FY 2025/26 and FY 2026/27
Proposed Biennial
Operating Budget
Budget-in-Brief
To Our Santa Clara Residents:
The Proposed Biennial Operating Budget for fiscal years (FY) 2025/26 and 2026/27 is presented for consideration and
continues our two-year budgeting process that alternates between the operating and capital budgets. This year’s budget focuses on our day-to-day operations that support vital City services, and important amendments to the second year of the biennial capital budget that you approved last year.
As part of the budget deliberation process, two City Council study sessions are scheduled for May 13, 2025, and May 27, 2025, before the public hearing and planned budget adoption on June 10, 2025. The City Council approved amendments to the City’s Municipal Fee Schedule on April 29, 2025. The effective date of those fee changes aligns with the July 1, 2025 start date for the Proposed Biennial Operating Budget.
For FY 2025/26, the Proposed Operating Budget totals $1.2 billion. The enterprise funds that are used to manage the City’s utilities (Silicon Valley Power, water, sewer, and solid waste) represent the largest share of the budget at 57.9%. The General Fund budget totals $333.6 million, or 19.5% of the budget, and is used to fund many direct services, such as police and fire public safety services, libraries, parks, community centers, and streets maintenance.
The City’s financial position has improved since the adoption of the last biennial operating budget. When looking at projected revenue and expenses, the Ten-Year General Fund Forecast is positive by $9.3 million in FY 2025/26 and projects a deficit of $0.1 million in FY 2026/27. Small deficits and surpluses are projected for the remaining years of the forecast; however, the forecast does not include the capacity to fully restore prior cuts, add capacity to support new service areas and growth in the City, and to fully fund capital infrastructure maintenance and replacement.
This improved financial picture provides for targeted
investments that fund many of the City Council’s identified priorities as well as enhance the City’s operating reserves, restoring the Budget Stabilization Reserve (BSR) to the Council policy level of 25% of expenditures. The budget includes enhancements to key City services and funding for the implementation of Measure I – General Obligation (GO) Bond approved by the voters in November 2024.
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
Where the City Gets Its Money
FY 2025/26 and FY 2026/27 Funding Sources
FY 2025/26 and FY 2026/27 City Expenditure Budget
1.0 2.0
4.0 8.0
16.0 32.0
64.0 128.0
256.0
512.0
1,024.0$ in millions
FY 2025/26 Proposed FY 2026/27 Proposed
*FY 2024/25 Capital Improvement Program budget includes CIP carryover. **Excludes contributions, reserves, and transfers to avoid double counting.
User Fee Detail FY 2025/26 FY 2026/27 • Electric Utility Fees $ 851.9 M $ 938.0 M
• Water Utility Fees 82.3 M 89.9 M • Sewer Utility Fees 51.2 M 55.9 M • Solid Waste Fees 41.4 M 43.3 M
Fund Type
FY 2024/25
Adopted
Budget
FY 2025/26
Proposed
Budget
%
Change
FY 2026/27
Proposed
Budget
%
Change
General Fund $ 310,698,189 $ 333,645,699 7.4% $ 342,802,597 2.7% Special Revenue 41,458,963 42,154,763 1.7% 38,806,836 (7.9%) Enterprise 945,192,918 1,011,491,693 7.0% 1,100,414,703 8.8% Internal Service 45,724,215 51,116,529 11.8% 48,281,729 (5.5%) Debt/Other 152,273,904 273,236,049 79.4% 27,245,993 (90.0%) Capital Improvement
Program*
567,113,844 366,289,203 (35.4%) 149,309,062 (59.2%)
Less (Contributions,
Transfers and Reserves)**
(416,866,269) (528,008,962) 26.7% (302,635,147) (42.7%) Total Budget $ 1,645,595,764 $ 1,549,924,974 (5.8%) $ 1,404,225,773 (9.4%) City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
Property Tax
Sales Tax
Per $100 Collected Sales Tax Generators
Santa Clara
Unified School
District, $38.36 County of
Santa Clara,
$18.72
County Office
of Education,
$3.97
City of Santa
Clara, $10.18
West Valley
College,
$11.09
Other Special
Districts, $2.50 ERAF (Other School
Districts), $15.18
Office Equipment,
18.3%
Auto Sales -
New, 10.0%
Restaurants,
9.4%
Light
Industry,
7.0%
Electronic
Equipment,
4.6%
I.T.
Infrastructure,
4.2%
Department Stores,
3.9%
Bldg Matls -
Wholesale, 3.6%
Leasing,
2.2%
Business
Services, 2.2%
Other Categories,
34.6%
When you pay your property tax bill to the County,
the City of Santa Clara General Fund receives
$10.18 for every $100 collected. The City
anticipates receiving $101.2 million in FY 2025/26
and $106.0 million in FY 2026/27.
Sales tax revenue in the City of Santa Clara comes
from multiple sources. Office equipment, new
vehicles, restaurants, lights, electronic equipment an
I.T. infrastructure were the City’s leading economic
sales categories in the fourth quarter of 2024, making
up almost 54% of sales tax collections.
Where Your Sales Tax Goes Based on Purchase of $100
Sales Tax Paid is $9.125
State, $6.00
County
Transportation/VTA/
Caltrain, including
Measure B and
BART, $2.00
Santa Clara County –
General Purpose,
$0.125
City of
Santa Clara,
$1.00
For every dollar you spend in Santa Clara on
taxable purchases, you pay 9.125% in sales tax
or $9.125 for each $100 purchased.
Cities throughout the State receive a portion of the sales tax collected based on sales made within their respective city. For every $100 purchase you make within the City of Santa Clara, which is subject to sales tax, the City receives $1.00. The City anticipates receiving $65.9 million in FY 2025/26 and $67.8 million in FY 2026/27.
California statewide sales tax rate is 7.25%, of which the City of Santa Clara receives 1.00%. The total countywide sales tax rate 9.125%. Santa Clara County has the following six voter-approved add-on tax measures:
• 0.125% for County Retail Sales Transactions and Use
• 0.125% for VTA BART
• 0.125% for Peninsula Corridor Joint Powers Board (Caltrain) • 0.500% for Silicon Valley Transportation Solutions Tax • 0.500% for Santa Clara County Transit District (SCCT) • 0.500% for Santa Clara County Valley Transportation Authority (SCVT) City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
FY 2025/26 Proposed Budget
FY 2025/26 Positions by Department **
11.00 2.00 7.00 10.00 14.25 7.75
84.00 235.00
78.75 175.50
16.00 8.00
42.75 79.00
231.00
123.50
73.00 0.00
50.00 100.00
150.00
200.00
250.00
Total Positions: 1,198.50
Operating Budget Expenditures by Department *
General
Government
Departments/Other
8.9%, $126.7 M
Utility
Departments
66.7%, $948.9 M
Public Safety
Departments
12.8%, $ 181.7 M
Library, Parks &
Recreation
Departments
2.7%, $38.9 M
Department of Public
Works
6.9%, $98.2 M
Community
Development
Department
2.0%, $27.8 M
$ 1.422
Billion*
* Excludes internal service funds not tied to a particular department and debt service.
General
Government
Departments
/Other
8.0%,
$121.5 M
Utility
Departments
68.3%,
$1,034.5 M
Public Safety
Departments
12.6%, $190.1 M
Library, Parks &
Recreation
Departments
2.6%, $39.9 M
Department of
Public Works
6.6%, $100.5 M
Community
Development
Department
1.9%, $28.9 M
$ 1.515
Billion*
FY 2026/27 Proposed Budget
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
** In FY 2026/27, 6.0 grant-related positions expire in the Fire Department, 3.0 positions are restored in the Police Department and 1.0 position is added in the Department of Public Works, for a total net position count of 1,196.50.
Priority Areas of Focus
As part of the 2025 City Council Priority Setting session held on April 3, 2025, the City Council agreed on the following priorities as the most important for the next 12-18 months.
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
The Proposed Budget focuses on City Council
priorities identified during Council Priority Setting
sessions as well as improvements to vital City
services. The budget proposals also address
existing service gaps and restore and maintain
public safety positions. This includes the
continuation of 12.0 firefighter positions that were
funded by the Staffing for Adequate Fire and
Emergency Response (SAFER) grant as well as
the restoration of 3.0 frozen police sworn positions.
Positions are added to ensure the City can
successfully deliver the capital projects funded by
the $400 million bond measure. The Proposed
Budget also includes one-time expenses, and
associated reimbursement, to ensure the safety of
our community during major events planned at the
Stadium, including the Super Bowl and World Cup
matches. In addition, this budget helps prepare the
City for the future by supporting planning efforts,
restoring key reserves to 25%, and funding modest
annual contributions to support the City’s capital
infrastructure.
Budget Overview: What Does This Budget Do?
City
Council
Priorities
Vital City
Services
Implement
GO Bond
Projects
Prudent
Fiscal
Approach
Budget Highlights
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
Community Services
• Add two positions in the Community Development
Department’s Housing Division to address City Council
priorities including to help manage the implementation
of the Homelessness Response Plan and to support
items related to the implementation of the Housing
Element.
• Add funding for library materials in FY 2025/26 and FY 2026/27.
• Library will finalize the Library Strategic Plan and
Facilities Master Plan to provide data-based planning.
• Restoration of 3.0 sworn positions in the Field
Operations and Special Operations Divisions.
• Maintain a net 12.0 firefighter positions after the
end of the SAFER grant.
• Develop training to ensure personnel are prepared
for major events, including Super Bowl LX and FIFA
World Cup.
• Restore programs including Parks patrol, school
resource officers, traffic/motorcycle unit, Northside
Police Substation and community engagement
programs.
Public Safety
• Add 1.0 Recreation Manager in the Recreation Division to provide additional leadership capacity and support the Parks Master Plan and Arts Master Plan processes, Measure I projects.
• Provide programming for the newly opened Nuevo Community Buildings at Lawrence Station Area.
• The City Manager’s Office will continue to coordinate with various community groups and non-profit organizations to address needs of Santa Clara residents, including the continued effort of managing the MySantaClara application.
• Staff will enhance outreach and promotion of the Community Grants Program to encourage more applicants to apply to support high impact events/activities to benefit the community.
Budget Highlights
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
Economic Development
• Continue to lead and support the significant development projects including Related Santa Clara, Nvidia expansion, Intel expansion, as well as other projects within the community. • Develop economic development programs to support small and large businesses and revenue generation.
• The Convention Center is projected to have 176 events, with approximately 211,624 in attendance in FY 2025/26, and an estimated 228 events, with 306,969 in attendance in FY 2026/27. • Add 1.0 Management Analyst to support sustainability
efforts. This position will report to the City's Director of Economic Development & Sustainability and assist
with the implementation of and future amendments to
the City’s Climate Action Plan.
• Identify and implement a Climate Action Plan
dashboard system across departments to report
progress on adopted targets
• Optimize the recycled water system and increase
supply while focusing on expansion opportunities with
regional partners.
• Continue outreach regarding water conservation and
overall environmental sustainability.
Sustainability and Environmental Protection
Development Services
• Fee-supported budget proposals are recommended
to improve service and efficiency and support the
high volume of development activity. In the Building
Division, additions include 1.0 Plans Examiner and
1.0 Senior Inspector to help address the
development workload and 1.0 Business Analyst to
help improve the use of technology. In the Fire
Department, proposed additions include 1.0 Fire
Protection Engineer, 1.0 Fire Prevention Specialist,
and 1.0 Management Analyst as well as funding for
contractual plan review and inspection service.
Utility Operations
• The budget funds the operations of the City’s various utilities (electricity, sewer, water, recycled water, and solid waste). These operations are primarily funded by user rates. • For the Electric Utility, adds debt service funding to support system growth and adds funding for property to address staffing growth and storage for capital project materials. • Adds 3.75 positions in the Finance Municipal Services Division to improve customer service and respond to the workload levels.
Budget Highlights
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
• Add 4.0 positions to support the implementation of
General Obligation bond projects.
• Rehabilitate and expand park facilities, amenities
and playgrounds for all ages and abilities at
Warburton Park, Central Park Entrance, Parking
Improvements, Henry Schmidt Park, Mary Gomez
and Maywood Park.
• Initiate rehabilitation project for International Swim Center with the goal of reopening.
• Add funding to initiate a Public Arts Master Plan.
City Administration
• Budget actions are recommended to support the overall operations of the City, including the unfreezing of 1.0 Legal Office Specialist position in the City Attorney’s Office, funding for election costs for a potential Charter amendment measure, improved tools for performance management and recruiting in the Human Resources Department, the addition of 1.0 Senior Information Technology Services Manager to support numerous technology projects, and the addition of 1.0 Accountant in Finance and 1.0 Management Analyst in Public Works to revise the capital project accounting.
Fiscal Sustainability
• Bring the General Fund Budget Stabilization Reserve to Council policy level of 25% of expenditures. • Add funding for a Fiscal Sustainability Plan to serve as a blueprint moving forward. • Add ongoing funding to partially address capital infrastructure needs.
Stadium Operations and Special Events
• The Stadium Authority’s stand-alone Fiscal Year 2025/26 Operating, Debt and Capital Budget was adopted by the
Stadium Authority Board on March 11, 2025. The $79.5 million budget provides the necessary funding to administer the duties of the Stadium Authority,
• The Stadium budget and City budget include support for operating the Stadium for special events for Super Bowl LX and FIFA World Cup events. These events will be managed in
alignment with the applicable agreements that set forth the City’s role and reimbursement of City costs and in coordination with various stakeholders.
• Add funding for a feasibility study for a walkway at Tasman/Lafayette. • Add funding to explore the potential expansion of the City’s fiber network. • Continue to deliver critical projects approved as part of the FY 2025/26 Capital Budget.
Reliable Infrastructure and General Obligation Bond Projects
General Fund Budget Balancing Strategy
Each year, staff updates the General Fund Ten-Year Forecast that is used as the starting point in the development of the General Fund budget. The April 2025 Forecast showed a projected General Fund surplus of $9.3 million in FY 2025/26, followed by a small shortfall in FY 2026/27 of -$0.1 million. This was an improvement from the Forecast developed in April 2024 due to higher revenue projections.
The budget balancing strategy for FY 2025/26 and FY 2026/27 includes targeted investments and contributions to the Budget Stabilization Reserve (BSR). • Revenue Solutions – recognize excess FY 2024/25 fund balance as a result of higher revenue collections in the Sales Tax category and Stadium performance rent; and increase reimbursement revenue in FY 2026/27 related to utility-supported positions • Expenditure Adjustments – limited proposals to address items identified as part of the City Council Priority Setting sessions; addition of staffing resources to support the management and project delivery of the GO Bond implementation.
• Use of Reserves – set aside $6.5 million to address the anticipated shortall in FY 2026/27; allocate funding to the Budget Stabilization Reserve to bring reserve levels to 25% of expenditures.
The proposed balancing strategy addresses City Council priorities and other high priorities as identified by City Departments, while maintaining the City’s fiscal stability.
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
FY 2025/26 Uses ($23.1 M)
• Council Priorities & City Services ($3.8 M)
• GO Bond Implementation ($1.0 M)
• Budget Stabilization Reserve ($11.8 M)
• Reserve for FY 2026/27 ($6.5 M)
FY 2025/26 Sources
$23.1 M
Forecast Surplus: $9.3 M
2024/25 Carryover: $13.7 M
Use of Reserves: $0.1 M
FY 2026/27 Uses ($7.2 M)
• Council Priorities & City Services ($2.9 M)
• GO Bond Implementation ($2.0 M)
• Budget Stabilization Reserve ($2.3 M)
FY 2026/27 Sources
$7.2 M
Forecast Shortfall: ($0.1 M)
2026/27 Budget Reserve: $6.5 M
Overhead/Reimb/Reserves: $0.8 M
Changes from General Fund Forecast to Proposed Budget
City Councilmembers
Mayor Lisa M. Gillmor
Councilmember District 1 Albert Gonzalez
Councilmember District 2 Raj Chahal
Councilmember District 3 Karen Hardy
Councilmember District 4 Kevin Park
Councilmember District 5 Sudhanshu Jain
Vice Mayor, Councilmember District 6 Kelly G. Cox
City Department Contact Information
City Attorney’s Office (408) 615-2230
City Clerk’s Office (408) 615-2220
City Manager’s Office (408) 615-2210
Community Development Department
Building Division
Permit Center
Planning Division
Housing & Community Services
(408) 615-2440
(408) 615-2420
(408) 615-2450
(408) 615-2490
Electric Utility Department (408) 615-2300
Finance Department (408) 615-2340
Fire Department (408) 615-4900
Human Resources Department (408) 615-2080
Information Technology Department (408) 615-2022
Library Department (408) 615-2900
Parks & Recreation Department (408) 615-2260
Police Department (408) 615-4700
Department of Public Works
Engineering Office
Corporation Yard
(408) 615-3000
(408) 615-3080
Water & Sewer Utilities Department (408) 615-2000
City of Santa Clara Budget-in-Brief
FY 2025/26 and FY 2026/27
Proposed Biennial Operating Budget
The Budget-in-Brief is intended to provide an overview of the City of Santa Clara’s FY 2025/26 and FY 2026/27 Proposed Biennial Operating Budget. The complete budget document can be accessed on the Finance Department’s website at: SantaClaraCA.gov/Finance Questions about this report should be directed to:
City of Santa Clara - Finance Department
1500 Warburton Avenue
Santa Clara, CA 95050
(408) 615-2340