Planning for Fiscal Sustainability in Difficult Times Planning for Fiscal Sustainability in Difficult Times February 19, 2009 Presented by Jesse Takahashi Finance Director City of Campbell

Background 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

Timeline of Events March study session began focused discussion of voter required revenue enhancement options July community satisfaction survey; included two possible revenue measures October 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) April 2008—launched community education & outreach program July 2008—conducted follow up community polling; narrowed scope of possible revenue measure August 2008—Council votes to place Transactions & Use Tax on ballot Aug-Nov 2008—Partisan campaign begins; City disseminates objective information Nov 2008—Voters pass measure with 71% approval; effective April 1, 2009

Outreach Efforts Inventory of Community Organizations Citizens Budget Task Force Newsletter and Newspaper Articles Citywide Mailing Community Forums Presentations to Community Groups Information Tables at Public Events Feedback Forms

Summary of Options Raise revenue via a ballot measure to maintain current service levels Reduce expenditures and/or raise fees by $2 million to eliminate deficit 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 Self Assessment Self Assessment Community Priorities Community Priorities Unified Board or Council Unified Board or Council Education and Outreach Education and Outreach It’s all About the Trust It’s all About the Trust Communicate, Communicate, Communicate Communicate, Communicate, Communicate Assemble a Capable Team Assemble a Capable Team Speak with One Voice Speak with One Voice

Obstacles to Success Naysayers (Internal and External) Naysayers (Internal and External) Limited Budget/Resources Limited Budget/Resources Getting Your Ducks Lined up Getting Your Ducks Lined up Workers, Endorsements and partisan campaign volunteersWorkers, Endorsements and partisan campaign volunteers Poor Economy Poor Economy Reasons for Distrust in Local Officials Reasons for Distrust in Local Officials Maintaining Momentum through Entire Process Maintaining Momentum through Entire Process

Reasons for Optimism Strike While Iron is Hot Strike While Iron is Hot New President has Created Renewed Hope and Optimism Among Public 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 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 People Are More Aware and Involved in Their Local Communities More Than Ever YOU CAN DO IT!!! YOU CAN DO IT!!!

6 Steps for Success Initiate Planning Efforts Initiate Planning Efforts Implement Public Opinion Research Implement Public Opinion Research Assess Initial Baseline Feasibility Assess Initial Baseline Feasibility Implement Nonpartisan Outreach Program Implement Nonpartisan Outreach Program Re-Assess Support and Prepare your Council or Board Re-Assess Support and Prepare your Council or Board Win the Partisan Campaign Win the Partisan Campaign

Resources Consultants Consultants League of California Cities League of California Cities Institute for Local GovernmentInstitute for Local Government California Ballot Measure AcademyCalifornia Ballot Measure Academy CA Local Gov’t Finance Almanac (aka, Michael Coleman website) CA Local Gov’t Finance Almanac (aka, Michael Coleman website) CSMFO members and listserve CSMFO members and listserve