Santa Rosa council adopts FY25‑26 budget with cuts, staff reductions and retention of eighth police officer

The Santa Rosa City Council on a unanimous vote adopted the city’s fiscal year 2025–26 operations and maintenance budget and capital improvement program, approving a package of reductions and position changes the finance director said are intended to extend the city’s reserves and give staff more time to address a multi‑year structural shortfall.

City Manager Smith and Director Alton (Finance) told the council the adopted budget still contains an $8.1 million deficit for 2025–26 but that the package of cuts and transfers narrows longer‑term shortfalls and extends the time before reserves fall below the council policy. The council approved specific department reductions, salary plan amendments and staffing changes while instructing staff to return with any needed appropriations or contract approvals.

The adopted budget builds on reductions made earlier in the year and includes $15.76 million in operational reductions (combining January actions and the current package). Council members and finance staff repeatedly stressed that rising personnel and benefit costs and CalPERS obligations mean relatively large nominal savings are required to meaningfully reduce the deficit. Deputy Director Scott Wagner said the city’s general fund remains the largest single fund and is the primary source of the structural gap.

Council debate focused on public safety and the proposed elimination of a ninth police officer position. Members of the Santa Rosa Police Management Association and the police chief warned that cutting the additional officer would reduce specialty enforcement, detective capacity and downtown patrols. After debate the council voted to restore the plan to remove only eight sworn positions rather than a ninth, keeping the departmental vacancy allotment at eight reductions.

The package includes elimination, reclassification or consolidation of positions across departments. Finance presented a staffing summary showing 55 general fund positions proposed for removal (about 17 sworn and 38 non‑sworn); citywide the net change is a reduction of 31 full‑time equivalents after additions funded outside the general fund (for example, Measure H fire positions and enterprise fund reorganization in water). Finance described how some of the eliminated positions are vacant, others will be filled by bumping or demotion, and a subset of filled positions will result in layoffs with transitional timing discussed.

The council approved discrete resolutions tied to the budget: adoption of the homeless services program budget (passed earlier in the meeting), the overall FY25‑26 operations and CIP budget, amendments to the city salary plan and schedule to implement position changes (subject to meet‑and‑confer), the stormwater assessment resolution, and an amendment to the public safety/violence prevention tax implementation plan. Roll calls recorded unanimous or 6–0 votes where council members had recused themselves from particular items.

Council members and speakers from the community stressed the human impact of layoffs and reductions. Speakers from Catholic Charities and other service providers urged caution on cuts that reduce outreach and drop‑in center hours, arguing those reductions could shift costs onto emergency services and the community at large. Chamber of Commerce and downtown business representatives urged protection of enforcement capacity to support public safety and economic recovery.

City staff outlined next steps: closing the books and auditing year‑end financials in July–September, an October study session with final year‑end results, and continued work by internal and external working groups, including a forthcoming Budget Advisory Committee to provide public input on budget choices. The city manager said any additional appropriation requests beyond existing authority will be brought back to council for specific approval.

The council majority framed the adopted plan as a difficult but necessary set of reductions that, combined with expected work on organizational efficiencies and economic development, aims to stabilize finances and preserve core services while giving staff time to propose further structural changes.

Ending

Council members said they will continue outreach to labor, community partners and the public as staff implement the changes and return to the council with updated financials and any required appropriation requests.