Planning for Fiscal Sustainability
in Difficult Times
February 19, 2009
Presented by Jesse Takahashi
Finance Director
City of Campbell
Background
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Built-out city of 40,000, in suburban San
Jose/Silicon Valley
4 years of deficits consumed $5.7 million
in reserves
$4 million in cuts made over 5 years
resulted in balanced budget in FY 07 and
FY 08
Further decline in economy, continued
State revenue take-away, and new fire
contract rekindled structural deficit
Projected General Fund
Revenues & Expenditures
$44
Actual
Projected
$41
M
i
l
l
i
o
n
s
$38
$35
$32
$29
$26
$23
$20
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14
Revenues
Expenditures
Timeline of Events
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March 2007--study session began focused discussion
of voter required revenue enhancement options
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July 2007--community satisfaction survey; included
two possible revenue measures
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October 2007--study session reviewed unmet
operating and capital needs, survey results and
revenue options; direction to pursue measure
and hire consultant
January 2008—Consultant begins planning process
for possible measure
March 2008—First directed polling to assess viability
of measure; strong support but lack of
knowledge over fiscal situation
Timeline of Events (cont)
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April 2008—launched community education &
outreach program
July 2008—conducted follow up community
polling; narrowed scope of possible
revenue measure
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August 2008—Council votes to place
Transactions & Use Tax on ballot
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Aug-Nov 2008—Partisan campaign begins;
City disseminates objective information
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Nov 2008—Voters pass measure with 71%
approval; effective April 1, 2009
Outreach Efforts
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Inventory of Community Organizations
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Citizens Budget Task Force
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Newsletter and Newspaper Articles
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Citywide Mailing
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Community Forums
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Presentations to Community Groups
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Information Tables at Public Events
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Feedback Forms
Summary of Options
1. Raise revenue via a ballot measure to
maintain current service levels
2. Reduce expenditures and/or raise fees by
$2 million to eliminate deficit
3. Some combination of the above
What level of service and quality of life do we
want for our community ?
Recommendation
Maintain current services from a ¼ cent
sales tax increase
 Locally raised funds would stay local
 40+ cities have adopted such measures
 A $50 pair of jeans or dress would cost an
extra 13 cents; a $1,000 computer would
cost an extra $2.50
Keys to Success
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Self Assessment
Community Priorities
Unified Board or Council
Education and Outreach
It’s all About the Trust
Communicate, Communicate,
Communicate
Assemble a Capable Team
Speak with One Voice
Obstacles to Success
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Naysayers (Internal and External)
Limited Budget/Resources
Getting Your Ducks Lined up
• Workers, Endorsements and partisan
campaign volunteers
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Poor Economy
Reasons for Distrust in Local Officials
Maintaining Momentum through
Entire Process
Reasons for Optimism
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Strike While Iron is Hot
New President has Created Renewed Hope
and Optimism Among Public
Public is Fed up with State’s Inability to
Balance Budget Without Impacting
Local Governments
People Are More Aware and Involved in
Their Local Communities More Than Ever
YOU CAN DO IT!!!
6 Steps for Success
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Initiate Planning Efforts
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Implement Public Opinion Research
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Assess Initial Baseline Feasibility
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Implement Nonpartisan Outreach
Program
Re-Assess Support and Prepare your
Council or Board
Win the Partisan Campaign
Resources
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Consultants
League of California Cities
• Institute for Local Government
• California Ballot Measure Academy
CA Local Gov’t Finance Almanac
(aka, Michael Coleman website)
• www.californiacityfinance.com
CSMFO members and email listserve