Santa Rosa City Council reviews $224M budget and plans significant reductions

The City of Santa Rosa is grappling with a significant budget deficit of $6.7 million for the fiscal year 2025-2026, as revealed during the City Council meeting on May 6, 2025. City Manager Veronica Rodriguez presented the budget, emphasizing the need for clear direction from the council on potential budget cuts to address the shortfall.

The proposed budget outlines $217.5 million in revenues against $224.2 million in expenditures, marking a concerning trend as the city faces ongoing financial challenges. Rodriguez highlighted that while some departments may require further discussions with labor representatives regarding budget reductions, the city is committed to transparency and collaboration throughout the process.

Key revenue sources for the general fund include sales and property taxes, which together account for over 50% of available resources. However, anticipated sales tax revenue has been adjusted downward by $5.5 million to align with expert predictions, reflecting a cautious approach to budgeting in light of economic uncertainties.

The budget also proposes the elimination of 58.9 full-time equivalent positions across various departments, primarily in public safety, to help mitigate the deficit. Rodriguez noted that while the general fund is facing cuts, enterprise funds, such as water and wastewater, are not subject to the same reduction strategies due to their independent funding sources.

In addition to staffing reductions, the council discussed potential cuts to homeless services and recreation programs, which could further impact community support. The city is considering fee increases for recreational services to offset costs rather than cutting programs, aiming to maintain essential services during challenging financial times.

As the council prepares to finalize the budget, they must weigh the implications of these cuts and the potential for increased fees against the need to sustain vital community services. The next steps involve further discussions and a final budget draft to be published by June 1, 2025, as mandated by city charter.