Sonoma City Council has reported a significant financial surplus for the fiscal year 2024-2025, with total revenues exceeding expectations by $3.2 million. During the recent council meeting, Finance Director Ariel presented a comprehensive year-end financial update, revealing that the city collected $47.1 million against a budgeted $43.9 million in total revenues. This positive financial performance has resulted in a surplus of $3.7 million across all funds.

The general fund, a critical component of the city’s budget, also showed promising results. The actual revenue for the general fund reached $27.5 million, surpassing the budgeted amount of $24.9 million. Expenditures were managed effectively, coming in at $27 million against a budget of $28.2 million, leading to a surplus of $600,000 for the general fund.

Key highlights from the financial report included a notable increase in revenue from the Transient Occupancy Tax (TOT), which benefited from a boost in tourism, and property taxes that exceeded projections due to a strong real estate market. However, sales and use taxes fell short of expectations, reflecting ongoing consumer caution in spending.

The council also discussed the implications of these financial results for future budgeting. With a forecasted reserve of $16.5 million for the upcoming fiscal year, city officials emphasized the importance of maintaining fiscal sustainability amid economic uncertainties. The council plans to closely monitor expenditures, particularly in public safety contracts, which are sensitive to cost fluctuations.

Overall, the meeting underscored the city’s commitment to prudent financial management and strategic planning, ensuring that Sonoma remains well-positioned to address future challenges while continuing to serve its community effectively.