|
Dear Resident,
As we welcome 2026, I want to wish every resident of Santa Clara a very happy new year! Looking back at 2025, our city has achieved remarkable fiscal stability and growth through disciplined leadership and community engagement.
Our General Fund performed exceptionally well this past year, ending with $362.3M in total revenue - a 10.04% favorable variance over our budget. This strength allowed us to reconcile a $41.32M surplus. Rather than one-time spending, we are prioritizing our future by allocating $20.35M towards the Public Buildings Capital Fund and $13M into Capital Project Reserves. We also fortified our Budget Stabilization Reserve to ensure we remain resilient against economic shifts.
This is a historic moment for Santa Clara as we prepare to host Super Bowl LX at Levi’s® Stadium next month. This global event brings immense economic opportunities, showcasing our city to millions and boosting local businesses.
Looking further into 2026, we face the exciting challenge of hosting six FIFA World Cup matches. While this presents opportunities for unprecedented global tourism and infrastructure legacy, it also brings challenges, such as managing complex international logistics, heightened security requirements, and ensuring smooth transportation for thousands of fans.
The City of Santa Clara concluded the 2024-25 budget in a strong fiscal position, with revenue significantly exceeding projections and expenditures remaining below budget. Net surplus of $41.32 million. The following was presented and approved by council at the Dec. 17, 2025, council meeting.
City of Santa Clara General Fund Revenue for 2024-25
Based on the financial data, the city's revenue distribution is led by core taxes and services:
Total actual revenue reached $362,293,165, representing a $33,046,918 (10.04%) favorable variance over the final budget. Key drivers included:
-
Property Tax: The largest source, contributing $95.9M (26.5%).
-
Sales Tax: Contributed $79.4M (21.9%), showing a significant favorable variance of 15.32% over the budget.
-
Other Fees for Services: Generated $47.8M (13.2%).
-
Silicon Valley Power Transfer: Provided $38.9M (10.7%) to the general fund.
-
Other Misc Revenue: This segment accounts for $18.5M (5.1%), aggregating smaller revenue streams such as Fines and Penalties, Revenue from Other Agencies, and state-level contributions.
City of Santa Clara General Fund Reserves for 2024-25
City of Santa Clara General Fund Expenditures for 2024-25
Total uses of funds amounted to $319,081,748, which was $14,760,934 (4.42%) lower than the final budget. Major allocations included:
-
Total Public Safety: $161.5M (55.8%)
-
Total General Government: $40.0M (13.8%)
-
Public Works: $26.7M (9.2%)
-
Non-Departmental: $22.3M (7.7%)
-
Parks and Recreation: $21.8M (7.5%)
-
Library: $12.1M (4.2%)
-
Community Development: $5.3M (1.8%)
City of Santa Clara General Fund Expenditures for 2024-25
In summary, the city achieved a substantial surplus of $41.32 Million for the year 2024-25, driven by robust tax receipts and interest gains, while maintaining disciplined spending across all major functional departments. The surplus of $41.32 M has been voted by council to be distributed among the following major categories. Please note council can change this allocation in the future, as per the future needs:
-
Public Buildings Capital Fund: The largest single allocation of $20.35M.
-
Capital Projects Reserve: $13M is set aside to support the development of Capital Budgets for the 2026/27 and 2027/28 fiscal years.
-
Pension Trust Reserve: $4.60M is allocated to bring this reserve to 8.0% of the General Fund's unfunded liability.
-
Budget Stabilization Reserve: $1.30M is recommended to maintain the reserve at 25% of expenditures based on the Amended Budget.
Direct Revenue transferred to the General Fund (FY 2024-25)
For the SC Stadium Authority Fiscal year ending in March 31, 2025, the City’s General Fund received significant injections following the settlement of long-standing litigation with the 49ers (Please note the following does not include the revenue city General Fund will receive for the period April 1, 2025 to March 31, 2026):
-
Performance Rent: The City received approximately $11.45M in performance rent. This was higher than usual because it included several years of back-payments that had been held in a legal contingency fund during the dispute.
-
Ground Rent: A steady $1M was paid for the lease of the land.
-
Excess Revenue Transfer: An additional $6.2M was transferred to the General Fund from excess stadium profits.
-
Senior & Youth Program Fees: Approximately $279,000 was generated for community programming.
-
Total Outstanding Debt for Stadium: As of March 2025, it is $219.6M.
Overall, 2025 has been a great year for the city of Santa Clara from a financial stability front. 2026 will also be a busy year in planning and implementing all the infrastructure improvements in the city using the $399M bond approved by you all.
Most importantly, these financial achievements and other achievements were made possible by the dedication of our City staff, community partners, and residents who actively engage in civic life and care deeply about Santa Clara’s success.
As we begin the New Year, I wish you and your families health, happiness, and prosperity. I look forward to continuing to serve you and to working together to make 2026 another successful year for our City.
Warm Regards,
 Raj Chahal
Councilmember, District 2
City of Santa Clara
|
