a license to deliver cannabis in Campbell, and make cannabis more available to qualified patients and their primary caregivers.

Given the proximity of the cannabis retailers to residents in Campbell, there is no real need to locate distribution centers within the Campbell city limits; and Campbell’s compact size makes it difficult to locate such distribution centers in the City without impacting sensitive uses. Approximately 73% of the City’s privately held land is zoned to allow residential use; and no parcel of property in the City is located more than approximately 1,310 feet from a property zoned for residential use. Additionally, the proximity of privately held land in Campbell that is potentially available for a physical location from which to distribute cannabis is further constrained by the presence of schools, daycare operations and youth centers; and under State Law no cannabis business is allowed to be located within 600 feet of such schools, daycare operations and youth centers.

In addition, r emoving the distinction between deliveries for qualified patients for medicinal us e and deliveries for all adults makes practical sense from a law enforcement standpoint as it is extremely difficult for police personnel to determine , in the field, if a delivery is destined for a qualified patient.

Lastly, all deliveries would be subject to Campbell’s seven percent (7%) gross receipts tax on cannabis businesses.

FISCAL IMPACT
Assuming that the proposed ordinance results in delivery services obtaining a business license from Campbell , making deliveries in Campbell , and paying to the City of Campbell the taxes due, the City would obtain revenue from the existing seven percent (7%) gross receipts tax on cannabis businesses.

ALTERNATIVES
As an alternative, the Council could adopt an alternative ordinance that limits deliveries to only individuals using it for medicinal purposes and their primary caregivers, and also conforms the Municipal Code to the changes in State statutory terminology and section references.

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Ordinance Revising CMC 8.40 Page 4 of 4
Prepared by:

William Seligmann, City Attorney
Approved by:

Angelique Gaeta, Assistant City
Manager
Attachment:
a. Recommended Ordinance - Delivery to All Adults
b. Alternative Ordinance - Delivery only for medicinal use 11 Packet Pg. 189

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ORDINANCE NO. ________________

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF CAMPBELL DELETING MUNICIPAL
CODE CHAPTER 8.38 AND AMENDING CHAPTER

8.40 TO ALLOW DELIVERY OF CANNABIS TO ALL

ADULTS AND MAKING OTHER NON-
SUBSTANTIVE CLARIFICATIONS; AND DELETING
THE REFERENCE TO CHAPTER 8.38 FROM
CAMPBELL MUNICIPAL CODE SECTION 6.10.020
WHEREAS, in 1996, the voters of the State of California approved Proposition 215, entitled "The Compassionate Use Act of 1996" ("CUA"); WHEREAS, the intent of the CUA was to decriminalize the possession and use of cannabis for medical purposes by seriously ill Californians under S tate law once a physician has deemed the use beneficial to a patient’s health; WHEREAS, in 2003, the California Legislature adopted SB 420, the Medical Marijuana Program Act ("MMPA"), which permit ted qualified patients and their primary caregivers to associate collectively or cooperatively to cultivate cannabis for medical purposes without being subject to criminal prosecution under the California Penal Code; WHEREAS, neither the CUA nor the MMPA require or impose an affirmative duty or mandate upon a local government to allow, authorize, or sanction the establishment of facilities that cultivate , dispense, deliver or process medical cannabis within its jurisdiction;
WHEREAS, in May 2013, the California Supreme Court issued its decision in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. , et al., holding that cities have the authority to ban medical cannabis land uses; WHEREAS, under the Federal Controlled Substances Act, codified in 21 U.S.C.

Section 801 et seq., the use, possession, and cultivation of cannabis are unlawful and subject to federal prosecution without regard to a claimed medical need; WHEREAS, in 2015, California enacted three bills—Assembly Bill 243 (Assembly Bill 266; and Senate Bill 643 — that collectively established a comprehensive state regulatory framework for the licensing and enforcement of cultivation, manufacturing, retail sale, transportation, storage, delivery, and testing of medicinal cannabis in California. This regulatory schem e is known as the Medical Cannabis Regulation and Safety Act (“MCRSA”);
WHEREAS, MCRSA became effective January 1, 2016 and contained provisions that govern the cultivating, processing, transporting, testing, and distributing of medical cannabis to qualified patients. MCRSA also contained statutory provisions that:

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• Allowed local governments to enact ordinances expressing their intent to prohibit the cultivation of cannabis and their intent not to administer a conditional permit program for the cultivation of cannabis;

• Expressly provided that the Act does not supersede or limit local authority for local law enforcement activity, enforcement of local ordinances, or enforcement of local permit or licensing requirements regarding cannabis;

• Expressly provided that the Act does not limit the authority or remedies of a local government under any provision of law regarding cannabis, including but not limited to a local government ’s right to make and enforce within its limits all police regulations not in conflict with general laws; and

• Required a local government that wishes to prevent cannabis delivery activity from operating within the local government’s boundaries to enact an ordinance affirmatively banning such delivery activity;
WHEREAS, on November 8, 2016, California voters approved Proposition 64, the initiative known as the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”), which effectively legalized the adult recreational use of cannabis in California;

WHEREAS, in 2018, the Medical and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), establishing a general framework for the regulation of both commercial medical and adult-use cannabis became effective;

WHEREAS, many California cities, as well as the City of Campbell, have reported negative impacts of cannabis processing and dispensing activities, including offensive odors, illegal sales and distribution of cannabis , trespassing, theft, violent robberies and robbery attempts, fire hazards, and problems associated with mold, fungus, and pests; WHEREAS, cannabis plants, as they begin to flower and for a period of two months or more, produce a strong odor, offensive to many people, and detectable far beyond property boundaries if grown outdoors;
WHEREAS, the strong smell of cannabis creates an attractive nuisance, alerting persons to the location of the valuable plants, and creating a risk of burglar y, robbery or armed robbery;
WHEREAS, the indoor cultivation of cannabis has potential adverse effects to the structural integrity of the building, and the use of high wattage grow lights and excessive use of electricity increases the risk of fire which presents a clear and present danger to the building and its occupants;

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WHEREAS, based on the experiences of other cities, these negative effects on the public health, safety, and welfare would be likely to occur in the City if cannabis processing, cultivation and storefront dispensing activities are established; WHEREAS, Section 7 of Article 11 of the California Constitution and Section

2.04.010 of the Campbell Municipal Code provides the City Council with the authority to make and enforce all laws, rules and regulations with respect to not in conflict with general laws, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, under the Campbell Municipal Code ("CMC") every zoning district in the City of Campbell prohibits any land use inconsistent with state or federal law; WHEREAS, allowing and regulating the cultivation, processing and storefront dispensing of cannabis within the City limits of the City of Campbell would have a significant impact on the resources of the City;
WHEREAS, on March 1, 2016, the City Council adopted Ordinance No. 2197, which added Chapter 8.38 to the Campbell Municipal Code, expressly prohibiting the processing, dispensing or delivery of cannabis in the City of Campbell; WHEREAS, AUMA allows the cultivation of up to six (6) plant in a private residence for personal use, while CUA recognizes more expansive rights for qualified patients and primary caregivers;
WHEREAS, on November 1, 2016, the City Council adopted Ordinance No. 2214, in response to AUMA, adding Chapter 8.40 to the Campbell Municipal Code to regulate non-medical cannabis to the extent that it was not already regulated in the City of Campbell;
WHEREAS, the City Council respects the right of qualified patients to use medical cannabis for relief of their ailments; and
WHEREAS, the allowing delivery of medical cannabis from licensed businesses located outside of the City to qualified patients located in the City would be the least onerous way of affording access to patients within the City; WHEREAS, the City of Campbell is a geographically compact city, with the longest internal distance from border to border being only approximately 4.5 miles; WHEREAS, approximately 73% of the City’s privately held land is zoned to allow residential use; and no parcel of property in the City is located more than approximately 1,310 feet from a property zoned for residential use;
WHEREAS, the proximity of privately held land in Campbell that is potentially available for a physical location from which to distribute cannabis is further constrained by the presence of schools, daycare operations and youth centers;

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WHEREAS, there are 15 licensed retail businesses selling cannabis within approximately 5 miles of the City of Campbell, of which 11 offer deliver service, which readily provides for retail sale of cannabis in a timely and readily accessible manner, and in types and quantities that are sufficient to meet demand from medicinal cannabis patients;
WHEREAS, distinguishing between delivery of medicinal cannabis and non- medicinal cannabis presents practical difficulties for enforcement purposes; NOW THEREFORE, the City Council of the City of Campbell does ordain as follows:

Section 1. The City Council of the City of Campbell hereby finds that the above recitals are true and correct and are incorporated into the substantive portion of this ordinance;
Section 2: Chapter 8.38 of the Campbell Municipal Code is hereby deleted in its entirety, as its substantive provisions have been substantially consolidated into Chapter

8.40;
Section 3: Chapter 8.40 of the Campbell Municipal Code is hereby amended to read as set forth in Attachment A to this ordinance;
Section 4: Subparagraph (Q) of paragraph (6) of subsection (a) of section

6.10.020 of the Campbell Municipal Code is amended by deleting the reference to “8.38,” so that the subparagraph reads as follows with strikethroughs (strikethroughs) indicating deleted text:
(Q) A violation of any of the provisions of Campbell Municipal Code Chapters

5.24, 5.28, 5.29, 5.30, 5.36, 5.48, 5.58, 6.11, 6.12, 6.19, 6.20, 6.30, 6.40, 8.34,

8.38, 8.40, 8.42, 11.04, 11.08, 11.12, 11.16, 11.32, 13.04, or 14.02, Section 5: The City Council finds the approval of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the City Council finds the approval of this ordinance is not a project under CEQA Regulation Section 15061(b)(3) because it has no potential for causing a significant effect on the environment.

Section 6: This ordinance shall be in full force and effect thirty (30) days after its adoption by a majority vote of the City Council. The City Clerk shall cause this ordinance, or a summary thereof, to be published pursuant to applicable law.

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PASSED AND ADOPTED this ___ day of ______________, 2025 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
________________________
Sergio Lopez, Mayor

ATTEST:

__________________ _____
Andrea Sanders, City Clerk

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Attachment: Recommended Ordinance - Delivery to All Adults (Ordinance Revising CMC 8.40) Attachment A
Title 8 - PUBLIC PEACE, SAFETY AND MORALS
Chapter 8.40 Cannabis

Page 1 of 8 ends

Chapter 8.40 CANNABIS

8.40.010 Legislative Findings and Statement of Purpose.

A. The City Council finds that the prohibitions on cannabis processing, and cannabis distributors, retailers, and microbusinesses are necessary for the preservation and protection of the public health, safety, and welfare for the City and its community.

The City Council's prohibition of such activities is within the authority conferred upon the City Council in state law.

B. T he "Medicinal and Adult-Use Cannabis Regulation and Safety Act" ("Act") creates a general framework for the regulation of commercial medicinal activity and commercial adult-use cannabis activity in California and contains statutory provisions that:

1. Allow local governments to enforce new and existing ordinances expressing their intent to regulate cannabis businesses (Business & Professions Code § 26200);

2. Expressly provide that the Act does not supersede or limit local authority for local law enforcement activity, enforcement of local ordinances, or enforcement of local permit or licensing requirements regarding cannabis (Business & Professions Code § 26200);

3. Expressly provide that the Act does not prohibit the authority or remedies of a local government regarding cannabis, including but not limited to a local government's right to make and enforce within its limits all police regulations not in conflict with general laws (Business & Professions Code § 26200), and;

4. Require a local government that wishes to regulate cannabis Delivery activity, as defined in Business & Professions Code section 260001(q) of the Act, within the local government's boundaries to enact an ordinance in compliance with Business & Professions Code sections 26200; 26090(f)).

C. The City Council finds that this Chapter: (1) acknowledges that existing provisions of Title 21 of the Campbell Municipal Code currently prohibits cannabis processing, and cannabis distributors, retailers, and microbusinesses in the City, as well as limiting the cultivation of cannabis located on a residence for the personal use of the residents pursuant to Health & Safety Code section 11362.77 for the cultivation of cannabis in the City; (2) exercises its local authority to enact and enforce local regulations and ordinances, including those regarding the permitting, licensing, or other entitlement of the activities regulated by this Chapter; and (3) exercises its police power to enact and enforce regulations for the public benefit, safety, and welfare of the City and its community .

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D. The City Council finds that the Delivery of cannabis from licensed Cannabis Retailers, Distributors and Microbusinesses located outside of the City of Campbell provides adequate access to cannabis, including medicinal cannabis, to persons lawfully allowed to use cannabis, including medicinal cannabis patients and their primary caregivers, while presenting the least negative impact on City resources and the quality of life in Campbell.

8.40.020 Definitions.

For purposes of this Chapter, the following definitions shall apply:

A. “ Cannabis" means any or all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin whether crude or purified, extracted from any part of the plant; and every compound, Manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, and includes all things covered by section 11018 of the California Health and Safety Code. “Cannabis” as defined in Business and Professions Code section 26001(f), also means the separated resin, whether crude or purified, obtained from Cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced form the stalks, oil or cake made from the seeds of the plant, any other compound, Manufacture, salt, derivative, mixture, or preparation of the mature stalks (except resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. “Cannabis” does not mean “industrial hemp” as defined by Health & Safety Code section 11018.5. The term "Cannabis" shall also include "medical marijuana" as such phrase was used in the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use, as may be amended from time to time, that was issued by the office of the Attorney General for the state of California or subject to the provisions of Health & Safety Code section 11362.5 (Compassionate Use Act of 1996) or Health & Safety Code sections 11362.7 to 11362.83 (Medical Marijuana Program Act); and the term shall also include the substance defined as "Medicinal Cannabis" in section 26001(ak) (Medicinal and Adult-Use Regulation and Safety Act) of the Business & Professions Code or any successor statute thereto; B. "Cannabis Cultivation" or “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis, including but not limited to the creation or maintenance of a nursery or garden; C. "Cannabis Delivery" or “Delivery” shall have the same meaning as the term "Delivery" defined in Business & Professions Code section 26001(q) or any successor statute thereto;
D. “Cannabis Manufacture” or “Manufacture” shall have the same meaning as “manufacture” which means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a Cannabis product, as defined in Business & Professions Code section 26001(aj) or any successor statute thereto;

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E "Cannabis Processing" or “Processing” means any method used to prepare Cannabis or its byproducts for commercial retail and/or wholesale, including but not limited to: drying, cleaning, curing, packaging, and extraction of active ingredients to create Cannabis related products and concentrates; it also includes Cannabis Manufacture;
F. “Commercial Cannabis Activity” includes the Cultivation, possession, Manufacture, distribution, Processing, storing, laboratory testing, packaging, labeling, transportation, Delivery, or sale of Cannabis and Cannabis products, or acting as a Cannabis event organizer for temporary Cannabis events as defined in Business and Professions Code section 26001(l) or any successor statute thereto; G. “Distributor” means a California Department of Consumer Affairs licensee that is authorized to engage in the distribution of Cannabis and Cannabis products pursuant to Business & Professions Code section 26070;
H. “Marijuana” means the same as Cannabis;
I. "Medical Cannabis Collective" or "Cooperative” or “Collective" means any group that is collectively or cooperatively cultivating and distributing cannabis for medical purposes that is organized in the manner set forth in the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use, as may be amended from time to time, that was issued by the office of the Attorney General for the state of California or subject to the provisions of Health & Safety Code section 11362.5 (Compassionate Use Act of 1996) or Health & Safety Code sections 11362.7 to 11362.83 (Medical Marijuana Program Act), or any successor statutes thereto;
J. "Medicinal Cannabis” or “Medicinal Cannabis Product" means Cannabis or a Cannabis product, respectively, intended to be sold or donated for the use pursuant to the Compassionate Use Act 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a Medicinal Cannabis patient in California who possesses a physician’s recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. Business & Professions Code §26001(ak);
K. “Microbusiness” means a California Department of Consumer Affairs licensee that is authorized pursuant to Business & Professions Code section 26070 to engage in Cultivation of Cannabis on an area less than 10,000 square feet and to act as a licensed Distributor, Level 1 manufacturer, and Retailer, provided such licensee can demonstrate compliance with all requirements imposed by Business & Professions Code section 26000 et seq. on licensed cultivators, Distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities; L. "Non-medicinal Cannabis" or "Non-medicinal Cannabis Use" means all Commercial Cannabis Activity other than use included within the definition of Medicinal Cannabis;
M. "Private Residence" means a lawfully existing house, an apartment unit, a mobile home or other similar dwelling;

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N. "Qualified Patient" means a person who has a recommendation or approval of a physician to use cannabis for relief from a serious medical condition; O. “Retailer” means a person authorized to engage in the retail sale and Delivery of Cannabis or Cannabis products to customers pursuant to Business and Professions Code section 26070.

8.40.030 Prohibited Activities; Exceptions.

A. Except as provided in subsections B, C, D and E of this section, Commercial Cannabis Activity which includes Cannabis Processing, Cannabis Delivery, and Cannabis Cultivation shall be prohibited in the City. No use permit, variance, building permit, or any other entitlement, license, or permit, whether administrative or discretionary, shall be approved or issued for Commercial Cannabis Activity in the City, and no person shall otherwise establish or conduct such activities in the City.

B. The prohibitions set forth in subsection (a) shall not apply to the extent that such prohibitions are preempted by applicable State or Federal law.

C. Notwithstanding subsection (a), Cannabis Cultivation is allowed pursuant to Campbell Municipal Code section 8.40.040.

D. Notwithstanding subsection (a), Cannabis Delivery shall be allowed from Cannabis Retailers, Distributors and Microbusinesses located outside of the City of Campbell to individuals in the City of Campbell, subject to the following restrictions:

1. Only Retailers, Distributors and Microbusinesses that are licensed under the applicable laws of the State of California, including but not limited to the California Business and Professions Code sections 26070 and are operating in compliance with the applicable laws of the local jurisdiction in which the Retailer, Distributor and Microbusiness is located shall be allowed to provide Cannabis Delivery in the City of Campbell;

2. Prior to commencing Cannabis Deliveries in the City of Campbell, the Retailers, Distributors, and Microbusinesses shall register with the Police Department of the City of Campbell, and provide proof that the Retailer, Distributor, and Microbusiness is licensed under the applicable laws of the State of California and operating in compliance with the applicable laws of the local jurisdiction in which the Retailer, Distributor, or Microbusiness is physically located;

3. Prior to commencing Cannabis Deliveries in the City of Campbell, the Retailer, Distributor, and Microbusiness shall provide the Campbell Police Department with the names and driver's license numbers of all persons who will be conducting the deliveries; and the Cannabis Delivery operator shall notify the Campbell Police Department of any changes in the identities of the persons conducting the deliveries within twenty-four hours of any change in that information; and

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4. Annually, prior to July 1st of each year, the Retailer, Distributor, and Microbusiness shall provide the Campbell Police Department with proof that the Retailer, Distributor, and Microbusiness license under the applicable laws of the State of California and authorization to operate in the local jurisdiction in which the Retailer, Distributor, or Microbusiness is physically located is current and in effect.

E. Notwithstanding anything contained in this section or Section 8.40.040 to the contrary, the City Council may adopt an ordinance prescribing rules and regulations allowing for the operation of a reasonable and appropriate number of Retailer, Distributor, or Microbusinesses, provided that:

1. No Retailer, Distributor, or Microbusiness shall be located within any zoning district zoned for residential use;

2. No Retailer, Distributor, or Microbusiness shall be located within any Planned Development or Condominium Planned Development zoning district;

3. All Retailer, Distributor, and Microbusiness operations must be conducted within a secured, fully enclosed building;

4. No part of any building containing a Retailer, Distributor, or Microbusiness shall be located within 100 feet of the closest property boundary of any property zoned for residential use or on which a legally existing residential use is being conducted;

5. No part of any building containing a Retailer, Distributor, or Microbusiness shall be located within 100 feet of the closest property boundary of any Planned Development or Condominium Planned Development zoning district;

6. No part of any building containing a Retailer, Distributor, or Microbusiness shall be located within 600 feet of the closest property boundary of any property on which child day care facility or preschool is located;

7. No part of any building containing a Retailer, Distributor, or Microbusiness shall be located within 600 feet of the closest property boundary of any property on which any schools—K—12, whether public or private are located;

8. No part of any building containing a Retailer, Distributor, or Microbusiness shall be located within 600 feet of the closest property boundary of any park or the Campbell Community Center; and

9. No property on which a Retailer, Distributor, or Microbusiness is located shall be located shall be within 600 feet of any other property on which Retailer, Distributor, or Microbusiness is located, as measured from the closest property boundaries.

Nothing contained in this section shall preclude the City Council from adopting more restrictive provisions should the Council determine that such provisions are necessary to protect the public health, safety, or welfare.

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8.40.040 Indoor Cultivation.

To the extent that the City is required by State law to allow the Cultivation of Cannabis, the rules set forth in this section shall apply:

A. The Cultivation of Cannabis may take place only inside a lawfully existing and fully enclosed and secure Private Residence, or inside a lawfully existing and fully enclosed and secure accessory structure to a Private Residence that is located on the same parcel as the Private Residence. No Cultivation shall occur outside of a fully enclosed structure;
B. The primary use of the property shall be for a residence; C. All areas used for Cultivation of Cannabis shall comply with Title 18 (Buildings Codes and Regulations) of the Campbell Municipal Code, as well as all other applicable laws;
D. Indoor grow lights are not allowed in any structure used for human habitation.

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H. Adequate mechanical locking or electronic security systems must be installed as part of the structure prior to the commencement of Cultivation; I. Non-medicinal Cannabis Cultivation shall be limited to six Cannabis plants per Private Residence, regardless of whether the Cannabis is cultivated inside the residence or in an accessory structure. The limit of six plants per Private Residence shall apply regardless of how many individuals reside at the Private Residence;
J. Except as otherwise provided for in California Health & Safety Code § 11362.77(b), Cannabis Cultivation for medicinal use shall be limited to six mature or 12 immature Cannabis plants per Private Residence, regardless of whether the Cannabis is cultivated inside the residence or in an accessory structure;
K. The residential structure shall remain at all times a residence, with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. No room used for cooking of meals, sleeping or bathing shall be used for Cultivation;
L. Cultivation of Cannabis shall take place only on impervious surfaces; M. There shall be no exterior evidence of Cannabis Cultivation occurring on the parcel;
N. No more than one room in any structure may be used for Cultivation; O. The area used for Cannabis Cultivation shall not exceed thirty-two square feet and not exceed ten feet in height per residence. This limit applies regardless of the number of individuals residing in the residence;
P. No room or area in a structure that is used for Cultivation shall be accessible to persons under twenty-one years of age;
Q. Written consent of the property owner to cultivate Cannabis within the residential structure shall be obtained and shall be kept on the premises, and available for inspection by agents of the City;
R. A portable fire extinguisher, that complies with the regulations and standards adopted by the State Fire Marshal and applicable law, shall be kept in any room used for Cultivation of Cannabis;
S. No one other than a full-time resident of the residence shall be involved or take part in the Cultivation;

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T. No chemical fertilizers, pesticides, or other chemical agents shall be used for Cannabis Cultivation;
U. The area used for Cannabis Cultivation shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts; and shall not be conducted in a manner that is hazardous due to the use or storage of materials, processes, products or wastes, or from other actions related to the Cultivation;
V. The owner and any lessee of the residence upon which Cultivation will occur shall inform the Police Department of the intent to cultivate Cannabis, and obtain all necessary building permits, inspections and approvals prior to the commencement of the Cultivation. No Cultivation shall occur until the premises have been inspected by the Building Division, and found to be incompliance with all applicable laws;
W. Except as otherwise provided for in California Health & Safety Code 11362.77, Cultivation shall be limited exclusively for the personal use of lawful residents of the property on which the Cultivation is occurring.

8.40.050 Public Nuisance.

Any violation of this chapter is hereby declared to be a public nuisance.

8.40.060 Violations.

Any violation of this chapter shall be punishable as provided in Chapter 6.10 Campbell Municipal Code or any successor provisions thereto.

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ORDINANCE NO. ________________

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF CAMPBELL AMENDING MUNICIPAL
CODE CHAPTERS 8.38 AND 8.40 AND MAKING

NON-SUBSTANTIVE CLARIFICATIONS IN

CONFORMANCE WITH STATE LAW
WHEREAS, in 1996, the voters of the State of California approved Proposition 215, entitled "The Compassionate Use Act of 1996" ("CUA"); WHEREAS, the intent of the CUA was to decriminalize the possession and use of cannabis for medical purposes by seriously ill Californians under S tate law once a physician has deemed the use beneficial to a patient’s health; WHEREAS, in 2003, the California Legislature adopted SB 420, the Medical Marijuana Program Act ("MMPA"), which permit ted qualified patients and their primary caregivers to associate collectively or cooperatively to cultivate cannabis for medical purposes without being subject to criminal prosecution under the California Penal Code; WHEREAS, neither the CUA nor the MMPA require or impose an affirmative duty or mandate upon a local government to allow, authorize, or sanction the establishment of facilities that cultivate , dispense, deliver or process medical cannabis within its jurisdiction;
WHEREAS, in May 2013, the California Supreme Court issued its decision in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. , et al., holding that cities have the authority to ban medical cannabis land uses; WHEREAS, under the Federal Controlled Substances Act, codified in 21 U.S.C.

Section 801 et seq., the use, possession, and cultivation of cannabis are unlawful and subject to federal prosecution without regard to a claimed medical need; WHEREAS, in 2015, California enacted three bills—Assembly Bill 243 (Assembly Bill 266; and Senate Bill 643 — that collectively established a comprehensive state regulatory framework for the licensing and enforcement of cultivation, manufacturing, retail sale, trans portation, storage, delivery, and testing of medicinal cannabis in California. This regulatory scheme is known as the Medical Cannabis Regulation and Safety Act (“MCRSA”);
WHEREAS, MCRSA became effective January 1, 2016 and contained provisions that govern the cultivating, processing, transporting, testing, and distributing of medical cannabis to qualified patients. MCRSA also contained statutory provisions that:
• Allowed local governments to enact ordinances expressing their intent to prohibit the cultivation of cannabis and their intent not to administer a conditional permit program for the cultivation of cannabis;

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WHEREAS, Section 7 of Article 11 of the California Constitution and Section

2.04.010 of the Campbell Municipal Code provides the City Council with the authority to make and enforce all laws, rules and regulations with respect to not in conflict with general laws, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, under the Campbell Municipal Code ("CMC") every zoning district in the City of Campbell prohibits any land use inconsistent with state or federal law; WHEREAS, allowing and regulating the cultivation, processing and storefront dispensing of cannabis within the City limits of the City of Campbell would have a significant impact on the resources of the City;
WHEREAS, on March 1, 2016, the City Council adopted Ordinance No. 2197, which added Chapter 8.38 to the Campbell Municipal Code, expressly prohibiting the processing, dispensing or delivery of cannabis in the City of Campbell; WHEREAS, AUMA allows the cultivation of up to six (6) plant in a private residence for personal use, while CUA recognizes more expansive rights for qualified patients and primary caregivers;
WHEREAS, on November 1, 2016, the City Council adopted Ordinance No. 2214, in response to AUMA, adding Chapter 8.40 to the Campbell Municipal Code to regulate non-medical cannabis to the extent that it was not already regulated in the City of Campbell;
WHEREAS, the City Council respects the right of qualified patients to use medical cannabis for relief of their ailments; and
WHEREAS, the allowing delivery of medical cannabis from licensed businesses located outside of the City to qualified patients located in the City would be the least onerous way of affording access to patients within the City; WHEREAS, the City of Campbell is a geographically compact city, with the longest internal distance from boarder to boarder being only approximately 4.5 miles; WHEREAS, approximately 73% of the City’s privately held land is zoned to allow residential use; and no parcel of property in the City is located more than approximately 1,310 feet from a property zoned for residential use;
WHEREAS, the proximity of privately held land in Campbell that is potentially available for a physical location from which to distribute cannabis is further constrained by the presence of schools, daycare operations and youth centers; WHEREAS, there are 15 licensed retail businesses selling cannabis within approximately 5 miles of the City of Campbell, of which 11 offer deliver service, which readily provides for retail sale of cannabis in a timely and readily accessible manner, and

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in types and quantities that are sufficient to meet demand from medicinal cannabis patients;
NOW THEREFORE, the City Council of the City of Campbell does ordain as follows:

Section 1. The City Council of the City of Campbell hereby finds that the above recitals are true and correct and are incorporated into the substantive portion of this ordinance;
Section 2: Chapters 8.38 and 8.40 of the Campbell Municipal Code are hereby amended to read as set forth in Attachment A to this ordinance; Section 4: The City Council finds the approval of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the City Council finds the approval of this ordinance is not a project under CEQA Regulation Section 15061(b)(3) because it has no potential for causing a significant effect on the environment.

Section 5: This ordinance shall be in full force and effect thirty (30) days after its adoption by a majority vote of the City Council. The City Clerk shall cause this ordinance, or a summary thereof, to be published pursuant to applicable law.

PASSED AND ADOPTED this ___ day of ______________, 2025 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Sergio Lopez, Mayor

ATTEST:

__________________ _____
Andrea Sanders, City Clerk

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Title 8 - PUBLIC PEACE, SAFETY AND MORALS
Chapter 8.38 MEDICAL CANNABIS & Chapter 8.40 NON-MEDICAL CANNABIS

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Chapter 8.38 MEDICAL CANNABIS

8.38.010 Legislative Findings and Statement of Purpose.

A. The City Council finds that the prohibitions on Cannabis processing, and Cannabis distributors, retailers, and microbusinesses are necessary for the preservation and protection of the public health, safety, and welfare for the City and its community.

The City Council's prohibition of such activities is within the authority conferred upon the City Council in state law.

B. T he "Medicinal and Adult-Use Cannabis Regulation and Safety Act" ("Act") creates a general framework for the regulation of commercial medicinal activity and commercial adult-use Cannabis activity in California and contains statutory provisions that:

1. Allow local governments to enforce new and existing ordinances expressing their intent to regulate Cannabis businesses (Business & Professions Code § 26200);

3. Expressly provide that the Act does not prohibit the authority or remedies of a local government regarding Cannabis, including but not limited to a local government's right to make and enforce within its limits all police regulations not in conflict with general laws (Business & Professions Code § 26200), and;

4. Require a local government that wishes to regulate Cannabis Delivery activity, as defined in Business & Professions Code section 260001(q) of the Act, within the local government's boundaries to enact an ordinance in compliance with Business & Professions Code sections 26200; 26090(f)).

C. The City Council finds that this Chapter: (1) acknowledges that existing provisions of Title 21 of the Campbell Municipal Code currently prohibit Cannabis processing, and Cannabis distributors, retailers, and microbusinesses in the City, as well as limiting the cultivation of Cannabis located on a residence for the personal use of the residents pursuant to Health & Safety Code section 11362.77 for the cultivation of Cannabis in the City; (2) exercises its local authority to enact and enforce local regulations and ordinances, including those regarding the permitting, licensing, or other entitlement of the activities prohibited by this Chapter; and (3) exercises its police power to enact and enforce regulations for the public benefit, safety, and welfare of the City and its community .

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D. The City Council recognizes that despite the negative impacts identified above, Cannabis can provide some benefit to Qualified Patients. In this regard, the City Council finds that the delivery of medical Cannabis to Qualified Patients from licensed Cannabis Retailers, Distributors and Microbusinesses located outside of the City of Campbell would provide access to medical Cannabis for those patients seeking such medication, while presenting the least negative impact on City resources and the quality of life in Campbell.

8.38.020 Definitions.

For purposes of this Chapter, the following definitions shall apply:

A. “ Cannabis" means any or all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin whether crude or purified, extracted from any part of the plant; and every compound, Manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. “Cannabis” as defined in Business and Professions Code section 26001(f), also means the separated resin, whether crude or purified, obtained from Cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced form the stalks, oil or cake made from the seeds of the plant, any other compound, Manufacture, salt, derivative, mixture, or preparation of the mature stalks (except resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. “Cannabis” does not mean “industrial hemp” as defined by Health & Safety Code section 11018.5. The term "Cannabis" shall also include "medical marijuana" as such phrase was used in the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use, as may be amended from time to time, that was issued by the office of the Attorney General for the state of California or subject to the provisions of Health & Safety Code section 11362.5 (Compassionate Use Act of 1996) or Health & Safety Code sections 11362.7 to 11362.83 (Medical Marijuana Program Act); and the term shall also include the substance defined as "medicinal cannabis" in section 26001(ak) (Medicinal and Adult-Use Regulation and Safety Act) of the Business & Professions Code or any successor statute thereto;
B. "Cannabis Cultivation" or “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis, including but not limited to the creation or maintenance of a nursery or garden; C. "Cannabis Delivery" or “Delivery” shall have the same meaning as the term "delivery" defined in Business & Professions Code section 26001(q) or any successor statute thereto;
D. “ Cannabis Manufacture” or “Manufacture” shall have the same meaning as “manufacture” which means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a Cannabis product, as defined in Business & Professions Code section 26001(aj) or any successor statute thereto;

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E "Cannabis Processing" or “Processing” means any method used to prepare Cannabis or its byproducts for commercial retail and/or wholesale, including but not limited to: drying, cleaning, curing, packaging, and extraction of active ingredients to create Cannabis related products and concentrates; it also includes the Cannabis Manufacture;
F. “Commercial Cannabis Activity” includes the Cultivation, possession, Manufacture, distribution, Processing, storing, laboratory testing, packaging, labeling, transportation, Delivery, or sale of Cannabis and Cannabis products, or acting as a Cannabis event organizer for temporary Cannabis events as defined in Business and Professions Code section 26001(l) or any successor statute thereto; G. “Distributor” means a California Department of Consumer Affairs licensee that is authorized to engage in the distribution of Cannabis and Cannabis products pursuant to Business & Professions Code section 26070;
H. “Marijuana” means the same as Cannabis;
I. "Medical Cannabis Collective" or "Cooperative” or “Collective" means any group that is collectively or cooperatively cultivating and distributing Cannabis for medical purposes that is organized in the manner set forth in the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for medical use, as may be amended from time to time, that was issued by the office of the Attorney General for the state of California or subject to the provisions of Health & Safety Code section 11362.5 (Compassionate Use Act of 1996) or Health & Safety Code sections 11362.7 to 11362.83 (Medical Marijuana Program Act), or any successor statutes thereto;
J. "Medicinal Cannabis” or “Medicinal Cannabis Product" means Cannabis or a Cannabis product, respectively, intended to be sold or donated for the use pursuant to the Compassionate Use Act 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a Medicinal Cannabis patient in California who possesses a physician’s recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. Business & Professions Code §26001(ak);
K. “Microbusiness” means a California Department of Consumer Affairs licensee that is authorized pursuant to Business & Professions Code section 26070 to engage in Cultivation of Cannabis on an area less than 10,000 square feet and to act as a licensed Distributor, Level 1 manufacturer, and Retailer, provided such licensee can demonstrate compliance with all requirements imposed by Business & Professions Code section 26000 et seq. on licensed cultivators, Distributors, Level 1 manufacturers, and Retailers to the extent the licensee engages in such activities; L. “Primary Caregiver” means an individual who is eighteen years of age or older designated by a Qualified Patient, who has consistently assumed responsibility for the housing, health, or safety of that Qualified Patient; M. "Qualified Patient" means a person who has a recommendation or approval of a physician to use Cannabis for relief from a serious medical condition;

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N. “Retailer” means a person authorized to engage in the retail sale and Delivery of Cannabis or Cannabis products to customers pursuant to Business and Professions Code section 26070.

8.38.030 Prohibited Activities; Exceptions.

A. Except as provided in subsections B, C, D and E of this section, Commercial Cannabis Activity which includes Cannabis Processing, Cannabis Delivery, and Cannabis Cultivation shall be prohibited in the City. No use permit, variance, building permit, or any other entitlement, license, or permit, whether administrative or discretionary, shall be approved or issued for Commercial Cannabis Activity Cannabis in the City, and no person shall otherwise establish or conduct such activities in the City.

B. The prohibitions set forth in subsection (a) shall not apply to the extent that such prohibitions are preempted by applicable State or Federal law.

C. Notwithstanding subsection (a), Cannabis Cultivation is allowed pursuant to Campbell Municipal Code section 8.40.040.

D. Notwithstanding subsection (a), Cannabis Delivery shall be allowed from Cannabis Retailers, Distributors and Microbusinesses located outside of the City of Campbell to Qualified Patients and their Primary Caregiver in the City of Campbell, subject to the following restrictions:

2. Prior to commencing Cannabis Deliveries to Qualified Patients or their Primary Caregiver in the City of Campbell, the Retailers, Distributors, and Microbusinesses shall register with the Police Department of the City of Campbell, and provide proof that the Retailer, Distributor, and Microbusiness is licensed under the applicable laws of the State of California and operating in compliance with the applicable laws of the local jurisdiction in which the Retailer, Distributor, or Microbusiness is physically located;

3. Prior to commencing Cannabis Deliveries to Qualified Patients and their Primary Caregiver in the City of Campbell, the Retailer, Distributor, and Microbusiness shall provide the Campbell Police Department with the names and driver's license numbers of all persons who will be conducting the deliveries; and the Cannabis Delivery operator shall notify the Campbell Police Department of any changes in the identities of the persons conducting the deliveries within twenty-four hours of any change in that information; and

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E. Notwithstanding anything contained in this section or Section 8.40.040 to the contrary, on or after April 1, 2019, but not before then, the City Council may adopt an ordinance prescribing rules and regulations allowing for the operation of a reasonable and appropriate number of Retailer, Distributor, or Microbusinesses, provided that:

1. No Retailer, Distributor, or Microbusiness shall be located within any zoning district zoned for residential use;

2. No Retailer, Distributor, or Microbusiness shall be located within any Planned Development or Condominium Planned Development zoning district;

3. All Retailer, Distributor, and Microbusiness operations must be conducted within a secured, fully enclosed building;

8. No part of any building containing a Retailer, Distributor, or Microbusiness shall be located within 600 feet of the closest property boundary of any park or the Campbell Community Center; and

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Created: 2022-12-01 08:35:40 [EST]
(Supp. No. 37)

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8.38.040 Public Nuisance.

Any violation of this chapter is hereby declared to be a public nuisance.

8.38.050 Violations.

Any violation of this chapter shall be punishable as provided in Chapter 6.10 Campbell Municipal Code or any successor provisions thereto.

Chapter 8.40 NON-MEDICAL CANNABIS

8.40.010 Legislative Findings and Statement of Purpose.

The City Council finds that the limitations on Cannabis Processing, Delivery, Cultivation, sale and distribution are necessary for the preservation and protection of the public health, safety, and welfare for the City and its community.

8.40.020 Definitions.

For purposes of this Chapter, the following definitions shall apply:

A. Except as otherwise set forth in this section, the definitions contained in section

8.38.020 of this Title shall apply;
B. “Marijuana” means the same as Cannabis;
C. "Non-medicinal Cannabis" or "Non-medicinal Cannabis Use" means all Commercial Cannabis Activity other than use included within the definition of Medicinal Cannabis;
D. "Private Residence" means a lawfully existing house, an apartment unit, a mobile home or other similar dwelling.

8.40.030 Prohibited Activities.

Except as otherwise provided in this Title, California Health and Safety Code § 11362.1, and California Business and Professions Code § 26322, all Non-medicinal Cannabis Use is prohibited in the City of Campbell, including but not limited to Cultivation, Processing, Delivery, and sale.

8.40.040 Indoor Cultivation.

To the extent that the City is required by State law to allow the Cultivation of Cannabis, the rules set forth in this section shall apply:

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located on the same parcel as the Private Residence. No Cultivation shall occur outside of a fully enclosed structure;
B. The primary use of the property shall be for a residence; C. All areas used for Cultivation of Cannabis shall comply with Title 18 (Buildings Codes and Regulations) of the Campbell Municipal Code, as well as all other applicable laws;
D. Indoor grow lights are not allowed in any structure used for human habitation.

Indoor grow lights in any other structure shall not exceed 1,000 watts per light, and shall comply with the California Building, Electrical and Fire Codes as adopted by the City;
E. The use of gas products or volatile solvents, or dangerous poisons, toxins or carcinogens (including but not limited to CO
2 , butane, propane, natural gas,
xylene, styrene, gasoline, kerosene, O2 H2, methanol, iso-propyl alcohol, methylene chloride, acetone, benzene, toluene, and trichloro-ethylene,) or generators for Cultivation of Cannabis is prohibited;
F. Any structure used for the Cultivation of Cannabis must have a ventilation and filtration system installed that shall prevent Cannabis plant odors from exiting the interior of the structure, and designed to prevent mold and moisture and otherwise protect the health and safety of persons residing in the residence and cultivating the Cannabis. This ventilation shall at a minimum consist of a system meeting the requirements of the current, adopted edition of the California Building Code § 1203.4 Natural Ventilation or § 402.3 Mechanical Ventilation (or its equivalent(s));
G. Any accessory structure used for the Cultivation of Cannabis shall be located in the rear yard area of the parcel or premises, and must maintain a minimum setback equal to the greater of (1) the setback imposed pursuant to the applicable zoning provisions of Title 21 of this Code, or (2) ten-feet from any property line. The yard where the structure is maintained must be enclosed by a solid fence at least six feet in height;
H. Adequate mechanical locking or electronic security systems must be installed as part of the structure prior to the commencement of Cultivation; I. Non-medicinal Cannabis Cultivation shall be limited to six Cannabis plants per Private Residence, regardless of whether the Cannabis is cultivated inside the residence or in an accessory structure. The limit of six plants per Private Residence shall apply regardless of how many individuals reside at the Private Residence;
J. Except as otherwise provided for in California Health & Safety Code § 11362.77(b), Cannabis Cultivation for medicinal use shall be limited to six mature or 12 immature Cannabis plants per Private Residence, regardless of whether the Cannabis is cultivated inside the residence or in an accessory structure;

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K. The residential structure shall remain at all times a residence, with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. No room used for cooking of meals, sleeping or bathing shall be used for Cultivation;
L. Cultivation of Cannabis shall take place only on impervious surfaces; M. There shall be no exterior evidence of Cannabis Cultivation occurring on the parcel;
N. No more than one room in any structure may be used for Cultivation; O. The area used for Cannabis Cultivation shall not exceed thirty-two square feet and not exceed ten feet in height per residence. This limit applies regardless of the number of individuals residing in the residence;
P. No room or area in a structure that is used for Cultivation shall be accessible to persons under twenty-one years of age;
Q. Written consent of the property owner to cultivate Cannabis within the residential structure shall be obtained and shall be kept on the premises, and available for inspection by agents of the City;
R. A portable fire extinguisher, that complies with the regulations and standards adopted by the State Fire Marshal and applicable law, shall be kept in any room used for Cultivation of Cannabis;
S. No one other than a full-time resident of the residence shall be involved or take part in the Cultivation;
T. No chemical fertilizers, pesticides, or other chemical agents shall be used for Cannabis Cultivation;
U. The area used for Cannabis Cultivation shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts; and shall not be conducted in a manner that is hazardous due to the use or storage of materials, processes, products or wastes, or from other actions related to the Cultivation;
V. The owner and any lessee of the residence upon which Cultivation will occur shall inform the Police Department of the intent to cultivate Cannabis, and obtain all necessary building permits, inspections and approvals prior to the commencement of the Cultivation. No Cultivation shall occur until the premises have been inspected by the Building Division, and found to be incompliance with all applicable laws;
W. Except as otherwise provided for in California Health & Safety Code 11362.77, Cultivation shall be limited exclusively for the personal use of lawful residents of the property on which the Cultivation is occurring.

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City
Council
Report

TITLE: Acceptance of Board and Commission Work Plans

RECOMMENDED ACTION

Accept work plans from the following City Council commissions and boards related to Fiscal Year 2025/2026: Planning Commission, Parks and Recreation Commission, Civic Improvement Commission, Rental Increase Fact Finding Committee, Building Board of Appeals, Historic Preservation Board, and Bicycle and Pedestrian Commission.

BACKGROUND

Every year the City Council (Council) approves an annual budget that includes support for its Council appointed boards and commissions. To help inform the Council’s approval process for Fiscal Year 2025/2026 (FY 25/26), the Council invited each board and commission to share its work plan for the upcoming fiscal year. What follows is a summary of the duties of each board and commission as well as their proposed work plans for FY 25/26. Board members, commissioners, and/or staff members will also provide a brief presentation regarding their respective work plans at the March 18, 2025 Council meeting.

DISCUSSION

Section 2.20.030 of the Campbell Municipal Code (CMC) entitled, “Boards — Commissions” is the vehicle with which the Council creates the various boards and commissions that advise the Council and/or review and provide decisions on various administrative processes outline d in the CMC. Specifically, this section provides that “the City Council in a manner and form provided by general law establishes the following Boards and Commissions:

(1)Planning Commission;
(2)Parks and Recreation Commission;
(3)Civic Improvement Commission;
(4)Rental Increase Fact Finding Committee;
(5)Building Board of Appeals;
(6)Historic Preservation Board;
(7)Such other Commissions as are authorized by law and which the City Council deems necessary to appoint.”
Item: 12
Category: NEW BUSINESS
Meeting Date: March 18, 2025
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In order, those boards and commissions are charged with the following tasks:

Planning Commission:

The authority for the work of the Planning Commission is established in California state law and in the CMC. In general, state law defines a planning commission as a committee appointed by the elected legislative body (here, the Council) to review matters related to planning and development and to serve as a general advisory body on land use planning. In turn, the CMC defines the role and responsibilities of the Planning Commission under Chapter 2.24. Taken together, they provide for the primary duties and responsibilities of the Planning Commission as follows:

• To consider and take action on land use development applications, such as Conditional Use Permits, Site and Architectural Review Permits, Planned Development Permits, and subdivision applications;
• To review, take public testimony, and make recommendations to the Council in regard to the City's General Plan, which is a comprehensive, long -term compilation of policies regarding the physical, social and economic development of the City;
• To develop zoning regulations to implement the General Plan, hold public hearings, and make recommendations regarding the adoption of these regulations to the Council; and
• To assist the Council as requested by reviewing and commenting on special projects, studies, and reports and by holding public meetings and hearings to gather public comment.

Please see Attachment A, which includes the Planning Commission’s proposed work plan for FY 25/26.

Parks And Recreation Commission:

The Parks and Recreation Commission advises the Council on matters relating to the development and maintenance of public recreation and park facilities and provides advice relating to community services programs. More specifically, per CMC Section

2.32.04, the duties of the Parks and Recreation Commission include:

• Acting in an advisory capacity to the Council, the Recreation and Community Services Director, and the Public Works Superintendent in all matters pertaining to public recreation, and public parks and grounds; and, cooperating with other governmental agencies and civic groups in the advancement of sound planning and programming for recreation and parks;
• Formulating policies on recreation and parks for consideration by the Council; • Advising the Council on policy problems concerned with the park or recreation programs;
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Please see Attachment A , which includes the Parks and Recreation Commission’s proposed work plan for FY 25/26.

Civic Improvement Commission:

Per CMC Section 2.33.040, the duties of the Civic Improvement Commission include the following:

• Act in an advisory capacity to the Council and cooperate with other governmental agencies, civic groups, and voluntary organizations in the areas of cultural and historical needs, health and welfare services, beautification, environment, library needs, and issues related to youth and senior citizens; • Identify community needs and problems within the scope of concerns assigned to the commission;
• Provide channels for the expression of community needs and problems as previously enumerated;
• Advise the Council as to what available resources could be used to deal with them;
• Interpret the policies and functions of the Civic Improvement Commission to the general public; and
• Promote community interaction in all phases of civic needs as the City of Campbell grows and changes in its new environment.

Please see Attachment A , which includes the Civic Improvement Commission’s proposed work plan for FY 25/26.

Rental Increase Fact Finding Committee:

Per Chapter 2.36 of the CMC, the Rental Increase Fact Finding Committee’s charge is to assist in resolving disputes which are presented to the City by petition. Specifically, the Rental Increase Fact Finding Committee hears complaints brought by tenants or owners involved in rental increase disputes and issues non-binding determinations.

Because the timing of when this committee meets to review issues depends on whether tenants or property owners request their involvement, no proposed work plan is attached.

Building Board Of Appeals:

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Acceptance of Board and Commission Work Plans Page 4 of 5 Section 2.37.030 of the CMC provides that the Building Board of Appeals’ duties involve hearing and deciding applicants’ appeals from the City’s Building Official orders and interpreting various Building and Fire codes on matters pertaining to building construction.

Please see Attachment A , which includes the Building Board of Appeals’ proposed work plan for FY 25/26.

Historic Preservation Board:

Under Section 2.38.060 of the CMC, the Historic Preservation Board is charged with performing the duties and functions prescribed by the Zoning Code. The Council may also, from time to time, by resolution, prescribe additional powers and duties to the Historic Preservation Board consistent with California state law, including the following:

• Recommending to the Council and advisory commissions measures to implement historic preservation;
• Administering the applicable “Tree Protection Regulations” set forth in Chapter

21.32 of the CMC;
• Performing other advisory functions the Council may from time to time delegate to the Historic Preservation Board; and
• Reviewing new policies affecting historical resources in the community.

Please see Attachment A, which includes the Historic Preservation Board’s proposed work plan for FY 25/26.

Bicycle and Pedestrian Advisory Committee:

The Bicycle and Pedestrian Advisory Committee guides the development of bicycle and pedestrian planning and policies for the city and makes recommendations to the Council in the use of funds for bicycle- and pedestrian-related capital projects.

Please see Attachment A , which includes the Bicycle and Pedestrian Advisory Committee’s proposed work plan for FY 25/26.

Youth Commission:

Based on its unique meeting schedule which runs concurrent with the academic school year, the Youth Commission will be bringing its work plan before the Council at a later time. Therefore, their duties and work plan items are not addressed in this report.

FISCAL IMPACT

There is no fiscal impact as a result of accepting this report. Any financial requests associated with any of the above boards and commissions will come through the FY 25/26 Budget process.
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Acceptance of Board and Commission Work Plans Page 5 of 5

ALTERNATIVES

1. Do not accept the report as submitted.

2. Provide other direction to staff.

Prepared by:

Angelique Gaeta, Assistant City Manager

Approved by:

Brian Loventhal, City Manager

Attachment:
a. FY 2025_ 26 Board and Commission Workplans_03.18.25
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ATTACHMENT “A”

PLANNING COMMISSION
Proposed Work Plan
July 1, 2025, to June 30, 2026

WORK PLAN ITEMS
1 Schedule, notice, and conduct regular meetings (usually held on the 2nd and 4th Tuesday of each month) for the purpose of carrying out the roles and responsibilities described within this work plan, including making decisions and providing recommendations to the City Council on land use items.
2 Subject to the adopted Workplan of the Community Development Department, it is expected that the Planning Commission will review and provide recommendations on the following legislative actions regarding land use planning:

• Miscellaneous Zoning Ordinance Update
• Updates to the Multifamily Development and Design Standards • Hamilton Avenue Precise Plan
• Historic Preservation Ordinance
• Missing Middle Housing Ordinances (SB 10)
• Permit streamlining for commercial development
• Modifications to the Site and Architectural Review Committee

3 The Planning Commission may also review and provide feedback on the following policy updates due to their relationship to land use planning:

• Parks and Recreation Master Plan
• Citywide Multimodal Plan
• Climate Action Plan
• Implementation of the Economic Development Plan
4 The Commission may also create ad-hoc sub-committees to study and make recommendations to the City Council in subject matter areas related to land use planning, implementation of the policies and programs identified in the City’s General Plan, and in association with the Community Development Department’s Workplan. The Planning Commission currently has active one ad-hoc subcommittee created to study the following issue:

• Tools and procedures for Public Outreach and Notification • Evaluation of land use densities for “missing middle” projects

5 Commissioners are encouraged to obtain education and training and each new Commissioner is required to attend the League of California Cities Planning Commissioners Academy for two consecutive years. The Commission would like to explore reconsideration of the current training requirement. During FY 26, the Commissioners will have the opportunity to attend:

• California American Planning Association Conference, September, 2025, Monterey CA • California League of California Cities Planning Commissioners Academy, Spring 2026, Location TBD

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Attachment: FY 2025_ 26 Board and Commission Workplans_03.18.25 (Acceptance of Board and Commission Work Plans) ATTACHMENT “A”

PARKS AND RECREATION COMMISSION
Proposed Work Plan
July 1, 2025 to June 30, 2026

WORK PLAN ITEMS

Goal 1: Enhance Community Engagement and Awareness
1 Increase community engagement and awareness of Campbell’s Parks and Recreation facilities.

2 Regular participation in community engagement events and workshops related to the Parks and Recreation Master Plan.

3 Host a community building event.

4 Actively participate, support and promote local community events hosted by the Recreation Department or other community groups in Campbell.

5 Host at least two Parks and Recreation Commission (PRC) meetings in local parks to engage with the community and raise awareness.

6 Gather information from adults using recreation services to better understand their needs and preferences.

Goal 2: Support Park Improvement and Development
1 Organize and participate in volunteer-driven park improvement projects, such as tree planting or park clean up events in coordination with another advisory body or community group if possible.
2 Review, provide early input, and prioritize proposed 5-year CIP projects pertaining to parks and recreational facilities.

3 Conduct annual review of funded CIP projects utilizing the Parkland Dedication Fund throughout the current year

4 Advocate for pedestrian and bicycle safety approaching and within the Campbell Community Center as part of park improvements.

Goal 3: Promote Recreation Opportunities
1 Encourage ongoing involvement in events at the Campbell Community Center, exploring opportunities to support and promote a wide range of recreational activities.

2 Conduct a Park and Recreation Facilities Tour

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Attachment: FY 2025_ 26 Board and Commission Workplans_03.18.25 (Acceptance of Board and Commission Work Plans) ATTACHMENT “A”

CIVIC IMPROVEMENT COMMISSION
Proposed Work Plan
July 1, 2025, to June 30, 2026

WORK PLAN ITEMS
1 Work with City staff to administer the Neighborhood Association Assistance Grant Program to award a total of approximately $2,500 in grant funds which help offset costs for recognized neighborhood associations for their activities and projects related to:

• Building and enhancing neighborhood organization
• Increasing communication among neighbors to support interaction across different cultural and age groups
• Addressing quality of life, safety, and cleanliness
• Enhancing neighborhood pride and identity

2 Work with City staff to administer the City’s Social Service Subgrants Program to:

• Award a total of approximately $65,000 in grant funding to support community agencies that offer programs which serve Campbell residents and provide a critical resource that is not already provided by the City, including, but not limited to: support for victims of domestic violence, legal services for senior adults, an ombudsmen program for seniors in long-term care facilities, and hot meals for those who are low- income and home-bound.

3 Partner with the Campbell Youth Commission to support youth-related activities in the community, by:

• Volunteering at specified Youth Commission events (i.e., Wellness & Opportunity Fair)
• Exploring opportunities to involve the Youth Commission in City events (i.e., Mayor’s State of the City)
• Coordinating with the Youth Commission to run various projects including rock painting and children’s art projects.

4 Through the Commission’s Capture Campbell Subcommittee, work with City staff to administer the City’s Capture Campbell Youth Photo Contest and inspire youth (school ages 18 and under) to photograph the community and show residents what Campbell looks like through their eyes; and, work with City staff to engage 3-4 local professional photographers to judge the final work of the contestants.

5 Through the Commission’s Campbell Cares Sub-Committee, explore and identify ways to create, promote, and volunteer at events that support mental health wellness and physical well-being of Campbell community members. Projects include:

• Get to Know Campbell – a promotion of, and participation in, walk and learn events such as the City’s downtown walking tours for Campbell’s Historic Commercial, Residential, and Civic Buildings
• Community Engagement

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6 Through the Commission’s Explore Art Sub-Committee, identify fund-raising activities and projects to support public art and enhance civic pride in the City. Projects include:

• Children’s Arts & Crafts, with a focus on Special Events in Downtown Campbell, as appropriate
• Consideration of applications submitted through the City’s Mural Wall Program • Art Outside the Box (Phase V)

7 Through the Commission’s Neighborhood Association Sub-Committee, review the Neighborhood Association Assistance Grant Program Council Policy for potential amendments to better align the policy with the practice of grant administration.

8 Consider and recommend street names to the City Council, as requested, pursuant to City Council Policy 7.12.

9 Work with City staff to administer the Pilot Beautification Grant – as funding allows.

10 Partner with the City’s Library, Museums, and Senior Center to provide volunteer support for special events, as needed.

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Attachment: FY 2025_ 26 Board and Commission Workplans_03.18.25 (Acceptance of Board and Commission Work Plans) ATTACHMENT “A”

BUILDING BOARD OF APPEALS
Proposed Work Plan
July 1, 2025, to June 30, 2026

WORK PLAN ITEMS
1 The Building Board of Appeals has not been active for the past 5 years. However, a recent court ruling in a code enforcement case from the City of Fremont supports the industry moving away from court cases and towards administrative processes. As such, the City anticipates an increase in the need for and use of Building Board of Appeals.

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Attachment: FY 2025_ 26 Board and Commission Workplans_03.18.25 (Acceptance of Board and Commission Work Plans) ATTACHMENT “A”

HISTORIC PRESERVATION BOARD
Proposed Work Plan
July 1, 2025 to June 30, 2026

# WORK PLAN ITEMS
1 Prioritize completion of the Historic Preservation Ordinance and Mills Act Program updates. (Implements General Plan Action COS-5.f and Action COS-5.g) Note: FY25 Carryover Item

2 Review and approve the Certified Local Government (CLG) Program annual report in order to maintain the City’s CLG status.
3 Schedule, notice, and conduct at least four regular meetings (the minimum required by the City’s CLG status) for the purpose of carrying out the roles and responsibilities under the Campbell Municipal Code, including rendering recommendations on planning a pplications affecting historic properties.
4 Engage in at least one training program (i.e., webinar) relevant to historic preservation hosted by the California Preservation Foundation (CPF), the California Office of Historic Preservation (OHP), the National Alliance of Preservation Commissions, or ot her reputable preservation organizations, as necessary to maintain CLG status.
5 Budget for the newly selected Board Member (filling a recently vacated seat) to attend the CPF Annual California Preservation Conference in Spring 2026. 6 Form an ad -hoc subcommittee to assist staff in selecting a roster ("bench") of historic preservation consultants.

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Attachment: FY 2025_ 26 Board and Commission Workplans_03.18.25 (Acceptance of Board and Commission Work Plans) ATTACHMENT “A”

BICYCLE AND PEDESTRIAN ADVISORY COMMITTEE
Proposed Work Plan
July 1, 2025, to June 30, 2026

WORK PLAN ITEMS
1 Review proposed 2016 Measure B Education and Encouragement Program

2 Provide stakeholder input during the preparation of the City’s Hamilton Avenue Public Improvement Plan (formerly called the Hamilton Avenue Precise Plan)

3 Provide stakeholder input during the preparation of the City’s Multimodal Transportation Plan

4 Provide stakeholder input during the preparation of the City’s Hamilton Avenue/State Route 17 Bicycle Overcrossing Feasibility Study

5 Provide stakeholder input during the preparation of the City’s Comprehensive Traffic Safety Action Plan

6 Advise on bicycle- and pedestrian-related enhancements, safety improvements, and plans

7 Advise on grant opportunities (e.g., Transportation Development Act (TDA) Article 3 grant)

8 Advise on promotion and engagement of bicycle and pedestrian facilities.

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Attachment: FY 2025_ 26 Board and Commission Workplans_03.18.25 (Acceptance of Board and Commission Work Plans)

City
Council
Report

TITLE: Fiscal Year 2025 Mid-Year Financial Update and Budget Adjustments (Resolution/Roll Call Vote)

RECOMMENDED ACTION

Staff recommends that the City Council accept the Fiscal Year 2025 Mid -Year Financial Update Report and adopt a Resolution authorizing the Fiscal Year 2025 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) 202 5 and the basis for year -end estimates is current trends through December 31, 2024, 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, where 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 so that their full impact can be seen if approved by Council. Proposed mid -year budget corrections and requests are further detailed in Attachment B and Attachment C .

Furthermore, a full reconciliation of the FY 202 5 Adopted Budget to the FY 202 5 Amended Budget is shown in Attachment D. This attachment provides a summary of Council approved budgetary adjustments since July 1, 202 4, as well as any encumbrance and Capital Improvement Program (CIP) carryovers from FY 202 4 that are still expected to be expended.

General Fund Overview

As detailed in the FY 2025 Adopted Budget, the City implemented $3.87 million of short- term corrective strategies in the current fiscal year to achieve a fully balanced General Item: 13
Category: NEW BUSINESS
Meeting Date: March 18, 2025
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FY 2025 Mid-Year Update and Budget Adjustments Page 2 of 10 Fund; including a temporary hiring freeze, utilization of the City’s CalPERS Pension Reserve, utilization of remaining ARPA funds, and other miscellaneous reductions across all City departments. And at the mid -point of FY 2025, despite a number of unexpected expenses and continued inflationary pressures, staff is proposing mid -year budget adjustments that will continue to keep the General Fund fully balanced by the end of the current fiscal year. This is achieved largely through a proposed utilization of excess vacancy savings over and above what was factored into the FY 2025 Adopted Budget. The FY 2025 Adopted Budget assumed a 2% vacancy savings rate or $906,081 in total assumed savings. As of this report, due to continued turnover and other factors, staff estimates that total General Fund vacancy savings in FY 2025 will equal approximately $1.87 million ; leaving an excess of approximately $964,000 ($1,870,000 less $906,081) that could be used for other City purposes and unexpected costs. Thus, as shown later in this report and in Attachment B and Attachment C, staff is proposing shifting $905,887 of this excess vacancy savings to fund higher than expected utility costs , inflationary factors, and other operational needs . Utilization of $905,887 of these excess vacancy savings for other purposes would leave a remaining estimated vacancy savings cushion of approximately $58,000 ($964,000 less $905,887) in the General Fund in FY 2025. If these proposed mid-year adjustments are approved by the City Council, the General Fund will again be fully b alanced in FY 202 5; with projected reve nues matching projected expenditures. Please note that this does not account for any other unknown and unexpected budget adjustments that might be needed between now and the end of FY 202 5. Details on revenues, expenditures, and proposed adjustments will be provided in the following sections:

• Revenues – In summary, a s of December 31, 202 4, General Fund revenues equaled approximately $25.34 million; an increase of $2.24 million or 9.67% when compared to the same time period last fiscal year, which showed approximately $23.11 million in year-to-date revenues. And when compared to budgetary estimates for FY 202 5, revenues are at 36.04%. Last fiscal year at the same time period, General Fund revenues equaled 35.01% of year -end actual revenues. After extensive analysis, staff now expects year -end General Fund revenues for FY 202 5 to equal approximately $70.58 million; an increase of approximately $271,000 from the budgetary estimates for FY 202 5. The following will discuss key factors leading to the revision of year-end revenue estimates:

o Property Tax – FY 202 5 Budget Estimate of $ 22,676,800 vs. Revised Year-End Projection of $22,894,000 (increase of $217,200) – The City relies on property tax estimates from both a consultant as well as the Santa Clara County Office of the Assessor and Controller -Treasurer Department. The latter two County agencies provide quarterly projections and recently provided an update on February 7, 2025 . While most property tax categories are tracking very close to initial budgetary estimates for FY 202 5, the County expects the City to receive slightly more in Secured Property Tax than originally expected; demonstrating the relative overall strength in core property taxes despite the slowdown in the housing market due to high interest rates and a shortage in supply. 13 Packet Pg. 228
FY 2025 Mid-Year Update and Budget Adjustments Page 3 of 10

o Sales Tax – FY 2025 Budget Estimate of $ 16,832,986 vs. Revised Year- End Projection of $16,258,133 (decrease of $574,853) – The City relies on sales tax estimates from a qualified consultant. Based on the fact that several of the City’s top sales tax producers have moved to other cities in the past few years and a general slowing in sales tax revenue statewide, the sales tax consultant has significantly decreased year -end revenue estimates for FY 202 5 and beyond . It may be possible that recent departures can be offset by other sales tax generators in the future , but their departure leaves a significant hole in the City’s sales tax ba se for the immediate future . Staff will continue to monitor the situation and keep Council updated. Implementation of the City’s Economic Development Strategic Plan could help in this area as well as Property Tax, Transient Occupancy Tax (TOT), and Permits.

o Other Taxes – FY 2025 Budget Estimate of $6,837,860 vs. Revised Year- End Projection of $6,888,060 (increase of $50,200). This revenue category consists of Franchise Taxes, Construction Tax, Business License Tax, Real Property Tax Transfers, and Transient Occupancy Tax (TOT).

Most of these categories are expected to meet budgetary estimates in FY 2025 except TOT and Construction Tax ; which are projected to miss budgetary estimates by $ 50,000 and $ 31,000 respectively; offset fully by greater than expected Real Property Transfer Taxes of $131,000. In regard to TOT, it has been significantly impacted since the pandemic, when it reached a low of $1.6 million annually in FY 2021 after previously averaging $4.7 million annually. While TOT has recovered from those lows and reached $3.7 5 million in FY 202 4, it has seen minimal growth in FY 2025.

o Licenses and Permits - FY 202 5 Budget Estimate of $ 6,494,216 vs.

Revised Year-End Projection of $7,191,416 (increase of $697,200). This category consists primarily of Community Development Construction Permit Fees and Plan Check Fees. Based on year -to-date activity as well as known and planned developments throughout the remainder of the fiscal year, staff expects a $100,000 increase in Construction Permits and a $600,000 increase in Advanced Plan Check Fees in FY 202 5 compared to original budgetary estimates. These increases will be partially offset on the expenditure side by a $330,000 increase in pass through plan checks performed by outside contractors. Nevertheless, the added revenue will still be higher than the added expenses.

o Intergovernmental Revenue - FY 202 5 Budget Estimate of $ 1,193,328 vs. Revised Year -End Projection of $1,120,465 (decrease of $72,863).

This revenue category largely consists of smaller limited restriction federal, state, and county grants, state mandated cost reimbursements, contractual arson investigator payments from the Santa Clara County Fire 13 Packet Pg. 229
FY 2025 Mid-Year Update and Budget Adjustments Page 4 of 10 Department. Year-end projections are largely expected to miss budgetary estimates primarily due to not having sufficient staffing to assign to the County of Santa Clara Regional Auto Theft Task Force (RATTF) and not receiving subsequent and estimated reimbursement from RATTF totaling $103,000. This is however partially offset by higher than expected State mandated cost reimbursements of $42,000. The City receives little federal funding in this area that would be under threat from the new administration, but state funding which the City receives could be impacted by federal funding uncertainty. Thus, staff will closely monitor this area in the future and adjust future estimates if needed.

o Charges for Service - FY 202 5 Budget Estimate of $ 6,283,915 vs.

Revised Year-End Projection of $6,217,250 (decrease of $66,665). This category consists of fee based programs, camps, and classes in the Recreation and Community Services (RCS) Department as well as service fees in the Community Development, Public Works, and Police Departments. The slight downward revision to estimates is largely due to lower than expected ticket sales at the Heritage Theatre. Nevertheless, this is also offset by a decrease in contractual services to operate the Theatre and its events.

o Leases and Rentals - FY 202 5 Budget Estimate of $ 3,256,284 vs.

Revised Year-End Projection of $3,153,184 (decrease of $103,100). This decrease is due primarily to lower than expected leases and rentals at the Heritage Theatre and the Campbell Community Center.

o Miscellaneous Revenue - FY 202 5 Budget Estimate of $ 209,749 vs.

Revised Year-End Projection of $300,322 (increase of $90,573). This is a relatively small revenue category for the City consisting of Donations, In - Lieu fees, and other miscellaneous and sporadic revenue sources. The increase in FY 202 5 estimates is due primarily to higher than expected insurance claim reimbursements and fees associated with the Camden Resurfacing project.

o Other Revenue - FY 2025 Budget Estimate of $66,950 vs. Revised Year- End Projection of $100,000 (increase of $22,000). The increase is due to higher than expected credit card transaction processing fees year-to-date.

• Expenditures - As of December 31, 202 4, General Fund expenditures equaled approximately $32.73 million; an increase of $2.61 million or 8.68% when compared to the same time period last fiscal year, which showed approximately $30.11 million in year -to-date expenditures. The large increase in year -to-date expenditures is due to continued and planned increases in service levels since the pandemic, inflation, and negotiated salary and benefit increases across all bargaining groups. As Attachment A shows, staff also expects year-end General Fund expenditures for FY 2025 to equal approximately $70.58 million; an increase 13 Packet Pg. 230
FY 2025 Mid-Year Update and Budget Adjustments Page 5 of 10 of $390,409 from the budgetary appropriations for FY 202 5. This increase is primarily due to unexpected and necessary expenditures, emergency repairs, increased fee based service demand, and inflation. Mid-year cost adjustments will be detailed in the subsequent sections as well as in Attachment B and Attachment C. The expenditure summary above as well as Attachment A again reflects the inclusion of requested mid -year appropriations adjustments so that their full impact can be seen if approved by Council:

Requested Mid-Year Budget Adjustments (General Fund)

As previously stated, staff recommends budget appropriation increases to General Fund expenditure accounts totaling $390,409 in FY 202 5. Table 1 below provides a summary of staff recommendations:

Table 1 – FY 202 5 Requested Mid -Year Budget Adjustments to Appropriations (General Fund Only)

DEPARTMENT / DESCRIPTION AMOUNT
Citywide
Decrease to labor costs due to expected salary savings across all departments over and above normal 2% vacancy factor and any other salary savings detailed below
($494,887)
City Manager’s Office
Increase to contractual costs due to extended vacancies in critical HR positions
$200,000
Decrease to labor costs due to vacancy savings specific to HR ($200,000) Increase transfer to IT Fund to support higher than expected equipment and software licensing costs
$143,891
City Clerk’s Office
Increase to office expenses due to ballot measure postage $16,100 Recreation & Community Services
Decrease to Temporary Personnel due to lower than expected need at CCC front counter
($6,900)
Increase to Special Departmental due to additional pages added to Activity guide and higher than expected mailing costs $6,260
Increase to Temporary Personnel in Adult Services due to increased class offerings offset by fee revenues
$25,000
Decrease to Special Community Servies in Adult Services due to one less trip offered than budgeted
($3,000)
Increase to Temporary Personnel at CCC due to increased building attendant staffing to support rental program
$9,724
Increase to Utilities at CCC due to higher than expected costs for PG&E
$130,000
Increase to Maintenance and Operation of Equipment at CCC due to replacement of AV equipment in OCBH
$5,000
Decrease to Other Contractual Services at CCC due to not as many events requiring security as projected in budget
($3,000)
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FY 2025 Mid-Year Update and Budget Adjustments Page 6 of 10

DEPARTMENT / DESCRIPTION AMOUNT
Decrease to Special Community Services at CCC due to summer concert series not starting until July 2025
($3,000)
Increase to Utilities at Museum due to higher than expected costs for PG&E
$8,200
Increase to Communications Expenses at Heritage Theatre due to inability to cancel Comcast lines as of yet
$1,500
Increase to Office Expense at Heritage Theatre due to purchase of additional tickets
$2,000
Decrease to Special Departmental at Heritage Theatre due to decrease in show expenditures
($7,110)
Decrease to Professional and Special Services at Heritage Theatre based on actual projected needs for reimbursable labor ($58,355)
Increase to Insurance and Surety Bonds at Heritage Theatre due to higher than expected actual premium costs
$752
Decrease to Temporary Personnel in Sports, Aquatics and Fitness based on year to date trends
($50,000)
Increase to Special Departmental in Sports, Aquatics and Fitness due to emergency purchase of replacement pool covers
$11,000
Increase to Other Contractual Services in Sports, Aquatics and Fitness due to increased costs for classes offset by fee revenue $10,500
Decrease to Special Community Services in Sports, Aquatics and Fitness based on year to date trends
($2,800)
Increase to IT Internal Service Fund Charges to correct a previous error in the FY 2025 Adopted Budget
$20,624
Decrease to Temporary Personnel in Pre-School, Day Camp & Enrichment Classes based on year to date trends
($59,009)
Increase to Special Departmental in Pre-School, Day Camp & Enrichment Classes due to needed purchases of fitness
equipment.
$1,000
Decrease to Other Contractual Services in Pre-School, Day Camp & Enrichment Classes based on year to date trends
($25,000)
Decrease to Special Community Services in Pre-School, Day Camp & Enrichment Classes based on year to date trends
($14,082)
Community Development
Increase to Communications Expenses in CDD Administration due to added cellular service for Unhoused Coordinator
$1,600
Increase to Office Expenses in CDD Administration due to added office needs
$5,000
Increase to Special Departmental in CDD Administration due to added Telecom lawsuit and training; savings by from Cities Association Planning Collaborative
$22,000
Decrease to Professional and Special Services in CDD
Administration due to decreased needs MGO Project Manager ($50,000)
Increase to Other Contractual Services in CDD Administration due to need for additional administrative support
$48,000
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FY 2025 Mid-Year Update and Budget Adjustments Page 7 of 10

DEPARTMENT / DESCRIPTION AMOUNT
Decrease to Overtime in Current Planning based on actual needs less than expected
($37,000)
Increase to Special Departmental in Policy Development due to increased LAFCO costs
$315
Increase to Office Expense in Building Code Regulations due to increased office needs
$3,086
Increase to Professional and Special Services in Building Code Regulations due to Third Party Plan Check Services offset by added revenue
$330,000
Increase to Professional and Special Services in Code
Enforcement due to Code Enforcement Hearing Officer
$3,000
Legal Services
Increase to Professional and Special Services to account outside legal services needed for Measure K litigation and Jane Doe vs Campbell PD litigation
$150,000
Police Department
Decrease to labor costs due to salary savings specific to Police Communications
($70,000)
Increase to Overtime in Police Communications due to vacancies $70,000 Public Works
Increase to Professional and Special Services in Land
Development due to outside City surveyor services
$40,000
Decrease to labor costs due to salary savings specific to Building Maintenance
($141,000)
Increase to Maintenance of Buildings/Structures/Grounds in Building Maintenance due to gas line repair at Corp Yard $80,000
Increase to Maintenance and Operation of Equipment in Building Maintenance due to new sewer pump at City Hall, repair of HVAC unit at City Hall, repair of chiller at CCC Building A, purchase of HVAC units at CCC Building M, purchase of battery backup at 2nd Street Garage
$271,000
Total Recommended Budget Adjustments to Appropriations $390,409

Economic Update (as of March 7, 2025)

Markets were whipsawed the week of March 7th by President Trump’s tariff policy announcements, triggering the most significant trade war in decades. Early in the week, the Trump administration announced that tariffs would go into effect on March 4th, with a 25% tariff on goods imported from both Mexico and Canada (except energy at 10%).

Additionally, tariffs on goods from China were doubled to 20% from the 10% previously announced. Equity markets plunged on the news, and a flight to quality ensued with U.S. treasury yields plummeting and the curve steepening. All three countries threatened retaliatory tariffs in response.

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FY 2025 Mid-Year Update and Budget Adjustments Page 8 of 10 Subsequently, President Trump announced a one -month delay in automobile tariffs for Canada and Mexico, temporarily calming markets before another nosedive in the equity markets. He then broadened the exemption to all Mexican and Canadian goods covered by the United States -Mexico-Canada Agreement (USMCA) from the 25% tariffs until April 2nd when he is expected to announce broader duties on countries around the world. Markets were rattled as concerns of escalating inflation and slowing economic growth mounted.

The most significant economic release the week of March 7 th was the February employment report, which provided evidence of a softening labor market. Nonfarm payrolls rose by 151,000 in February, slightly lower than the consensus of 160,000 jobs, and the last two months were revised down by 2,000. Gains were led by education and health services, transportation, and financial activities, with cutbacks in federal jobs and consumer-oriented fields such as leisure and hospitality and retail. Average hourly earnings ticked up to an increase of 4.0% year -over-year in February from 3.9% in January. The unemployment rate rose to 4.1% from 4.0% as the labor force shrank. The most significant move was in the U6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons. The measure soared to 8.0% in February from 7.5% last month to its highest level since 2021, as more discouraged workers experienced longer separations from the labor market.

By the end of the week (at this time of this writing), the Dow Jones Industrial Average was down approximately 2.5% for the week, and the S&P 500 fell about 3.3% during the week. NASDAQ entered correction territory as prices fell over 10% from peak levels primarily due to a selloff in large technology and artificial intelligence companies. The 2 - year U.S. Treasury yield rose about 2 basis points to 4.01%, and the 10 -year U.S.

Treasury yield increased 11 basis points to 4.32% after some wild swings during the week, resulting in a steeper yield curve. The market is now pricing in three 0.25% rate cuts by the Federal Reserve this year. Staff expects the Federal Reserve to pause at the upcoming March meeting, but to begin lowering rates later this year as economic growth slows.

Economic data from the week of February 28 th also painted a mixed picture. The Chicago Fed National Activity Index slipped to -0.03 in January from +0.18, indicating slowing growth. Consumer confidence declined, with the Conference Board’s index falling 7 points to 98.3, its steepest drop since August 2021, as concerns over inflation and job security grew. However, nominal incomes rose 0.9%, supported by Social Security cost-of-living adjustments. Initial jobless claims climbed to 242,000, the highest this year, suggesting a potential slowdown in hiring. Inflation showed signs of easing, with the core personal consumption expenditures (PCE) price index rising 0.3% in January and 2.6% year over year.

Despite affordability concerns, the housing market remained resilient. The Case -Shiller Home Price Index 20 -City Home Price Index (HPI) reported a 4.5% annual increase in home prices for December, led by New York and Chicago. Mortgage rates fell to 6.8%, 13 Packet Pg. 234
FY 2025 Mid-Year Update and Budget Adjustments Page 9 of 10 their lowest level this year, offering some relief to buyers. However, pending home sales dropped 4.6% m/m, as rising home prices and borrowing costs continued to strain affordability.

Released the week of February 21st, the Conference Board Leading Economic Index (LEI) fell 0.3% in January, which was below the median estimate of -0.1%. The monthly decline was primarily driven by consumer assessments of future business conditions becoming more pessimistic. This morning’s University of Michigan Sentiment Index decreased to 64.7 for February, due to concerns over inflation and the economic outlook. The index reflected more than half of consumers expecting unemployment to rise over the next year. The 1 -year inflation outlook remained unchanged at 4.3%, however, long-run inflation expectations moved higher, up from the preliminary report of

3.3% to the final reading of 3.5%.

Economic data released the week of February 14 th provided valuable insight into the state of the consumer and inflation. The headline Consumer Price Index (CPI) accelerated to 0.5% m/m and 3.0% y/y in January. The Core CPI, which excludes the volatile food and energy sectors, jumped 0.4% m/m and 3.3% y/y. While seasonal adjustments likely played a role, shelter costs comprised about 30% of the overall rise.

Notably, egg prices soared 15% in the month, driven by the avian influenza outbreak that led to mass cullings and supply shortages. At the same time, rising costs in auto insurance, used vehicles, medical care, communication, and airfares also contributed to the hotter than expected inflation reading. The Producer Price Index (PPI) was up 0.4% m/m and 3.5% y/y in January, decelerating slightly from upwardly revised December readings.

Meanwhile, real average hourly earnings rose 1.0% y/y in January, off of a 1.2% increase in the previous month. The Advance Retail Sales report for January fell short of expectations, dropping 0.9% m/m following a +0.7% increase in December. On a year-over-year basis, retail sales were up 4.2% on a seasonally but not price adjusted basis. Motor vehicle and parts dealers gained 6.4% y/y, while restaurants and bars were up 5.4% versus one year ago. The weaker January retail sales estimates versus December were likely due to the upward revisions to the strong holiday shopping season and consumers front loading purchases in anticipation of tariffs.

In California, total nonfarm employment in the state increased by 15,000 jobs over the month of December 2024 . However, statewide unemployment increased to a rate of

5.5% in December 2024; higher than the rate of 5.1% in December 2023 and the rate of

5.4% in November 2024 . In Santa Clara County, the rate decreased to 3.4% in December 2024; lower than the rate of 4.0% in November and the rate of 3.9% in December 2023 . And in Campbell, the rate also remained unchanged at 3. 3% in December 2024; equal to the rate of 3. 3% in November 2024 and less than the rate of

3.4% in December 2023 . At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11.7%.

FISCAL IMPACT
13 Packet Pg. 235
FY 2025 Mid-Year Update and Budget Adjustments Page 10 of 10

If approved, staff proposed adjustments would result in a n increase to General Fund budgeted revenues of $270,742 and an increase to General Fund budgeted expenditures of $390,409; as shown in Attachments A, B, and C. If approved, the General Fund will be fully balanced in FY 2025.

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.

Prepared by:

Will Fuentes, Finance Director

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Summary of General Fund Revenues vs Expenditures FY 2025 (Mid-Year) b. Resolution - FY 2025 Mid-Year Adjustments
c. Line-Item Detail for Mid-Year Adjustments (FY 2025)
d. Reconciliation of FY 2025 Adopted Budget to FY 2025 Amended Budget 13 Packet Pg. 236
SUMMARY ‐ Fiscal Year (FY) 2025
Q2 ‐ Ending December 31, 2024
GENERAL FUND
YTD Actuals Amd. Budget % of Budget Year‐End Proj Proj vs Bud YTD Actuals Year‐End % of YE YTD Growth ($) YTD Growth (%) REVENUES by Type
Property Tax 5,446,183 $ 22,676,800$ 24.02% 22,894,000$ 217,200$ + 5,171,341$ 21,912,688$ 23.60% 274,841$ 5.31% Sales & Use Taxes 5,285,353 $ 16,832,986$ 31.40% 16,258,133$ (574,853)$ ‐ 5,619,019$ 16,549,228$ 33.95% (333,666)$ ‐ 5.94% Other Taxes 2,676,632 $ 6,837,860$ 39.14% 6,888,060$ 50,200$ + 3,582,033$ 8,991,899$ 39.84% (905,400)$ ‐ 25.28% Licenses and Permits 3,401,137 $ 6,494,216$ 52.37% 7,191,416$ 697,200$ + 1,700,441$ 3,344,255$ 50.85% 1,700,696$ 100.01% Fines/Forfeits/Penalties 32,195$ 100,000$ 32.20% 100,000$ ‐ $ = 129,590$ 172,013$ 75.34% (97,394)$ ‐ 75.16% Investments Income 722,131 $ 1,130,000$ 63.91% 1,130,000$ ‐ $ = 798,462$ 1,156,980$ 69.01% (76,330)$ ‐ 9.56% Intergovernmental Revenue 505,833$ 1,193,328$ 42.39% 1,120,465$ (72,863)$ ‐ 385,760$ 1,358,912$ 28.39% 120,073$ 31.13% Charges for Service 2,721,790 $ 6,283,915$ 43.31% 6,217,250$ (66,665)$ ‐ 2,464,503$ 6,243,052$ 39.48% 257,287$ 10.44% Leases & Rentals 1,684,298 $ 3,256,284$ 51.72% 3,153,184$ (103,100)$ ‐ 1,680,002$ 3,172,449$ 52.96% 4,296$ 0.26% Miscellaneous Revenues 201,594$ 209,749$ 96.11% 300,322$ 90,573$ + 119,137$ 166,659$ 71.49% 82,457$ 69.21% Other Revenues 51,235 $ 66,950$ 76.53% 100,000$ 33,050$ + 28,159$ 71,211$ 39.54% 23,076$ 81.95% OFS ‐ Operating Transfers In 1,015,809 $ 2,031,619$ 50.00% 2,031,619$ ‐ $ = 817,797$ 1,635,595$ 50.00% 198,012$ 24.21% OFS ‐ Committed / Assigned Reserves 1,598,372$ 3,196,744$ 50.00% 3,196,744$ ‐ $ = 610,887$ 1,221,775$ 50.00% 987,485$ 161.65% TOTAL REVENUES 25,342,563 $ 70,310,451$ 36.04% 70,581,193$ 270,742$ + 23,107,157$ 65,996,741$ 35.01% 2,235,406$ 9.67%

FALSE FALSE FALSE FALSE FALSE
EXPENDITURES by Type
Salaries 10,510,778 $ 24,232,008$ 43.38% 23,277,936$ (954,072)$ + 10,441,210$ 22,214,866$ 47.00% 69,567$ 0.67% Benefits 6,714,825 $ 13,757,598$ 48.81% 13,757,598$ ‐ $ = 6,189,080$ 13,217,918$ 46.82% 525,745$ 8.49% Supplies & Services 12,506,053 $ 25,577,978$ 48.89% 26,757,944$ 1,179,966$ ‐ 11,819,618$ 23,582,014$ 50.12% 686,435$ 5.81% Rents & Leases 756,615 $ 1,672,829$ 45.23% 1,693,453$ 20,624$ ‐ 846,726$ 1,693,453$ 50.00% (90,112)$ ‐ 10.64% Other Charges 72,921 $ 567,900$ 12.84% 567,900$ ‐ $ = 153,203$ 555,554$ 27.58% (80,282)$ ‐ 52.40% Capital Outlay 64,787$ 165,791$ 39.08% 165,791$ ‐ $ = 12,432$ 91,604$ 13.57% 52,355$ 421.12% Operating Transfers Out 1,087,150 $ 2,190,963$ 49.62% 2,334,854$ 143,891$ ‐ ‐$ 3,298,036$ 0.00% 1,087,150$ N/A Capital Transfers Out 1,012,858 $ 2,025,716$ 50.00% 2,025,716$ ‐ $ = 650,185$ 1,300,370$ 50.00% 362,673$ 55.78% TOTAL EXPENDITURES 32,725,986 $ 70,190,783$ 46.62% 70,581,193$ 390,409$ ‐ 30,112,455$ 65,953,816$ 45.66% 2,613,530$ 8.68%

FALSE FALSE FALSE FALSE FALSE
EXPENDITURES by Department
City Council 193,344 $ 369,643$ 52.31% 369,643$ ‐ $ = 183,112$ 382,888$ 47.82% 10,232$ 5.59% City Manager's Office 1,206,989 $ 3,561,553$ 33.89% 3,561,553$ ‐ $ = 1,506,698$ 3,364,867$ 44.78% (299,709)$ ‐ 19.89% City Clerk's Office 317,900 $ 814,446$ 39.03% 830,546$ 16,100$ ‐ 236,354$ 507,738$ 46.55% 81,546$ 34.50% Recreation & Comm Srvcs 3,547,950 $ 7,686,121$ 46.16% 7,685,424$ (696)$ + 3,191,187$ 6,801,733$ 46.92% 356,762$ 11.18% Finance 1,134,622 $ 2,597,448$ 43.68% 2,597,448$ ‐ $ = 1,086,113$ 2,358,862$ 46.04% 48,508$ 4.47% Community Development 2,133,716$ 5,360,845$ 39.80% 5,686,846$ 326,001$ ‐ 1,737,904$ 3,941,430$ 44.09% 395,812$ 22.78% Legal Services 299,754 $ 595,402$ 50.34% 745,402$ 150,000$ ‐ 330,615$ 633,638$ 52.18% (30,861)$ ‐ 9.33% Police Department 10,823,793$ 23,617,126$ 45.83% 23,617,126$ ‐ $ = 10,485,723$ 22,749,510$ 46.09% 338,071$ 3.22% Fire Services 5,613,466 $ 11,226,931$ 50.00% 11,226,931$ ‐ $ = 5,430,459$ 10,860,918$ 50.00% 183,006$ 3.37% Public Works 3,259,307 $ 7,382,948$ 44.15% 7,632,948$ 250,000$ ‐ 3,100,895$ 6,801,855$ 45.59% 158,412$ 5.11% COVID‐19 (Payroll) ‐$ ‐ $ N/A ‐$ ‐ $ = ‐$ ‐ $ N/A ‐$ N/A COVID‐19 (Non‐Payroll) ‐$ ‐ $ N/A ‐$ ‐ $ = ‐$ ‐ $ N/A ‐$ N/A Non‐Departmental (Other) 4,195,145 $ 6,978,322$ 60.12% 6,627,326$ (350,996)$ + 2,823,395$ 7,550,376$ 37.39% 1,371,750$ 48.59% TOTAL EXPENDITURES 32,725,986 $ 70,190,783$ 46.62% 70,581,193$ 390,409$ ‐ 30,112,455$ 65,953,816$ 45.66% 2,613,530$ 8.68% Revenues vs. Expenditures (7,383,423)$ 119,668$ ‐ $ (7,005,298)$ 42,925$ FY 2024 Year over Year FY 2025

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Attachment: Summary of General Fund Revenues vs Expenditures FY 2025 (Mid-Year) (FY 2025 Mid-Year CHART REVENUES VS. EXPENDITURES  ‐ Fiscal Year (FY) 2025 Q2 ‐ Ending December 31, 2024
GENERAL FUND
FY 2025 YTD FY 2024 YTD Growth (%)
Revenues 25,342,563 $       23,107,157$   9.67%
Expenditures 32,725,986 $       30,112,455$   8.68%
$‐
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
FY 2025 YTD FY 2024 YTD
Revenues vs. Expenditures  ‐ Q2 Fiscal Year (FY) 2025
Revenues Expenditures

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Attachment: Summary of General Fund Revenues vs Expenditures FY 2025 (Mid-Year) (FY 2025 Mid-Year RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AUTHORIZING MID-YEAR BUDGET ADJUSTMENT S TO REFLECT CHANGES IN

PROJECTED REVENUES AND REQUESTED EXPENDITURE NEEDS FOR FISCAL (FY) YEAR 2025

WHEREAS, the City Council adopted an annual budget for the operation of all municipal departments and facilities for Fiscal Year (FY) 2025 and a capital improvement plan (CIP) for 2025-2029 on June 18, 2024; and

WHEREAS, at the March 18, 2025 City Council meeting, staff presented a Mid - Year Report on the City’s General Fund revenues and expenditures f or FY 2025 along with necessary revenue and expenditure adjustments in other funds; and

WHEREAS, staff has reviewed and presented recommended revenue and expenditure budget adjustments shown in Attachment C of the accompanying staff report; and

WHEREAS, staff projects that year-end General Fund revenues for FY 202 5 will be greater than budget estimates by $270,742; and

WHEREAS, staff recommends General Fund expenditure increases of $390,409 for FY 2025; and

WHEREAS, after all mid-year adjustments, the General Fund will be fully balanced for FY 2025; and

WHEREAS, staff requests other revenue and expenditure adjustments outside the General Fund for FY 2025 and shown in Attachment C of the accompanying staff report; and

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby authorizes Mid-Year General Fund Revenue Budget Adjustments for FY 202 5 shown in Attachment C of the accompanying staff report and incorporated by reference.

PASSED AND ADOPTED this _ day of 2025, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

APPROVED:

___________________________
Sergio Lopez, Mayor

ATTEST:

___________________________
Andrea Sanders, City Clerk

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Attachment: Resolution - FY 2025 Mid-Year Adjustments (FY 2025 Mid-Year Update and Budget Adjustments) GENERAL FUND (#101)
1) Revenue Revisions
Account Title Category Dept GL Account Amount
PROP TAXES ‐ CURR SECURE Property Tax FN 101.535.4001 227,600 PROP TAXES ‐ CURR UNSECR Property Tax FN 101.535.4002 (13,300) PROPERTY TAX PASS THRU Property Tax FN 101.535.4007 (3,500) RESIDUAL RPTTF DISTRIBUT Property Tax FN 101.535.4008 23,900 PROP TAXES ‐ ERAF Property Tax FN 101.535.4011 (17,500) Property Tax Total 217,200
SALES AND USE TAXES Sales & Use Taxes FN 101.535.4110 (440,768) TRANSACTIONS & USE TAX Sales & Use Taxes FN 101.535.4112 (81,445) PROP 172 PUBLIC SAFETY Sales & Use Taxes FN 101.535.4113 (52,640) Sales & Use Taxes Total (574,853)
TRANSIENT OCCUPANCY TAX Other Taxes FN 101.535.4150 (50,000) REAL PROP TRANSFER TAX Other Taxes FN 101.535.4153 131,000 CONSTRUCTION TAX Other Taxes CD 101.554.4151 (30,800)
Other Taxes Total 50,200
CONSTRUCTION PERMITS Licenses and Permits CD 101.554.4210 100,000 ADVANCED PLAN CHECK FEE Licenses and Permits CD 101.554.4211 600,000 GENERAL REVENUE‐BLDG DEP Licenses and Permits CD 101.554.4212 (9,400) PLN CHECK‐TITLE 24 ENERG Licenses and Permits CD 101.554.4213 6,600 Licenses and Permits Total 697,200
ST HOMEOWNERS PROP TAX R Intergovernmental Revenue FN 101.535.4581 (3,400) REIMBURSE‐MANDATED COSTS Intergovernmental Revenue FN 101.535.4584 42,000 RATTF REIMBURSEMENT Intergovernmental Revenue PS 101.604.4560 (103,000) ABANDONED VEHICLE FEES Intergovernmental Revenue PS 101.604.4582 (8,463) Intergovernmental Revenue Total (72,863)
ADULT SERVICES ‐ CLASSES Charges for Service RC 101.526.4612 54,400 ADULT SERVICES ‐ PROGRAM Charges for Service RC 101.526.4626 (4,300) COMM GRP SPON‐SPEC EVENT Charges for Service RC 101.527.4630 4,300 Line‐Item Detail for Mid‐Year Adjustments (FY 2025)

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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2025) (FY 2025 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2025)
THEATER REVENUE Charges for Service RC 101.529.4631 (500) THEATER PRESERVATION CHG Charges for Service RC 101.529.4632 57,600 THEATRE FACILITY FEE Charges for Service RC 101.529.4633 (20,550) THEATER TICKET SALES Charges for Service RC 101.529.4644 (52,570) SPONSORSHIP INCOME Charges for Service RC 101.529.4645 (17,000) THEATER PROGRAM ADS Charges for Service RC 101.529.4646 (2,950) PROGRAM FEES‐SPORTS Charges for Service RC 101.531.4613 24,735 PROGRAM FEES‐AQUATICS Charges for Service RC 101.531.4614 42,350 PROGRAM FEES‐DAY CAMPS Charges for Service RC 101.532.4617 18,000 PROGRAM FEES‐CLASSES Charges for Service RC 101.532.4619 (72,000) PROGRAM FEES‐PRESCHOOL Charges for Service RC 101.532.4620 (4,000) PROGRAM FEES‐FITNESS Charges for Service RC 101.532.4622 32,320 RENTAL DISPUTE RES FEE Charges for Service CD 101.550.4663 5,800 ZONING FEES Charges for Service CD 101.551.4660 (154,000) GENERAL PLAN MAINT FEE Charges for Service CD 101.552.4670 15,000 TRAINING & EDUCATION FEE Charges for Service CD 101.554.4672 4,500 STOP WORK FEE Charges for Service CD 101.554.4673 (36,800) PROJECT OVERHEAD OFFSET Charges for Service PW 101.720.4725 4,000 TRAFFIC ENGINEERING FEES Charges for Service PW 101.720.4728 10,000 PROJECT OVERHEAD OFFSET Charges for Service PW 101.730.4725 (100,000) ENGR & SUBDIV FILING FEE Charges for Service PW 101.740.4722 125,000 Charges for Service Total (66,665)
RENTS/LEASES (REAL & PER Leases & Rentals RC 101.527.4810 (130,000) OTHER RENTAL INCOME Leases & Rentals RC 101.527.4819 26,000 OTHER RENTAL INCOME Leases & Rentals RC 101.529.4819 (45,500) RENTS/LEASES (REAL & PER Leases & Rentals CD 101.550.4810 46,400 Leases & Rentals Total (103,100)
DONATIONS‐YOUTH SCHOLAR Miscellaneous Revenues RC 101.524.4821 1,573 INSURANCE CLAIMS REIMB Miscellaneous Revenues FN 101.535.4962 28,000 OTHER REVENUE Miscellaneous Revenues FN 101.535.4965 20,000 NOTICE/IMPROVE/OBLIGATIO Miscellaneous Revenues PW 101.730.4924 41,000 Miscellaneous Revenues Total 90,573

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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2025) (FY 2025 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2025)
TRANSACTION PROCESS FEE Other Revenues FN 101.540.4910 33,050 Other Revenues Total 33,050
Grand Total 270,742
2) Expenditure Revisions
Department Description GL Account Amount
City Clerk's Office Ballot Measure Postage 101.511.7424 16,100 City Manager's Office HR Salary Savings for HR Manager, HR Rep, and HR Analyst shifted to contractual services
101.515.7001 (200,000)
City Manager's Office HR Support for Vacancies in HR Rep, HR Analyst, and Office Support
101.515.7430 200,000
Recreation & Comm Srvcs Less temporary personnel used for front desk than anticipated
101.524.7002 (6,900)
Recreation & Comm Srvcs Increase for Activity Guide printing added 8 pages to W/S edition, mailing costs also went up
101.524.7427 6,260
Recreation & Comm Srvcs Increased class offerings expense is offset by increased revenue.
101.526.7002 25,000
Recreation & Comm Srvcs One less trip offered than budgeted 101.526. 7441 (3,000) Recreation & Comm Srvcs Increased building attendant staffing to support rental program
101.527.7002 9,724
Recreation & Comm Srvcs Increased PG&E costs 101.527.7420 130,000 Recreation & Comm Srvcs Additional costs associated with replacement of AV equipment in OCBH
101.527.7429 5,000
Recreation & Comm Srvcs Not as many events requiring security as projected in budget 101.527. 7432 (3,000) Recreation & Comm Srvcs Concerts won't start until July reduced expenditures to just cover deposits and equipment needs.
101.527.7441 (3,000)
Recreation & Comm Srvcs increased cost in utilities 101.528.7420 8,200 Recreation & Comm Srvcs haven't been able to cancel comcast line 101.529.7421 1,500 Recreation & Comm Srvcs Purchased additional tickets 101.529.7424 2,000 Recreation & Comm Srvcs decreased cost in show expenditures 101.529.7427 (7,110)

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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2025) (FY 2025 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2025)
Recreation & Comm Srvcs based on actual projected needs for reimbursable labor 101.529.7430 (58,355) Recreation & Comm Srvcs actual cost for the year 101.529.7433 752 Recreation & Comm Srvcs Estimates show savings closer to $65k, being conservative with this estimate
101.531.7002 (50,000)
Recreation & Comm Srvcs Emergency purchase of Pool Covers. Last purchased over 10 years ago, they began to rip, making it difficult to remove/add 101.531.7427 11,000
Recreation & Comm Srvcs Increased costs for classes offset by revenue 101.531.7432 10,500 Recreation & Comm Srvcs Lower costs than expected 101.531.7441 (2,800) Recreation & Comm Srvcs Correction of IT Internal Service Fund Charge 101.531.7551 20,624 Recreation & Comm Srvcs Estimates show savings closer to $65k, being conservative with this estimate
101.532.7002 (59,009)
Recreation & Comm Srvcs Additional expenditures needed for Fitness equipment. 101.532.7427 1,000 Recreation & Comm Srvcs Less expenditures needed based upon actual spent ytd. 101.532.7432 (25,000) Recreation & Comm Srvcs Less expenditures needed based upon actual spent ytd. 101.532.7441 (14,082) Non‐Departmental (Other) Normalizing at 50% YTD; Adding $314,272 to balance General Fund
101.540.7001 (494,887)
Non‐Departmental (Other) Transfer Out to support increased IT Fund licensing costs 101.980.9899 143,891 Community Development Unhoused Coordinator – Cell Phone Usage 101.550.7421 1,600 Community Development Added Administrative Office Expenses 101.550.7424 5,000 Community Development Telecom Lawsuit Outside Legal Council ($27K) and Training ($10K) Less Savings for Cities Association Planning
Collaborative (‐$15K)
101.550.7427 22,000
Community Development Savings from MGO Project Manager 101.550.7430 (50,000) Community Development Temporary Administrative Staffing Support 101. 550.7432 48,000 Community Development Overtime Savings 101.551.7003 (37,000) Community Development LAFCO Annual Cost Increase 101.552.7427 315

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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2025) (FY 2025 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2025)
Community Development Increased Building Division Office Expenditures 101.554.7424 3,086 Community Development Third Party Plan Check Services Offset by Added Revenue 101.554.7430 330,000 Community Development Code Enforcement Hearing Officer 101.559.7430 3,000 Legal Services Ballot Measure Litigation Outside Legal Counsel ($100K), Jane Doe vs CPD ($50,000)
101.560.7430 150,000
Police Department Salary Savings to Offset OT Increase 101.602.7001 (70,000) Police Department OT Increase due to Staffing Turnover 101.602.7003 70,000 Public Works Outside City Surveyor Services 101.740.7430 40,000 Public Works Shift in Salary Savings to Cover Some Unexpected Building Repairs
101.780.7001 (141,000)
Public Works Gas Line Repair at Corp Yard 101.780.7428 80,000 Public Works New Sewer Pump at City Hall ($61K), Repair HVAC Pump at City Hall ($61K); Repair Chiller at CCC Building A ($19K), HVAC Units at CCC Building M ($68K), Battery Backup at 2nd St Garage ($62K)
101.780.7429 271,000
Grand Total 390,409

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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2025) (FY 2025 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2025)
OTHER FUNDS
Fund Description Rev or Exp GL Account Amount
204 ‐ Gas Tax Fund Transfer vacancy savings to other operational costs Exp 204.760.7001 (40,000) 204 ‐ Gas Tax Fund Overtime due to reduced staff Exp 204.760.7003 10,000 204 ‐ Gas Tax Fund Thermoplastic Striping material Exp 204.760.7428 10,000 204 ‐ Gas Tax Fund Traffic calming measures on Arroyo Seco Drive Exp 204.760.7432 20,000 207 ‐ LLD Fund Transfer vacancy savings to other operational costs Exp 207.770.7001 (85,000) 207 ‐ LLD Fund Overtime due to reduced staff Exp 207.770.7003 20,000 207 ‐ LLD Fund Purchase four (4) Signalized Intersection Battery Backups and one (1) Signalized Intersection Control Cabinet
Exp 207.770.7429 65,000
207 ‐ LLD Fund Transfer vacancy savings to other operational costs Exp 207.775.7001 (160,000) 207 ‐ LLD Fund Overtime due to reduced staff Exp 207.775.7003 10,000 207 ‐ LLD Fund Increased costs of water used for irrigation Exp 207.775.7420 40,000 207 ‐ LLD Fund Turf fertilizer and water‐saving products Exp 207.775.7428 30,000 207 ‐ LLD Fund Contractual tree maintenance services due to reduced in‐ house staff for the City’s tree trimming program
Exp 207.775.7432 80,000
237 ‐ CFD #2 Fund Outside legal services for CFD #2 annexations Exp 237.741.7430 10,000 641 ‐ Motor Vehicle Pool Fund Transfer vacancy savings to other operational costs Exp 641.750.7001 (15,000) 641 ‐ Motor Vehicle Pool Fund Overtime due to reduced staff Exp 641.750.7003 15,000 647 ‐ IT Pool Fund eScribe ‐ New agenda management program for City Clerk Exp 647.547.7429 25,300 647 ‐ IT Pool Fund Rubrik Support ‐ 3 yr support was initially purchased so I was not aware of the renewal to add to the fiscal year budget.

Support is needed.

Exp 647.547.7429 43,541
647 ‐ IT Pool Fund Microsoft Azure Cloud Backup Services ‐ Users are adding more data to our SharePoint so the backup data to the cloud is increasing.

Exp 647.547.7429 11,000
647 ‐ IT Pool Fund Social Assurance ‐ Communications will replace the social media tool to this software.

Exp 647.547.7429 4,500

Page 6 of 7 ends

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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2025) (FY 2025 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2025)
647 ‐ IT Pool Fund Microsoft Office 365 ‐ Increased Microsoft Office Licensing Costs + CoPilot
Exp 647.547.7429 34,000
647 ‐ IT Pool Fund LynxGIS ‐ on pace, City is requesting more work and integrations on the GIS application.

Exp 647.547.7430 10,000
647 ‐ IT Pool Fund Provecta ‐ Network Services needed to assist the IT department due to being short staffed.

Exp 647.547.7430 10,350
647 ‐ IT Pool Fund KBA Docusys ‐ Increasing number of printer toners being ordered.

Exp 647.547.7438 5,200

Page 7 of 7 ends

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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2025) (FY 2025 Mid-Year Update and Budget Reconciliation of FY 2025 Adopted Budget to FY 2025 Amended Budget

Table 1 – FY 2025 Budget Adjustments Approved Since July 1, 2024

Adopted
Budget
Adjustment Amended
Budget
Adopted Revenues $68,719,281
 Encumbrance Carryover(1) 917,499
 RES# 13221 Project Update 25DD Campbell PDA 110,200  RES# 13226 Heritage Theatre Donation 35,000
 RES# 13228 ARPA Interest to Campbell PDA Proj 25,771  RES# 13230 Remaining ARPA Usage 502,700
Sub‐Total Revenue Adjustments $1,591,170
Amended Revenues $70,310,451

Adopted Expenditures

$68,719,281

 Encumbrance Carryover(1) 917,499
 Rounding Differences 13
 RES# 13180 Addition of Los Gatos to SVACA (78,935)
 RES# 13218 PD Vehicle F‐150 16,663
 RES# 13221 Project Update 25DD Campbell PDA 110,200  RES# 13226 Heritage Theatre Soundboard 62,791
 RES# 13228 ARPA Interest to Campbell PDA Proj 25,771  RES# 13230 ARPA Usage PD Camera Systems 305,000
 RES# 13230 ARPA Usage Sidewalks/Curbs/Gutters 112,500 Sub‐Total Expenditure Adjustments $1,471,502
Amended Expenditures $70,190,783
Surplus/(Deficit) $0 $119,668
(1) Shown as both a revenue and an expenditure since it is charged against Assigned Fund Balance within the General Fund and does not impact Unassigned Fund Balance when calculating reserve sufficiency.

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Attachment: Reconciliation of FY 2025 Adopted Budget to FY 2025 Amended Budget (FY 2025 Mid-Year Update and Budget Adjustments)

City
Council
Report

TITLE: Acceptance of Fiscal Year 23/24 Annual Comprehensive Financial Report and Auditor's Written Communication on Internal Controls

RECOMMENDED ACTION

That the City Council accept the Fiscal Year 23/24 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 Comprehensive 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 City’s audit firm, Eide Bailly LLP, issued their report (opinion) on these financial statements which is contained within the ACFR document that is available to you as Attachment A of this report.

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, 2024

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 program which grants a Certificate of Achievement for Item: 14
Category: NEW BUSINESS
Meeting Date: March 18, 2025
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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.

As shown on page 1 of the ACFR, the “Independent Auditor’s Report” reflects an unmodified, “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,” or MD&A which begins on page 5 of the ACFR, and contains significant financial highlights for the fiscal year ending June 30, 2024, 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 compare the audit year financial results to the prior year, and an explanation of the significant changes between years.

Fiscal Year 2024 highlights from the ACFR are as follows:

As shown on page 9 of the ACFR, City -wide, the City ended its fiscal year with total revenues of $81.1 million, an increase of $2.8 million from the previous year, and total expenses of $80.6 million, an increase of $10.9 million compared to the previous year.

Excluding property taxes, general revenues; comprised of sales and use taxes, other taxes, investment income, and miscellaneous revenues, increased $0.8 million. Other financial highlights of the past year are as follows:

City-wide (All Funds):

• As shown on page 8 of the ACFR, total City assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $59.3 million. Of this amount, $75.4 million represents the net investment in capital assets while $20.1 million is restricted for various purposes including affordable housing, streets and roads, and community development. The negative $36.2 million in unrestricted net position decreased by $6.3 million since last year.

While the City’s overall net position is positive, the unrestricted net position specifically accounts for the City’s Net Pension Liability of $78.0 million, resulting in a negative unrestricted net position of $36.2 million.

• As also shown on page 8 of the ACFR, total net position increased from the previous year by $0.5 million primarily due to an increase in capital assets with construction of the police operations building and renovations to the City library now underway.

Fund level:

• As shown on page 20 of the ACFR, total governmental fund balances were $84.6 million at fiscal year-end, a decrease of $13.1 million from the previous year total governmental fund balances of $97.7 million (as shown on page 20 of the FY 14 Packet Pg. 249
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2023 ACFR). This decrease is primarily attributed to the Measure O Capital Fund, whose fund balance decreased by $12.5 million from construction costs related to the police operations building and City library.

• As shown on page 22 of the ACFR, General Fund revenues, excluding transfers, increased $0.9 million to $63.1 million from the previous year General Fund revenues of $62.2 million (as shown on page 22 of the FY 2023 ACFR). This is largely attributable to increases in property tax, other taxes, investments income, and charges for services; offset by decreases in sales and uses taxes, licenses and permits, rents and leases, and miscellaneous revenue.

• As shown on page 23 of the ACFR, related General Fund expenditures of $61.5 million increased by $1.5 million from the previous year General Fund expenditures of $60.0 million (as shown on page 23 of the FY 2023 ACFR). This is largely attributable to cost increases in all operating department; offset by decreases in capital outlays.

As shown on page 23 of the ACFR, the General Fund’s fund balance of $20.9 million decreased by $1.2 million from the previous year General Fund’s fund balance of $22.1 million (as shown on page 23 of the FY 2023 ACFR).

As shown on page 56 of the ACFR, total Nonspendable General Fund balance of $0.2 million is reserved for leases. Total Committed General Fund balance of $2.9 million is for future contingencies and capital improvement projects. Total Assigned General Fund balance of $3.8 million is for CalPERS retirement costs and other postemployment benefits, and the remaining $14.1 million is for unassigned and available for to be determined general government purposes, City Council objectives, economic fluctuations, and emergencies.

General Fund Highlights

As shown on page 13 of the ACFR, the General Fund realized an excess of revenues over expenditures of $1.6 million, excluding transfers and other sources. General Fund revenues of $63.1 million, excluding transfers, increased $0.9 million from the previous year General Fund revenues of $62.2 million (as shown on page 13 of the FY 2023 ACFR). Property taxes, other taxes, fines and forfeitures, investment income, rents and leases, and charges for services all exceeded budgeted amounts. These were partially offset by sales and taxes, licenses and permits, and intergovernmental revenues, which were less than budgeted amounts.

As shown on page 13 of the ACFR, Property Tax is the General Fund’s largest revenue source. While budgeted at $21.8 million in the final amended budget, actual property tax revenue received was $21.9 million. That represents $0.1 million greater than budgeted.

The positive variance is attributed to slightly greater receipt of current secured property taxes and the Education Revenue Augmentation Fund (ERAF).

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As shown on page 13 of the ACFR, Sales and Use Tax is the General Fund’s second largest revenue source, budgeted at $16.8 million in the final amended budget. The City received $16.5 million or $0.2 million under the final budget. The largest categories of sales tax producers comprise of restaurants and hotels, building and construction, business and industry, and general consumer goods.

As shown on page 13 of the ACFR, Charges for services amounted to $6.2 million, which is comprised largely of fees for services provided by the Recreation, Community Development, and Public Works departments. The City received $0.3 million or 5.9% greater than budgeted in the final amended budget.

As shown on page 13 of the ACFR, General Fund expenditures, excluding transfers, were $61.5 million, an increase of $1.5 million from the previous year total of $60.0 million (as shown on page 13 of the FY 2023 ACFR). When compared to the final budget, general fund expenditures were $2.1 million or 3.4% under budget. The savings are mostly attributed to both the Community Development and Public Works departments, which came under budget by 31.7% and 13.6%, respectively. The positive variance is due to lower -than-expected incurred expenditures as it relates to personnel costs and professional services within the General Fund.

As shown on page 13 of the ACFR, The General Fund’s fund balance at fiscal year -end was $20.9 million, a decrease of $1.2 million from the previous year General Fund balance of $22.1 million (as shown on page 13 of the FY 2023 ACFR). Actual ending fund balance was lower than projected by $0.3 million. This is primarily due to the General Fund’s lower than expected intergovernmental grant revenue. As again shown on page 56 of the ACFR, Committed and Assigned fund balances at year end were $2.9 million and $3.8 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 $14.1 million serves as an additional reserve for unanticipated needs that may arise including a $9.5 million reserve for economic fluctuations and $3.2 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 target is set at 16.67% of operating expenditures for use during economic downturns. The City’s Fiscal Year 2025 Adopted General Fund expenditures did not significantly increase when compared to the City’s Fiscal Year 2024 Adopted General Fund expenditures. As such, the economic fluctuation reserve target remained $11.1 million, resulting in a FY 2024 balance of $9.5 million that is $1.6 million below the targeted level. Furthermore, the emergency reserve is to be set at 10% of revenue and used for unexpected physical or fiscal emergency. For fiscal year ending June 30, 2024, the emergency reserve balance remained at $3.2 million, which is $3.3 million below its targeted level of $6.5 million.

For Fiscal Year 2024, the City did not need to draw upon its emergency reserve.

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lower than projected revenues from Sales Tax, Licenses and Permits. As such, its balance decreased from $10.0 million to $9.5 million. Although both the economic fluctuation and emergency reserves are below targeted levels, 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 21.03%. This increases to 24.40% if the General Fund PERS reserve is also taken into account. The PERS 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 PERS reserve, pending Council discussion and authorization and consistent with usage in the FY 2025 Adopted Budget, could be to fund annual ongoing pension premium costs in any given year.

Auditor’s Written Communications
The auditor, as required by auditing standards, issues several letters regarding the audit process and results (Attachments B and C) as well as any observations and/or findings related to the internal control structure as noted during their audit. There were no findings considered to be a “material weakness” or “significant deficiency.” Finance Sub-Committee 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 February 25, 2025. The Sub -Committee reviewed and asked questions of staff regarding the City’s General Fund reserve ratio, pension liability, sales tax revenue, auditor’s area of focus, and upcoming accounting standards.

The Sub -Committee was satisfied with the presentation and the answers provided by the auditor and staff, and recommended the FY 202 3-24 ACFR and auditor’s written communication be accepted by the City Council on March 18, 2025.

FISCAL IMPACT
There is no fiscal impact as a result of accepting the ACFR and the auditor’s written communications.

ALTERNATIVES

1. Do not accept the ACFR and/or written communications as submitted.

2. Provide other direction to staff.
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Prepared by:

Norite Vong, Assistant Finance Director
Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control Page 6 of 6
Approved by:

Brian Loventhal, City Manager
Attachment:
a. ACFR - FY2023-24
b. AU-C 260 Governance Letter
c. GAGAS Letter
d. General Fund Comparison FYE 06-30-23 to 06-30-24
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Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control) Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
City of Campbell,
California
Prepared by:

Finance Department
Will Fuentes, Finance Director

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Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control) City of Campbell
Table of Contents
June 30, 2024
Introductory Section
Letter of Transmittal ............................................................................................................................................... i Certificate of Achievement ................................................................................................................................. viii Organizational Chart ............................................................................................................................................. ix City Officials ........................................................................................................................................................... x Commissions, Committees and Advisory Boards ................................................................................................... x Financial Section
Independent Auditor’s Report ............................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position ............................................................................................................................... 17 Statement of Activities ..................................................................................................................................... 18 Government Fund Financial Statements
Balance Sheet – Governmental Funds ............................................................................................................. 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........................ 21 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .................... 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................................................................................... 24 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds ............................................................................................... 26 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds .......................... 27 Statement of Cash Flows – Proprietary Funds ................................................................................................. 28 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position – Fiduciary Funds ................................................................................... 30 Statement of Changes in Net Position – Fiduciary Funds ................................................................................ 31 Notes to Financial Statements ............................................................................................................................. 32 Required Supplementary Information
Schedule of Changes in the Pension Liability and Related Ratios – CalPERS Miscellaneous Plan ....................... 75 Schedule of Pension Contributions – CalPERS Miscellaneous Plan ..................................................................... 76 Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans ....................................... 77 Schedule of Pension Contributions – CalPERS Safety Plan .................................................................................. 78 Schedule of Changes in the Net OPEB Liability and Related Ratios ..................................................................... 79 Schedule of OPEB Contributions .......................................................................................................................... 80 Budgetary Comparison Schedule – General Fund ............................................................................................... 81 Budgetary Comparison Schedule – Housing Assets Special Revenue Fund ........................................................ 83 Budgetary Comparison Schedule – ARPA Special Revenue Fund ........................................................................ 84 Notes to Required Supplementary Information .................................................................................................. 85

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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 – Other Grants Special Revenue Fund .................................................................................................................... 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund ................................................................................................ 95 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Lighting and Landscaping District Special Revenue Fund .................................................................................... 96 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund ............................................................................................ 97 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund ................................................................................................... 98 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund...................................................................................... 99 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Restitution Fund Special Revenue Fund ......................................................................................... 100 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #1 Special Revenue Fund .................................................................................... 101 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #2 Special Revenue Fund .................................................................................... 102 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund ......................................................................................................................................... 103 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Capital Projects Fund ...................................................................................................................... 104 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund .............................................................................................................................. 105 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund ........................................................................................................................... 106 Internal Service Funds ........................................................................................................................................ 107 Combining Statement of Net Position – Internal Service Funds ........................................................................ 108 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds ............ 109 Combining Statement of Cash Flows – Internal Service Funds .......................................................................... 110 Custodial Funds .................................................................................................................................................. 111 Combining Statement of Fiduciary Net Position – Custodial Funds .................................................................. 112 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ................................................ 113 Statistical Section
Description of Statistical Section Contents ........................................................................................................ 114 Net Position by Component ............................................................................................................................... 115 Changes in Net Position ..................................................................................................................................... 117 Fund Balances of Governmental Funds ............................................................................................................. 118 Changes in Fund Balances of Governmental Fund ............................................................................................ 120 Assessed and Estimated Actual – Value of Taxable Property ............................................................................ 121 Property Tax Rates – All Overlapping Governments ......................................................................................... 122

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Principal Property Taxpayers ............................................................................................................................. 123 Property Tax Levies and Collections .................................................................................................................. 124 Ratio of Outstanding Debt by Type .................................................................................................................... 125 Ratio of Net General Bonded Debt Outstanding ............................................................................................... 126 Computation of Direct and Overlapping Debt ................................................................................................... 127 Computation of Legal Bonded Debt Margin ...................................................................................................... 128 Bonded Debt Pledged Revenue Coverage – Redevelopment/Successor Agency Tax Allocation Bonds ........... 129 Demographic and Economic Statics ................................................................................................................... 130 Top Ten Principal Employers .............................................................................................................................. 131 Full-Time Equivalent City Government Employees by Function ........................................................................ 132 Operating Indicators by Function/Program ....................................................................................................... 133 Capital Assets Statistics by Function/Program .................................................................................................. 134

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Introductory Section
June 30, 2024
City of Campbell,
California

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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 31, 2024

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, 2024. 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, 2024

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, 2024, 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, 2024, the City did expend over $750,000 on Federal financial assistance programs; and therefore, a Single Audit will be required by March 31, 2025. 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 43,095 as of January 1, 2024. 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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iii

City of Campbell
Letter of Transmittal
June 30, 2024

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 legal level of budgetary control is at the total department level. 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 February 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 Update 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 plus 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.

Similar to other areas of the world though, the United States, California, and the San Francisco Bay Area faced continued inflationary pressures that have only begun to ease during the last fiscal year. Nevertheless, the nation’s economy saw GDP growth equaling 2.8% in the third quarter of 2024; following an increase equaling

3.0% in the second quarter of 2024. Such an increase in the third quarter of 2024 primarily reflected increases in consumer spending, exports, federal government spending, and business investment. Imports, which are a subtraction in the calculation of GDP, increased. While economic factors were mixed, stock market prices within the Dow Jones Industrial Average increased by 13.7% over the course of fiscal year. As inflationary concerns lesson, the Federal Reserve has indicated a desire to loosen its monetary policy in response, and as economic uncertainty subsides, the economy and the stock market should continue to grow, but such growth is also not guaranteed and may be uneven.

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City of Campbell
Letter of Transmittal
June 30, 2024

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 3.7%, Santa Clara County had an unemployment rate of 4.1%, California had an unemployment rate of 5.2%, and the United States had an unemployment rate of 4.1%.

Local Economy

Silicon Valley is in the throes of an adjustment, with the tech sector recalibrating after some brisk hiring during the pandemic. Previously carefree, efficiency has become the new watchword. Venture capital is posting numbers that are half what they were, with renewed rigor replacing the FOMO frenzy of the past three years. Silicon Valley may not be booming, but it is still growing. When you take the long view, venture capital is right where it has been for the past decade ($30 billion), and the region con tinues to have the nation’s highest shares (34 percent). Our driving industries are shrinking in some places, but growing in others as the economy pivots into green energy, clean technology and artificial intelligence. If AI is your barometer of success, then Silicon Valley clearly has a leg up on the competition, with a 220% year - over-year rise in VC dollars, more start-up activity, more institutional investing, and by far the most research. We’re generating more patents (19,500) than any other place in th e nation. Even the regions ballyhooed population drain has reversed itself (with a net increase of 11,300 new residents over the last reporting period).

The best way to understand Silicon Valley right now is the same way we always have: we’re a region built on creative destruction and re-invention. This time, however, our reinventing must extend into the civic arena as well, as we address the permanent changes brought about by remote work, take up the possibility of converting vacant commercial space into housing, and find new approaches to our downtowns. What remains fixed are the region’s staggering wealth and income gaps, our inability to provide afford able housing, and persistent health, education and income disparities by race. Our income divide has grown twice as quickly as the state and nation over the past decade, and many are startled to learn that nearly one third of our households live below the sufficiency standards. 40 percent of Silicon Valley’s children live in income-inadequate households. An increased supply of affordable housing would go such a long way in addressing our biggest challenges. Unfortunately, 2023 marked an overall slowdown in residential approvals (52 percent fewer than in 2022). In a completely related development, our homeless population swelled to more than 10,500.

Campbell though is home to a diversified economic base of business segments located throughout the community. There are over 5,000 businesses in the City that generated approximately $1.2 million in sales and use tax revenue. The largest categories of sales tax producers comprise business and industry, restaurants, and hotels, building and construction, and general consumer goods.

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City of Campbell
Letter of Transmittal
June 30, 2024

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 necessary 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 rev enue 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 .

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.

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City of Campbell
Letter of Transmittal
June 30, 2024

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 Long-Term Land Use Planning and Housing, Measure O Implementation, Financial Stability, Sustainability, and Community Health and Safety.

Over the course of the fiscal year 2023-24, the City began work on preparing an Economic Development Strategic Plan and a Climate Action Plan and continues to work on implementing its adopted Housing Element, including updates to the City’s Inclusionary Housing Ordinance, adoption of Commercial Linkage Fees, and establishment of an Affordable Housing Overlay Zone. During the fiscal year, the City also awarded two major construction projects as part of the Measure O Program, including a construction contract in the amount of $29,454,000 (and approved a 10% contingency in the amount of $2,945,400) for the construction of a new Police Operations Building, which started in January 2024, and a construction contract in the amount of $18,189,000 (and approved a 10% contingency in the amount of $1,818,900) for the renovation of the Campbell Library, which started in November 2023. In addition, during the fiscal year, the City completed the design and construction award of two other significant projects, including improvements to the John D. Morgan Park - San Tomas Expressway Parking Lot in the amount of $156,800, with construction scheduled to begin in January 2025, and enhancements to the Campbell Priority Development Area along Civic Center Drive in the amount of $804,677, with construction scheduled to begin in January 2025. And lastly, the City entered int the final design review phase for the Hamilton Avenue resurfacing project and will go out to bid later in fiscal year 2024-25. This project will resurface Hamilton Avenue in its entirety (within the Campbell City limits) and has a project budget of approximately $12.0 million.

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, 2023. 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 35 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 2023-24. This is the 31st 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.

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City of Campbell
Letter of Transmittal
June 30, 2024

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 Assistant Finance Director. 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 – Anne Bybee
Vice Mayor – Susan Landry
Councilmember – Dan Furtado
Councilmember – Sergio Lopez
Councilmember – Elliot Scozzola
Note: Mayor serves an annual term from December to December.

Names and positions of Councilmembers are as of July 1, 2023; the first day of Fiscal Year 2023-24.

City Administrative Staff
City Manager – Brian Loventhal
Assistant City Manager – Angelique Gaeta
City Clerk – Andrea Sanders
City Attorney – William Seligmann
Community Development Director – Rob Eastwood
Finance Director – Will Fuentes
Human Resources Manager – Jenny Le-Christensen
Acting Information Technology Manager – Ryan Favila
Police Chief – Gary Berg
Public Works Director – Todd Capurso
Recreation & Community Services Director – Natasha Bissell

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Commissions, Committees, and Advisory Boards

Bicycle/Pedestrian Committee
Mark Nakamura, Chairperson
Barton Smith, Vice Chairperson
Catherine Brady
Matt Schroeder
Renee Small

Building Board of Appeal
Bruno Marcelic
Jim Morelan
Jay Perrine
Kevin Salazar
Todd Zeman

Measure O - Citizens Oversight Committee
Al Bito, Chairperson
Anne Souza, Vice Chairperson
Terry Hines
Doris Quai Hoi
Paul Russell
Steven Saunders

Civic Improvement Commission
Maryanne Yoshikawa, Chairperson
Jenna Cadematori, Vice Chairperson
Christopher Bracher
Gary Coluccio
Jennifer Dooley
Heather Malcolm
Thomas Russell
Historic Preservation Board
Todd Walter, Chairperson
Susan Blake, Vice Chairperson
Rob Corteway
Michael Foulkes
Laura Taylor Moore

Parks and Recreation Commission
Allen Ishibashi, Chairperson
Traci Mitchell, Vice Chairperson
Frank Beitz
Sherrie Doherty
Robert Fidrych J
Tina Lee
Sharon Teeter

Planning Commission
Adam Buchbinder, Chairperson
Alan Zisser, Vice Chairperson
Stuart Ching
Davis Fields
Matt Kamkar
Michael Krey
Maggie Ostrowski

Rental Fact Finding Committee - (Not currently active)

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Financial Section
June 30, 2024
City of Campbell,
California

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The Honorable City Council
City of Campbell, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Campbell, California (City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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 Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

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3 Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedule of Changes in the Pension Liability and Related Ratios – CalPERS Miscellaneous Plan, the Schedule of Pension Contributions – CalPERS Miscellaneous Plan, the Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans, the Schedule of Pension Contributions – CalPERS Safety Plan, the Schedule of Changes in the Net OPEB Liability and Related Ratios, the Schedule of OPEB Contributions, the Budgetary Comparison Schedules for the General Fund and each Major Special Revenue Fund, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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.

Supplementary 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 combining fund financial statements and individual schedules of revenues, expenditures, and changes in fund balance – budget and actual are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The 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 GAAS. In our opinion, the combining fund financial statements and individual schedules of revenues, expenditures, and changes in fund balance – budget and actual are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

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4 Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2024, 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, 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 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 City’s internal control over financial reporting and compliance.

Menlo Park, California
December 31, 2024

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5 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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, 2024 with comparative information from the fiscal year ended June 30, 2023. 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 2023-24 Financial Highlights

City-wide, the City ended its fiscal year with total revenues of $81.1 million, an increase of $2.8 million from the previous year, and total expenses of $80.6 million, an increase of $10.9 million compared to the previous year.

Excluding property taxes, general revenues; comprised of sales tax, transient occupancy tax and other revenues, increased $0.8 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 $59.3 million. Of this amount, $75.4 million represents the net investment in capital assets while $20.1 million is restricted for various purposes including affordable housing, streets and roads, and community development. The negative $36.2 million in unrestricted net position decreased by $6.3 million since last year.
• Total net position increased from the previous year by $0.5 million primarily due to an increase in capital assets with construction of the police operations building and renovations to the City library now underway.

Fund Level

• Total governmental fund balances were $84.6 million at fiscal year-end, a decrease of $13.1 million from the previous year. This decrease is attributed to the Measure O Capital Fund, whose fund balance decreased by $12.5 million from construction costs related to the police operations building and City library.
• General Fund revenues, excluding transfers, increased $0.9 million to $63.1 million from the previous year. Related expenditure increased by $1.5 million from the previous year to $61.5 million. • The General Fund’s fund balance decreased $1.2 million to $21.0 million at fiscal year-end. • Total Nonspendable General Fund balance of $0.2 million is reserved for leases. Total Committed General Fund balance of $2.9 million is for future contingencies and capital improvement projects. Total Assigned General Fund balance of $3.8 million is for CalPERS retirement costs and other post- employment benefits, and the remaining $14.1 million is for general government. The total General Fund balance represents a 34.1% reserve ratio to General Fund expenditures, excluding transfers out.

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6 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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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7 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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 in 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 on 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 fiduciary funds.

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8 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

Government-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):

2024 2023
Cash and Investments 96.2$ 104.2$
Capital Assets 92.2 77.7
Other Assets 17.2 19.5
Total assets 205.6 201.4
Deferred Outflows of Resources 31.3 30.5 Noncurrent Liabilities 68.6 72.3 Other Liabilities 19.7 16.3
Net OPEB Liability 5.7 6.0
Net Pension Liability 78.0 71.4
Total liabilities 172.0 166.0
Deferred Inflows of Resources 5.6 7.1 Net Position
Net investment in capital assets 75.4 69.5 Restricted 20.1 19.3
Unrestricted (36.20) (29.9)
Total net position 59.3$ 58.8$
Governmental Activities

The changes in net position were comprised of the following elements:

• Cash and investments decreased by a net of $8.0 million, which is primarily due to payments made towards construction costs related to the construction of the police operations building and City library. • Net capital assets increased by $14.5 million year over year. This increase is due to capital investments made towards the Police Operations Building, City Library, and Camden Avenue Resurfacing projects. • Other assets such as taxes, leases, and notes receivable decreased by a net of $2.3 million due to a $1.1 million decrease in taxes receivable and a $1.65 million decrease in leases receivable. A decrease in leases receivable is expected with regular and recurring lease payments made by the City’s lessees. • Deferred outflows of resources increased $0.8 million, of which is attributed to an increase of $0.5 million for amounts related to pensions and an increase of $0.3 million for amounts related to other post-employment benefits (OPEB). These amounts include deferred contributions that will be recognized as a reduction to the net pension or OPEB 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. • Noncurrent liabilities decreased $3.7 million, which is a largely a result of debt service payments towards Measure O General Obligation Bonds.

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9 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

• Other liabilities increased by $3.4 million solely due to a $4.0 million increase to accounts payable. This is solely due to a timing difference for payments due for construction costs related the construction of the police operations building and City library.
• Net Pension Liability increased $6.6 million. Of this increase, $3.9 million is an increase to the Miscellaneous Plan. The remaining $2.7 million is an increase to the Safety Plan. • Net investment in capital assets increased by $6.0 million mainly due to ongoing capital projects such as the police operations building, library renovation, and Camden Avenue resurfacing. • Restricted net position assets have external limitations placed upon them regarding how they may be spent. These assets, which increased by $0.9 million, may be restricted for debt service, capital projects, or housing programs.

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:

2024 2023
Revenues
Program revenues
Charges for services 14.4$ 13.9$
Operating grants and contributions 6.4 4.2 Capital grants and contributions 1.6 3.1 General revenues
Property taxes 26.4 25.6
Sales and use taxes 16.5 18.8
Other taxes 9.0 8.6
Investment Income 4.3 1.8
Miscellaneous 2.5 2.3
Total revenues 81.1 78.3
Expenses
General government 11.0 10.8
Recreation 7.8 6.6
Community development 5.4 4.8
Public safety 35.7 29.1
Public works 18.8 16.6
Interest on long term debt 1.9 1.8 Total expenses 80.6 69.7
Change in Net Position 0.5 8.6 Net Position at Beginning of Year 58.8 50.2 End of Year 59.3$ 58.8$
Governmental Activities

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10 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

Government-wide net position increased $0.5 million from the prior year. Key elements of activity are as follows:

Revenues

• Within program revenues, charges for services increased $0.5 million reflecting increased service demands within the Recreation, Community Development, and Public Works departments. Furthermore, operating and capital grants increased year over year by $0.7 million.
• Within general revenues, property tax revenues increased $0.9 million reflecting continued strength in the real estate market fueled by increasing housing prices. Of the $26.4 million in Property Tax Revenues collected government-wide, $2.5 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 $1.9 million. The decrease is attributed to a decrease in sales tax due to a loss of a top sales tax producer for the City and inflationary pressures.
• While miscellaneous revenues did not materially change, investment returns were strong and increased by $2.6 million year over year.

Expenses

• General Government expenses did not materially increase year over year, increasing by just $0.3 million from the prior fiscal year.
• Recreation and Community Development expenses increased $1.2 million and $0.7 million due to increased personnel costs, namely the allocation of pension related expenses. • Similar to Recreation and Community Development expenses, Public Safety expenses increased $6.7 million due to an increase in personnel costs and the allocation of pension related expenses from the City’s Safety Pension Plan.
• Public Works expenses increased $2.3 million as a result of recognized pension expense related to the Miscellaneous Plan, increased personnel costs, and increased maintenance costs. • Interest expense and other charges did not materially change, increasing by less than $0.1 million.

Financial Analysis of Fund Financial Statements

Combined governmental fund balances at fiscal year-end were $84.6 million, a decrease of $13.1 million from the previous year. The City has Nonspendable, Restricted, Committed, Assigned and Unassigned fund balances of $.2 million; $62.9 million; $2.9 million; $4.8 million and $13.8 million, respectively, at year end.

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11 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

Governmental fund revenues, excluding transfers, were $80.9 million, an increase of $2.8 million from the previous year. Property taxes were higher by $0.9 million due to continued strength in the real estate market and rising housing prices. Sales and use tax decreased by $2.3 million as a result of inflationary pressures and the loss of one of the City’s top sales tax producers. Other taxes, including transient occupancy tax (TOT), did not materially change year over year and increased by a combined $0.4 million, largely due to a $0.1 million increase in TOT and a $0.2 million increase in Franchise Taxes. Investment income increased by $2.4 million due to strong returns. Intergovernmental revenues increased $0.9 million due to the receipt of various grants and the revenue recognition of deferred American Rescue Plan Act (ARPA) funds. Lastly, charges for services increased by $1.2 million due to increased receipts in zoning fees, solid waste rate fees, and engineering filing fees.

Governmental fund expenditures, excluding transfers, increased from the prior year by a net amount of $16.8 million to $93.3 million. The increase is mainly attributed to construction costs related to the construction of the City’s police operations building and renovation to the City library.

Analysis of Major Governmental Funds

General Fund

Property Tax is the General Fund’s largest revenue source. While budgeted at $21.8 million, actual property tax revenue received was $21.9 million. That represents $0.1 million greater than budgeted. The positive variance is attributed to slight greater receipt of current secured property taxes and the Education Revenue Augmentation Fund (ERAF).

Sales and Use Tax is the General Fund’s second largest revenue source, budgeted at $16.8 million. The City received $16.5 million or $0.2 million under the final budget. The largest categories of sales tax producers comprise of restaurants and hotels, building and construction, business and industry, and general consumer goods.

Charges for services amounted to $6.2 million, which is comprised largely of fees for services provided by the Recreation, Community Development, and Public Works departments. The City received $0.3 million or 5.9% greater than budgeted.

General Fund expenditures, excluding transfers, were $61.5 million, an increase of $1.5 million from the previous year. When compared to the final budget, general fund expenditures were $2.1 million or 3.4% under budget. The savings are mostly attributed to both the Community Development and Public Works departments, which came under budget by 31.7% and 13.6%, respectively. The positive variance is due to lower-than- expected incurred expenditures as it relates to personnel costs and professional services within the General Fund.

The General Fund’s fund balance at fiscal year-end was $21.0 million, a decrease of $1.2 million from the previous year. Actual ending fund balance was lower than projected by $0.3 million. This is due to the General Fund’s lower than expected intergovernmental grant revenue. Committed and Assigned fund balances at year end were $2.9 million and $3.8 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 $14.1 million serves as an additional reserve for unanticipated needs that may arise including a $10.0 million reserve for economic fluctuations and $3.2 million for emergencies.

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12 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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. The Housing Assets fund balance did not significantly change from the prior year. Its fund balance increased by $25,124 year over year.

ARPA Special Revenue Fund

The American Rescue Plan Act (ARPA) Special Revenue fund accounts for ARPA federal grant funds which are provided for specific purposes. The ARPA fund balance did not significantly change from the prior year. Its fund balance increased by $40,718 year over year. The ARPA Special Revenue fund, however, incurred nearly $2.0 million in expenditures to fund various operating and capital expenditures.

Capital Projects Fund

The Capital Projects Fund accounts for the expenditures and financing of the City’s capital projects. Year over year, the capital projects fund balance decreased by $39,214 or 4.2%. Though the fund incurred over $4.1 million in capital outlay expenditures, those expenditures were financed primarily through the General Fund, vehicle impact fees, various State and Local Grants, and park fees.

Measure O Capital Projects Fund

The Measure O Capital Projects Fund accounts for the expenditures and financing of the City’s capital projects related to the Measure O General Obligation Bond. In August 2020, the City issued $20 million of general obligation bonds in the first of two series of issuances. In May 2022, the City issued an additional $30 million of general obligation bonds to fund the construction of a police operations building as well as the renovation of the City library.

The Measure O Capital Projects fund balance decreased by $12.5 million when compared to the prior year. This decrease is due to the ramp up of construction of the police operations building and City Library and its associated costs.

Other Governmental Funds

Other Governmental Funds are comprised of separate special revenue and debt service funds. These funds are not separately presented in the basic financial statements but are individually presented as supplemental information. Other Governmental Funds, as a whole, increased by $0.6 million for an ending balance of $13.8 million. This increase is entirely due to the Gas Tax Fund, whose fund balance alone increased by $1.0 million.

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13 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

General Fund Budgetary Highlights

The table below summarizes the General Fund Budgetary Highlights as follows:

Variance with
Final Budget
Original Final Actual Positive(Negative)
Revenues
Property taxes 22,047,000$ 21,847,000$ 21,912,688$ 65,688$ Sales and use taxes 17,699,289 16,826,202 16,549,227 (276,975) Other taxes 9,691,400 8,582,600 8,991,901 409,301 Licenses and permits 4,290,300 3,909,500 3,344,256 (565,244) Fines and forfeitures 100,000 150,000 172,012 22,012 Investment income 810,900 1,055,000 1,156,980 101,980 Rents and leases 3,052,500 3,098,400 3,172,450 74,050 Intergovernmental 2,059,068 2,541,100 1,358,912 (1,182,188) Charges for services 5,907,545 5,893,860 6,243,053 349,193 Miscellaneous 216,410 564,228 237,863 (326,365) Total Revenues 65,874,412 64,467,890 63,139,342 (1,328,548) Expenditures
General government 9,904,716 8,695,337 9,854,402 (1,159,065) Recreation 7,116,076 7,036,438 6,801,733 234,705 Community development 5,435,902 5,773,672 3,941,432 1,832,240 Public safety 33,548,964 33,897,364 33,752,714 144,650 Public works 7,438,600 7,873,076 6,801,853 1,071,223 Capital outlay 78,300 - - - Debt service - - 346,738 (346,738) Total expenditures 63,522,558 63,275,887 61,498,872 2,123,753 Excess (deficiency) of revenues
over (under) expenditures 2,351,854 1,192,003 1,640,470 448,467 Other financing sources (uses)
Leases issued - - 142,282 142,282 Transfers in 3,387,412 4,142,679 1,635,595 (2,507,084) Transfers out (2,520,545) (6,252,281) (4,598,406) 1,653,875 Total other
financing sources (uses) 866,867 (2,109,602) (2,820,529) (710,927) Net change in fund balance 3,218,721 (917,599) (1,180,059) (262,460) Fund balance at beginning of year 22,143,271 22,143,271 22,143,271 - Fund balance at end of year 25,361,992$ 21,225,672$ 20,963,212$ (262,460)$ Budgeted Amounts

The General Fund realized an excess of revenues over expenditures of $1.6 million, excluding transfers and other sources. General Fund revenues, excluding transfers, increased $0.9 million from the previous year to $63.1 million. When compared to the final budget, general fund revenues were $1.3 million or 2.1% lower than budgeted due to grants.

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14 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

Capital Assets

The City had net capital assets of $92.2 million as of June 30, 2024. The following is a summary of the City’s capital assets for the fiscal year ended June 30:

2024 2023
Land 9.1$ 9.1$
Construction in progress 20.0 7.3
Building & improvements 35.8 32.7
Right-of-Use intangible assets 2.4 2.1
Machinery & equipment 10.9 11.6
Infrastructure 69.9 67.9
Less: Accumulated depreciation (55.9) (53.0) Net capital assets 92.20$ 77.70$ Capital Assets (in millions)

Total additions to capital assets were $14.6 million during the year consisting primarily of construction in progress of the Police Operations Building and City Library. The additions were partially offset by an increase of $2.9 million in depreciation. Additional details 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-interest rate environment that existed at the time. In August 2020, the City issued $20 million of general obligation bonds followed by an additional $30 million issuance in May 2022 to fund a police emergency operations center and a renovated library. The City also financed energy conservation upgrades and infrastructure improvements through a $1.6 million loan from the California Energy Commission and a $2.2 million loan from Pacific Gas & Electric.

Additional details regarding the City’s long-term debt can be found in Note 6 in the notes to financial statements.

The City had $4.3 million in outstanding certificates of participation, $3.4 million in refunding lease revenue bonds, and $41.7 million of 2018 election general obligation bonds and $5.4 million in other debt outstanding as of June 30, 2024.

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 $12.9 million as of June 30, 2024.

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15 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

The nation’s economy saw GDP growth equaling 2.8% in the third quarter of 2024; following a GDP increase equaling 3.0% in the second quarter of 2024. The third quarter increase was a result of increased consumer spending, exports, federal government spending, and business investment. As inflationary concerns lesson, the Federal Reserve has indicated a desire to loosen its monetary policy in response, and as economic uncertainty subsides, the economy and the stock market should continue to grow, but such growth is also not guaranteed and may be uneven. In the City of Campbell, the unemployment rate rose to 3.7% as of fiscal year end.

Although the unemployment rate increased from 3.2% the prior year, it is far below the peak of the pandemic during which unemployment in Campbell reached 8.5%.

For the FY25 budget, as to ensure long-term fiscal stability, staff developed, and Council approved several strategic and operational actions that would place the City in a more stable financial position progressing into FY25 and beyond. In developing the FY25 budget, the following assumptions were used:

• Property tax revenues are expected to grow 4.38% compared to FY24 due to continued appreciation in the property tax base. Despite higher mortgage interest rates, the average home price in Campbell rose slightly from $1.93 million in the prior year to $2.28 million as of calendar year 2024 Q2. • Sales tax revenue is conservatively estimated to grow 3% per year. However, staff notes that inflationary pressures and the possibility of a recession caused by continued high interest rates provide headwinds to consumer and business spending and further economic growth. • Charges for Service is historically the City’s third largest revenue source. It is estimated to increase by

8.8% in FY24 due to increased service demands. Furthermore, it is projected to exceed pre-recessionary levels by approximately 10.4%.
• Transient Occupancy Tax is estimated to reach near pre-pandemic levels in FY25 and equal approximately $4.80 million.
• Employee costs are expected to increase as a result of three-year labor agreements that run through 2025. Furthermore, an 8% increase for annual healthcare premium has been factored in. • Supplies and services are projected to increase 3% in FY25 when compared to FY24 in the General Fund.

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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16 City of Campbell
Government Wide Financial Statements
June 30, 2024

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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See Notes to Financial Statements 17
City of Campbell
Statement of Net Position
June 30, 2024

Governmental
Activities
Assets
Cash and investments 95,634,420$
Cash held with fiscal agent 569,553
Receivables
Taxes 3,340,622
Accounts 1,233,177
Interest 926,922
Notes and loans 7,598,526
Leases 3,907,991
Prepaid items 122,313
Deposits 90,000
Capital assets, not depreciated or amortized 29,103,170 Capital assets, net depreciation and amortization 63,123,330 Total assets 205,650,024
Deferred outflows of resources
Amount related to pensions 28,311,806
Amount related to OPEB 2,999,600
Total deferred outflows of resources 31,311,406
Liabilities
Accounts payable 6,727,558
Accrued expenses 2,858,962
Interest payable 687,847
Deposits payable 3,203,512
Unearned revenues 6,216,817
Noncurrent liabilities
Due in less than one year
Bonds, leases, subscriptions, notes, loans, claims, compensated absences 5,634,739 Due in more than one year
Bonds, leases, subscriptions, notes, loans, claims, compensated absences 62,982,588 Net OPEB liability 5,702,315
Net pension liability 78,010,421
Total Liabilities 172,024,759
Deferred inflows of resources
Amount related to leases 3,708,910
Amount related to pensions 851,909
Amount related to OPEB 1,027,936
Total deferred inflows of resources 5,588,755
Net Position
Net investment in capital assets 75,408,051
Restricted for
Streets and roads 7,057,040
Museum and adult center 23,882
Public safety 329,059
Low and moderate income housing 8,521,158
Community development 4,189,144
Unrestricted deficit (36,180,418)
Total net position 59,347,916$

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See Notes to Financial Statements 18
City of Campbell
Statement of Activities
Year Ended June 30, 2024

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 11,047,211$ 2,188,702$ 4,283,913$ -$ (4,574,596)$ Recreation 7,753,645 3,853,225 101,488 - (3,798,932) Community development 5,447,126 4,880,247 391,327 - (175,552) Public safety 35,745,519 883,548 1,535,186 - (33,326,785) Public works 18,812,196 2,564,257 116,752 1,572,079 (14,559,108) Interest expense 1,865,614 - - - (1,865,614) Total governmental activities 80,671,311$ 14,369,979$ 6,428,666$ 1,572,079$ (58,300,587) General revenues
Taxes
Property 26,403,788
Sales and use 16,549,227
Transient occupancy 3,747,247
Franchise 4,135,646
Other 1,098,118
Payments in lieu of taxes 54,209
Investment income 4,305,013
Miscellaneous 2,492,449
Total general revenues 58,785,697
Change in net position 485,110
Net Position At Beginning of Year 58,862,806
Net Position At the End of Year 59,347,916$
Program Revenues

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19 City of Campbell
Government Fund Financial Statements
June 30, 2024

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 2024. 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.

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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See Notes to Financial Statements 20
City of Campbell
Balance Sheet – Governmental Funds
June 30, 2024

General Fund
Housing
Assets
ARPA
Fund
Capital Projects
Fund Measure O
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 23,164,059$ 1,104,939$ 6,144,348$ 1,308,219$ 42,667,594$ 14,973,229$ 89,362,388$ Cash held with fiscal agent - - - - 536,448 33,105 569,553 Receivables
Accounts 901,684 - - 34,503 - 236,539 1,172,726 Taxes 3,023,332 - - - - 317,290 3,340,622 Interest 209,529 7,996 72,469 - 513,584 123,344 926,922 Notes and loans - 7,458,526 - - - 140,000 7,598,526 Leases receivable 3,907,991 - - - - - 3,907,991 Due from other funds 1,409,174 - - - - - 1,409,174 Total assets 32,615,769$ 8,571,461$ 6,216,817$ 1,342,722$ 43,717,626$ 15,823,507$ 108,287,902$ Liabilities
Accounts payable 2,165,226$ 32,833$ -$ 374,402$ 3,314,478$ 434,260$ 6,321,199$ Accrued payroll 2,574,909 17,816 - - 12,061 193,801 2,798,587 Deposits payable 3,203,512 - - - - - 3,203,512 Due to other funds - - - - - 1,409,174 1,409,174 Unearned revenue - - 6,216,817 - - - 6,216,817 Total liabilities 7,943,647 50,649 6,216,817 374,402 3,326,539 2,037,235 19,949,289 Deferred Inflows of Resources
Lease related 3,708,910 - - - - - 3,708,910 Fund balances (deficit)
Nonspendable 199,081 - - - - - 199,081 Restricted - 8,520,812 - - 40,391,087 14,015,393 62,927,292 Committed 2,916,934 - - - - - 2,916,934 Assigned 3,791,233 - - 968,320 - - 4,759,553 Unassigned 14,055,964 - - - - (229,121) 13,826,843 Total fund balances (deficit) 20,963,212 8,520,812 - 968,320 40,391,087 13,786,272 84,629,703 Total liabilities, deferred inflows
of resources and fund balances 32,615,769$ 8,571,461$ 6,216,817$ 1,342,722$ 43,717,626$ 15,823,507$ 108,287,902$ Capital Projects Funds Special Revenue Funds

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See Notes to Financial Statements 21
City of Campbell
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Year Ended June 30, 2024

Fund balances - total governmental funds 84,629,703$
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 141,145,041$
Accumulated depreciation (50,238,677)
90,906,364
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 (54,897,027)
Loans (3,403,722)
Leases payable (1,521,494)
Compensated absences (4,040,941)
Claims payable (754,423)
Accrued interest (687,847)
(65,305,454)
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 2,909,586
Deferred inflows of resources (997,089)
Net OPEB liability (5,531,197)
(3,618,700)
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 27,711,430
Deferred inflows of resources (851,909)
Net pension liability (76,044,111)
(49,184,590)
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. 1,920,593
Net Position of Govenmental Activities 59,347,916$

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See Notes to Financial Statements 22
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended June 30, 2024

Other Total
General Housing ARPA Capital Projects Governmental Governmental Fund Assets Fund Fund Measure O Funds Funds
Revenues
Property taxes 21,912,688$ -$ -$ -$ -$ 4,491,100$ 26,403,788$ Sales and use taxes 16,549,227 - - - - - 16,549,227 Other Taxes 8,991,901 - - - - - 8,991,901 Special assessments - - - - - 1,392,199 1,392,199 Licenses and permits 3,344,256 - - - - - 3,344,256 Fines and forfeitures 172,012 - - - - 37,325 209,337 Investment income 1,156,980 66,946 - - 2,091,758 717,823 4,033,507 Rents and leases 3,172,450 - - - - - 3,172,450 Intergovernmental 1,358,912 150,000 1,995,935 - - 4,641,340 8,146,187 Charges for services 6,243,053 - - - - 982,320 7,225,373 Project revenues - - - 101,987 - - 101,987 Parkland dedication fees - - - - - 581,630 581,630 Miscellaneous revenues 237,863 371,233 - - - 96,963 706,059 Total revenues 63,139,342 588,179 1,995,935 101,987 2,091,758 12,940,700 80,857,901 Capital
Projects Fund
Special
Revenue Funds

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See Notes to Financial Statements 23
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds, Continued Year Ended June 30, 2024

Other Total
General Housing ARPA Capital Projects Governmental Governmental Fund Assets Fund Fund Measure O Funds Funds
Expenditures
Current
General government 9,854,402 - 200,718 - 136,834 3,971 10,195,925 Recreation 6,801,733 - - - - - 6,801,733 Community development 3,941,432 667,619 - - - 2,901 4,611,952 Public safety 33,752,714 - - - - 155,166 33,907,880 Public works 6,801,853 - - - - 6,946,190 13,748,043 Capital outlay - - - 4,153,269 14,405,964 - 18,559,233 Debt service
Principal 304,448 - - - - 3,095,000 3,399,448 Interest and fiscal charges 42,290 - - - - 2,023,950 2,066,240 Total expenditures 61,498,872 667,619 200,718 4,153,269 14,542,798 12,227,178 93,290,454 Excess (deficiency) of revenues
over (under) expenditures 1,640,470 (79,440) 1,795,217 (4,051,282) (12,451,040) 713,522 (12,432,553) Other financing sources (uses)
Leases issued 142,282 - - - - - 142,282 Transfers in 1,635,595 104,564 - 4,090,496 - 2,658,100 8,488,755 Transfers out (4,598,406) - (1,835,935) - - (2,819,836) (9,254,177) Total other financing
sources (uses) (2,820,529) 104,564 (1,835,935) 4,090,496 - (161,736) (623,140) Net change In fund balances (1,180,059) 25,124 (40,718) 39,214 (12,451,040) 551,786 (13,055,693) Fund balances (deficit) at beginning
of year
22,143,271 8,495,688 40,718 929,106 52,842,127 13,234,486 97,685,396 Fund balances at end of year 20,963,212$ 8,520,812$ -$ 968,320$ 40,391,087$ 13,786,272$ 84,629,703$ Revenue Funds Projects Fund
Special Capital

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See Notes to Financial Statements 24
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, 2024

Net change in fund balances - total governmental funds (13,055,693)$ 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 18,559,233
Depreciation expense (3,742,876)
14,816,357
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 payments on bonds and loans 3,479,353
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. 120,721
Lease proceeds provide current financial sources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. (142,282)
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.

Payments or issuance of leases payable 203,791
Net change in compensated absences (188,409)
Net change in claims payable (284,620)
(269,238)
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. (5,571,252) 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. (200,215) 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 activities in the Statement of Net Position. 1,307,359 Change in net position of governmental activities 485,110$

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25 City of Campbell
Proprietary Fund Financial Statements
June 30, 2024

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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See Notes to Financial Statements 26
City of Campbell
Statement of Net Position – Proprietary Funds
June 30, 2024

Governmental
Activities
Internal
Service Funds
Assets
Current assets
Cash and investments $ 6,272,032
Accounts receivable 60,451
Prepaid items 122,313
Deposits 90,000
Total current assets 6,544,796
Noncurrent assets
Capital assets, net of accumulated depreciation and amortization 1,320,136 Total assets 7,864,932
Deferred outflows of resources
Amount related to pensions 600,376
Amount related to OPEB 90,014
Total deferred outflows of resources 690,390 Liabilities
Current liabilities
Accounts payable 406,359
Accrued payroll 60,375
Compensated absences, current portion 45,678 Lease payable 437,240
Subscription payable 36,175
Claims and judgments payable, current portion 519,912 Total current liabilities 1,505,739
Noncurrent liabilities
Compensated absences 48,191
Claims payable and judgments 2,912,524
Net OPEB liability 171,118
Net pension liability 1,966,310
Total noncurrent liabilities 5,098,143
Total liabilities 6,603,882
Deferred inflows of resources
Amount related to OPEB 30,847
Total deferred inflows of resources 30,847 Net position
Net investment in capital assets 846,721 Unrestricted 1,073,872
Total net position 1,920,593$

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See Notes to Financial Statements 27
City of Campbell
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds Year Ended June 30, 2024

Governmental
Activities
Internal
Service Funds
Operating revenues
Investment income 271,506$
Charges for services 2,960,728
Other 27,014
Total operating revenues 3,259,248
Operating expenses
Personnel services 994,865
Services and supplies 1,334,695
Depreciation 373,767
Total operating expenses 2,703,327
OPERATING LOSS 555,921
NONOPERATING INCOME (EXPENSES):

Loss on disposal of capital assets (13,984)
Operating loss 541,937
Transfers
Transfers in 769,322
Transfers out (3,900)
Total transfers 765,422
Change in net position 1,307,359
Net position at beginning of year 613,234
Net position at end of year 1,920,593$

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See Notes to Financial Statements 28
City of Campbell
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2024

Governmental
Activities
Internal
Service Funds
Cash flows from operating activities
Cash received from department users 3,236,812$
Cash payments to suppliers of goods and services (1,652,308) Cash payments to employees for services (1,184,488)
Net cash provided by operating activities 400,016
Cash flows from noncapital financing activities:

Cash received from other funds 769,322
Cash paid to other funds (3,900)
Net cash provided by noncapital financing activities 765,422 Cash flows from capital and related financing activities Acquisition of capital assets (46,529)
Net cash used by capital and related financing activities (46,529) Net increase in cash and cash equivalents 1,118,909
Cash and cash equivalents at beginning of year 5,153,123 Cash and cash equivalents at end of year 6,272,032$
Reconciliation of operating loss to
Net cash provided by operating activities
Operating loss 555,921$
Adjustments to reconcile operating loss to net
cash provided by operating activities
Depreciation and amortization 373,767
Changes in operating assets and liabilities
(Increase) decrease in accounts receivable (22,436)
(Increase) decrease in prepaid expenses (122,313)
Increase (decrease) in accounts payable 283,971
Increase (decrease) in accrued payroll 2,430
Increase (decrease) in compensated absences (40,614)
Increase (decrease) in subscription liabilities (52,927) Increase (decrease) in claims and judgments payable (479,271) Increase (decrease) in net OPEB and related deferrals (2,197) Increase (decrease) in net pension liability and related deferrals (96,315) Net cash provided by operating activities 400,016$

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29 City of Campbell
Fiduciary Fund Financial Statements
June 30, 2024

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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See Notes to Financial Statements 30
City of Campbell
Statement of Fiduciary Net Position – Fiduciary Funds
June 30, 2024

Private-
Purpose Custodial
Trust Fund Funds
Assets
Cash and investments 993,906$ 2,597,868$
Cash held with fiscal agent 700 -
Accounts receivable 3,366 6,781
997,972 2,604,649
Capital assets, not being depreciated 7,123,531 - Capital assets, net of accumulated depreciation 6,939,972 - 14,063,503 -
Total assets 15,061,475 2,604,649
Liabilities
Accounts payable - 128,891
Accrued interest payable 67,926 -
Unearned revenues - 374,757
67,926 503,648
Long-term liabilities
Due within one year 1,630,000 -
Due in more than one year 11,270,000 -
12,900,000 -
Total liabilities 12,967,926 503,648
Net Position
Restricted for individuals and organizations 2,093,549$ 2,101,001$

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See Notes to Financial Statements 31
City of Campbell
Statement of Changes in Net Position – Fiduciary Funds
Year Ended June 30, 2024

Private-
Purpose Custodial
Trust Fund Funds
Additions
Local government-administered contributions 1,915,098$ 1,283,670$ Other income - 719,461
Investment income 21,614 25,463
Total additions 1,936,712 2,028,594
Deductions
Professional and special services 3,091 980,563 Administrative - 859,855
Depreciation 697,519 -
Interest and fiscal agent costs 302,285 -
Total deductions 1,002,895 1,840,418
Change in net position 933,817 188,176
Net position at beginning of year 1,159,732 1,912,825 Net position at end of year 2,093,549$ 2,101,001$

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32 City of Campbell
Notes to Financial Statements
June 30, 2024

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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33 City of Campbell
Notes to Financial Statements
June 30, 2024

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 custodial 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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34 City of Campbell
Notes to Financial Statements
June 30, 2024

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 365 days, except property taxes which are considered to be available if collected within 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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35 City of Campbell
Notes to Financial Statements
June 30, 2024

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 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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36 City of Campbell
Notes to Financial Statements
June 30, 2024

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).

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 assets 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 of resources 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 of resources 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 of resources 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 of resources 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.

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37 City of Campbell
Notes to Financial Statements
June 30, 2024

• Deferred outflows of resources 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.

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 assets 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 of resources 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 of resources 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 of resources 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 of resources 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 of resources related to unavailable revenues. These amounts will be recognized once cash is received in a fiscal year or with the availability period.

• Deferred inflows of resources related to leases. These amounts will be recognized once rental and lease payments are earned.

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.

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38 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

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.

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39 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

The following schedule summarizes capital asset useful lives:

Buildings and improvements 40 years
Other improvements 20 years
Right-to-use leased equipment 3 to 15 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.

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Notes to Financial Statements
June 30, 2024

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.

Leases and Subscription-Based Information Technology Arrangements (SBITA) The City is a lessee for a noncancellable lease of equipment and subscription assets. The City recognizes a lease/SBITA liability and an intangible right‐to‐use lease asset (lease/SBITA asset) in the government‐wide financial statements. The City recognizes lease/SBITA liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease or SBITA, the City initially measures the lease/SBITA liability at the present value of payments expected to be made during the lease term. Subsequently, the lease/SBITA liability is reduced by the principal portion of lease payments made.

The lease/SBITA asset is initially measured as the initial amount of the lease/SBITA liability, adjusted for lease/SBITA payments made at or before the commencement date, plus certain initial direct costs.

Subsequently, the asset is amortized on a straight‐line basis over its useful life.

The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

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.

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Notes to Financial Statements
June 30, 2024

Note 2 - Cash and Investments

Cash and Investments

Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Statement of Net Position
Cash and investments 95,634,420$
Cash held with fiscal agent 569,553
Statement of Fiduciary Net Position
Cash and investments 3,591,774
Cash held with fiscal agent 700
Total Cash and Investments 99,796,447$

Cash and investments as of June 30, 2024 consisted of the following:

Cash on Hand 9,090$
Deposits with Financial Institutions 4,472,531
Investments 95,314,826
Total Cash and Investments 99,796,447$

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Notes to Financial Statements
June 30, 2024

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 Quality Allowed One Issuer 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% 5%
A-1 or P-1 or
Banker’s Acceptance 180 days F-1 30% 5%
Medium-Term Notes 5 years A-A-1 30% 5%
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 None 5%

* 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, 2024

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, 2024

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 10,840,770$ 3,876,700$ 979,170$ 15,696,640$ California Local Agency Investment Fund 78,620,990 - - 78,620,990 Negotiable Certificates of Deposits 997,196 - - 997,196 Total Investments 90,458,956$ 3,876,700$ 979,170$ 95,314,826$ 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, 2024 AA+ Rated
U.S. Government Sponsored Entities None 15,696,640$ 15,696,640$ -$ California Local Agency Investment Fund None 78,620,990 - 78,620,990 Negotiable Certificates of Deposits None 997,196 - 997,196 Total Investments 95,314,826$ 15,696,640$ 79,618,186$

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, 2024, the Federal Home Loan Banks securities represented more than 5% of total City investments at $13,734,460, which was approximately 14.41%.

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45 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024, 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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46 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
U.S. Government Sponsored Entities -$ 15,696,640$ -$ 15,696,640$ Negotiable Certificates of Deposits - 997,196 - 997,196 Total investments -$ 16,693,836$ -$ 16,693,836 Uncategorized
California local agency investment fund* 78,620,990
Total investment portfolio 95,314,826$

* uncategorized; not subject to fair value measurement tiers.

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Notes to Financial Statements
June 30, 2024

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 1,409,174$
1,409,174$

Transfers In/Out

Transfers between funds during the fiscal year ended June 30, 2024 were as follows:

Transfers Out Transfers In Amount
General Fund Other Governmental Funds (a) & (c) 2,652,100$ Capital Projects Fund (e) 1,300,370
Internal Service Funds (a) & (b) 645,936
ARPA Fund General Fund (d) 1,482,695
Housing Assets (d) 104,564
Capital Projects Fund (d) & (e) 125,290
Internal Service Funds (d) 123,386
Other Governmental Funds General Fund (a) 149,000
Capital Projects Fund (e) 2,664,836
Other Governmental Funds (a) 6,000
Internal Service Funds General Fund (a) 3,900
9,258,077$

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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48 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024 was $382,000.

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, 2024 was $1,305,268.

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, 2024 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, 2024 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, 2024, 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, 2024

Note 5 - Capital Assets

Capital assets activity for the year ended June 30, 2024 is as follows:

Balance at Balance at
July 1, 2023, Additions Deletions Transfers June 30, 2024 Capital Assets, not Being Depreciated
Land 9,105,635$ -$ -$ -$ 9,105,635$ Construction in progress 7,326,799 18,183,816 - (5,513,080) 19,997,535 Total capital assets, not
being depreciated 16,432,434 18,183,816 - (5,513,080) 29,103,170 Capital Assets, Being Depreciated and Amortized
Buildings and improvements 32,667,386 - - 3,150,822 35,818,208 Right-to-use leased equipment
and subscriptions 2,117,998 314,511 (62,886) - 2,369,623 Machinery and equipment 11,638,108 182,504 (1,182,389) 292,301 10,930,524 Infrastructure 67,836,119 - - 2,069,957 69,906,076 Total capital assets,
being depreciated/amortized 114,259,611 497,015 (1,245,275) 5,513,080 119,024,431 Less Accumulated Depreciation and Amortization for
Buildings and improvements (18,015,400) (868,055) - - (18,883,455) Right-to-use leased equipment
and subscriptions (500,030) (331,683) 62,886 - (768,827) Machinery and equipment (8,356,564) (692,286) 1,168,406 - (7,880,444) Infrastructure (26,143,756) (2,224,619) - - (28,368,375) Total accumulated depreciation
and amortization (53,015,750) (4,116,643) 1,231,292 - (55,901,101) Total capital assets,
being depreciated/amortized, net 61,243,861 (3,619,628) (13,983) 5,513,080 63,123,330 Governmental Activities
capital assets, net 77,676,295$ 14,564,188$ (13,983)$ -$ 92,226,500$

Depreciation expense, including $373,767 relating to the internal service funds, was charged in the following functions in the Statement of Activities:

General government 449,175$
Recreation 230,895
Public safety 286,335
Public works 3,150,238
Total depreciation expense - governmental activities 4,116,643$

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50 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024:

Balance Balance Due within
July 1, 2023, Additions Reductions June 30, 2024 One Year Other Debt
2002 refunding certificates of
participation - civic center project 4,090,458$ 241,507$ -$ 4,331,965$ -$ 2016 refunding lease revenue bonds 4,020,000 - (605,000) 3,415,000 630,000 2016 refunding lease premium 454,514 - (90,903) 363,611 90,903 2018 general obligation bond,
series 2020 16,200,000 - (780,000) 15,420,000 345,000 2018 GOB, series 2020 premium 2,854,463 - (105,721) 2,748,742 105,721 2018 general obligation bond,
series 2022 28,000,000 - (1,710,000) 26,290,000 1,010,000 2018 GOB, series 2022 premium 2,417,236 - (89,527) 2,327,709 89,527 California Energy Commission Loan 1,560,030 - (96,863) 1,463,167 97,876 PG&E On-Bill Financing Loan 2,228,045 - (287,490) 1,940,555 287,490 Subscription payables 89,102 - (52,927) 36,175 36,175 Leases payable 1,993,237 314,511 (349,014) 1,958,734 388,130 Other Noncurrent Liabilities
Compensated absences 3,987,015 2,052,067 (1,904,272) 4,134,810 2,034,005 Claims payable (Note 12) 4,381,510 759,070 (953,721) 4,186,859 519,912 72,275,610$ 3,367,155$ (7,025,438)$ 68,617,327$ 5,634,739$

Subscription-Based Information Technology Arrangements (SBITAs)

During the current year, the City entered into a SBITA contract for the use of Azure Office 365 software. As of June 30, 2024, the value of the subscription liability was $36,175. The City is required to make annual principal and interest payments of $54,876 through February 2025. The subscription has an interest rate of 3%.

Remaining principal and interest payments on subscriptions are as follows:

Fiscal
Year Ending Principal Interest Total
2025 36,175$ 408$ 36,583$ 36,175$ 408$ 36,583$
Subscription-Based Information Technology Arrangements

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, 2024, the defeased 1993 Certificates had been retired.

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Notes to Financial Statements
June 30, 2024

Capital Appreciation Certificates in the amount of $1,245,843 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, 2024 is $3,086,122.

Principal and interest payments are guaranteed under an insurance policy issued by Ambac Assurance Corporation. 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, 2024 are as follows:

Fiscal
Year Ending Principal Interest Total
2025-2029 -$ -$ -$ 2030-2034 1,245,843 5,214,157 6,460,000 1,245,843 5,214,157 6,460,000
Accumulated Accreted
Interest 3,086,122 (3,086,122) -
4,331,965$ 2,128,035$ 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
2025 630,000$ 124,000$ 754,000$ 2026 655,000 98,300 753,300 2027 680,000 71,600 751,600 2028 710,000 43,800 753,800 2029 740,000 14,800 754,800 Total 3,415,000$ 352,500$ 3,767,500$ 2016 Lease Revenue Bonds

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Notes to Financial Statements
June 30, 2024

2018 Measure O General Obligation Bonds

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
2025 345,000$ 543,000$ 888,000$ 2026 360,000 528,900 888,900 2027 375,000 514,200 889,200 2028 390,000 498,900 888,900 2029 405,000 483,000 888,000 2030-2034 2,275,000 2,154,200 4,429,200 2035-2039 2,750,000 1,677,450 4,427,450 2040-2044 3,145,000 1,293,700 4,438,700 2045-2049 3,685,000 717,900 4,402,900 2050-2051 1,690,000 68,200 1,758,200 Total 15,420,000$ 8,479,450$ 23,899,450$
2018 Measure O General Obligation Bond Series 2020

In May 2022, the City issued its second and final series of tax-exempt bonds for $30,000,000. The Series 2022 bonds, which were issued at a premium, have coupon interest rates ranging from 4% to 5% with an effective interest rate of 4.06% and maturing September 1, 2050.

Fiscal
Year Ending Principal Interest Total
2025 1,010,000$ 1,241,750$ 2,251,750$
2026 495,000 1,204,125 1,699,125 2027 520,000 1,178,750 1,698,750 2028 545,000 1,152,125 1,697,125 2029 575,000 1,124,125 1,699,125 2030-2034 3,335,000 5,147,625 8,482,625 2035-2039 4,250,000 4,204,500 8,454,500 2040-2044 5,415,000 3,001,875 8,416,875 2045-2049 6,915,000 1,475,725 8,390,725 2050-2051 3,230,000 130,400 3,360,400 Total 26,290,000$ 19,861,000$ 46,151,000$
2018 Measure O General Obligation Bond Series 2022

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Notes to Financial Statements
June 30, 2024

California Energy Commission Loan

On February 18, 2020, City Council authorized staff to enter into an energy services contract agreement with an ESCO (energy services company) to provide turnkey services for energy conservation upgrades and infrastructure improvements. The total cost of the project was $4,177,660. The project was financed through the California Energy Commission and the PG&E On-Bill Financing Program for $1,638,168 and $2,539,492, respectively.

Through the Energy Conservation Assistant Act, the California Energy Commission (CEC) offered a 1% interest Energy Efficiency Loan program. The CEC loan will be paid in full by June 22, 2038.

Fiscal
Year Ending Principal Interest Total
2025 97,876$ 14,388$ 112,264$ 2026 98,857 13,407 112,264 2027 99,848 12,416 112,264 2028 100,818 11,446 112,264 2029 101,859 10,404 112,263 2030-2034 524,801 36,518 561,319 2035-2039 439,108 9,948 449,056 1,463,167$ 108,527$ 1,571,694$
California Energy Commission Loan

Pacific Gas & Electric Loan

The PG&E On-Bill Financing Program is a program that helps governmental agencies pay for energy efficient retrofit projects with no-interest loans that are repaid through monthly PG&E bills. The PG&E loan will be paid in full by March 2031 through 106 equal monthly installments.

Fiscal
Year Ending Principal Interest Total
2025 287,490$ -$ 287,490$ 2026 287,490 - 287,490 2027 287,490 - 287,490 2028 287,490 - 287,490 2029 287,490 - 287,490 2030-2031 503,106 - 503,106 1,940,555$ -$ 1,940,555$ Pacific Gas & Electric Loan

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Notes to Financial Statements
June 30, 2024

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, 2024, the City had the following construction commitments:

Remaining
Project Commitment
Civic Center Improvement (Measure O) 41,850,059$
Annual Street Maintenance 299,106
Campbell Park Bike Pathway 44,779
Traffic Calming Improvements 43,998
All other capital projects commitments 93,043
42,330,985$

At June 30, 2024, the City had the following other encumbrances including the significant commitment to the Capital Projects Fund under various funds as noted below:

Fund Amount
General Fund 917,512$
Capital Projects Fund 42,330,985
Nonmajor Governmental Funds 193,642
Proprietary Funds 6,895
Total commitments 43,449,034$

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Notes to Financial Statements
June 30, 2024

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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June 30, 2024

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 $9,482,800 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, 2024, were classified as follows:

Capital Other Total
General Housing and Projects Measure O Governmental Governmental Fund Assets Fund Fund Funds Funds
Nonspendable
Leases 199,081$ -$ -$ -$ -$ 199,081$ Restricted
Debt service - - - - 2,415,922 2,415,922 Streets and roads - - - - 7,057,040 7,057,040 Museum and adult center - - - - 23,882 23,882 Public Safety - - - - 329,059 329,059 Community development - - - 40,391,087 4,189,144 44,580,231 Housing - 8,520,812 - - 346 8,521,158 Total restricted - 8,520,812 - 40,391,087 14,015,393 62,927,292 Committed
General plan update - - - - - - Historic preservation 5,000 - - - - 5,000 Compensated absences 970,698 - - - - 970,698 Liability insurance 157,936 - - - - 157,936 Capital improvements Reserve 212,351 - - - - 212,351 Committed Capital
improvements Reserve 1,240,899 - - - - 1,240,899 Community Center 149,706 - - - - 149,706 Heritage Theater 180,344 - - - - 180,344 Total committed 2,916,934 - - - - 2,916,934 Assigned
Capital projects
(Construction Tax) 138,406 - 968,320 - - 1,106,726 Unemployment insurance 90,000 - - - - 90,000 PERS 2,252,000 - - - - 2,252,000 OPEB 393,315 - - - - 393,315 All other 917,512 - - - - 917,512 Total assigned 3,791,233 - 968,320 - - 4,759,553 Unassigned
Unassigned 1,000,000 - - - (229,121) 770,879 City council reserve 362,624 - - - - 362,624 Economic fluctuations 9,485,886 - - - - 9,485,886 Emergency 3,207,454 - - - - 3,207,454 Total unassigned 14,055,964 - - - (229,121) 13,826,843 Total 20,963,212$ 8,520,812$ 968,320$ 40,391,087$ 13,786,272$ 84,629,703$ Capital
Projects FundRevenue Funds
Special

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Notes to Financial Statements
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Note 9 - Pension Plans

The following is a summary of pension related items for the year ended June 30, 2024:

Deferred Deferred
Pension Outflows Inflows Pension
Liability of Resources of Resources Expense
CalPERS Miscellaneous 41,444,336$ 12,654,261$ -$ 9,614,534$ CalPERS Safety 36,566,085 15,657,545 851,909 6,331,799 78,010,421$ 28,311,806$ 851,909$ 15,946,333$

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, 2024

The Plans’ provisions and benefits in effect for the measurement period ended June 30, 2023, are summarized as follows:

Hire date
Prior to
March 7, 2011
On or After
March 7, 2011
On or after
January 1, 2013
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 8.00% 7.00% 7.75%
Required employer contribution rates:

Normal cost rate 11.32% 11.32% 11.32%
Employer portion of unfunded liability 2,731,760$ -$ -$ Hire date
Prior to
October 18, 2010
On or After
October 18, 2010
On or after
January 1, 2013
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% 13.75% Required employer contribution rates:

Normal cost rate 29.09% 21.15% 13.54%
Employer portion of unfunded liability 2,335,228$ -$ -$ Miscellaneous
Safety

Employees Covered

At June 30, 2023, the measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 265 Inactive employees entitled but not yet receiving benefits 171 Active employees 117
Total 553

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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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 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, 2022 actuarial valuations were determined using the following actuarial methods and assumptions:

Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
Actuarial Cost Method Entry Age Normal Entry Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
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, 2024

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.

Assumed
Asset Real rate
Allocation of Return 1, 2
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(2) Figures are based on the 2021-22 Asset Liability Management study. (1) An expected inflation of 2.30% used for this period.

Discount Rate

The discount rate used to measure the total pension liability was 6.90%. 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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Notes to Financial Statements
June 30, 2024

Changes in the Net Pension Liability

The changes in the net pension liability for the Miscellaneous Plan during the measurement year are as follows:

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at beginning of year 134,512,375$ 97,016,047$ 37,496,328$ Changes in the Year
Service cost 2,526,475 - 2,526,475 Interest on the total pension liability 9,334,654 - 9,334,654 Change in benefit terms 167,571 - 167,571 3,141,093 - 3,141,093 Contribution - employer - 4,275,514 (4,275,514) Contribution - employee - 1,090,549 (1,090,549) Net investment income - 5,927,063 (5,927,063) Administrative expenses - (71,341) 71,341 Benefit payments, including refunds
of employee contributions (7,598,828) (7,598,828) - Net changes 7,570,965 3,622,957 3,948,008 Balance at end of year 142,083,340$ 100,639,004$ 41,444,336$ 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 36,566,085$

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Notes to Financial Statements
June 30, 2024

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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2023 and 2022 was as follows:

Safety
Proportion - Fiscal Year ended June 30, 2022 0.49314%
Proportion - Fiscal Year ended June 30, 2023 0.48918%
Change - Increase (decrease) -0.00396%

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 5.90% 5.90%
Net Pension Liability 59,685,674$ 53,356,904$ Current Discount Rate 6.90% 6.90%
Net Pension Liability 41,444,336$ 36,566,085$ 1% Increase 7.90% 7.90%
Net Pension Liability 26,375,651$ 22,838,395$

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, 2024

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2024, the City recognized an aggregate pension expense of $8,095,663. The City recognized pension expense of $6,436,667 related to the Miscellaneous Plan and $1,658,996 related to the Safety Plan. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Deferred
Inflows of
Deferred
Outflows of
Deferred
Inflows of
Deferred
Outflows of
Deferred
Inflows of
5,637,515$ -$ 4,737,566$ -$ 10,375,081$ -$ 1,817,544 - 2,684,625 229,832 4,502,169 229,832 Changes in assumptions 572,322 - 2,134,046 - 2,706,368 - - - 954,936 566,732 954,936 566,732 Change in proportion - - 142,313 55,345 142,313 55,345 4,626,880 5,004,059 - 9,630,939 - 12,654,261$ -$ 15,657,545$ 851,909$ 28,311,806$ 851,909$ Pension contributions subsequent
to measurement date
Difference between expected
and actual experiences
Difference between actual and
projected contribution
Net difference between projected and
actual earnings on pension plan
investments
Safety TotalMiscellaneous

$5,637,515 and $4,737,566 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 next fiscal year. 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
2025 2,932,109$ 3,322,850$ 6,254,959$ 2026 752,160 2,315,527 3,067,687 2027 3,195,904 4,290,021 7,485,925 2028 136,573 139,672 276,245 7,016,746$ 10,068,070$ 17,084,816$

Payable to the Pension Plans

At June 30, 2024, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.

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Notes to Financial Statements
June 30, 2024

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, 2024, total contributions of $88,720 ($73,342 employee and $15,378 employer) were made based on covered compensation of $1,188,123.

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Notes to Financial Statements
June 30, 2024

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, 2023 measurement date, the following current and former employees were covered by the benefit terms under the plan:

Inactive employees or beneficiaries currently receiving benefits 139 Inactive employees or beneficiaries entitled to but not yet receiving benefit payments 56 Active plan members 156
351

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, 2024, the City’s cash contributions were $73,327 in payments to the trust, $482,227 of cash benefits payments and an estimated implied subsidy of $272,193 and resulting in payments of $827,747.

Net OPEB Liability

The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023. 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, 2024

Actuarial Assumptions

The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.10%
Investment rate of return 6.10%
Inflation 2.50%
Mortality, Retirement, Disability,
Termination
2017 experience study of the California Public Employees Retirement System using data from 1997 to 2015.

Mortality Improvement MW Scale 2022 Generationally
Salary Increase 3.00% per annum, in aggregate.

Medical Trend 4.7% in 2025, decreasing to an ultimate rate of 3.9% in 2076 and later years.

The actuarial assumptions used in the June 30, 2023, valuation was 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 49.00% 4.50%
Global Fixed Income 23.00% 2.20%
Real Estate Investment Trusts 20.00% 3.90%
Treasury Inflation Protection Securities 5.00% 1.30%
Commodities 3.00% 1.20%
Total 100.00%

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Notes to Financial Statements
June 30, 2024

Discount Rate

The discount rate used to measure the total OPEB liability was 6.10%. This is a 5% change from 6.15% as of the last valuation used for fiscal year ended June 30, 2023. 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 beginning of year 11,791,563$ 5,802,585$ 5,988,978$ Changes recognized for year
Service cost 406,676 - 406,676 Interest 729,661 - 729,661 Changes due to investment experience - 9,305 (9,305) Change due to other plan experience 946,361 - 946,361 Changes of assumptions (1,083,835) - (1,083,835) Contributions
Employer - explicit subsidy - 683,948 (683,948) Employer - implicit subsidy - 229,592 (229,592) Net investment income - 364,368 (364,368) Administrative expenses - (1,687) 1,687 Benefit payments (667,662) (667,662) - Net changes 331,201$ 617,864$ (286,663)$ Balance at end of year 12,122,764$ 6,420,449$ 5,702,315$ 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%
(5.10%)
Current Discount Rate
(6.10%)
Discount Rate + 1%
(7.10%)
7,102,938$ 5,702,315$ 4,532,329$

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June 30, 2024

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 Current Healthcare Cost Trend 1% Increase
4,984,324$ 5,702,315$ 6,583,012$

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB:

For the year ended June 30, 2024, the City recognized OPEB expense of $957,244. At June 30, 2024, 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 827,747$ -$ Differences between expected and actual experience 1,183,101 (107,297) Changes in assumptions 610,523 (920,639) Net differences between projected and
actual earnings on plan investments 378,229 - Total 2,999,600$ (1,027,936)$

$827,747 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 next fiscal year. 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)
2025 247,652$
2026 217,310
2027 487,196
2028 218,368
2029 (22,173)
Thereafter (4,436)
1,143,917$

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69 City of Campbell
Notes to Financial Statements
June 30, 2024

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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70 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2022 325,610$ 3,777,600$ 4,103,210$ Liability for current year fiscal claims 394,920 732,540 1,127,460 Increase (decrease) in estimated liability (131,658) (235,472) (367,130) Claims paid (119,069) (362,961) (482,030) Balance as of June 30, 2023 469,803$ 3,911,707$ 4,381,510$ Balance as of July 1, 2023 469,803$ 3,911,707$ 4,381,510$ Liability for current year fiscal claims 5,284 753,786 759,070 Increase (decrease) in estimated liability 455,223 (940,949) (485,726) Claims paid (175,887) (292,108) (467,995) Balance as of June 30, 2024 754,423$ 3,432,436$ 4,186,859$

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, 2024, the City contributed $331,743 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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71 City of Campbell
Notes to Financial Statements
June 30, 2024

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 - Leases

Leases Receivable

The City leases a portion of the space at its Community Center to various third parties. The leases span up to five years. The interest (discount) rate for the leases is a flat 2.14% to 3.378%. The City received $1,521,497 in monthly payments. The City recognized $1,432,099 in lease revenue and $89,398 in interest revenue during the current fiscal year related to these leases. As of June 30, 2024, the City’s receivable for lease payments was $3,302,555. Also, the City has a deferred outflow of resources associated with these leases that will be recognized as revenue over the lease terms. As of June 30, 2024, the balance of the deferred inflow of resources was $3,149,940.

The City leases land for the usage of cellular towers to various third parties. The leases span up to eight years.

The interest rate for the leases is a flat 2.14%. The City received $152,087 in monthly payments. The City recognized $133,177 in lease revenue and $18,910 in interest revenue during the current fiscal year related to these leases. As of June 30, 2024, the City’s receivable for lease payments was $605,437. Also, the City has a deferred outflow of resources associated with these leases that will be recognized as revenue over the lease terms. As of June 30, 2024, the balance of the deferred inflow of resources was $558,970.

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72 City of Campbell
Notes to Financial Statements
June 30, 2024

Leases Payable

The City leases 19 vehicles. An initial lease liability for three vehicles was recorded during the year amount to $172,229. As of June 30, 2024 the value of the total lease liability was $437,240. The City made principal and interest payments of $133,403. The leases have interest rates between 4.75% and 14.75%. The City also has three office equipment leases. As of June 30, 2024 the value of the lease liability was $141,205. The City made principal and interest payments of $29,608. Additionally, the City has a public safety equipment lease for $1,105,368 at a rate of 3%. As of June 30, 2024. The City made principal and interest payments of $177,044.

Lastly, the City maintains an equipment lease at a rate of 3%. As of June 30, 2024, the lease liability was $274,921.

The future principal and interest lease payments as of June 30, 2024, were as follows:

Fiscal years Ended June 30 Principal Interest
2025 388,130$ 71,103$
2026 402,383 57,493
2027 368,742 43,342
2028 243,740 30,403
2029 215,362 20,346
2030-2034 340,377 30,447
Total 1,958,734$ 253,134$

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.

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73 City of Campbell
Notes to Financial Statements
June 30, 2024

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 2024-28. The annual payment is revised every five years through fiscal year 2052-53.

Note 16 - Successor Agency

Capital Assets

Capital assets of the Successor Agency as of June 30, 2024 consisted of the following:

Balance Balance Due Within
July 1,2023 Additions Deletions June 30,2024 One Year
2016 Tax Allocation Refunding Bonds 14,495,000$ -$ (1,595,000)$ 12,900,000$ 1,630,000$

Long-term Liabilities

Long-term liabilities of the Successor Agency as of June 30, 2024 consisted of the following:

Balance at Balance at
July 1, 2023 Additions June 30, 2024
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 (11,727,615) (309,152) (12,036,767) Other improvements (11,380,765) (388,368) (11,769,133) Total accumulated depreciation (23,108,380) (697,520) (23,805,900) Total capital assets,
being depreciated, net 7,637,492 (697,520) 6,939,972 Governmental Activities
capital assets, net 14,761,023$ (697,520)$ 14,063,503$

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74 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
2025 1,630,000$ 266,871$ 1,896,871$ 2026 1,660,000 232,066 1,892,066 2027 1,705,000 196,571 1,901,571 2028 1,730,000 160,228 1,890,228 2029 1,740,000 123,195 1,863,195 2030-2031 4,435,000 134,375 4,569,375 Total 12,900,000$ 1,113,306$ 14,013,306$

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Required Supplementary Information
June 30, 2024
City of Campbell

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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, 2024 June 30, 2023 June 30, 2022 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, 2023 June 30, 2022 June 30, 2021 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 2,526,475$ 2,534,964$ 2,410,558$ 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 9,334,654 8,828,016 8,542,268 8,227,199 7,839,384 7,392,762 7,134,146 6,827,812 6,544,912 6,237,266 Differences between expected and actual experience 3,141,093 625,329 (396,930) 613,576 1,563,454 (487,309) 166,228 (487,339) (413,601) - Changes in assumptions - 3,433,930 - - - (809,156) 5,879,356 - (1,598,990) - Changes in benefits 167,571 - - - - - - - - - Benefit payments (7,598,828) (7,050,778) (6,157,839) (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 7,570,965 8,371,461 4,398,057 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 134,512,375 126,140,914 121,742,857 116,002,176 109,557,226 105,922,540 94,722,558 91,097,472 88,568,862 83,995,492 Total Pension Liability - End of Year 142,083,340$ 134,512,375$ 126,140,914$ 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 4,275,514$ 3,925,027$ 3,758,501$ 3,446,237$ 3,062,946$ 2,683,458$ 2,424,792$ 2,168,070$ 1,811,356$ 1,592,734$ Contributions - employee 1,090,549 1,000,275 1,059,499 1,052,758 1,050,023 1,040,310 920,368 903,290 818,954 869,838 Net investment income 5,927,063 (7,981,639) 19,929,957 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 (71,341) (66,773) (88,594) (120,615) (58,198) (119,314) (103,210) (43,290) (79,967) - Benefit payments (7,598,828) (7,050,778) (6,157,839) (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 3,622,957 (10,173,888) 18,501,524 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 97,016,047 107,189,935 88,688,411 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) 100,639,004$ 97,016,047$ 107,189,935$ 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) 41,444,336$ 37,496,328$ 18,950,979$ 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 70.83% 72.12% 84.98% 72.85% 73.75% 74.44% 72.29% 73.80% 77.97% 79.85% Covered payroll $13,798,336 $13,672,947 $13,853,779 $13,631,359 $12,741,308 $12,620,931 $12,359,036 $11,526,124 $10,550,178 $9,939,320 Net pension liability as percentage of coverd payroll 300.36% 274.24% 136.79% 242.49% 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%.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%.

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City of Campbell
Schedule of Pension Contributions – CalPERS Miscellaneous Plan Last Ten Fiscal Years
Fiscal Year ended 2024 2023 2022 2021 2020 2019 2018 2017 2016 2016 Actuarially determined contribution 5,637,515$ 4,275,514$ 3,925,027$ 3,758,501$ 3,446,237$ 3,062,946$ 2,683,458$ 2,424,792$ 2,168,070$ 1,811,356$ Contributions in relation to the actuarially
determined contributions (5,637,515) (4,275,514) (3,925,027) (3,758,501) (3,446,237) (3,062,946) (2,683,458) (2,424,792) (2,168,070) (1,811,356) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll $14,180,589 $13,798,336 $13,672,947 $13,853,779 $13,631,359 $12,741,308 $12,620,931 $12,359,036 $11,526,124 $10,550,178 Contributions as a percentage
of covered payroll 39.76% 30.99% 28.71% 27.13% 25.28% 24.04% 21.26% 19.62% 18.81% 17.17% 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%.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%.

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City of Campbell
Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans Last Ten Fiscal Years
Fiscal Year ended June 30, 2024 June 30, 2023 June 30, 2022 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, 2023 June 30, 2022 June 30, 2021 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 0.48918% 0.49314% 0.54672% 0.46782% 0.47274% 0.48183% 0.47999% 0.50062% 0.52828% 0.52660% 36,566,085$ 33,886,517$ 19,187,021$ 31,167,715$ 29,511,142$ 28,271,751$ 28,680,686$ 25,928,666$ 21,767,656$ 19,752,687$ Covered payroll 6,748,836$ 6,821,979$ 6,646,761$ 6,137,525$ 6,194,278$ 6,180,899$ 5,832,083$ 5,370,852$ 5,168,789$ 5,062,342$ 541.81% 496.73% 288.67% 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 74.87% 76.52% 82.42% 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%.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%.

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City of Campbell
Schedule of Pension Contributions – CalPERS Safety
Plan Last Ten Fiscal Years
Fiscal Year ended 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 4,737,566$ 4,674,536$ 4,287,989$ 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 (4,737,566) (4,674,536) (4,287,989) (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 7,120,552$ 6,748,836$ 6,821,979$ 6,646,761$ 6,137,525$ 6,194,278$ 6,180,899$ 5,832,083$ 5,370,852$ 5,168,789$

66.53% 69.26% 62.86% 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%.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%.

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City of Campbell
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
Fiscal Year ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement period ended 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:

Service cost 406,676$ 394,831$ 341,663$ 331,712$ 339,543$ 329,653$ 320,051$ Interest on total OPEB liability 729,661 699,837 617,389 587,481 582,939 549,781 518,912 Actual vs. expected experience 946,361 - 684,363 - (375,537) - - Assumption changes (1,083,835) - 1,073,039 - (40,651) - - Benefit payments (667,662) (575,477) (497,843) (474,260) (388,140) (408,022) (374,490) Net Change in Total OPEB Liability 331,201 519,191 2,218,611 444,933 118,154 471,412 464,473 Total OPEB Liability - Beginning of Year 11,791,563 11,272,372 9,053,761 8,608,828 8,490,674 8,019,262 7,554,789 Total OPEB Liability - End of Year (a) 12,122,764 11,791,563 11,272,372 9,053,761 8,608,828 8,490,674 8,019,262 Plan Fiduciary Net Position:

Contributions - employer 913,540 659,310 613,391 646,871 675,398 1,566,022 829,490 Net investment income 373,673 (884,900) 1,399,683 169,139 261,853 255,576 251,971 Administrative expenses (1,687) (1,673) (1,927) (3,830) (2,124) (5,460) (1,332) Benefit payments (667,662) (575,477) (497,843) (474,260) (388,140) (408,022) (374,490) Net Change in Plan Fiduciary Net Position 617,864 (802,740) 1,513,304 337,920 546,987 1,408,116 705,639 Plan Fiduciary Net Position - Beginning of Year 5,802,585 6,605,325 5,092,021 4,754,101 4,207,114 2,798,998 2,093,359 Plan Fiduciary Net Position - End of Year (b) 6,420,449 5,802,585 6,605,325 5,092,021 4,754,101 4,207,114 2,798,998 Net OPEB Liability - Ending (a) - (b) 5,702,315$ 5,988,978$ 4,667,047$ 3,961,740$ 3,854,727$ 4,283,560$ 5,220,264$ Plan fiduciary net position as a percentage of the
total OPEB Liability 52.96% 49.21% 58.60% 56.24% 55.22% 49.55% 34.90% Covered-employee payroll 25,483,309$ 23,935,378$ 23,360,322$ 23,681,909$ 22,349,167$ 22,223,899$ 21,017,236$ Net OPEB Liability as percentage of covered payroll 22.38% 25.02% 19.98% 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%.

From fiscal year June 30, 2021 to June 30, 2022:

The discount rate was reduced from 6.75% to 6.15%.

From fiscal year June 30, 2023 to June 30, 2024:

The discount rate was reduced from 6.15% to 6.10%.
* - Fiscal year 2018 was the 1st year of implementation.

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Packet Pg. 358
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written See Notes to Required Supplementary Information 80
City of Campbell
Schedule of OPEB Contributions
Last Ten Fiscal Years*
Fiscal Year ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 847,447$ 822,791$ 624,000$ 610,000$ 642,000$ 629,000$ 1,038,000$ Contributions in relation to the
actuarially determined contributions (827,747) (913,540) (659,310) (613,391) (646,871) (675,398) (1,566,022) Contribution deficiency (excess) 19,700$ (90,749)$ (35,310)$ (3,391)$ (4,871)$ (46,398)$ (528,022)$ Covered-employee payroll $27,216,437 $25,483,309 $23,935,378 $23,360,322 $23,681,909 $22,349,167 $22,223,899 Contributions as a percentage
of covered payroll 3.04% 3.58% 2.75% 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%.

From fiscal year June 30, 2021 to June 30, 2022:

The discount rate was reduced from 6.75% to 6.15%.

From fiscal year June 30, 2023 to June 30, 2024:

The discount rate was reduced from 6.15% to 6.10%.
* - Fiscal year 2018 was the 1st year of implementation.

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Packet Pg. 359
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

14.a
Packet Pg. 360
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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, 2024
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 22,047,000$ 21,847,000$ 21,912,688$ 65,688$ Sales and use taxes 17,699,289 16,826,202 16,549,227 (276,975) Other taxes 9,691,400 8,582,600 8,991,901 409,301 Licenses and permits 4,290,300 3,909,500 3,344,256 (565,244) Fines and forfeitures 100,000 150,000 172,012 22,012 Investment income 810,900 1,055,000 1,156,980 101,980 Rents and leases 3,052,500 3,098,400 3,172,450 74,050 Intergovernmental 2,059,068 2,541,100 1,358,912 (1,182,188) Charges for services 5,907,545 5,893,860 6,243,053 349,193 Miscellaneous 216,410 564,228 237,863 (326,365) Total Revenues 65,874,412 64,467,890 63,139,342 (1,328,548) Expenditures
General government
City council 363,952 363,952 599,066 (235,114) City manager 1,411,857 1,511,857 1,230,451 281,406 City clerk 577,829 577,829 493,226 84,603 Human resources 1,567,865 1,556,864 1,490,111 66,753 Accounting 2,446,442 2,540,651 2,596,615 (55,964) Non-departmental finance 2,715,229 1,140,894 2,853,125 (1,712,231) COVID response - - 109,337 (109,337)
Legal services 579,520 614,520 525,088 89,432 Economic development 242,022 388,770 304,121 84,649 Total general government 9,904,716 8,695,337 10,201,140 (1,505,803) Recreation
Community services and administration 568,648 568,648 1,117,320 (548,672) Senior citizens nutrition program 241,330 270,330 284,153 (13,823) Adult services 570,171 570,171 498,447 71,724 Campbell community center 1,506,152 1,494,374 1,527,767 (33,393) Museum services 442,172 462,172 408,058 54,114 Theater 1,322,450 1,203,965 991,430 212,535 Sports, aquatics and fitness 1,061,227 1,082,727 958,258 124,469 Trips, tours and classes 1,403,926 1,384,051 1,016,300 367,751 Total recreation 7,116,076 7,036,438 6,801,733 234,705 Community development
Community development administration 777,237 777,237 531,253 245,984 Current planning 1,062,023 1,062,023 1,017,381 44,642 Policy development 1,637,122 1,977,736 844,203 1,133,533 Building 1,959,520 1,956,676 1,548,595 408,081 Total community development 5,435,902 5,773,672 3,941,432 1,832,240 Budgeted Amounts

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Packet Pg. 361
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control) See Notes to Required Supplementary Information 82
City of Campbell
Budgetary Comparison Schedule – General Fund
Fiscal Year Ended June 30, 2024
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Public safety
Police administration 2,137,601$ 2,172,696$ 4,050,130 (1,877,434)$ Communications 2,995,049 2,995,049 2,810,820 184,229 Records 1,582,747 1,586,744 1,506,778 79,966 Special enforcement services 4,303,331 4,372,005 4,409,297 (37,292) Field services 11,669,318 11,909,952 10,631,957 1,277,995 Fire protection services 10,860,918 10,860,918 10,343,732 517,186 Total public safety 33,548,964 33,897,364 33,752,714 144,650 Public works
Public works administration 1,199,624 1,209,324 1,054,518 154,806 Transportation engineering 942,239 942,239 418,770 523,469 Engineering 1,705,569 1,705,569 1,536,738 168,831 Land development/environment programs 1,008,128 1,022,103 1,006,936 15,167 Maintenance administration 717,146 717,146 674,424 42,722 Building maintenance 1,865,894 2,276,695 2,110,467 166,228 Total Public works 7,438,600 7,873,076 6,801,853 1,071,223 Total expenditures 63,444,258 63,275,887 61,498,872 1,777,015 Excess (deficiency) of revenues
over (under) expenditures 2,430,154 1,192,003 1,640,470 448,467 Other financing sources (uses)
Leases proceeds - - 142,282 142,282
Transfers in 3,387,412 4,142,679 1,635,595 (2,507,084) Transfers out (5,666,245) (6,252,281) (4,598,406) 1,653,875 Total other
financing sources (uses) (2,278,833) (2,109,602) (2,820,529) (710,927) Net change in fund balance 151,321 (917,599) (1,180,059) (262,460) Fund balance at beginning of year 22,143,271 22,143,271 22,143,271 - Fund balance at end of year 22,294,592$ 21,225,672$ 20,963,212$ (262,460)$ Budgeted Amounts

14.a
Packet Pg. 362
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

See Notes to Required Supplementary Information 83
City of Campbell
Budgetary Comparison Schedule – Housing Assets Special Revenue Fund Fiscal Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 50,000$ 50,000$ 66,946$ 16,946$ Intergovernmental - - 150,000 150,000 Miscellaneous revenue 175,000 175,000 371,233 196,233 Total revenues 225,000 225,000 588,179 363,179 Expenditures
Current
Community development 1,026,130 1,090,066 667,619 422,447 Total expenditures 1,026,130 1,090,066 667,619 422,447 Excess (Deficiency) of Revenues
Over (Under) Expenditures (801,130) (865,066) (79,440) 785,626 Other Financing Sources (Uses):

Transfers in 210,585 210,585 104,564 (106,021) Total Other
Financing Sources (Uses) 210,585 210,585 104,564 (106,021) Net change in fund balance (590,545) (654,481) 25,124 679,605 Fund balance at beginning of year 8,495,688 8,495,688 8,495,688 - Fund balance at end of year 7,905,143$ 7,841,207$ 8,520,812$ 679,605$ Budgeted Amounts

14.a
Packet Pg. 363
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Intergovernmental -$ -$ 1,995,935$ 1,995,935$ Total revenues - - 1,995,935 1,995,935 Expenditures
Current
City Managers Office - - 200,718 (200,718) Total expenditures - - 200,718 (200,718) Excess (deficiency) of revenues
over (under) expenditures - - 1,795,217 1,795,217 Other financing sources (uses)
Transfers out (3,277,097) (5,385,364) (1,835,935) (3,549,429) Total other
financing sources (uses) (3,277,097) (5,385,364) (1,835,935) 3,549,429 Net change in fund balance (3,277,097) (5,385,364) (40,718) 5,344,646 Fund balance at beginning of year 40,718 40,718 40,718 - Fund balance at end of year (3,236,379)$ (5,344,646)$ -$ 5,344,646$ Budgeted Amounts

14.a
Packet Pg. 364
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

85 City of Campbell
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2024

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.

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Packet Pg. 365
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

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Packet Pg. 366
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

Supplementary Information
June 30, 2024
City of Campbell

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Packet Pg. 367
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

86 City of Campbell
Description of Other Governmental Funds
June 30, 2024

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.

Other Grants

Consists of State and Local grants, TDA grant and Federal grants. • State and Local grant accounts for funds which are provided for specific purposes from the State or other local agencies.
• TDA grant accounts for funds received from the Transportation Development Act (TDA) of 1971. • Federal grant accounts for federal grant funds which are provided for specific purposes.

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.

14.a
Packet Pg. 368
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

87 City of Campbell
Description of Other Governmental Funds
June 30, 2024

Community Restitution Fund

Supplemental Law Enforcement

Accounts for revenues and expenditures pertaining to grants received from enhancing law enforcement services.

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.

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.

14.a
Packet Pg. 369
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

88 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2024

Vehicle Parkland Lighting and Community Drug Supplemental Gas Impact Other Dedication Landscaping Development Enforcement Environmental Law Tax Fees Grants Fees District Block Grant Revenue Services Enforcement Assets
Cash and investments 2,106,209$ 1,897,359$ 947,473$ 3,926,839$ 1,917,512$ 16$ 114,074$ 1,088,798$ 219,559$ Cash held with fiscal agent - - - - - - - - - Receivables:

Accounts 1,474 39,800 81,662 - 20,917 - - 92,686 - Taxes 300,426 - - - 5,998 - - - - Interest 17,718 27,951 11,248 36,981 12,275 - 1,041 9,370 2,057 Notes and loans - - - - - 140,000 - - - Total assets 2,425,827$ 1,965,110$ 1,040,383$ 3,963,820$ 1,956,702$ 140,016$ 115,115$ 1,190,854$ 221,616$ Liabilities
Accounts payable 104,743$ -$ -$ -$ 256,951$ -$ -$ 70,445$ -$ Accrued payroll 67,693 - - - 110,006 - - 8,430 7,672 Due to other funds - - 1,269,504 - - 139,670 - - - Total liabilities 172,436 - 1,269,504 - 366,957 139,670 - 78,875 7,672 Fund balances (deficit)
Restricted 2,253,391 1,965,110 - 3,963,820 1,589,745 346 115,115 1,111,979 213,944 Unassigned - - (229,121) - - - - - - Total fund balances (deficit) 2,253,391 1,965,110 (229,121) 3,963,820 1,589,745 346 115,115 1,111,979 213,944 Total liabilities, deferred inflows
of resources and fund balances 2,425,827$ 1,965,110$ 1,040,383$ 3,963,820$ 1,956,702$ 140,016$ 115,115$ 1,190,854$ 221,616$ Special Revenue Funds

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Packet Pg. 370
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

89 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2024

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
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflows
of resources and fund balances
Total
Community Community Community Museum Other
Restitution Facilities Facilities and Governmental
Fund District #1 District #2 Adult Center Measure O 2016 LRB Funds 135,633$ 379$ 221,744$ 23,666$ 2,373,968$ -$ 14,973,229$ - - - - - 33,105 33,105 - - - - - - 236,539 - 601 1,155 - 9,110 - 317,290 1,182 2 1,922 216 1,381 - 123,344 - - - - - - 140,000 136,815$ 982$ 224,821$ 23,882$ 2,384,459$ 33,105$ 15,823,507$ -$ -$ 479$ -$ 1,642$ -$ 434,260$ - - - - - - 193,801 - - - - - - 1,409,174 - - 479 - 1,642 - 2,037,235 136,815 982 224,342 23,882 2,382,817 33,105 14,015,393 - - - - - - (229,121) 136,815 982 224,342 23,882 2,382,817 33,105 13,786,272 136,815$ 982$ 224,821$ 23,882$ 2,384,459$ 33,105$ 15,823,507$ Debt Service FundSpecial Revenue Funds

14.a
Packet Pg. 371
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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, 2024

Vehicle Parkland Lighting and Community Drug
Gas Impact Other Dedication Landscaping Development Enforcement Environmental Tax Fees Grants Fees District Block Grant Revenue Services Revenues
Property taxes -$ -$ -$ -$ 1,947,465$ -$ -$ -$ Special assessments - - - - 1,197,356 - - - Fines and forfeitures - - - - - - - - Investment income 74,854 164,562 59,654 209,280 54,630 - 5,773 39,641 Intergovernmental 2,325,751 753,310 1,272,649 - 2,215 - 1,589 108,000 Charges for services - - - - - - - 982,320 Parkland dedication fees - - - 581,630 - - - - Miscellaneous revenues 54 - - - 96,909 - - - Total revenues 2,400,659 917,872 1,332,303 790,910 3,298,575 - 7,362 1,129,961 Expenditures
Current:

General government - - - - - - - - Community development - - - - - - - - Public safety - - - - - - - - Public works 2,141,270 - 11,254 - 4,178,294 - - 591,504 Debt service:

Principal - - - - - - - - Interest and fiscal charges - - - - - - - - Total expenditures 2,141,270 - 11,254 - 4,178,294 - - 591,504 Excess (deficiency) of revenues
over (under) expenditures 259,389 917,872 1,321,049 790,910 (879,719) - 7,362 538,457 Other financing sources (uses)
Transfers in 705,500 - - - 999,000 - - 187,000 Transfers out - (1,844,780) (510,021) (260,035) - - - (50,000) Total other financing
sources (uses) 705,500 (1,844,780) (510,021) (260,035) 999,000 - - 137,000 Net change in fund balances 964,889 (926,908) 811,028 530,875 119,281 - 7,362 675,457 Fund balances at beginning of year 1,288,502 2,892,018 (1,040,149) 3,432,945 1,470,464 346 107,753 436,522 Fund balances at end of year 2,253,391$ 1,965,110$ (229,121)$ 3,963,820$ 1,589,745$ 346$ 115,115$ 1,111,979$ Special Revenue Funds

14.a
Packet Pg. 372
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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, 2024

Revenues
Property taxes
Special assessments
Fines and forfeitures
Investment income
Intergovernmental
Charges for services
Parkland dedication fees
Miscellaneous revenues
TOTAL REVENUESTotal revenues
Expenditures
Current:

General government
Community development
Public safety
Public works
Debt service:

Principal
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUESExcess (deficiency) of revenues OVER (UNDER) EXPENDITURES over (under) expenditures
Other financing sources (uses)
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
Community Community Community Museum Other
Restitution Facilities Facilities and Governmental
Fund District #1 District #2 Adult Center Measure O 2016 LRB Funds -$ -$ -$ -$ 2,543,635$ -$ 4,491,100$ - 146,672 48,171 - - - 1,392,199 37,325 - - - - - 37,325 5,156 384 10,078 1,176 81,256 744 717,823 - - - - - - 4,641,340 - - - - - - 982,320 - - - - - - 581,630 - - - - - - 96,963 42,481 147,056 58,249 1,176 2,624,891 744 12,940,700 - 3,971 - - - - 3,971 2,901 - - - - 2,901 - - - - - - 155,166 - - 23,868 - - - 6,946,190 - - - - 2,490,000 605,000 3,095,000 - - - - 1,875,250 148,700 2,023,950 2,901 3,971 23,868 - 4,365,250 753,700 12,227,178 39,580 143,085 34,381 1,176 (1,740,359) (752,956) 713,522 - - - - - 766,600 2,658,100 - (143,000) (12,000) - - - (2,819,836) - (143,000) (12,000) - - 766,600 (161,736) 39,580 85 22,381 1,176 (1,740,359) 13,644 551,786 97,235 897 201,961 22,706 4,123,176 19,461 13,234,486 136,815$ 982$ 224,342$ 23,882$ 2,382,817$ 33,105$ 13,786,272$ Debt Service FundSpecial Revenue Funds

14.a
Packet Pg. 373
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 25,000$ 25,000$ 74,854$ 49,854$ Intergovernmental 2,331,938 2,331,938 2,325,751 (6,187) Miscellaneous revenue 2,500 2,500 54 (2,446) Total Revenues 2,359,438 2,359,438 2,400,659 41,221 Expenditures
Current
Public works 2,184,229 2,187,287 2,141,270 46,017 Total expenditures 2,184,229 2,187,287 2,141,270 46,017 Excess (deficiency) of revenues
over (under) expenditures 175,209 172,151 259,389 87,238 Other financing sources (uses)
Transfers in 705,500 705,500 705,500 - Transfers out (1,000,000) (1,000,000) - 1,000,000 Total other
financing sources (uses) (294,500) (294,500) 705,500 1,000,000 Net change in fund balance (119,291) (122,349) 964,889 1,087,238 Fund balance at beginning of year 1,288,502 1,288,502 1,288,502 - Fund balance at end of year 1,169,211$ 1,166,153$ 2,253,391$ 1,087,238$ Budgeted Amounts

14.a
Packet Pg. 374
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 250$ 250$ 164,562$ 164,312$ Intergovernmental 777,000 777,000 753,310 (23,690) Total revenues 777,250 777,250 917,872 140,622 Other financing sources (uses)
Transfers out (837,000) (958,000) (1,844,780) (886,780) Net change in fund balance (59,750) (180,750) (926,908) (746,158) Fund balance at beginning of year 2,892,018 2,892,018 2,892,018 - Fund balance at end of year 2,832,268$ 2,711,268$ 1,965,110$ (746,158)$ Budgeted Amounts

14.a
Packet Pg. 375
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

94 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual –Other Grants Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 59,654$ 59,654$ Intergovernmental 1,482,000 1,833,000 1,272,649 (560,351) Total Revenues 1,482,000 1,833,000 1,332,303 (500,697) Expenditures
Current
Public works - 85,000 11,254 73,746 Excess (deficiency) of revenues
over (under) expenditures 1,482,000 1,748,000 1,321,049 (426,951) Other financing sources (uses)
Transfers out (1,482,000) (1,748,000) (510,021) 1,237,979 Total other
financing sources (uses) (1,482,000) (1,748,000) (510,021) 1,237,979 Net change in fund balance - - 811,028 811,028 Fund balance at beginning of year (1,040,149) (1,040,149) (1,040,149) - Fund balance at end of year (1,040,149)$ (1,040,149)$ (229,121)$ 811,028$ Budgeted Amounts

14.a
Packet Pg. 376
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

95 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 11,900$ 11,900$ 209,280$ 197,380$ Parkland dedication fees 400,000 400,000 581,630 181,630 Total revenues 411,900 411,900 790,910 379,010 Other financing sources (uses)
Transfers out (428,000) (428,000) (260,035) 167,965 Net change in fund balance (16,100) (16,100) 530,875 546,975 Fund balance at beginning of year 3,432,945 3,432,945 3,432,945 - Fund balance at end of year 3,416,845$ 3,416,845$ 3,963,820$ 546,975$ Budgeted Amounts

14.a
Packet Pg. 377
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

96 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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 1,143,000$ 1,143,000$ 1,947,465$ 804,465$ Special assessments 1,210,000 1,210,000 1,197,356 (12,644) Investment income - - 54,630 54,630 Intergovernmental 2,500 2,500 2,215 (285) Miscellaneous revenues 25,000 25,000 96,909 71,909 Total revenues 2,380,500 2,380,500 3,298,575 918,075 Expenditures
Current
Public works 3,844,436 3,956,927 4,178,294 (221,367) Total expenditures 3,844,436 3,956,927 4,178,294 (221,367) Excess (deficiency) of revenues
over (under) expenditures (1,463,936) (1,576,427) (879,719) 696,708 Other financing sources (uses)
Transfers in 999,000 999,000 999,000 - Total other
financing sources (uses) 999,000 999,000 999,000 - Net change in fund balance (464,936) (577,427) 119,281 696,708 Fund balance at beginning of year 1,470,464 1,470,464 1,470,464 - Fund balance at end of year 1,005,528$ 893,037$ 1,589,745$ 696,708$ Budgeted Amounts

14.a
Packet Pg. 378
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

97 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 2,500$ 2,500$ 5,773$ 3,273$ Intergovernmental - - 1,589 1,589 Miscellaneous revenues 10,000 10,000 - (10,000) Total revenues 12,500 12,500 7,362 (5,138) Net change in fund balance 12,500 12,500 7,362 (5,138) Fund balance at beginning of year 107,753 107,753 107,753 - Fund balance at end of year 120,253$ 120,253$ 115,115$ (5,138)$ Budgeted Amounts

14.a
Packet Pg. 379
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

98 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ 39,641$ 39,141$ Intergovernmental - 197,972 108,000 (89,972) Charges for services 65,000 65,000 982,320 917,320 Miscellaneous revenues 49,356 49,356 - (49,356) Total revenues 114,856 312,828 1,129,961 817,133 Expenditures
Current
Public works 587,754 785,726 591,504 194,222 Excess (deficiency) of revenues
over (under) expenditures (472,898) (472,898) 538,457 1,011,355 Other financing sources (uses)
Transfers in 187,000 187,000 187,000 - Transfers out - - (50,000) (50,000) Total other
financing sources (uses) 187,000 187,000 137,000 (50,000) Net change in fund balance (285,898) (285,898) 675,457 961,355 Fund balance at beginning of year 436,522 436,522 436,522 - Fund balance at end of year 150,624$ 150,624$ 1,111,979$ 961,355$ Budgeted Amounts

14.a
Packet Pg. 380
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

99 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 10,635$ 10,635$ Intergovernmental 100,000 100,000 177,826 77,826 Total revenues 100,000 100,000 188,461 88,461 Expenditures
Current
Public safety 144,333 161,044 155,166 5,878 Net change in fund balance (44,333) (61,044) 33,295 94,339 Fund balance at beginning of year 180,649 180,649 180,649 - Fund balance at end of year 136,316$ 119,605$ 213,944$ 94,339$ Budgeted Amounts

14.a
Packet Pg. 381
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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 Restitution Fund Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Fines/Forfeits/Penalties 45,000$ 45,000$ 37,325$ (7,675)$ Investment income - - 5,156 5,156 Total Revenues 45,000 45,000 42,481 (2,519) Expenditures
Current
Community Development 30,000 30,000 2,901 27,099 Total expenditures 30,000 30,000 2,901 27,099 Net change in fund balance 15,000 15,000 39,580 24,580 Fund balance at beginning of year 97,235 97,235 97,235 - Fund balance at end of year 112,235$ 112,235$ 136,815$ 24,580$ Budgeted Amounts

14.a
Packet Pg. 382
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

101
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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Special assessments 146,350$ 146,350$ 146,672$ 322$ Investment income 550 550 384 (166) Total revenues 146,900 146,900 147,056 156 Expenditures
Current
Community development 3,700 3,700 3,971 (271) Excess (deficiency) of revenues
over (under) expenditures 143,200 143,200 143,085 (115) Other financing sources (uses)
Transfers out (143,000) (143,000) (143,000) - Net change in fund balance 200 200 85 (115) Fund balance at beginning of year 897 897 897 - Fund balance at end of year 1,097$ 1,097$ 982$ (115)$ Budgeted Amounts

14.a
Packet Pg. 383
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

102
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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 10,078$ 10,078$ Special assessments 35,250 50,673 48,171 (2,502) Total revenues 35,250 50,673 58,249 7,576 Expenditures
Current
Public Works 28,000 28,000 23,868 4,132 Excess (deficiency) of revenues
over (under) expenditures 7,250 22,673 34,381 11,708 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 (4,750) 10,673 22,381 11,708 Fund balance at beginning of year 201,961 201,961 201,961 - Fund balance at end of year 197,211$ 212,634$ 224,342$ 11,708$ Budgeted Amounts

14.a
Packet Pg. 384
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

103
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Project revenues -$ -$ 101,987$ 101,987$ Miscellaneous revenues 507,000 507,000 - (507,000) Total revenues 507,000 507,000 101,987 (405,013) Expenditures
Current
Other 581,500 48,335 - 48,335 Capital outlay 6,114,745 15,973,080 4,153,269 11,819,811 Excess (deficiency) of revenues
over (under) expenditures (6,189,245) (15,514,415) (4,051,282) 11,463,133 Other financing sources (uses)
Transfers in 6,189,245 6,690,245 4,090,496 (2,599,749) Total other
financing sources (uses) 6,189,245 6,690,245 4,090,496 (2,599,749) Net change in fund balance - (8,824,170) 39,214 8,863,384 Fund balance at beginning of year 929,106 929,106 929,106 - Fund balance at end of year 929,106$ (7,895,064)$ 968,320$ 8,863,384$ Budgeted Amounts

14.a
Packet Pg. 385
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 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 Capital Projects Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 200,000$ 200,000$ 2,091,758$ 1,891,758$ Intergovernmental 2,859,225 2,859,225 - (2,859,225) TOTAL REVENUES 3,059,225 3,059,225 2,091,758 (967,467) Expenditures
Capital outlay 1,722,533 59,130,756 14,542,798 44,587,958 Total expenditures 1,722,533 59,130,756 14,542,798 44,587,958 Excess (deficiency) of revenues
over (under) expenditures 1,336,692 (56,071,531) (12,451,040) 43,620,491 Other financing sources (uses)
Transfers in - 1,451,000 - (1,451,000) Total other
Financing sources (uses) - 1,451,000 - (1,451,000) Net Change in Fund Balance 1,336,692 (54,620,531) (12,451,040) 42,169,491 Fund Balance at Beginning of Year 52,842,127 52,842,127 52,842,127 - Fund Balance at End of Year 54,178,819$ (1,778,404)$ 40,391,087$ 42,169,491$ Budgeted Amounts

14.a
Packet Pg. 386
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

105
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ 744$ 244$ Expenditures
Debt Service
Principal 630,000 630,000 605,000 25,000 Interest and fees 139,200 139,200 148,700 (9,500) Total expenditures 769,200 769,200 753,700 15,500 Excess (deficiency) of revenues
over (under) expenditures (768,700) (768,700) (752,956) 15,744 Other financing sources (uses)
Transfers in 766,600 766,600 766,600 - Net change in fund balance (2,100) (2,100) 13,644 15,744 Fund balance at beginning of year 19,461 19,461 19,461 - Fund balance at end of year 17,361$ 17,361$ 33,105$ 15,744$ Budgeted Amounts

14.a
Packet Pg. 387
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

106
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 2,600,000$ 2,600,000$ 2,543,635$ (56,365)$ Investment income - - 81,256 81,256 Total revenues 2,600,000 2,600,000 2,624,891 24,891 Expenditures
General government 1,500 1,500 - 1,500 Debt Service 4,365,250 4,365,250 4,365,250 - Total expenditures 4,366,750 4,366,750 4,365,250 1,500 Excess (deficiency) of revenues
over (under) expenditures (1,766,750) (1,766,750) (1,740,359) 26,391 Net change in fund balance (1,766,750) (1,766,750) (1,740,359) 26,391 Fund balance at beginning of year 4,123,176 4,123,176 4,123,176 - Fund balance at end of year 2,356,426$ 2,356,426$ 2,382,817$ 26,391$ Budgeted Amounts

14.a
Packet Pg. 388
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

107
City of Campbell
Internal Service Funds
June 30, 2024

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.

14.a
Packet Pg. 389
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

108
City of Campbell
Combining Statement of Net Position – Internal Service Funds June 30, 2024

Motor Workers' Information
Vehicle Compensation Technology
Pool Self-Insurance Services Total
Assets
Current assets
Cash and investments 861,862$ 4,826,583$ 583,587$ 6,272,032$ Accounts receivable 7,566 43,710 9,175 60,451 Prepaid items - - 122,313 122,313 Deposits - 90,000 - 90,000 Total current assets 869,428 4,960,293 715,075 6,544,796 Noncurrent assets
Capital assets, net 1,172,841 - 147,295 1,320,136 Total noncurrent assets 1,172,841 - 147,295 1,320,136 Total assets 2,042,269 4,960,293 862,370 7,864,932 Deferred outflows of resources
Amount related to pensions 210,367 - 390,009 600,376 Amount related to OPEB 26,125 - 63,889 90,014 Total deferred outflows of resources 236,492 - 453,898 690,390 Liabilities
Current liabilities
Accounts payable 63,400 48,294 294,665 406,359 Accrued payroll 19,225 - 41,150 60,375 Compensated absences, current portion 18,333 - 27,345 45,678 Leases payable 437,240 - - 437,240 Subscription liabilities - - 36,175 36,175 Claims and judgments payable, current portion - 519,912 - 519,912 .

Total current liabilities 538,198 568,206 399,335 1,505,739 Noncurrent liabilities
Compensated absences 16,921 - 31,270 48,191 Claims and judgments payable - 2,912,524 - 2,912,524 Net OPEB liability 49,664 - 121,454 171,118 Net pension liability 688,980 - 1,277,330 1,966,310 Total noncurrent liabilities 755,565 2,912,524 1,430,054 5,098,143 Total liabilities 1,293,763 3,480,730 1,829,389 6,603,882 Deferred inflows of resources
Amount related to OPEB 8,953 - 21,894 30,847 Total deferred inflows of resources 8,953 - 21,894 30,847 Net position
Net investments in capital assets 735,601 - 111,120 846,721 Unrestricted 240,444 1,479,563 (646,135) 1,073,872 Total net position 976,045$ 1,479,563$ (535,015)$ 1,920,593$

14.a
Packet Pg. 390
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

109
City of Campbell
Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds Year Ended June 30, 2024

Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service Total
Operating revenues
Investment income 37,001$ 230,171$ 4,334$ 271,506$ Charges for services 1,101,068 697,668 1,161,992 2,960,728 Other 3,024 3,598 20,392 27,014 Total operating revenues 1,141,093 931,437 1,186,718 3,259,248 Operating expenses
Personnel services 411,435 - 583,430 994,865 Services and supplies 556,714 (11,147) 789,128 1,334,695 Depreciation and amortization 346,237 - 27,530 373,767 Total operating expenses 1,314,386 (11,147) 1,400,088 2,703,327 Operating gain (loss) (173,293) 942,584 (213,370) 555,921 Nonoperating income (expenses)
Loss on disposal of capital assets (1,714) - (12,270) (13,984) Income (loss) before transfers (175,007) 942,584 (225,640) 541,937 Transfers
Transfers in - - 769,322 769,322 Transfers out (3,900) - - (3,900) Total transfers (3,900) - 769,322 765,422 Net change in net position (178,907) 942,584 543,682 1,307,359 Net position at beginning of year 1,154,952 536,979 (1,078,697) 613,234 Net position at end of year 976,045$ 1,479,563$ (535,015)$ 1,920,593$

14.a
Packet Pg. 391
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

110
City of Campbell
Combining Statement of Cash Flows – Internal Service Funds Year Ended June 30, 2024

Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service Total
Cash flows from operating activities
Cash received from department users 1,138,461$ 920,317$ 1,178,034$ 3,236,812$ Cash payments to suppliers of goods and services (537,568) (419,830) (694,910) (1,652,308) Cash payments to employees for services (357,504) - (826,984) (1,184,488) Net cash provided (used)
by operating activities 243,389 500,487 (343,860) 400,016 Cash flows from noncapital
financing activities
Cash received from other funds - - 769,322 769,322 Cash paid to other funds (3,900) - - (3,900) Net cash provided by
noncapital financing activities (3,900) - 769,322 765,422 Cash flows from capital and related financing activities Acquisition of capital assets (86,290) - 39,761 (46,529) Net cash used by capital and
related financing activities (86,290) - 39,761 (46,529) Net increase (decrease) in
cash and cash equivalents 153,199 500,487 465,223 1,118,909 Cash and cash equivalents
at beginning of year 708,663 4,326,096 118,364 5,153,123 Cash and cash equivalents
at end of year 861,862$ 4,826,583$ 583,587$ 6,272,032$ Reconciliation of opearting income (loss)
to net cash provided (used) by operating activities
Operating income (loss) (173,293)$ 942,584$ (213,370)$ 555,921$ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 346,237 - 27,530 373,767 Changes in operating assets and liabilities
(Increase) decrease in accounts receivables (2,632) (11,120) (8,684) (22,436) (Increase) decrease in prepaid expenses - - (122,313) (122,313) Increase (decrease) in accounts payable 19,146 48,294 216,531 283,971 Increase (decrease) in accrued payroll 1,995 - 435 2,430 Increase (decrease) in compensation absences (1,647) - (38,967) (40,614) Increase (decrease) in subscription liabilities - - (52,927) (52,927) Increase (decrease) in claims and judgements payable - (479,271) - (479,271) Increase (decrease) in net OPEB and related deferrals (637) - (1,560) (2,197) Increase (decrease) in net pension and related deferrals 54,220 - (150,535) (96,315) Net cash provided (used)
by operating activities 243,389$ 500,487$ (343,860)$ 400,016$

14.a
Packet Pg. 392
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

111
City of Campbell
Custodial Funds
June 30, 2024

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.

14.a
Packet Pg. 393
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

112
City of Campbell
Combining Statement of Fiduciary Net Position – Custodial Funds June 30, 2024

West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Assets
Cash and investments 1,087,449$ 33,700$ 1,476,719$ 2,597,868$ Accounts receivable 6,473 308 - 6,781 Total assets 1,093,922 34,008 1,476,719 2,604,649 Liabilities
Accounts payable 128,891 - - 128,891 Unearned revenues 374,757 - - 374,757 Total liabilities 503,648 - - 503,648 Net Position
Restricted for individuals
and organizations 590,274$ 34,008$ 1,476,719$ 2,101,001$

14.a
Packet Pg. 394
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

113
City of Campbell
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds Year Ended June 30, 2024

West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Additions
Local government-administered
contributions 1,283,670$ -$ -$ 1,283,670$ Other income 223,100 - 496,361 719,461 Investment income 23,789 1,674 - 25,463 Total additions 1,530,559 1,674 496,361 2,028,594 Deductions
Professional and special services 980,563 - - 980,563 Administrative 300,000 - 559,855 859,855 Total deductions 1,280,563 - 559,855 1,840,418 Change in net position 249,996 1,674 (63,494) 188,176 Net position at beginning of year 340,278 32,334 1,540,213 1,912,825 Net position at end of year 590,274$ 34,008$ 1,476,719$ 2,101,001$

14.a
Packet Pg. 395
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

14.a
Packet Pg. 396
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

Statistical Section (Unaudited)
June 30, 2024
City of Campbell

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Packet Pg. 397
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

114
City of Campbell
Description of Statistical Section Contents
Year Ended June 30, 2024

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.

Contents:

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. 115 - 120

Revenue Capacity these schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 121 - 124

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. 125 - 129

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. 130 - 131

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. 132 - 134

Sources:

Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year

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Packet Pg. 398
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

115
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
$100,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net of Related Debt Restricted Unrestricted

14.a
Packet Pg. 399
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

116
City of Campbell
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)

2015 2016 2017 2018 2019
Governmental activities: (A)
Net investments in
capital assets 22,884,579$ 26,997,661$ 34,884,223$ 38,177,017$ 47,429,206$ Restricted 21,868,884 23,616,442 17,077,829 15,970,726 17,211,524 Unrestricted (20,170,607) (12,748,328) (12,358,383) (21,605,385) (24,121,289) Total governmental activities net position 24,582,856$ 37,865,775$ 39,603,669$ 32,542,358$ 40,519,441$ Primary government:

Net investments in
capital assets 22,884,579$ 26,997,661$ 34,884,223$ 38,177,017$ 47,429,206$ Restricted 21,868,884 23,616,442 17,077,829 15,970,726 17,211,524 Unrestricted (20,170,607) (12,748,328) (12,358,383) (21,605,385) (24,121,289) Total primary government net position 24,582,856$ 37,865,775$ 39,603,669$ 32,542,358$ 40,519,441$ 2020 2021 2022 2023 2024
Governmental activities:

Net investments in
capital assets 48,798,520$ 56,200,867$ 60,313,314$ 69,455,950$ 75,408,051$ Restricted 20,196,004 21,541,280 22,029,954 19,250,568 20,120,283 Unrestricted (32,631,237) (37,922,516) (32,155,840) (29,843,712) (36,180,418) Total governmental activities net position 36,363,287$ 39,819,631$ 50,187,428$ 58,862,806$ 59,347,916$ Primary government:

Net investments in
capital assets 48,798,520$ 56,200,867$ 60,313,314$ 69,455,950$ 75,408,051$ Restricted 20,196,004 21,541,280 22,029,954 19,250,568 20,120,283 Unrestricted (32,631,237) (37,922,516) (32,155,840) (29,843,712) (36,180,418) Total primary government net position 36,363,287$ 39,819,631$ 50,187,428$ 58,862,806$ 59,347,916$ (A) Reported Pension Liability resulted in a negative $20.1 million of unrestricted in net position in order to comply with provision of GASB 68.

Fiscal Year Ended June 30,
Fiscal Year Ended June 30,

14.a
Packet Pg. 400
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

117
City of Campbell
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses:

Governmental activities:

General government 6,146,700$ 6,679,357$ 9,472,432$ 7,671,343$ 7,315,270$ 8,363,548$ 7,740,547$ 7,780,899$ 10,756,246$ 11,047,211$ Public safety 21,022,373 22,179,057 23,679,842 27,628,421 29,623,711 31,160,818 31,982,827 30,801,294 29,060,937 35,745,519 Public Works 11,194,915 10,595,886 11,122,831 15,187,009 13,981,288 15,040,395 12,994,559 13,002,919 16,603,696 18,812,196 Community Development 2,047,303 2,590,034 3,111,691 3,484,767 3,661,787 4,166,582 2,938,422 2,853,912 4,758,602 5,447,126 Recreation and Community Services 5,613,775 5,689,721 6,166,806 6,894,086 7,183,132 6,765,508 4,281,719 4,942,719 6,569,294 7,753,645 Interest on long-term debt 965,225 936,250 579,013 336,577 330,687 324,934 1,056,277 1,319,942 1,794,044 1,865,614 Total Primary Government Expenses 46,990,291 48,670,305 54,132,615 61,202,203 62,095,875 65,821,785 60,994,351 60,701,685 69,542,819 80,671,311 Program Revenues:

Governmental activities:

Charges of services:

General government 1,478,895 1,624,617 1,602,647 1,586,881 18,592 9,375 342 1,814,425 1,993,223 2,188,702 Public safety 686,364 740,750 790,163 857,212 693,216 787,204 409,743 883,254 235,043 883,548 Public Works 2,787,091 3,443,486 3,464,407 3,178,780 3,522,641 3,530,034 4,289,206 2,793,430 5,014,492 2,564,257 Community Development 2,072,487 4,375,330 3,335,990 2,947,460 2,817,123 2,257,036 2,857,170 4,516,534 3,387,574 4,880,247 Recreation and Community Services 3,831,513 3,822,648 4,136,749 4,142,115 5,946,637 4,536,171 3,225,350 2,864,338 3,261,942 3,853,225 Operating Grants and Contribution 4,133,704 5,437,108 2,316,936 2,789,656 3,512,647 4,681,319 7,135,599 4,033,399 4,158,620 6,428,666 Capital Grants and Contributions 1,744,822 3,240,726 1,688,085 534,583 634,321 2,595,822 3,537,522 6,745,712 3,060,743 1,572,079 Total Primary Government Program Revenues 16,734,876 22,684,665 17,334,977 16,036,687 17,145,177 18,396,961 21,454,932 23,651,092 21,111,637 22,370,724 Net (Expense)/Revenue:

Total primary government net revenue (30,255,415) (25,985,640) (36,797,638) (45,165,516) (44,950,698) (47,424,824) (39,539,419) (37,050,593) (48,431,182) (58,300,587) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property tax 12,297,621 13,161,587 14,191,181 15,251,542 16,921,874 19,812,728 21,009,102 23,469,044 25,550,037 26,403,788 Sales Tax 13,915,291 14,818,495 14,297,751 14,859,014 15,684,222 13,965,745 14,006,163 16,419,363 18,832,569 16,549,227 Transient Occupancy Tax 4,091,923 4,439,668 4,420,208 4,554,949 4,768,870 3,144,208 1,568,908 2,657,334 3,626,019 3,747,247 Franchise Fees 3,322,031 3,319,603 3,478,916 3,586,297 3,515,547 3,527,926 3,458,300 3,690,355 3,924,558 4,135,646 Business License Taxes 662,787 683,445 694,569 698,184 693,263 664,071 666,642 659,094 656,109 666,379 Property Transfer Taxes 526,054 551,007 467,990 761,583 519,407 566,794 542,456 665,607 335,574 374,144 Construction Taxes 50,710 338,718 208,373 85,406 26,451 50,505 143,066 212,975 47,353 57,595 Motor Vehicle In Lieu 26,321 69,109 19,077 45,523 20,494 34,231 135,448 47,981 44,984 54,209 Investment earnings 529,495 487,662 171,257 181,016 1,040,069 1,062,566 122,547 (1,114,797) 1,754,835 4,305,013 Miscellaneous 153,958 1,399,265 586,210 436,370 293,126 439,896 1,343,131 2,170,315 2,334,522 2,492,449 Total Primary Government 35,576,191 39,268,559 38,535,532 40,459,884 43,483,323 43,268,670 42,995,763 48,877,271 57,106,560 58,785,697 Change in Net Position
Governmental activities 5,320,776 13,282,919 1,737,894 (4,705,632) (1,467,375) (4,156,154) 3,456,344 11,826,678 8,675,378 485,110 Total primary government 5,320,776$ 13,282,919$ 1,737,894$ (4,705,632)$ (1,467,375)$ (4,156,154)$ 3,456,344$ 11,826,678$ 8,675,378$ 485,110$

(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.

14.a
Packet Pg. 401
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

118
City of Campbell
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

$(20,000,000)
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Non-Spendable Committed Assigned Unassigned Total General Fund Total General Fund Restricted Committed Assigned Unassigned

14.a
Packet Pg. 402
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

119
City of Campbell
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Non-Spendable -$ -$ -$ -$ -$ -$ -$ -$ 173,181$ 199,081$ Committed 22,930,342 25,392,112 23,896,221 21,592,089 21,743,948 5,192,639 4,296,174 3,482,825 3,091,992 2,916,934 Assigned 2,176,615 3,830,100 4,027,890 4,528,546 4,257,115 3,757,823 3,643,857 3,918,437 4,013,616 3,791,233 Unassigned 961,258 1,000,000 999,994 360,129 1,026,759 13,322,046 12,976,419 14,525,529 14,864,482 14,055,964 Total General Fund 26,068,215$ 30,222,212$ 28,924,105$ 26,480,764$ 27,027,822$ 22,272,508$ 20,916,450$ 21,926,791$ 22,143,271$ 20,963,212$ All Other
Governmental Funds
Restricted 21,623,743$ 23,493,450$ 16,993,836$ 15,772,926$ 17,211,524$ 20,250,454$ 40,615,483$ 72,927,462$ 75,653,168$ 62,927,292$ Committed - 1,223,623 - - - - - - - - Assigned 108,767 140,666 1,758,104 1,747,982 1,715,955 1,703,633 914,232 947,217 929,106 968,320 Unassigned (1,234,364) (2,414,736) (2,064,713) (498,452) (242,428) (311,506) (1,424,397) (938,687) (1,040,149) (229,121) Total all other
governmental funds 20,498,146$ 22,443,003$ 16,687,227$ 17,022,456$ 18,685,051$ 21,642,581$ 40,105,318$ 72,935,992$ 75,542,125$ 63,666,491$

14.a
Packet Pg. 403
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

120
City of Campbell
Changes in Fund Balances of Governmental Fund
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes 34,881,417$ 37,324,522$ 37,768,238$ 39,809,475$ 42,145,259$ 41,269,352$ 41,967,223$ 47,782,758$ 52,987,985$ 51,944,916$ License, permits and fees 2,839,871 6,900,052 3,873,976 3,214,847 3,232,524 3,714,070 4,493,838 3,742,393 3,387,574 3,344,256 Special Assessments 1,329,637 1,369,696 1,387,853 1,377,069 1,469,308 1,391,283 1,398,933 1,391,231 1,406,520 1,392,199 Fines and forfeitures 354,445 324,137 320,193 345,627 704,030 694,347 547,469 222,721 212,102 209,337 Use of money and property 2,604,602 2,746,371 2,829,484 3,115,345 4,273,538 3,492,676 2,065,292 1,734,314 4,876,180 7,205,957 Intergovernmental revenues 3,880,357 5,346,920 4,172,179 4,630,928 3,262,896 6,466,424 10,440,661 10,774,460 7,214,847 8,146,187 Changes for services 4,422,552 4,491,002 4,623,876 4,897,185 4,784,243 3,268,310 2,566,943 5,696,772 6,059,638 7,225,373 Other 1,117,511 2,237,463 1,200,939 981,249 1,105,429 610,516 1,373,431 1,159,577 1,896,986 1,389,676 Total Revenues 51,430,392 60,740,163 56,176,738 58,371,725 60,977,227 60,906,978 64,853,790 72,504,226 78,041,832 80,857,901 Expenditures
Current:

General government 5,673,874 6,220,587 8,543,097 6,832,027 7,245,353 8,194,825 7,266,166 8,115,428 9,906,051 10,195,925 Public safety 21,049,851 23,007,615 24,544,078 25,837,666 27,423,109 29,132,295 31,419,241 30,639,409 31,703,764 33,907,880 Public works 10,305,115 10,506,080 11,493,731 12,576,675 10,940,940 11,170,432 10,748,474 11,675,932 12,556,021 13,748,043 Community development 2,063,640 2,702,702 3,230,153 3,166,797 3,387,115 3,608,339 2,938,030 3,392,935 4,545,041 4,611,952 Recreation and Community Services 5,340,786 5,611,544 6,080,395 6,235,452 6,663,662 5,854,410 4,018,010 5,190,818 6,146,030 6,801,733 Capital outlay 6,773,543 4,675,614 2,487,393 4,878,204 2,103,720 3,878,985 12,550,723 10,624,498 6,084,529 18,559,233 Debt services:

Principal repayment 775,000 810,000 625,000 595,000 605,000 535,000 1,690,000 2,253,957 3,790,441 3,399,448 Interest and fiscal changes 829,600 793,300 176,642 259,200 244,275 227,076 833,397 1,131,724 1,762,972 2,066,240 Bond issuance costs - - 209,762 - - - - - - - Payments to refunding escrow agent - - 6,203,790 - - - - - - - Total Expenditures 52,811,409 54,327,442 63,594,041 60,381,021 58,613,174 62,601,362 71,464,041 73,024,701 76,494,849 93,290,454 Excess (deficiency) of revenues over
(under) expenditures (1,381,017) 6,412,721 (7,417,303) (2,009,296) 2,364,053 (1,694,384) (6,610,251) (520,475) 1,546,983 (12,432,553) Other Financing Sources (Uses)
Transfers In 11,266,904 10,100,282 9,809,123 10,383,455 6,759,234 8,251,100 40,785,100 43,207,002 8,432,564 8,488,755 Transfers Out (11,519,504) (10,414,149) (9,659,635) (10,481,271) (6,913,634) (8,354,500) (40,239,796) (44,071,054) (8,984,144) (9,254,177) Issuance of debt - - 8,085,000 - - - 20,809,094 33,368,566 (590,026) (2,185,427) Premium from bond issuance - - 1,090,835 - - - 3,171,626 2,506,763 2,417,236 2,327,709 Payments to refunding escrow agent - - (8,962,993) - - - - - - - Total other financing sources (uses) (252,600) (313,867) 362,330 (97,816) (154,400) (103,400) 24,526,024 35,011,277 1,275,630 (623,140) Net Change in fund balances (1,633,617)$ 6,098,854$ (7,054,973)$ (2,107,112)$ 2,209,653$ (1,797,784)$ 17,915,773$ 34,490,802$ 2,822,613$ (13,055,693)$ Debt service as a percentage of
noncapital expenditures 3.5% 3.2% 11.8% * 1.5% 1.5% 1.3% 4.3% 5.4% 7.9% 7.3%

* 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.

14.a
Packet Pg. 404
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

121
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
$16,000,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Secured Unsecured

Total Total
Fiscal Secured HOPTR SBE Secured Unsecured Total Direct Year Property Exemptions Utilities Value Property Assessed (a) Tax Rate (b) 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% 2022 11,967,282,485 41,654,200 238,500 12,009,175,185 363,425,707 12,372,600,892 1% 2023 12,787,900,741 40,744,200 238,500 12,828,883,441 320,304,772 13,149,188,213 1% 2024 13,501,814,011 41,193,600 397,500 13,543,405,111 365,919,955 13,909,325,066 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.

14.a
Packet Pg. 405
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written

122
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Per Hundred $
Axis Title
City of Campbell SCVWD State Project Library Retirement Hospital and Housing Bond West Valley College SCC Retirement High School Bonds Elem or Unified Schools Basic Direct Tax Rate

Elem or Hospital
Basic Unified High SCVWD West and
Expenses Direct SCC Library City of School School State Valley Housing Year Tax Rate Retirement Retirement Campbell Bonds Bonds Project College Bond Total 2015 1.0000 0.0388 0.0024 0.0000 0.0517 0.0284 0.0065 0.0120 0.0091 1.1489 2016 1.0000 0.0388 0.0024 0.0000 0.0467 0.0257 0.0057 0.0232 0.0088 1.1513 2017 1.0000 0.0388 0.0024 0.0000 0.0442 0.0252 0.0086 0.0196 0.0086 1.1474 2018 1.0000 0.0388 0.0024 0.0000 0.0437 0.0519 0.0062 0.0200 0.0209 1.1839 2019 1.0000 0.0388 0.0024 0.0000 0.0418 0.0487 0.0042 0.0198 0.0177 1.1734 2020 1.0000 0.0388 0.0024 0.0100 0.0415 0.0436 0.0041 0.0296 0.0169 1.1869 2021 1.0000 0.0388 0.0024 0.0100 0.0415 0.0439 0.0037 0.0311 0.0069 1.1783 2022 1.0000 0.0388 0.0024 0.0175 0.0672 0.0421 0.0051 0.0304 0.0188 1.2223 2023 1.0000 0.0388 0.0024 0.0200 0.0672 0.0410 0.0044 0.0283 0.0171 1.2192 2024 1.0000 0.0388 0.0024 0.0175 0.0672 0.0366 0.0041 0.0258 0.0150 1.2074

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%

14.a
Packet Pg. 406
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

123
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 223,375,439$ 1 1.61%
AG-SW Hamilton Plaza Owner LP 155,882,615 2 1.12% Pruneyard Office Investors LLC 151,716,597 3 1.09% KW Fund V1 Vasona Medical Tech 150,194,999 4 1.08% 675 Creekside Owner LLC 146,113,811 5 1.05%
Revere LLC 116,726,944 6 0.84%
Parc Residences LLC 115,212,584 7 0.83%
Campbell Technology Park LLC 89,364,810 8 0.64% 75,864,721$ 4 0.99% SHI-III Campbell LP 75,120,354 9 0.54%
Raintree Campbell LLC 73,237,020 10 0.53%
CFEP Pruneyard LLC 212,746,369 1 2.76%
Legacy III Campbell LLC 121,448,892 2 1.58%
CRP Vasona LLC 76,335,439 3 0.99%
RP Maximus Pruneyard Owner LLC 56,403,367 5 0.73% Hamilton Plaza Investors LLC 53,740,555 6 0.70%
Bay Apartment Communities Inc 52,136,127 7 0.68%
Essex The commons LP 44,466,182 8 0.58%
Marc W Buzolich Trustee Et Al 43,250,000 9 0.56%
Campbell Plaza Apartments LLC 27,686,276 10 0.36% 1,296,945,173$ 9.32% 764,077,928$ 9.93%
Total Net Assessed Valuation
Fiscal Year 2023-2024 13,909,325,066$
Fiscal Year 2014-2015 7,696,495,703
Source: Santa Clara Tax Assessor's Office.
2023-24 2014-15

14.a
Packet Pg. 407
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

124
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
$30,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 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% 2022 23,464,393 23,464,393 100% - 23,464,393 100% 2023 25,587,659 25,587,659 100% - 25,587,659 100% 2024 26,437,162 26,437,162 100% - 26,437,162 100%

Source: City of Campbell Records

NOTES: 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) Includes RDA in total tax levy through 1/31/2012.

14.a
Packet Pg. 408
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

125
City of Campbell
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years

$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Fiscal
General
Obligation SBITAs &
Lease Revenue
Bonds and
Certificates of
Total
Primary
Percentage
of Personal Per
Year Bonds Loans Leases Participation (b) Government Income (a) Capita (a) 2015 -$ -$ -$ 18,380,066$ 18,380,066$ 0.6290% 439.12 2016 - - - 17,722,700 17,722,700 0.5742% 416.18 2017 - - - 10,359,329 10,359,329 0.3157% 242.46 2018 - - - 9,935,519 9,935,519 0.2892% 232.70 2019 - - - 9,511,787 9,511,787 0.2636% 219.93 2020 - - - 9,168,762 9,168,762 0.2175% 216.82 2021 21,925,905 - - 9,458,411 31,384,316 0.7308% 212.41 2022 52,666,947 4,153,703 267,692 9,012,853 66,101,195 1.4387% 1,543.23 2023 49,471,699 3,788,075 2,082,339 8,564,972 63,907,085 1.3447% 1,496.20 2024 46,786,451 3,403,722 1,994,909 8,110,576 60,295,658 1.2136% 1,399.13

Note: Debt amounts exclude any premiums, discounts, or other amortization amounts.

RDA tax allocation bonds are included in total debt through 1/31/2012.

Sources: City of Campbell
State of California, Department of Finance (population) U.S. Department of Commerce, Bureau of the Census (income)

(a) See page 130 (Demographic Statistics) for personal income and population data. (b) Certificates of Participation were refinanced in 2017. A portion of the Certificates related to the Campbell Successor Agency was repaid during the refinancing.

14.a
Packet Pg. 409
Attachment: ACFR - FY2023-24 (Acceptance of Fiscal 2023-24 ACFR and Auditor's Written Communication on Internal Control)

126
City of Campbell
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years

Fiscal
Total Primary
Government
Less: Amounts
Available in Debt
Percentage of
Estiamted Actual
Taxable Value of Per
Year Debt (a) Service Fund (b) Total Property (c) Capita (d) 2015 18,380,066$ -$ 18,380,066$ 0.0000% 439.12 2016 17,722,700 - 17,722,700 0.0000% 416.18 2017 10,359,329 - 10,359,329 0.0000% 242.46 2018 9,935,519 - 9,935,519 0.0000% 232.70 2019 9,511,787 - 9,511,787 0.0000% 219.93 2020 9,168,762 1,114,130 8,054,632 -0.0101% 216.82 2021 31,384,316 3,774,338 27,609,978 0.1537% 212.41 2022 66,101,195 5,821,476 60,279,719 0.3786% 1,543.23 2023 63,907,085 4,123,176 59,783,909 0.3449% 1,494.11 2024 60,295,658 2,382,817 57,912,841 0.4164% 1,399.13

Campbell City CouncilMarch 18, 2025

Campbell City Council
March 18, 2025