[{"_1":2,"_86":-5,"_87":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6630578,"mediaKeyId","2690617-7bbc6f10f8c0068a415133e2d8863b4b","parentId",2690617,"title","Santa Rosa projects $19.3 million general fund deficit for FY25-26 as sales tax falls and costs rise","audioSeconds",247,"startMs",32141,"endMs",280140,"viewUrl","/Search/View?dp=1&key=2690617-7bbc6f10f8c0068a415133e2d8863b4b&start=32&end=280","thumbnailUrl","https://assets.pipeline.soar.com/2690617-7bbc6f10f8c0068a415133e2d8863b4b/thumbnail_32141.jpg","articleUrl","/articles/6630578/Santa-Rosa-City/Sonoma-County/California/Santa-Rosa-projects-193-million-general-fund-deficit-for-FY25-26-as-sales-tax-falls-and-costs-rise","mediaUrl","https://secure.pipeline.soar.com/6630578-aa74ed90897899ba5c719d1b6cf40dbe/orig.mp4?Expires=1771176113&Signature=fC4~NsGKXEqoNuEJhuQab2oF0Betq8W80jB1fKWl6QC9R1XhrUaJVDmpujw4TFfviMVGxY1v4TWrIta9zTStingufnidWmq1NIXiVfPR0qIvVBiNX~LXSCv2NX4zD~j6xOnC3ZSkKlAYq~ZWoDjZirGeNXzINDl0LkY3yyJDVfdxypWIP2v0XsmNgwxWNHxO2XeDgnN0fIngk8XjhYBFQUNlV95ARSk9oFwONE0CRVf97aYMANU2jkIgNmULA2fYlxKF5pnIgvdBhBfEeRM8RZwjPs9b~L5SY1PgrFmPleldEDniJfUZ7fJP76RfbQXhni2Tlpm2PQ0X0Y-rm3lV6A__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Santa Rosa, CA","date","2025-03-19T16:42:13.987Z","article","Veronica, staff member, presented the Santa Rosa City preliminary fiscal year 2025–26 forecast to the finance subcommittee and said the proposed general fund deficit for FY25-26 is $19,300,000.

\"In fiscal year 25, 26, we have a $19,300,000 deficit,\" Veronica said. She described the outlook as driven by two main factors: slow revenue growth and sharply rising expenditures.

On the revenue side, staff expect roughly $3,000,000 from recently passed tax measures, continued property tax growth of about 5% (approximately $3,600,000), and a planned reduction of the sales-tax budget by about $5,500,000 after consultant review. Planning and recreation fees show no net increase in the proposed budget because many projects were grandfathered under previous fee schedules and development activity has shifted toward smaller projects.

On the expenditure side, Veronica said salary and benefit increases account for approximately $9,300,000 of the single-year increase, driven by contract cost-of-living adjustments, an equity adjustment for miscellaneous employees and higher benefit costs. Council actions in January to reduce operating costs produced about $4,100,000 in savings for FY25-26, and a measure that shifted the Redcom contract now yields approximately $1,300,000 in lower contractual costs for the general fund; however, increases in fleet costs and fire/earthquake insurance have absorbed much of those savings.

Staff also called out transfers and uncontrollable liabilities that worsen the structural gap. Transfers out are increasing by about $1,500,000 in FY25-26 because ARPA funds that previously covered homeless services are expiring and the general fund will resume covering those costs. The city’s CalPERS unfunded actuarial liability (UAL) is projected to increase about $11,000,000 over five years according to the CalPERS valuation, contributing to a five-year projected gap that staff said could grow toward roughly $46,000,000 without sustained action.

Veronica and Scott Wagner, deputy director of finance, said staff are meeting with the city manager and departments to develop reduction lists. Staff will present proposed reductions in a Council study session on April 15, return for a detailed budget study session in May, and present third-quarter general fund results to the LTFPA on April 22 so the Council and subcommittee can assess year-end reserves.

Committee members asked about the roles of county funding and voter-approved measures in offsetting costs for homelessness. Several members noted that Measure O and Measure M revenue streams and stronger county partnerships could reduce the city’s near-term burden for homelessness services; staff said those discussions are underway but did not present binding commitments.

The subcommittee did not adopt budget reductions at the meeting. Staff said the process will be iterative and that department reduction proposals and Council direction in April and May will determine the final FY25-26 budget.

Ending: Staff will present department reduction proposals at an April 15 Council study session, return for a May in-depth session, and report third-quarter results to the subcommittee on April 22; the final budget will reflect Council choices informed by those sessions.","mediaType","Video","parentTitle","City of Santa Rosa - Long Term Financial Policy and Audit - March 13, 2025","oneSentenceSummary","City staff presented a preliminary FY25-26 forecast showing a $19.3 million budgeted deficit driven by a $5.5 million sales-tax reduction, rising salaries and benefits, and the end of ARPA support for homelessness services. Departments will return reduction proposals and the council will review study sessions in April and May.","taxTitle","Santa Rosa City, Sonoma County, California","taxId",3913,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":79,"_47":80,"_49":81,"_51":82,"_53":83,"_55":56,"_57":58,"_59":84,"_61":62,"_63":64,"_65":85,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6630584,"Santa Rosa staff outline four financial policies to formalize reserves and capital planning",0,3471000,"/Search/View?dp=1&key=2690617-7bbc6f10f8c0068a415133e2d8863b4b&start=3471&end=3471","https://assets.pipeline.soar.com/2690617-7bbc6f10f8c0068a415133e2d8863b4b/thumbnail_3471000.jpg","/articles/6630584/Santa-Rosa-City/Sonoma-County/California/Santa-Rosa-staff-outline-four-financial-policies-to-formalize-reserves-and-capital-planning","https://secure.pipeline.soar.com/6630584-93d3d72442f0a1f04e4b2b5034f997d7/orig.mp4?Expires=1771176113&Signature=JfRgkFHF98Y-mFkq7tOLvWG1cP8f2HpDUDbbz51hqy30kQxByI9nmKNFn9grCk9xWls9Ua7HiJSp0~s2f3XtXXXmGt5f3GVmcpZEmqAHiGlLiIBq7L8ASP2B6sXE0ohFMSwY~0wLIatReM354RMvLoWr9YryQgvFoHVMFZCHZBm5db1EbT~SgX6Qvw~PtgTnCmpQ-rQx52QAN6IYCmYN85zfhwlG7VvTFiHQlcLOtucPHC~CwgJfwxDxPvZgB3F-0cKjlEj4AKx0c5739s-u0wJodIIqzd0aQjkxDVSXFTmCPYJf3Qtxk4U2GgpCiaLV37gh1v-vzKrvCqDkFp6FHw__&Key-Pair-Id=KUT5TJCACFTXG","Alan, staff member, told the Santa Rosa City finance subcommittee that the city already follows many best practices but lacks written policy for several areas and proposed formalizing four policies.

\"Financial policies are central to a strategic and long term approach to our financial management,\" Alan said, framing the presentation around the Government Finance Officers Association (GFOA) best-practice list and noting the city currently lacks written policy in four areas.

The presentation identified four policy topics staff propose to draft: a structurally balanced budget that distinguishes ongoing from one-time revenues; formal long-term financial planning with multi-year forecasting; a capital projects policy covering asset life-cycle, project scoping, budgeting and operations costs; and an expanded reserves policy spelling out the use of fiscal stability reserves and rules for amounts above the city’s minimum target.

Alan said the city already applies many of these practices informally — for example, a fiscal stability reserve was created after one-time PG&E funds became available — but that codifying them would \"institutionalize good financial management practices\" and support bond ratings and lower borrowing costs.

Scott Wagner, deputy director of finance, summarized the city’s three reserve categories: a mandated reserve (about 17% of annual expenditures), available reserves (amounts above the mandate) and a third informal fiscal stability reserve set aside to cover budget deficits. Wagner said the fiscal stability reserve has a defined purpose and is being drawn down in recent years to cover operating shortfalls.

Committee members raised implementation and tradeoff questions. Members asked how specific policies should be to avoid over-reserving for projects that later prove more expensive, and whether capital budgeting rules can realistically capture future staffing, maintenance and utility costs. Alan and Wagner acknowledged those trade-offs and recommended drafting policies that provide guidance without excessively restricting future councils.

The subcommittee agreed that staff should draft the proposed policies and return to the subcommittee with written proposals; the committee did not take a formal vote on adoption at the meeting.

The staff presentation referenced examples from other jurisdictions and GFOA guidance; Alan recommended bringing policy drafts back to the subcommittee for refinement and then, if approved by the subcommittee, forwarding them to the full City Council for study session or report items.

The subcommittee closed the item with agreement to have staff return with draft policies.

Ending: Staff will draft formal policies on a structurally balanced budget, long-term financial planning, capital projects, and reserve use, then return to the subcommittee for further direction before any action by the full City Council.","City finance staff told a subcommittee they will draft four written policies — a structurally balanced budget, long-term financial planning, capital projects policy and formal rules for reserves — to convert existing practices into codified guidance and return to the subcommittee for direction.","actionData","errors"]

Article not found

Santa Rosa projects $19.3 million general fund deficit for FY25-26 as sales tax falls and costs rise

Santa Rosa staff outline four financial policies to formalize reserves and capital planning