REPORT TO COUNCIL
SUBJECT
Title
City Council Priority Setting Session 2025
Report
BACKGROUND
On an annual basis, the City Council meets for the City Council Priority Setting Session. The City Council held its last City Council Priority Setting Session on March 25 and April 3, 2024. The City selected Raftelis (Consultant) to provide meeting facilitation for the 2024 session and led the City Council through a two-day session to establish priority areas of focus and identify City Council priorities.
For the 2025 Priority Setting session on April 3, 2025, the Raftelis team will return with Vice President Nancy Hetrick leading the City Council through the Priority Setting session. Earlier this year, the Consultant conducted individual pre-interviews with all the members of the City Council to discuss and prepare for the upcoming session.
City Council Priority Setting Summary Report
In February 2025, a report was provided to the City Council which summarized the City Council priorities identified at the last session as part of City Manager/Executive Director report. The City Council Priority Setting Summary Report (Attachment1) includes a comprehensive summary of all the priorities. The report also identifies the four new “Priority Areas of Focus”.
Below is a high-level summary of the new Priority Areas of Focus as well as a listing of the priorities identified last year and their current status. The attached report provides a more detailed update on each of the priorities.
Priority Areas of Focus
The Consultant organized the City Council priorities into four overarching Priority Areas of Focus with subcategories listed below. The subcategories are strategic outcomes for each Priority Area of Focus.
1) Excellent City Government
a. Valued City Services
b. Reliable Funding
c. Well-Managed Stadium
d. Trusted and Engaged City Government
2) Reliable Infrastructure
a. Resilient and Well-Maintained Infrastructure
b. Accessible Transportation Options
3) Outstanding Quality of Life
a. Affordable Housing and Supportive Services
b. Safe Community
c. Quality Parks Programming and Cultural Amenities
4) Thriving Community
a. Vibrant Local Community
City Council Priorities
As a result of the 2024 City Council Priority Setting Session, the Consultant identified a list of 43 total priorities from the City Council. The Consultant categorized the 43 priorities with the following methodology, based on votes:
• Top Priorities: Unanimous support to move forward (34 total)
• High Priorities: Majority support to move forward with 4 or more votes (9 total)
Analysis of Current Priorities
City staff reviewed and conducted an analysis of the priorities including determining
estimated budget allocations needed for priorities and initiatives. The priority initiatives (Top and High Priorities) are categorized into the following categories:
• Complete: (5) Priority Initiatives which are considered completed based on staff analysis and review.
• Baseline/Ongoing: (12) Work on these items Priority Initiatives has started, and progress is operationalized as a part of staffs’ current workplan. As such, in place of relisting these items as 2025 Priority Initiatives, staff proposes to track and report on the items as Council Referrals.
• Underway: (18) Priority Initiatives which have already started in the planning phases or underway.
• New: (8) Priority Initiatives which have not started and may need to be shifted based on budgetary and staff resource allocation.
As noted above, the summary report provides details and additional information on each City Council priority on items that have been completed, considered baseline and ongoing priorities, priorities which are currently underway with some progress, and new priorities which will be considered based on the allocation of budgetary and staff resources.
DISCUSSION
The 2025 Priority Setting Session will be held on April 3, 2025 at the Central Park Library. The goal of the session is to formulate and provide direction to staff on the City Council’s priorities and initiatives for the year. These priorities set the policy framework on how City resources are aligned to support these objectives.
During the session, there will be several opportunities for members of the public to provide feedback on community priorities. The meeting facilitator (Consultant) will lead the City Council through a discussion and exercises on effective governance as well as the City Council’s 2026 priorities.
The session will also include an update from City Manager Jovan Grogan on City Council priorities from 2024, and highlight which priorities are completed, underway, and items that require more resources to begin/complete. In addition, staff will provide additional updates on the Bond Implementation, Rainbow Crosswalk, and Bikeway Plan Policy.
After this section, a budget update and 10-year General Fund Forecast will be presented by Director of Finance Kenn Lee.
The 2025 Priority Setting Session includes the following agenda topics:
1. Agenda Review and Workshop Norms
2. Context Setting
3. Public Comment
4. Effective Governance: Discussion and Council Activity
5. Updates on 2024 City Council Priorities
Special Updates:
a. Infrastructure Bond Project Planning
b. Rainbow Crosswalk Locations
c. Bikeway Plan Policy Update
6. Budget Update & Critical Priorities
a. Budget Update & 10-year General Fund Forecast
b. 2025/2026 Critical Priorities
7. Public Comment
8. 2025 Priority Setting by City Council
9. Public Comment
10. Wrap Up and Council Questions / Comments
After the conclusion of the session, the Consultant will provide the City staff a summary of the session and a report will be provided to the City Council at a future meeting which will summarize the session outcomes and current status of the identified City Council priorities.
Budget Update & 10-Year General Fund Forecast
As one of the City’s major fiscal management and strategic planning tools, staff revised the 10-Year General Fund Forecast (Forecast) that will serve as a foundation for evaluating the long-term financial condition of the City. The Forecast provides a context for evaluating priorities, identifying risk factors and vulnerabilities, understanding trade-offs moving forward, and developing potential mitigation actions. In the short term, the Forecast evaluates expected revenues and expenses. The revised Forecast reveals an improved economic environment with a stable budget; however, deficits remain within the forecast in years two through six. There are also many known items not included in the forecast. Some of these items include the full restoration of frozen positions and service restorations from prior pandemic reductions, unfunded ongoing capital infrastructure needs, additional pension liabilities contributions, and resources for future growth.
Staff will also present an outline of a Fiscal Sustainability Project that is planned to kick off later this calendar year. This project, with the assistance of local government consultants, will help to identify budget capacity to reduce future budgets, create additional capacity for unfunded programs and priorities, and an evaluation of existing programs. It is expected that after this detailed review, recommendations may include reallocation of resources, new revenues, or alternate service delivery models that are designed to create additional capacity to fund our needs.
ENVIRONMENTAL REVIEW
This is an information report only and no action is being taken by the City Council and no environmental review under the California Environmental Quality Act ("CEQA") is required.
FISCAL IMPACT
There is no fiscal impact associated with this update other than staff time. Implementation of certain priority initiatives may require additional funding which will be requested through the normal budget process.
COORDINATION
This report has been coordinated with the City Manager’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. Note and File the City Council Priorities Summary Report
2. Note and File the Budget Update and Ten-Year General Fund Forecast
Staff
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. City Council Priority Setting Summary 2024 (Revised)