Contracting Services Could Help Get CV City on Budget
Linda Smith, City Manager of Orinda
If Castro Valley becomes a city one day, it will likely begin by contracting out its public safety and other key services.
Linda Smith, the City Manager of Orinda, delivered that message at a community meeting at the Castro Valley Library last Tuesday. The series is sponsored by Castro Valley City, Inc., a group of locals who feel cityhood is a better alternative to unincorporated.
With the topic of “City Budgeting & Contracting,” Smith shared her insights on city formation and governance, mainly focusing on contracting models for municipal services. Drawing from her experiences in Orinda and Dublin—two relatively young cities—Smith highlighted how contracting can offer flexibility and efficiency in service delivery.
Smith explained that both Orinda and Dublin rely heavily on contracted services, including police and fire departments. “Orinda has its own fire district, but Dublin contracts out fire services,” she noted. The contract model, she argued, allows cities to scale staffing up or down as needed, ensuring cost-effective service delivery.
One key advantage she emphasized was the ability to quickly backfill positions, particularly in public safety.
“With a dedicated police department, if an officer is injured, overtime is required to cover shifts,” Smith said. “With a contract arrangement—like with the Sheriff’s Office—those gaps can be filled more efficiently.”
Additionally, contracting provides flexibility in personnel management. “If a particular officer isn’t a good fit for the community, you can request a replacement from the Sheriff’s Office,” Smith explained. This adaptability is especially beneficial in a growing city where rapid response to community needs is crucial.
While many services can be outsourced, Smith emphasized the importance of certain full-time city positions.
“A city manager and a city clerk should definitely be full-time, appointed positions,” she told the Forum, adding that other essential roles include a public works director to oversee maintenance and infrastructure, as well as directors overseeing the city’s finance, human resources, and IT department to ensure smooth operations.
The discussion also touched on revenue sources for a newly incorporated city like Castro Valley. Smith outlined the three primary revenue streams: property tax, sales tax, and fees from development services. "Property tax is the largest source, followed by sales tax and revenue from permits and other city services," she explained.
She reassured attendees that forming a city doesn’t automatically mean higher taxes. "The goal is to create opportunities for businesses to thrive, which boosts sales tax revenue without placing additional burdens on residents."
Smith drew comparisons between Orinda, a built-out city requiring reinvestment, and Dublin, which has experienced significant growth. She suggested that a “City of Castro Valley” might follow a hybrid approach, incorporating elements from both cities.
“Like Orinda, Castro Valley should focus on business development along Castro Valley Boulevard, and revitalizing key areas could help establish a strong financial foundation," she said. "A new city must balance efficient service delivery with long-term financial sustainability. Contracting can be a key tool in achieving that balance."
For more information about the speaker series and the push to make Castro Valley a city, visit https://castrovalleycity.com/