REPORT TO CITY COUNCIL
SUBJECT
Title
Action on the Appropriation of $65,781 in Asset Forfeiture Funds for FY 2025/26 and Approve the Related Budget Amendment
Report
BACKGROUND
State and federal narcotics and other criminal investigations can result in the seizing of cash and property, such as vehicles or boats. Once forfeited, these assets may be liquidated, and the proceeds distributed to participating agencies. These proceeds are referred to as “Asset Forfeiture Funds.”
Local law enforcement agencies often assist state or federal agencies in investigations that lead to asset forfeiture. Because of this assistance, a portion of the funds is shared with local law enforcement agencies pursuant to federal law (28 U.S.C. § 524 and 21 U.S.C. §881) and applicable state law (California Health and Safety Code § 11469.)
Asset Forfeiture Funds are subject to strict guidelines governing their use. These funds must be used solely for law enforcement purposes and are designed to supplement and enhance, not supplant existing budgeted agency resources. The Police Department must directly benefit from all expenditures, which must be reasonable, necessary, and free from any appearance of waste, fraud, or abuse.
Permissible uses include:
a) Administrative costs (e.g., recruitment, advertising)
b) Training & education
c) Leasing, furnishing, and supporting public safety facilities
d) Equipment (Including office, electronic devices, firearms, canine related expenses)
e) Joint law enforcement and public safety operations
f) Contractual services (e.g., translation services, laboratory services, studies)
g) Travel and per diem
h) Law enforcement awards and memorials (e.g., plaques, badges, challenge coins)
i) Prevention and public awareness programs
j) Enforcement initiatives (e.g., victim or witness programs, firearms buy-back, programs)
k) Salaries and overtime (limited to approved backfill in accordance with program guidelines)
These funds are subject to restrictions, including limitations on salaries, litigation-related expenses, endowments or scholarships, and supplanting existing funding. The proposed uses comply with all applicable requirements.
In prior years, the Police Department has used these funds to enhance operational capabilities, improve officer safety, support training and professional development, and better serve the Santa Clara community.
DISCUSSION
In 2025, a total of 16 joint state-federal criminal and/or civil cases involving asset seizure and equitable sharing were adjudicated under federal law. The total value of assets forfeited in these cases was $808,165. These cases resulted in 24 suspects being charged with firearm or controlled substance related violations. The associated forfeiture of assets is derived from illegal drug activity pursuant to federal law.
As a result of the Department’s participation in these investigations, the City received its allocated share of the funds in the amount of $65,780.94. These funds provide an opportunity to enhance Police Department programs and services.
Consistent with federal requirements, these funds have already been received and are eligible for appropriation and expenditure planning. No anticipated funds are included in this request.
The proposed spending plan is designed to supplement existing resources, enhance operational effectiveness, and support the Department’s law enforcement mission while maintaining full compliance with federal equitable sharing guidelines.
Training & Education
Training, certifications, and professional development necessary to support law enforcement duties and maintain required competencies.
Equipment
Purchase, maintenance, or operation of equipment and technology that support law enforcement activities.
Canine Program (Equipment/Operations)
Acquisition, training, and care-related expenses associated with canine units supporting detection and enforcement operations.
Contracts for Service
Professional and technical services that support law enforcement functions (e.g., translation services, forensic analysis, specialized technical support).
Crime Prevention & Awareness Programs
Community outreach, public education, and crime prevention initiatives intended to enhance public safety and community engagement.
The proposed expenditures:
• Directly support law enforcement functions
• Do not replace existing budgeted funding
• Avoid ongoing financial obligations that would require future General Fund support
• Are reasonable, necessary, and consistent with DOJ guidance
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b)(4) in that it is a fiscal activity that does not involve commitment to a specific project which may result in potential significant impact on the environment.
FISCAL IMPACT
The Police Department is seeking City Council approval to recognize and appropriate $65,781 in Asset Forfeiture Funds to support enforcement, other programs, and needs in the Police Department. The table below details the budget action for FY 2025/26.
Budget Amendment
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Police Operating Grant Trust Fund |
|
Revenue |
|
|
|
|
Other Agencies Revenue |
$7,058,743 |
$65,781 |
$7,124,524 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Seized Asset Funds |
$179,693 |
$65,781 |
$245,474 |
COORDINATION
The report was coordinated with the Finance and Police Departments and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve the appropriation of Asset Forfeiture Funds in the amount of $65,781 pursuant to State and federal regulations; and
2. Approve the FY 2025/26 budget amendment in the Police Operating Grant Trust Fund to recognize seized asset funding in the amount of $65,781 and appropriate that funding to the Seized Asset Funds program in the amount of $65,781 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Cory Morgan, Chief of Police
Approved by: Jovan Grogan, City Manager