Commissioners confront $185M in active projects and limited funding; staff to explore MSBUs, MSTU, impact fees and borrowing

County staff told Santa Rosa commissioners at the Jan. 30 workshop that 71 active capital projects total roughly $185 million and that recurring revenue streams will not cover identified needs.

Why it matters: Commissioners were warned that one‑time grants and nonrecurring revenue produced much of recent capital spending and that the county must identify new, steady revenue sources to maintain roads, bridges, parks and other infrastructure as growth continues.

Summary of staff analysis: Staff said 2024 capital spending included nearly $40 million drawn largely from nonrecurring sources (grants, ARPA, debt proceeds). The board was reminded that the half‑cent local option sales tax that funds capital expires at the end of 2026 and that the county lacks another dedicated recurring source at the scale needed.

Stormwater MSBU: Staff recommended testing a stormwater municipal service benefit unit (MSBU) covering 101 subdivisions and about 6,363 lots in an initial phase. Under the proposal staff would bid maintenance of ponds and drainage in grouped zones and levy parcel assessments to fund regular maintenance and targeted capital repairs. Commissioners asked staff to return with bid estimates and a phased rollout plan.

MSTU for law enforcement and EMS: Staff said law enforcement costs are approximately 44% of general‑fund expenditures and that the sheriff has identified an estimated additional $5 million need next year for staffing and operations. Commissioners asked staff to explore establishing a municipal service taxing unit (MSTU) that would appear on property tax notices and — if the board chooses — could be structured with a baseline county contribution and an MSTU supplemental levy to fund law enforcement (and possibly EMS/dispatch) specifically.

Impact fees and traffic: The board discussed traffic impact fees; staff reminded commissioners that state statute requires 90 days' notice between ordinance adoption and collection. Staff said traffic impact fees could generate an estimated $3–$4 million annually by district and, if the board adopts the ordinance Feb. 3, collections could start May 5. Commissioners noted impact fees fund capacity improvements (turn lanes, signals, sidewalks) but do not on their own build new arterial roads.

Borrowing and prioritization: Staff urged the board to consider a mix of options — targeted MSBUs, MSTUs, impact fees, grants, and debt — and to prioritize projects before adding new ones. Commissioners discussed leveraging borrowing for priority projects while trying to balance long‑term rate and tax impacts.

Next steps: Staff will put MSBU bid documents out for the initial subdivisions, work with the sheriff on an MSTU proposal and timing, finalize traffic impact fee ordinance timing and return to the board with funding scenarios during the FY‑26 budget process.